McCauley Group to post sales of €48 million

Independent pharmacy chain, Sam McCauley Group, is set to post a turnover of €48 million at the end of its current financial year, its managing director said yesterday.

The 15-store chain announced that an expansion that is currently underway would create 40 jobs when it is completed early next year. The expansion includes a €3.5 million redevelopment of its flagship outlet in Wexford town and the opening of a new store in the Mahon Point Shopping Centre in Cork.

Its managing director, Mr Sam McCauley, told The Irish Times yesterday that the company is on track to record sales of €48 million for the 12 months to September 30th. This will be a near 20 per cent leap on last year, when it recorded a turnover of €40.7 million.

"We expect that to be €75 million after two years and €100 million in 2008," Mr McCauley said. "That is without any further acquisitions, and is based on our existing pipeline."

He pointed out that his company's performance compared well with its competitors, including multinational operator Celesio (formerly Gehe), which he estimated was taking €50 million from a larger chain of stores.

According to current filings with the Companies Registration Office (CRO), its parent company, Sam McCauley Chemists Ltd, had an operating profit of €1.5 million in the year to the end of last September, compared with €700,000 in 2002.

Its pre-tax profit of €2.8 million was boosted by a once-off €1.3 million payment from the sale of a subsidiary. Part of this came from the disposal of an element of its business in Naas, Co Kildare. At the end of the year, the group had total shareholders' funds of €14.1 million and close to €2.6 million in the bank.

McCauley is negotiating the purchase of a further four sites for its outlets. The group has been expanding the number of its outlets in recent years.

Its accounts show that in its 2003 financial year, it spent €7.2 million on the purchase of new stores. These included a unit in Fairgreen Shopping Centre in Carlow and a site in Greystones, Co Wicklow. Mr McCauley estimated that it spent €8 million on expansion in 2002.

He said the company funded the growth through its own cashflow and bank loans. The estimated cost of its Redmond Square, Wexford redevelopment is €5.5 million. McCauley recently restructured itself, bringing the ownership of all its outlets under the umbrella of the one company, Sam McCauley Group. Previously they operated as individual limited companies.

Over 20 other pharmacists, who held shares in the individual outlets, now have a stake in the overall group and a number are board members. Mr McCauley, also the group's founder, is the largest shareholder with 11 million shares.

Mr Gerry Griffin, former chief executive of Uniphar, chairs the company and also holds a small stake in it. However, Uniphar does not have a shareholding in the McCauley Group.