Community pharmacy chain Avicenna Retail has posted a pre-tax profit of over £7.9m for the year ending July 2024, up from a loss of £123,398 in 2023.
According to accounts published on Companies House, Avicenna's sales remained stable between 2023 and 2024.
Revenue increased marginally by 0.9 percent, from £168.3m in 2023 to £169.7m in 2024.
The company anticipates “further disposals” of stores and “head office cost-saving initiatives” throughout 2025.
The retailer intends to use the proceeds to "repay the outstanding bank loans and subsequently reduce exposure to significant borrowing costs."
This will allow the management to "focus on maximising returns from the remaining portfolio of stores".
Avicenna is “actively working through this restructuring process, which includes both store disposals and the right-sizing of our support centre for a reduced estate”, C+D reports.
The expectation is that this will be “around 25 stores” which are “likely to be in England”, it added.
The company said it faces "significant competition from both other local independent pharmacies and large national chains."
It also said that "further changes to drugs tariffs could adversely impact the company's profitability."
Avicenna Retail had last month sold its 24 pharmacy branches, located in the Rhondda and Cynon Valleys in Wales, to Knights Pharmacy.
