BOOTS LOOKING MORE TO THE OTC SECTOR

Despite exceptional items amounting to L73.8 million ($111.5 million) before profits on disposal of businesses, which amounted to a total charge for the 1994 financial year of L68.5 million (Marketletter June 6), The Boots Company is still in a strong position, particularly in the current economic environment. Its cash flow position is strong at L198 million, and it has turned around net debt last year of L204 million to cash in hand in 1994 of L69 million.

Sir James Blyth, chief executive at Boots, said that the strong cash generation would go towards continued expansion of the retail business and that Boots would also like to make more acquisitions in the over-the-counter health care sector.

Speaking at the company's annual results presentation in London this month, Sir James said that in terms of the review of the pharmaceutical division, Boots is interested in swapping assets, particularly in swapping ethical products for OTC products. He said that at this stage nothing is being ruled out of the review, and that there is no need for the company to rush it. He suggested that there would be a complicated series of solutions for the business.