Yahoo Finance Losses widen for Cohens Chemist amid funding uncertainty
The business behind Cohens Chemist almost doubled its losses this year, with product shortages and inflation continuing to put pressure on the group.
Parent company Gorgehead, which owns more than 200 pharmacies across the UK, made a pre-tax loss of £3.2m over the 12 months to the end of August 2023, up from £1.7m in the previous year.
The Bolton-headquartered chain has been struggling due to an increase in costs and lack of funding since 2019, last year making the decision to limit its free prescription delivery service and close three branches in the north of England.
This challenging period for the firm started just one year after it bought 11 Lloydspharmacy shops, after their parent company, Celesio UK, announced it would cease trading in 190 pharmacies in England.
Gorgehead’s directors said they were confident the business would continue to trade for at least the next year, but that there was “uncertainty” over how future funding would be distributed, after the previous funding structure came to an end last March.
However, the firm added that it hoped the government’s Pharmacy First scheme, which will allow patients to get treatment for some common conditions directly from pharmacies, would provide opportunities to capitalise on the increased demand.
A statement signed off by the board said: “The company is always looking to realise value in stores through strategic acquisitions and disposals.
“We continue to strive to promote the best possible healthcare to all the communities in which we are based by constantly training our staff to the highest standards; this said, we consider our staff to be the greatest asset of the company.
“We are currently awaiting further information on the funding beyond 2023/24. The government has announced that there will be an investment of £645m into community pharmacies in 2023/24.
“The directors are committed to maximising the business’ potential return from this additional finding and have delivered specialised training to business personnel, to assist in delivering this outcome.”
