IT SEEMS all is not well at Irish community pharmacy group Uniphar, an unlisted plc. In recent letters to shareholders, chairman Frank Reen, who owns a pharmacy in Millstreet, Co Cork, outlined the headaches the group is facing.
These include a €25-30 million provision relating to a decline in the value of certain investments in individual pharmacies by local chemists.
Uniphar’s 2007 accounts show it earned pre-tax profits of €21.6 million on turnover of €720 million. But chemists haven’t been immune to the recession while HSE cuts to generic drug prices has also trimmed margins.
Trading in Uniphar shares, which are not listed, has been suspended until accountants BDO Simpson Xavier delivers a report on a revised price for the stock. This is not expected until early April.
There has also been a “major restructuring” of the management team, which has been downsized by more than 30 per cent.
It is also looking to restructure its debt and to sell some pharmacies in the network. Uniphar has also introduced a pay freeze across the group for 2009.
