The National Pharmacy Association group has posted a loss on ordinary activities for the fourth year in a row, while turnover has fallen year-on-year since 2015.
Turnover fell by eight per cent from £11.143m in 2018 to £10.293 million in 2019, which chief executive Mark Lyonette attributed largely to a change in the arrangement with EMT Healthcare, which supplies member pharmacies with business essentials.
This helped pushed up operating losses to £1.781m from the 1918 figure of £1.077m. However, losses before tax were reduced to £238,000 due to a strong investment performance generating income of £1.543m.
The consolidated group accounts comprise the financial statements of NPA Ltd (NPA) and its wholly owned subsidiaries, NPA Services Ltd (NPAS), and NPA Insurance Ltd (NPAI).
NPAS provides business products and services to members of the NPA. To simplify the group structure the Board has agreed to transfer the trading activity of NPAS to the NPA from 31 December 2020.
Of the profit/loss for the financial year, a loss of £2,939,000 (2018: loss £556,000) was generated within the financial statements of NPA Ltd. The directors have taken advantage of an exemption available under Section 408 of the Companies Act 2006 not to present a profit and loss account for this company.
Group turnover in 2019 was split almost equally between insurance services (£5.114m) and commercial activities including sale of goods (£827,000), subscription income (£3.094m) and training courses (£1.258m).
Wages and salaries cost the group £5.424m in 2019, slightly up on the previous year (£5.242m). However full time equivalent staff numbers fell from 163 to 141.
Directors’ emoluments ( there were 20 in 2019, and directors are also directors of subsidiaries) came to £379,000. There were no payments for compensation for loss of office to key management in the current or previous year, according to the financial report.
NPA Group -profit and loss account 2015-2019
|Cost of sales||(6,137)||(6,718)||(7,303)||(7,326)||(8,122)|
|Other operating gains||1,407||1,697||3,135||1,043||1,738|
|Interest and similar income||1,543||(481)||1,252||1,665||764|
|Profit/(Loss) before tax||(238)||(1,588)||14||(838)||494|
|Tax on ordinary activities||(97)||(78)||(141)||141||(70)|
Profit/(Loss) in financial year