Comments on: Boots – What went wrong?

By: Shaun

Shaun — Thu, 21 May 2009 20:44:56 +0000

Thanks for the explanation Valerie.

By: Valerie

Valerie — Thu, 21 May 2009 18:50:58 +0000

The change in reported profit is all down to the massive change in capital structure which resulted from the LBO. They may have to pay £623m in interest (which is allowable for corporation tax) but they don’t have to pay any dividends. This is the main reason for gearing up the balance sheet with debt, which is cheap at the moment and also tax efficient. It also means that the management can decide what to do with the cash without public shareholders demanding their dividend cut. With over a £1bn of cashflow, I’m sure they’ll be around for a while yet ! Also, I think previous years benefitted from some nice one offs, like the sale of the OTC business, which makes this year look extra bad !

By: Shaun

Shaun — Wed, 20 May 2009 09:38:50 +0000

Interestingly though, our poll seems to indicate that they are the most popular individual company to locum for. (Although independents as a whole are more popular)

By: fiachra mc laughlin

fiachra mc laughlin — Wed, 20 May 2009 09:18:40 +0000

Boots are an awful company, a virus that has infected pharmacies and consumed vas amounts of independents, I hope they go bust, Boots RIP

By: Shaun

Shaun — Tue, 19 May 2009 15:27:24 +0000

I found the answer to my question yesterday in the Times – they had to pay £623million in interest payments last year – wow!