In 1991, the beginning of a brave new decade, UniChem’s senior executive had to show what was, for them, a new skill. As well as ensuring that UniChem’s wholesaling business ran well, they had to search for other profitable enterprises in which to invest.
For the 20th consecutive year the company was able to report increased profits. This year there was a 30% rise to £21.4 million, made from a turnover of £920 million. Even this rise understated the true situation because the company’s largest pharmaceutical supplier had changed the relationship to that of an agent, meaning that their sales could not be included in the total. A total dividend was declared of a satisfactory 5p per share.
In late 1991 a rights issue was made, which raised over £35 million. It was 90% taken up, including heavy backing from UniChem’s pharmacist shareholders.
The biggest financial outlay of the year was involved in the purchase of the 92 pharmacies which made up the Moss chain. They were distributed throughout the Home Counties, and this act marked the starting of a significant second core business for the company.
By the end of the year, in addition to the Moss deal, the company had purchased a total of 38 individual pharmacies. It was intended that the majority of these would be franchised, and one of them was already open and operating as such. Although this scheme grew to ten shops in the following year, in the long term it was not a success, with not sufficient interest being shown by young pharmacists.
The year’s biggest potential step forward for the members was the introduction of UniPos which was the first electronic point of sale system, specifically designed for use in pharmacies. This low-cost unit could automatically update prices and rationalise product ranges. Its proper use could dramatically increase a pharmacy’s profit margin.
A number of significant staff changes took place during 1991. Firstly, Peter Dodd had announced his intention to retire in 1992. As a result, Jeffery Harris was promoted to the post of Deputy Chief Executive, to become Chief Executive in Peter Dodd’s place. Grahame Sewell had joined the Board as Finance Director in March, but, unfortunately, was only to stay one year.
Additionally, Tony Foreman moved up to Deputy Marketing Director and Chris Etherington to Deputy Operations Director.
David Walker, the Management Services Director, who had been responsible for much of the advance of UniChem’s computer division, had decided, during the year, to resign in order to pursue other business opportunities.
Although it can be clearly seen that the first year’s trading as a public company had been a very active and profitable one, the Executive were looking for even more, and eagerly anticipated 1992.
This second year with a quotation on the London Stock Exchange, proved to be another outstandingly successful one. The company, thrived under its new Chairman, Lord Rippon. Total sales grew by 14% to £1,049 million, and profits before tax to £31.9 million (up by 49%). A good dividend of 5.65p per share was paid. Progress was made on all fronts, with a particularly good result being achieved in the field of supply to hospitals. Here, sales had increased by 32% and UniChem had now become a major force in this sector, which it had only entered three years previously.
The first step into Europe had been made with the purchase of three companies in the northern part of Portugal. Together they accounted for 10% of the total Portugese market, with an annual turnover of some £67 million. The process of integration and strengthening these businesses was quickly begun.
The company’s retail pharmacy business grew very well during the year. Scott Chemists, a chain of 31 pharmacies shops in Scotland, were purchased for £14.5 million, and by December the Moss chain had grown to no less that 209 pharmacies. The combined sales of these shops had reached over £80 million pounds, a like-for-like growth of 8%, which was a very good outcome, in view of the generally depressed retail climate.
In December, Barry Andrews, Managing Director, Moss Chemists, joined the Board.