Jhoots Pharmacy made a loss of £5m in 2023 despite doubling its turnover to £21m, its latest accounts reveal.

The multiple’s Companies House filing for the 12 months to December 31, 2023 shows that after turning a £1.8m profit in 2022 it lost £5.02m in 2023, which director Sarbjit Singh Jhooty said was “mainly due to the acquisition of new businesses” which were “in their first year of operations”.

He added: “However, according to the latest management accounts, the group has returned to profitability, reflecting successful integration and improved operational performance.” 

Turnover grew by 101 per cent, rising from £10.6m in 2022 to £21.4m in 2023 according to a report prepared on December 28, 2024. Administrative expenses grew by 109 per cent, from £4.2m to £8.7m. 

The Walsall-headquartered company’s gross profit margin tumbled from 44.7 per cent to 14.1 per cent year-on-year. 

“The only real financial risk for the company is dependent upon the centrally funded pharmacy contract,” said Mr Jhooty who added: “We do not foresee a change in this in the immediate future.”

“NHS funding is under significant strain,” said Mr Jhooty. “Although we do not expect any reduction in funding, we do not anticipate any significant increase. 

“We expect the next year to be challenging given recent events but we are well placed to take advantage of any opportunities.”