What is the impact of COVID 19 on the pharmacy sector?
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How have the measures impacted the sale and acquisition of pharmacies?
Whilst pharmacy has faired better than many business sectors, the speed at which social distancing and lockdown measures were implemented, as fears grew as to the likely impact of Covid 19, presented significant challenges to operators. Many reported significant increases in both dispensing and retail volumes throughout March and into early April, albeit activity levels have since subsided to manageable levels. Nonetheless, with the social distance measures imposed on all of us, contractors have had to rapidly adapt to new ways of working, including PPE measures, restricting patient access into pharmacies or the increased deliveries many have undertaken, both to those who are shielding and vulnerable, as well as to wider patient groups.
Although the Government has acknowledged the pivotal role that pharmacy has played in delivering frontline primary care, some feel this has not gone far enough. As it stands, pharmacy has seen the provision of £370 million of advanced payments, an increase in Category M reimbursement in June, business rates relief and other business grants - all vital in helping pharmacies continue to deliver services in a meaningful way.
It is encouraging to see that PSNC has commenced formal negotiations with the Department of Health and Social Care (DHSC) and NHS England and NHS Improvement (NHSE&I), with much of the discussion expected to focus on if, or how those advance payments will need to be reconciled, and when.
The graph below demonstrates the level of new registrations on our website at the time lockdown began 23/03, through to w/c 29/06. A continual uptick in new users further suggests an increase in activity and buyers actively looking for a business.
Although contractors have no doubt found it challenging to adapt to the changing circumstances, the pharmacy market has continued at pace. Since the beginning of March 2020 , we have successfully negotiated 83 sales, following receipt of over 212 offers against pharmacies we have for sale. We have launched 26 pharmacies for sale and as important, exchanged or completed on 32 sales.
THE PHARMACY TEAM
We are the UK’s largest pharmacy sales broker.
- We have an unrivalled network of 15 regional offices across the UK
- We take a ‘whole of market ensuring that every pharmacy we sell is sold for the best possible price and terms
- Sale processes are confidential and we support you throughout, adopting a ‘hands on’ approach enabling you to focus on running your pharmacy
As a company, we are the leading valuers, consultants and brokers across Europe in our specialist sectors
- We work with major, regional and multiple operators and UK lenders
- We have extensive relationships at board level with leading pharmacy purchasers in the UK
Tony Evans
Head of Pharmacy - UK Wide
T: 07721 884 386
Carl Steer
Midlands
T : 07917 475 229
Jonathan Board
South West
T : 07775 807 071
E: jonathan.board@christie.com
Karl Clezy
Scotland & North
T: 07885 813 160
Jack Chard
South & South East
T: 07590 486 349
Jon Booth
North
T : 07703 607 122
Mark Page
South & South East
T : 07764 241 279
VALUATION SERVICES
Following the publication of Government guidance relating to the property sector, Christie & Co has re commenced inspections of properties in most of our specialist sectors for valuation purposes.
All inspections will be undertaken according to a comprehensive protocol, to protect our staff and your customers, and will only be undertaken with the express agreement of all parties.
Christopher Vowles
Head of Valuations - Medical
T : 07791 183 966
E: christopher.vowles@christie.com
CHRISTIE FINANCE
In the current climate more so than ever before, knowing the right people at the right lender is absolutely crucial.
Get the funding you need. Contact us to see how we may able to help.
Christie Finance specialise in the pharmacy sector and therefore, have relationships with appropriate contacts at many lenders across the UK, providing local expertise with a national reach.
In order to protect the future of your business, you may need quick access to finance. We have an Unsecured Finance division at Christie Finance who may be able to assist in securing the funds you need in the short term.
Our unsecured loans are quick to arrange and can help with:
▪ Cash flow
▪ One-off purchases or costs
▪ Additional or replacement equipment
▪ Funding of tax and VAT liabilities (reimbursement of liabilities already paid to alleviate cash flow pressures)
David Ward
Senior Director - Purchase & refinance
(Midlands)
T: 07815 803 262
E: david.ward@christiefinance.com
Gary Boyce
Director - Purchase & refinance (South)
T: 07974 800 752
E: gary.boyce@christiefinance.com
Jawad Anjum
Director - Purchase & refinance (North)
T: 07791 979 719
E: jawad.anjum@christiefinance.com
Shaun Watts
Head of Unsecured (UK wide)
T: 07526 175 855
E: shaun.watts@christiefinance.com
Craig Dickson
Director
T: 07713 061 621