Core optics provides 65% boost for Boots

However, like other laser eye surgery providers the company was hit by the slump in refractive business. Its laser eye offer continues to haemorrhage cash with sales for Lasik at £9.5m, down from 2002-2003's figure of £16m, amounting to an operating loss of £3.8m in the 12-month period 2003-2004, compared to the previous year's £1.4m loss.
Nevertheless, a year on since Boots closed 170 in-store optical labs with 240 job losses (News, June 13, 2003), the efficiencies appear to be working for the optical business. A company source said the business had 'faced some tough decisions and taken them'.
Of the improved core operating profit he said: 'In optics normally you get big jumps in profitability with modest growth in sales, and vice versa. Usually in a tough sales environment the profit evaporates Ð but what's happened here is when times were tough we've got some of the retailing basics right and squeezed more profit out of what we've got.'
Boots chief executive Richard Baker said of the overall business: 'We now have in place a clear business plan to make Boots more modern, competitive and efficient.'
Boots Opticians' preliminary results, which are reported with the group's dental care interests, achieved sales of £241.6m (2002-2003: £258.6m), a 5 per cent fall on a like-for-like basis. Of that Boots Opticians' sales contributed £218m, compared to £237m last time.
The company continues to expand in edge-of-town retail parks. Nineteen outlets have been opened since last year, and there are plans to open another 40 in the current year.
A spokesman said of the company's performance: 'Sales in Boots Opticians were affected by the very competitive markets in core optics with Lasik still suffering from the effects of negative publicity on the effects of laser treatment.'
The improved operating profit of 65 per cent in its core business was judged to have been made through improved cost management.
david.challinorrbi.co.ukDespite tough market conditions Boots Opticians enjoyed an operating profit in its 'core' business of £12.8m Ð up 65 per cent Ð in the year to March 31 2004.
However, like other laser eye surgery providers the company was hit by the slump in refractive business. Its laser eye offer continues to haemorrhage cash with sales for Lasik at £9.5m, down from 2002-2003's figure of £16m, amounting to an operating loss of £3.8m in the 12-month period 2003-2004, compared to the previous year's £1.4m loss.
Nevertheless, a year on since Boots closed 170 in-store optical labs with 240 job losses (News, June 13, 2003), the efficiencies appear to be working for the optical business. A company source said the business had 'faced some tough decisions and taken them'.
Of the improved core operating profit he said: 'In optics normally you get big jumps in profitability with modest growth in sales, and vice versa. Usually in a tough sales environment the profit evaporates Ð but what's happened here is when times were tough we've got some of the retailing basics right and squeezed more profit out of what we've got.'
Boots chief executive Richard Baker said of the overall business: 'We now have in place a clear business plan to make Boots more modern, competitive and efficient.'
Boots Opticians' preliminary results, which are reported with the group's dental care interests, achieved sales of £241.6m (2002-2003: £258.6m), a 5 per cent fall on a like-for-like basis. Of that Boots Opticians' sales contributed £218m, compared to £237m last time.
The company continues to expand in edge-of-town retail parks. Nineteen outlets have been opened since last year, and there are plans to open another 40 in the current year.
A spokesman said of the company's performance: 'Sales in Boots Opticians were affected by the very competitive markets in core optics with Lasik still suffering from the effects of negative publicity on the effects of laser treatment.'
The improved operating profit of 65 per cent in its core business was judged to have been made through improved cost management.
david.challinorrbi.co.uk