Boots Opticians scores with £1m second half

Boots Opticians’ recovery is continuing, new financial figures have revealed.

An improving second half performance in 2005-2006 saw the optical business profit by £1m. However, over the full year to March 31, profits at the 300-store chain fell £3.5m.

It achieved £174.3m (2005: £180.3m) in revenue during the 12 months featured in Boots plc’s latest set of results, a 3.3 per cent decline in sales growth.

Overall, Boots Opticians posted a trading loss of £4m, with its trading margin 2 per cent lower. Operating profit was £5.8m in the red, which included £2m going on store refurbishment announced in mid March.

A Boots plc spokesman said the multiple had had ‘a difficult first half’ following the integration into Boots the Chemists.
‘These were important changes for the future of the business but did create substantiatal disruption in the first half,’ he said.
‘The new management structure has started to bed in and performance in the second half was much stronger, with revenue increasing by 4.4 per cent and the business making a profit of £1m.’

Earlier this year, in its Opticians report, market research company Mintel said that Boots Opticians needed to ‘reformulate its strategy, build confidence in its strengths and avoid getting sucked into competing on price’.

The business has been in the news lately - in March it announced its intentions to double its franchises to 24 outlets, and last week it was reported that it has started a glazing trial with Hoya (News, May 19).

Boots plc will provide an update on its April-June 2006 performance in early July.