A strong performance from Lloydspharmacy, particularly an increase in services, boosted parent company Celesio's profits in the first quarter of 2014.

Hospital contracts and homecare services meant Lloydspharmacy made "a particularly positive contribution" to a 0.3 per cent increase in Celesio's revenue to £4.4 billion(€5.38bn) and 4.2 per cent increase in net profit to £35.1 million (€43.1m).

Lloydspharmacy's contributions "overcompensated for the negative effects of government measures", Celesio said in its quarterly report this week (May 12).

Lloydspharmacy's hospital contracts and homecare services helped boost parent company Celesio's net profit by 4.2 per cent	More on Celesio Video: The strategy of Lloydspharmacy under Celesio The United States of Celesio Celesio upbeat despite tough UK economic conditions
	AAH also performed well in the UK, despite Celesio's overall wholesaling division reporting a 0.4 per cent fall in revenue. "British wholesale activities posted a significant increase in revenue following higher sales of generic drugs," the parent company said.

The company forecast even stronger growth from 2015 through "rapid realisation" of the European Pharmacy Network (EPN). The EPN model, which will be opened up to independents later this year, involves a shop refit and enhanced training for pharmacy staff on skincare and pain management.