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Cohens Chemist lost £7.79m in the 12 months to September, an end-of-year result 36 per cent worse than the previous year. 

The independent pharmacy chain’s latest accounts, published in June under the name of parent company Gorgemead Ltd, show that despite turnover rising by 1.6 per cent to £249m year-on-year the company had been badly affected by rising costs. 

Administrative expenses rose from £70m to £77m, contributing to the company’s operating loss-to-turnover ratio almost tripling.

This was “a result of the continuing increase in both cost of sales and overheads as a result of product shortages and increased demand, along with inflation,” said Cohens directors in the Companies House filing.

But the company’s gross profit margin (26.8 per cent) and the rate of operating expenses to turnover (30.2 per cent) were described as “satisfactory”.

The chain’s directors said they “will again strive to improve performance and profitability over the coming year by means of divestment, restructure and acquisitions as appropriate”.

The Cohens Chemist website shows the business has four branches in Wales and 201 in England, a majority being concentrated in the North West region. 

Cohens directors commented: “The company is always looking to realise value in stores through strategic acquisitions and disposals.”

The report refers to “a number of acquisitions” and one strategic disposal during 2023-24, with a further sale of one branch taking place in December 2024. 

“We regard our staff to be the greatest asset of the company,” Cohens directors said. 

“All our pharmacies are equipped to deliver the pharmacy contract to the highest possible standard and we actively work with NHS England and local authorities in the promotion of additional healthcare services,” they added.

The Gorgemead group is financed by a revolving credit facility and as of August 31, 2024 had a net current liability position of £17.2m “due to the short-term nature” of its party loans.

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