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Profits down at Hickey's unit to €2.95m

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Increase: The company’s lease costs climbed during the year

Increase: The company’s lease costs climbed during the year

Increase: The company’s lease costs climbed during the year

Pre-tax profits at a unit of the Hickey's pharmacy group last year declined by 23.6pc to €2.95m.

That was despite a 3.5pc increase in revenues from €26.26m to €27.19m in the 12 months to the end of February last. The directors' report says the current business continues to trade successfully with the addition of four new stores. The directors say that they expect this to continue with more new acquisitions and opening schedules for 2018/19.

The group operates 37 stores across the country with the filings for Hickey's Pharmacy Ltd accounting for a number of these stores.

The directors say it is their intention to increase turnover and development activities during the year.

The firm sustained the drop in profits after the business incurred an increase in operating lease costs, which rose from €1.039m to €1.155m with non-cash depreciation costs more than doubling to €219,792.

The company's staff costs also increased sharply from €5.08m to €5.96m while directors' pay decreased from €239,799 to €151,501.

The company recorded post-tax profits of €2.57m after paying corporation tax of €386,397.

The directors also cite a risk posed to the firm by having a dominant purchaser in the HSE. They also point to the risk supply issues posed by Brexit. Numbers employed by the Hickey firm last year reduced from 159 to 148.

At the end of February last, the firm had accumulated profits of €7.6m.

Irish Independent