Well’s revenue for the year ending June 30, 2018 was £775.4m, a £3.8m drop from the £779.2m recorded in the previous 12 months, the multiple’s parent company Bestway said in its latest financial report submitted last month (March 27).

Bestway said the drop was “driven by a reduction in funding and drug reimbursement price”.

“Trading conditions remain difficult within the pharmacy sector, with [pharmacy] facing a reduction in overall government funding, increased category M clawback as well as an increase in cost to serve via the national living wage policy,” the report said.

However, profit before tax at Well increased by £5m over the same one-year period, from £3.6m in 2017 to £8.6m in 2018, Bestway said.

The increase was “driven by improved margin on buying as well as cost efficiencies, partially counteracted by a category M clawback relating to prior periods”, it added.

"Diversifying" product offering

Despite a fall in revenue, Bestway said Well “retained its focus on leveraging technology to improve operational efficiency and grow market share”.

The multiple is “diversifying its product offering away from solely medication dispensing”, the report said.

Well created the in-house start-up Well Digital in April 2017, which led to the multiple launching an online prescription service, an iPhone app and digital subscription service 'Eddie', for patients to order monthly supplies of Viagra Connect without having to speak to a pharmacist.

Well’s market share of national prescriptions “remained broadly” at 6%, Bestway said in the report.

“Good progress” on hub-and-spoke rollout

The multiple had made “good progress” in the rollout of its new patient medical records system, and its “central fulfilment” – hub-and-spoke – project during the year, Bestway said.