Previously run by a husband-and-wife team, the newly sold Oaks Cross Pharmacy has a turnover of “just over half a million” pounds, Hutchings said today (August 3).
Hematlal and Indira Shah owned and ran the pharmacy in Stevenage, developing it into a specialist in mobility and disability items, according to the broker.
Read more: ‘Unopposed’ rural pharmacy sold to first-time buyers after fetching multiple bids
After just under seven weeks of talks, the Shahs sold the business to first-time buyer Hitesh Patel at “a fantastic price at £1 in the pound” last month (July 3), Mr Shah said.
However, the exact price remained undisclosed.
Hutchings said that Mr Patel had identified the potential for “further growth” at the pharmacy, including bringing its specialist services online as well as introducing other potential services.
“High growth potential”
The pharmacy boasts a turnover of “just over” half a million pounds, a high GP margin of 42% at the time of the sale and an average of 3,900 items a month, the broker added.
The Hertfordshire pharmacy is located on a shopping parade that sees high footfall and has “high growth potential”, it said.
Mr Shah said that he and his wife had “mixed feelings” about selling the pharmacy.
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“Having put so much of our lives into it, it’s almost hard to let go of the reigns,” he added.
But he said that it was “time to enjoy [their] retirement”, adding that they had been “honoured” to serve their community.
“We wish all the best to Mr Patel as he embarks on his new journey,” Mr Shah said.
Pharmacy valuations
According to Hutchings, pharmacy owners traditionally like to use pence in the pound as a method of expressing a pharmacy’s value during a sales process.
For example, if the pharmacy has a turnover of £1 million and it was worth 95p in the pound, its value would be £950,000.
The broker said last month that it has seen an average of 94p in the pound for sales completed across England so far this year.
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But it stressed that the method fails to accurately account for numerous factors essential in assessing a pharmacy’s true value.
It comes as Hutchings last month announced that an “unopposed” pharmacy in a rural Welsh village that attracted lots of interest from potential buyers had also been sold.
Also last month, broker Christie & Co announced that a portfolio of 10 pharmacies operating in the north of England and North Wales had gone up for sale.
