Good Half-year For Boots But No News On Pharma

The Boots Company has revealed a strong performance in the half-year period ended September 30, 1994, but had no news on the future of its pharmaceuticals division. Group turnover was just over L2 billion ($3.2 billion), ahead 2.8%. Pretax profits were L241.8 million, ahead 20.4%, and earnings per share grew 16.4% to 15.6 pence. "The underlying sales and profit performance is very satisfactory. Profit has benefited in the first half from unusually high increases in Synthroid (levothyroxine) sales in the USA, which will not recur in the second half," commented Sir Michael Angus, who has taken over the post of chairman following the retirement of Sir Christopher Benson.

Sir Michael said that on joining the company he sees that all the businesses are in good shape, but that "there are some strategic issues to be resolved and the future of Boots Pharmaceuticals is foremost." However, he declined to say more than that the review continues and that the company is closer to a solution.

Sir James Blyth, deputy chairman and chief executive, emphasized that the pharmaceuticals business is still profitable and that the level of expenditure on R&D is being maintained. Sales by Boots Pharmaceuticals advanced 5.8% in the first half to L228.1 million. Profits were L49.8 million, up 70.5% even before the write-off cost relating to the withdrawn cardiovascular agent Manoplax (flosequinan; Marketletters passim).