Contents Page Celebrating the past, anticipating the future: 40 years of Day Lewis & Day Lewis history
Page 4
Founders and Directors of Day Lewis PLC
Page 24-25
Our Mission, Our Purpose and Our Core Values
Page 6-7
Senior Management Team
Page 26-29
Financial Highlights
Page 8-11
Business Activities
Page 30-31
Harrods Pharmacy .................................................................................................................................................................................
Page 30
Wells Offshore ........................................................................................................................................................................................
Page 31
EM Pharma ..............................................................................................................................................................................................
Page 31
Key Statistics ............................................................................................................................................................................................. Page 8
Awards & Achievements
Page 12-13
National Champion, representing the UK – European Business Awards 2014/15 ........................................................... Page 12
CEO of the Year - PWC Private Business Awards 2014 ................................................................................................................ Page 12
Business Initiative of the Year, Day Lewis Academy – C+D Awards 2014 ............................................................................ Page 12
The Sunday Times Grant Thornton Top Track 250 List 2014 ..................................................................................................... Page 13 Training Award – Day Lewis Group at the Pharmacy Business Awards 2013 ..................................................................... Page 13 Business Leader of the Year - Kirit Patel at the Pharmacy Business Awards 2013 ..........................................................
Group Strategy
Page 13
Corporate Social Responsibility Day Lewis Charity Fun Day ...............................................................................................................................................................
Inhaler Recycling ..................................................................................................................................................................................
Dementia Friend ..................................................................................................................................................................................
Page 32
Healthy Living Stand ..........................................................................................................................................................................
Page 33
Other Activity ..................................................................................................................................................................................
Page 33
Financial Statements
Page 18-23
Developing Our People ........................................................................................................................................................................
Page 18
Annual Conference ................................................................................................................................................................................
Page 19-20
Investors in People Gold ....................................................................................................................................................................... Page 21-23
Page 34-39
Consolidated Profit and Loss Account: Year Ended 31 March 2015 ...................................................................................
Page 36
Consolidated Balance Sheet: Year Ended 31 March 2015 .....................................................................................................
Page 37
Consolidated Cash Flow Statement: Year Ended 31 March 2015 ........................................................................................
Page 38
Consolidated Balance Sheet: Year Ended 31 March 2015 .......................................................................................................
Page 39
The Company’s People ............................................................................................................................................................................ Page 17 Our People
Page 32 Page Page28 32- 31
Page 14-17
Retail Sales ................................................................................................................................................................................................. Page 16
Page 32-33
Celebrating the Past, Anticipating the Future: 40 Years of Day Lewis CEO Statement I am pleased to open this annual report on such a positive note, as it truly has been a successful few years for Day Lewis. Despite the various challenges that have risen within the pharmacy industry, Day Lewis has pushed on to expand and thrive as planned, going beyond expectations and taking the lead in the independent pharmacies sector. Since November 2014, we have won various accolades. For instance, Day Lewis was named as the UK National Champion and winner of the “Neutral Growth Strategy of the Year” award at the European Business Awards 2014. Leanne Brady, from our pharmacy in Merstham, and our Day Lewis Academy initiative won their respective categories at the C+D Awards 2014. Furthermore, Day Lewis was ranked in 112th place in the “The Sunday Times Grant Thornton Top Track 250 List 2014”. This is the fourth consecutive year that we have featured on this list, which is a remarkable achievement.
Kirit Patel MBE- CEO 4
DAY LEWIS ANNUAL REPORT 2015
Day Lewis History
Day Lewis Plc is one of the largest independent pharmacy chains in the UK and Europe. Founded by Kirit Patel MBE and his brother JC Patel in 1975, the company maintains a family-owned entity and has grown from one pharmacy in Southborough to over 250 pharmacies in the UK today.
“Our family continues to expand with over 250 pharmacies...” Our family continues to expand with over 250 pharmacies in our portfolio, and we are constantly looking for opportunities to acquire more. We also now employ over 2000 employees across the UK and having been accredited the Investors in People Gold Award, we pride ourselves in looking after and developing all of our people.
The company has also recently gained management status over the pharmacy inside the world famous Harrods department store in London.
“...pharmacy inside the world famous Harrods...”
With nearly 40 years in the pharmacy industry, I look forward to this coming year.
This in itself pays tribute to the company’s commitment and constant progress. Over the last four years alone Day Lewis has nearly doubled in number with regards to the number of pharmacies it supports.
Kirit Patel MBE CEO
Throughout its dynamic history in community pharmacy and the business arena, Day Lewis has advanced from being a traditional retail pharmacy business into a patient-orientated service provider that dispenses pharmaceutical and other retail products. It also provides a wide range of clinical services to its patients and has subsequently earned the respect and friendship of not only the company’s peers in the industry, but also of local communities all over the country. Indeed, Kirit’s contribution to pharmacy and public service was recognised in 2005, and he was subsequently awarded an MBE by Her Majesty Queen Elizabeth II. Going forward, Day Lewis aspires to meet the challenges that are arising in the pharmacy industry, whilst upholding the exceptional standards in customer service that the company has established.
First Day Lewis Pharmacy: Southborough 1975 DAY LEWIS ANNUAL REPORT 2015
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Our Core Values To keep our caring family culture To look after our customers To be disciplined & professional To be different through innovation
Our Mission To be as large and successful as we can be, providing we maintain our core purpose and core values, and remain independent.
Our Purpose To help people in the community to stay healthy and feel better.
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DAY LEWIS ANNUAL REPORT 2015
To reward, recognise & empower To have fun DAY LEWIS ANNUAL REPORT 2015
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Financial Highlights
Financial Highlights
The directors are pleased to report another strong year of growth in sales and profitability across the Day Lewis group. The company has continued with its acquisition policy, adding 21 new pharmacies to the group in the financial year. The number of pharmacies in the group has risen to 184 as of the end of March 2015. In total, there are 240 pharmacies owned and managed by Day Lewis. Day Lewis prides itself on its service led approach; putting the patient at the heart of its decisions is a key differentiator for the business enabling it to build a large base of loyal, recurring customers.
“...strong year of growth in sales and profitability...” Day Lewis continues to be featured in the Top Track 250 Sunday Times list and made an appearance for the fourth consecutive year this year. The company is also eligible to be on the list for a fifth consecutive year, based on the published results.
Key Statistics: Turnover: Turnover in the year increased by 10% to £264.6M (2014: £240.8M). The increase in turnover was as a result of acquisitions of new pharmacies and an increase in prescription items.
Prescription Items: Prescription items increased by 3.2% (2014: 3.3%) on a like for like basis. Total NHS items growth is 10%, largely due to the addition of 9 new pharmacies. 8
DAY LEWIS ANNUAL REPORT 2015
Day Lewis Plc 5 Year Turnover Trend Gross margins: Gross margins increased by £5.4M to £69.0M (2014: £63.5M) and are maintained at the 26% level. Despite the ongoing government action to reduce reimbursement prices, the company has managed to maintain the gross profit margins due to enhanced purchasing, stock control processes and appraisals of individual store profitability.
Administrative costs: Total administrative costs increased by £4.8M to £50.6M (2014: £45.8M). The business has enhanced its group infrastructure and support office function during the year to enable sustained future progress and growth. DAY LEWIS ANNUAL REPORT 2015
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Financial Highlights
Financial Highlights Outlook
“...operating profit of £18.6M... record result.” Day Lewis Plc 5 Year Gross Profit Trend
Despite the challenging economic conditions, 2014/2015 marked a further year of significant profit growth for the Group. It is worth noting that over the last three years, gross profits of above 26% were achieved and operating profits have increased in each of the last three years. The directors are confident that this trend will continue.
Day Lewis Plc 5 Year Net Profit Trend Operating Profits: Overall these actions have enabled the Group to achieve an operating profit of £18.6M (2013: £18.2M), a record result for the Group.
Day Lewis is in the process of a refinancing deal to cover the period over the next five years. This refinancing will give Day Lewis an opportunity to get acquisition funding to expand the pharmacy group. There are currently over 30 pharmacies being looked at for acquisition into Day Lewis Plc, over the next year.
Interest Costs: Interest costs remain at equivalent levels to last year due to: the hedge instruments in place, better cash management and use of the Citi NHS finance facility to reduce reliance on bank finance.
The aim is to get to 400 owned pharmacies by the year 2020. There has already been significant investment in the warehouse operation to service 400+ pharmacies on a daily basis. There will be an enhancement of the infrastructure of the retail operations team to support the pharmacies as the company continues to grow and support its patients’ needs.
Net Bank Debt and Gearing: Net bank debt has increased by £17M to £83.4M (2014: £66.4M). Gearing ratio has increased to 1.45 (2014: 1.4).
Day Lewis Plc 5 Year EBITDA Trend
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“... gross profits.. above 26% were achieved...”
Please see page 34 to 39 for the financial statements 2014 - 2015.
Kirit Patel MBE- CEO DAY LEWIS ANNUAL REPORT 2015
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Awards & Achievements National Champion, representing the UK – European Business Awards 2014/15
The Sunday Times Grant Thornton Top Track 250 List 2014
Day Lewis was selected as a National Champion and represented the United Kingdom in the European Business Awards. The European Business Awards is widely recognised as the showcase for Europe’s most dynamic companies. Day Lewis is proud to have achieved such recognition from Europe’s largest and most significant cross-sector business recognition programme.
For the fourth consecutive year, Day Lewis was ranked in “The Sunday Times Grant Thornton Top Track 250 List”. The league table ranks the 250 next biggest private companies, provided that either sales or operating profits had increased by at least 10% in their latest available accounts. Sales range from £140m to £650m. Having moved up in position since the company was first listed; Day Lewis now sits at 112th place.
CEO of the Year - PWC Private Business Awards 2014 At the PwC Private Business Awards 2014, which recognises the “private businesses that are the foundation of the British economy”, Kirit Patel MBE won the CEO of the Year award. Kirit states: “It was an absolute honour to receive the award of CEO of the Year. Given the calibre of the entrants, I am delighted to have won it. However, I couldn’t have done so without the hard work, dedication and support of all the 1,969 people in our Day Lewis family. Our business has grown from just two pharmacies to over 240 over 39 years. I believe that our growth story will continue, spanning future generations, because of our strong family culture.”
Business Initiative of the Year, Day Lewis Academy – C+D Awards 2014
UK National Champion, 2014 12
DAY LEWIS ANNUAL REPORT 2015
Awards & Achievements
Day Lewis surpassed seven other nominees, including Boots, and won the Business Initiative of the Year award as a result of the Day Lewis Academy. The winner of the award was required to demonstrate innovation, evolution and creativity in the way that they move their business forwards. It was also required for the winner to demonstrate that their initiative had genuinely benefited their customers.
“...selected as a National Champion...”
Training Award – Day Lewis Group at the Pharmacy Business Awards 2013 The Pharmacy Business Awards recognises the industry’s excellent service to communities in the UK and is the pinnacle of events in the pharmacy calendar. Day Lewis is pleased to have been recognised as a company that provides the best training scheme in the changing healthcare industry.
“...our growth story will continue... because of our strong family culture.”
Business Leader of the Year - Kirit Patel at the Pharmacy Business Awards 2013 Kirit Patel was voted as Business Leader of the Year in the pharmacy industry. This was a monumental achievement, given that Day Lewis competes against corporate pharmacy chains as an independent pharmacy group.
“...operating profits have increased by 10%...”
“...best training scheme in the... healthcare industry”
Kirit Patel MBE - CEO of the Year 2014 DAY LEWIS ANNUAL REPORT 2015
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Group Strategy The group’s strategy is to grow its existing core business of pharmaceutical retailing and to provide a solid and efficient system of self-distribution to its pharmacies through its wholesale and warehouse operations. This includes a continued drive to ensure an increase in cost and efficiency programs and that effective and dynamic product ranges are displayed in pharmacies. Day Lewis also strives to seek out new areas of market growth that are closely aligned to the company’s core purpose. This strategy is underpinned by the company’s focus on customer care and patient safety, as well as strong financial management.
Stoke Sub Hamdon, Day Lewis Pharmacy Within a GP Surgery
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DAY LEWIS ANNUAL REPORT 2015
Group Strategy addition of 21 pharmacies, relocating six others and a strong leadership focus on developing the company’s business. In addition, as the group recognises the importance of local engagement, Day Lewis now has representation on all LPCs in the areas where it operates. In order to ensure strong local leadership that will benefit all contractors, the group also recently held the company’s second two day conference for all LPC members.
opportunities. This year, Day Lewis has continued with its tactical approach to relocations, which has consequently resulted in 50 health centre pharmacies located within GP practices.
“...tactical approach...resulted in 50 health centre pharmacies...”
“...strives to seek out new areas of market growth...”
The company has developed strategies for all the core parts of the business. The following sections describe the company’s strategies in recent years and entails details of the action that was taken in order to fulfill these strategies:
Day Lewis is an independently owned pharmacy retail chain in the UK, with over 240 owned and managed pharmacies located across England. The company’s long term goal is to increase this number through a combination of value added acquisitions and new pharmacy contract
Day Lewis’ first and largest pillar is NHS items and, for the third year running, the company has had market-beating like for like items growth.
“...total NHS items growth is 10%... addition of 9 pharmacies”
NHS Items Growth
So far this financial year, the company’s total items growth is 10%. This was achieved through the
Central Dispensing Unit, Croydon
To drive efficiency within the company’s pharmacies, the company has developed a central dispensing support pharmacy to enable its pharmacy teams to focus on services delivery. The company has also introduced standardised processes and systems, which in turn aids patient safety. However, each year Day Lewis will always organise a patient safety week to enable all of the company’s teams to focus on the critical elements of the company’s business.
Pharmacy Services growth Moving on to pharmacy services, nearly all Day Lewis pharmacies achieved 400 MURs last year, which is two and a half times the national average. This is in addition to the group delivering thousands of NMS interventions. Day Lewis is now delighted to announce that it has consequently been established as a commissioned advanced service provider by NHS England.
“...400 MURs...two and half times the national average.” Other successes that the group has had include delivering 12,000 flu vaccinations, which is more than double the amount that was delivered last year. This is as a result of having built on the company’s PGD service. In addition, all of the company’s pharmacies are now Healthy Living pharmacies and focus on local health priorities, including weight loss, smoking and alcohol reduction, healthy eating and sexual health.
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Group Strategy “...delivering 12,000 flu vaccinations...” Finally, the company’s latest innovation is the introduction of 10 pharmacy services pharmacists. These pharmacists are newly qualified and support the company’s pharmacies as a second pharmacist delivering a range of services. This is so far proving to be very successful.
Retail Sales Day Lewis’ total retail sales have continued to grow through continued focus and innovation. The group has also rebalanced the spacing within all of the company’s pharmacies with new products and merchandising solutions, which has now resulted in a suite of planograms for P Meds, GSLs, medicated skincare products, vitamins, incontinence products, first aid products and foot care products.
GSL Planogram Merchandising New Products
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Group Strategy “Gold Investors in People...only achieved by 3% of those seeking accreditition...”
“...retail sales have continued to grow through...focus and innovation.” It is just over a year since the company took over the management of the pharmacy in Harrods and it has been an exceptional year. To achieve such success members from the company have attended exhibitions in Munich, Paris and London to bring exclusive products to the pharmacy (which have been well received). New services have also been introduced, including the Harrods Travel Clinic.
This is reflected in the Staff Satisfaction Survey of June 2014 which outlines an overall score of 90%, thus demonstrating the continued engagement of all the company’s colleagues. The group is particularly pleased with the dedication of the company’s pharmacists, which has been recognised within the profession.
“...Staff Satisfaction Survey...outlines a score of 90%...”
The Company’s People Last year Day Lewis was awarded with the Gold Investors in People status, which is only achieved by 3% of those seeking accreditation. During this year the group has continued to build the company’s employees’ capabilities.
Other successes this year include training over 240 Healthy Living Champions, all of whom took the level 2 examination in Understanding Health Improvement - an exam set by the Royal Society of Public Health.
“...training over 240 Healthy Living Champions...” Day Lewis is also proud to announce that the company’s first ever Teacher Practitioner was established, in partnership with Reading University. This builds on the very strong relationships that the company has with over 10 pharmacy schools nationwide - in particular Portsmouth, where both Kirit and his son Jay studied pharmacy.
Relationship Building at Portsmouth University
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Our People Developing Our People
Warehouse Employees Receive Certificates
Day Lewis is passionate about the Learning and Development of their people and understand the importance of motivating and engaging the workforce. In 2012, the company launched an innovative and award-winning tool for empowering its colleagues in line with their core values. This is the ‘Day Lewis Academy’, which is available on the company intranet for all Day Lewis colleagues.
“understand importance of motivating and engaging the workforce..”
Pharmacist Receives 500 Points 18
DAY LEWIS ANNUAL REPORT 2015
Within the Academy online training modules on subjects ranging from products to health and safety are available. Modules are created and made bespoke to the company by working closely with external partners. Colleagues are able to record the modules that they have studied and gain points for all learning, which consequently leads to certificates and rewards.
Our People
When a colleague reaches 100 points they receive a bronze certificate, at 250 points a silver certificate and at 500 points a gold certificate, along with a £50 voucher. All certificates are signed by Kirit. If the whole team in a pharmacy achieves gold certificates then they will be rewarded with a meal out or an event such as bowling. This supports the company’s core value: “To reward, recognise and empower”.
“To reward, recognise and empower.”
The Academy was outlined as a key achievement in the IIP report when Day Lewis was awarded the Gold Investors in People status in March 2013: ‘Your people absolutely love the fact that they can progress to different levels; are given certificates and can win prizes’. In addition, as a result of the Academy, Day Lewis won a Training Award at the Pharmacy Business Awards 2013 and a Business Initiative Award at the C&D Awards in 2014.
Conference Morning Session With Day Lewis Delegates
Annual Conference Further to academy training Day Lewis organises an annual conference, which is traditionally held in London. Lasting for an entire weekend, the conference is a highlight of the company calendar and provides a great opportunity for colleagues to network with not only their peers, but suppliers and VIPs from across the industry.
The Academy has successfully helped to engage and motivate colleagues in their learning and development activities, which has consequently ensured that pharmacy teams are skilled, knowledgeable and able to provide the best service to customers.
This fulfills the aim of exposing them to the latest service and product developments. The conference is always carefully planned to include sessions and activities to benefit all attendees, which are led by industry leaders and those from Day Lewis. On the weekend of 21st-22nd November 2015, Day Lewis Pharmacy hosted their 20th annual conference at the Novotel London West hotel.
Gala Dinner With Over 850 People
The event was attended by a record number of over 850 pharmacists and VIP guests not just from across the industry, but also from the political and finance worlds; which reflects the company’s ever growing status in the pharmacy industry. Duncan Rudkin, Chief Executive and Registrar of the General Pharmaceutical Council was the chief guest at the event.
“...over 850 pharmacists and VIP guests” The theme for this year’s conference was “Making Every Contact Count”, which echoed Kirit’s statement that the pharmacy industry is “no longer a product industry...it is about making every contact with every patient count.” Kirit continued to remark that “we are not just trying to make a difference to patient’s health; we want to make a difference to their lives.”
“it’s about making every contact with every patient count.” DAY LEWIS ANNUAL REPORT 2015
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Our People On Saturday afternoon, Kirit addressed an exclusive, invitation-only session for key business suppliers and partners, in which he reaffirmed that Day Lewis will remain a family business in future generations. Kirit stated, “Private equity houses have been looking closely at the retail pharmacy industry for a while. We have been approached a number of times but my vision is for Day Lewis to remain in the hands of my children’s children”.
“...remain a family business in future generations...”
Day Lewis Annual Exhibition 20
DAY LEWIS ANNUAL REPORT 2015
Our People values, and the company has now cultivated a culture of pro-activeness in increasing awareness of healthy living. This is done by offering advice and services to help improve the health of local communities.
leading suppliers from the industry. Overall, Day Lewis is proud to affirm that their 20th annual conference was enjoyed by all, with attendees being quoted to remark that they “feel motivated to do better [as healthcare professionals]”.
“...to help improve the health of local communities.”
“we feel motivated to do better...”
Pharmacists’ management capabilities have been at the top of Day Lewis’ agenda with skills not only developed through initiatives such as Healthy Living Pharmacy (HLP) leadership training and continued support from the company’s partners; but also by encouraging pharmacists to complete Centre for Pharmacy Postgraduate Education management packages, attend management webinars and receive support from their Regional Support Managers.
As part of the Pharmacy Business Plan for 2014/2015 Day Lewis committed to and have delivered three key objectives:
Key highlights of the weekend included a gala dinner on Saturday evening, for which the theme was “70s Disco”, in tribute to Day Lewis celebrating 40 years in Pharmacy, since their first pharmacy in Southborough, 1975. The highlight of the evening was an exciting performance from the Britain’s Got Talent Finalists “Flawess”. This was followed by an awards ceremony, to recognise and reward employees. The evening ended with a disco.
To multi-skill pharmacy colleagues so that all Counter Assistants are also Dispensers and vice versa, in order to ensure that they can fully support each other and provide consistent service to customers.
Sunday was centered on the annual exhibition, in which guests were able to speak to over 40
The ethos of Healthy Living pharmacies complements the Group’s own core purpose and
To train all pharmacies to be Healthy Living pharmacies.
Day Lewis also continues to expand their service provisions through classroom flu vaccination service training and online training for Patient Group Directions.
To provide all pharmacists with specific leadership training.
Engaging with patients
Investors in People Gold Investors in People is a management framework for high performance through people and recognised as excellence on an international level. Day Lewis achieved bronze accreditation in 2010 and the Group took the opportunity to use the framework to put further improvements in place. In February 2013 Day Lewis was proud to receive recognition as a Gold Investors in People accredited company, putting them in the top 3% for worldclass business performance through its people.
“...top 3% for worldclass business performance through its people...” The company used the assessment as an opportunity to evaluate and gain some in-depth feedback in some of the key areas of the business and to ascertain how they can continue to improve. This focused on devolution into the field, the effectiveness of strategies, learning and
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Our People development and engagement with our Corporate Social Responsibility.
Feedback From the Review:
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DAY LEWIS ANNUAL REPORT 2015
caring way. Customer service is at the forefront of people’s minds, followed closely by maximising the potential of their branch. Indeed, pharmacies confirm that they are well-supported and informed in order to drive their pharmacies.
Day Lewis’ company culture, despite significant expansion, has become stronger and more credible. Kirit and his management team are ambitious and self-critical, engaging in a great deal of self-review and benchmarking to help drive strategies. Management pays equal attention to good business and people practices, which are instrumental to its success.
“Customer service is at the forefront of people’s minds...”
“Despite growth and expansion, Day Lewis has not only kept its culture, but it appears to have grown even stronger. That’s down to better managers and more focus on good practices.”
A more robust and considered approach to staff development, evident through bespoke and targeted activities, is not only necessary to improve capabilities, but also to give employees confidence in themselves and in the future .
“...Day Lewis has not only kept its culture...but...grown even stronger.” Customer Service at the Forefront
Our People
Many more employees think in a commercial yet
comprehensive synergistic strategies that deliver Kirit’s goals and vision. In addition to this, Day Lewis takes pride in generating a high level of trust, care and respect for employees, whilst supporting a culture that genuinely values learning. For example, the Day Lewis Academy ensures that employees take ownership of their learning and are able to have fun at the same time. This has consequently resulted in a competent, capable and motivated workforce that is able to deliver the expectations that are placed upon them; and remarkable levels of loyalty to the business and pride in the brand.
“...high level of trust, care and respect for employees...”
Key Achievements: There are numerous achievements that Day Lewis has gained over the years. Indeed a forward looking, self-critical and dynamic top management style ensures that the company always ‘stays one step ahead’. The
company
also
endeavours
to
create
With such positive results in employee development, there is subsequently good evidence of a continuous improvement culture, which pushes the group to regularly review and enhance its working practices.
Continuous Improvement: Day Lewis understands the importance of continual development, and with the growth and expansion of the business the company recognises that it still has areas to work on and develop.
“...understands the importance of continual development...” The company will continue to use the IIP framework and feedback. Certainly, it has become an integral part of the way in which colleagues of the group work, which involves checking and reviewing each step in processes and development; and ensuring the well-being of those who work at Day Lewis.
Training Development for Regional Support Managers DAY LEWIS ANNUAL REPORT 2015
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Founders & Directors of Day Lewis Kirit is one of the UK’s most recognised pharmacy
entrepreneurs. He has over 39 years of retail pharmacy experience, and has grown the company from two pharmacies in 1975 to over 250 pharmacies in the UK. Aside from his position within Day Lewis, Kirit has held significant roles in various pharmacy associations, such as the Royal Pharmaceutical Society of Great Britain and the Association of Independent Multiple Pharmacies.
Next Generation Directors
degree in pharmacy and also holds degrees from Westminster University, Brighton University and the University of Pennsylvania. Kirit’s most memorable moment at Day Lewis so far is being named Member of the Order of the British Empire from Her Majesty Queen Elizabeth II, for his services to pharmacies in the South of England. During his lifetime, he would like to follow up his overland journey from London to Cape Town and travel right through the heart of Africa.
Prior to his career in pharmacy however, Kirit graduated from Portsmouth University with a Jay Patel, CIO & Director
Kirit Patel MBE, CEO
JC
was born in Kisumu, Kenya, however graduated from Gujarat University in India with an MSc degree in Physics. Before founding Day Lewis with his brother Kirit in May 1975, JC returned to Kenya to enter the teaching profession. In 1976, he moved to the UK to help with the family business. He became a Sub Postmaster in Hammersmith until 1979, when he moved over to manage the retail pharmacies for Day Lewis. JC is now Company Secretary, in addition to being the Sub Postmaster of the four post offices within the Group. Jayantilal Patel, Company Secretary 24
DAY LEWIS ANNUAL REPORT 2015
JC’s most memorable moments at Day Lewis so far is when the Day Lewis acquired their 100th shop, and when the company also reached their silver anniversary. During his lifetime, he would like to go on a cruise tour around the world.
Jay
holds a master’s degree in pharmacy from Portsmouth University and joined Day Lewis in August 2004. His most memorable moment at Day Lewis so far is managing the turnaround of the ABC Pharmacy Group after it was acquired by Day Lewis in 2010, and generating a multi-million pound profit over 18 months. He is also proud of having won the Chemist & Druggist National Manager of the Year award in 2012. During his lifetime, Jay would like to achieve several things which include gaining his private pilot’s license, running a marathon and taking six months off work to travel the world.
Rupa Patel, Property Director
Sam Patel, Director
Rupa qualified from King’s College London with
Sam is a post-graduate from Oxford University and
a Bachelor of Dental Surgery degree. However, following the attainment of a master’s degree in Real Estate and an MBA from Cass Business School, Rupa has been the Managing Director of QH Estates Ltd. She joined Day Lewis in 2007 as Property Director. Rupa’s most memorable moment at Day Lewis so far is completing office and warehouse acquisitions and overseeing expansion works. During her lifetime, she would like to gain a Helicopter’s Private Pilot Lience, with the view to do aerial property inspections!
joined Day Lewis in April, 2012. Having a background in economics, accounting and management, Sam has previously worked for PricewaterhouseCoopers and Safetykleen Europe Ltd. Sam’s proudest moment at Day Lewis so far is concluding the series of acquisitions that took the group past 250 pharmacies. During his lifetime, he would like to go heli-skiing in Jackson Hole, USA.
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Senior Management Team
Carey Edwards, Non-Executive
Ian Adamson, Non-Executive
graduated from Wharton Business School and had a diverse career prior to joining Day Lewis in 1995. This includes positions as a management trainee with Royal Dutch Shell, squadron flight commander with the RAF and CEO of Gaastra Holdings. He is also currently the Managing Director of LMQ, a strategic planning and training consultancy.
Ian joined Day Lewis in September 2013. In addition
Carey’s proudest moment at Day Lewis is establishing the company’s mission, core purpose and core values.
Ian’s most memorable moment at Day Lewis was when he was invited by Kirit to join the company.
During his lifetime, he would like to sail across the Atlantic.
During his lifetime, Ian would like to follow as many British & Irish Lions rugby tours as possible.
Carey
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DAY LEWIS ANNUAL REPORT 2015
to being Non-Executive Director for Day Lewis, Ian is the Director for L4 Consulting Ltd and Handsome Ltd; as well as Advisor to the Board for Reva Health. Prior to these positions, Ian worked as the Main Board Director and Chief Operating Officer at SSL International plc.
Senior Management Team
Nigel Brewster, Advisor to the Board
Nigel
joined Day Lewis in January 2010. Prior to the beginning of his career at the company, Nigel held several positions as a Finance Director, Assistant Manager, Group Commerical Director and International Business Director at companies including PricewaterhouseCoopers, SFX Entertainment and ADP Dental Group. Nigel is proud to be able to assist the board in managing their banking relationships so that the business can continue to grow. During his lifetime, he would like to follow an Ashes tour in Australia.
Ameet Patel, Accountant
Ameet was born in Nairobi, Kenya. He completed
his education there, and also qualified as a Chartered Certified Accountant after completing a correspondence course in 1976. Ameet has previously worked at John Cummings as a Senior Auditor and what was then known as Dales Southend Ltd as a Chief Accountant. Ameet joined Day Lewis in 1983. Ameet’s fondest memory at Day Lewis is receiving the 25 year service award at the Day Lewis Conference in 2009. During his lifetime, he would love to visit Australia and New Zealand.
Colin Kendrick, Head of IT
Colin
was an IT Manager at several companies, including the ADP Dental Group and Tiger Beer, before joining Day Lewis in October 2011. Colin’s proudest moment at Day Lewis so far is being recognised for his contributions to the company and being placed on the Next Generation Board as well as the Senior Management Team. During his lifetime, Colin would like to learn to play guitar well enough to play in public and achieve a single figure golf handicap.
Heena Patel, Finance Director
Heena
is a member of the Institute of Chartered Accountants in England and Wales having qualified with Halpern and Woolf in 1988. In her career, Heena has headed up business finance functions for a number of entrepreneurs and was also the Finance Director at Glebe Asset Management. Having joined Day Lewis in October 2011, Heena’s proudest moment is successfully negotiating a five year bank club facility that has enabled the company to achieve its ambitions to grow both the distribution and retail businesses. During her lifetime, she would like to see a tiger in the wild.
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Senior Management Team
Peter Glover, Pharmacy Superintendent
Raymond Barclay, Head of Support Services
Peter
Raymond
Peter’s proudest moment at Day Lewis is when Kirit received the award of Member of the Order of the British Empire.
Having worked for Day Lewis since September 2005, Raymond’s proudest moment is helping the company to move into a new modern office and overlooking the installation of the automation in the new warehouse. This was a major milestone which signified the company’s ability to grow into a significantly larger business.
holds a degree in pharmacy from the University of Wales Institute of Science and Technology. Before joining Day Lewis in June 1987, Peter worked for 15 years at Boots as a Store Manager and Pharmacy Superintendent. He has also previously owned six pharmacies.
During his lifetime, he would like to own a Maclaren 650S.
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DAY LEWIS ANNUAL REPORT 2015
qualified as a pharmacist, however has spent the majority of his career in senior general management roles within companies including Guinness Retail and AAH Retail/Lloyds Pharmacy.
During his lifetime, Raymond would like to spend a month touring the west coast of America, in particular California.
Senior Management Team
Taybi Mohamedbhai, Head of Procurement
Shimal Patel, Head of Marketing
Shimal joined Day Lewis in November 2004 after
graduating from Aston Business School, where he attained a master’s degree in Business & IT. He also holds an undergraduate degree in Economics & Finance from the University of Southampton, and has also attended residential executive development courses at Cranfield School of Management and Ashridge Business School. He is also a member of the Next Generation Board. Shimal’s most memorable moment at Day Lewis is when his Marketing department were finalists for the “Team of the Year” category at an industry awards event.
Taybi
is a qualified pharmacist and graduated from Brighton University. Prior to joining Day Lewis in October 1982, Taybi worked for Boots as a preregistration pharmacist and relief manager for the South Eastern area. Taybi’s most memorable moment at Day Lewis so far is founding Day Lewis’ annual conference alongside fellow colleagues, and he is proud to see how it has evolved over the years. During his lifetime, he would like to visit a few geographical wonders, such as Mount Everest.
Tim Harrington, Head of Commerical Development
Tim H
is a graduate of the Wharton Business School and has also completed an MBA at Kingston University in 1999, however his experience in the UK pharmacy industry began in 1991 at what was then known as UniChem Ltd. He later became the Chief Accountant of Moss Pharmacy, which is now known as Alliance Boots. During this time, Tim helped the company to grow from 92 to 750 pharmacies in the UK. In December 2005, he joined Day Lewis as a Commercial Manager, with the responsibility of finance and business development. During his lifetime, he would like to gain a history degree and go on a cricket tour in the Caribbean.
Tim Rendell, Head of Pharmacy
Tim R is
qualified as a pharmacist. Tim has held a variety of senior management positions at Alliance Boots. He then joined Day Lewis as Head of Retail in 2010 and now leads the pharmacy team. In addition to his position at Day Lewis, Tim holds positions in several pharmacy associations and committees; including the Surrey Local Pharmaceutical Committee and the Royal Pharmaceutical Society. Tim’s most memorable moment at Day Lewis so far is leading a session for company colleagues at the Day Lewis Annual Conference 2014. During his lifetime, he would like to learn how to play the piano.
During his lifetime, he would like to appear on BBC’s Masterchef. DAY LEWIS ANNUAL REPORT 2015
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Business Activities Harrods Pharmacy
Having acquired management rights over the pharmacy in the world’s most famous department store in September 2014, Day Lewis has strived to uphold Harrods’ reputation for selling the best of the best.
“...selling the best of the best...” Consequently, whilst the products that are provided at the pharmacy in Harrods may be priced at a higher margin and slightly different to those at other Day Lewis pharmacies, customers can be reassured that they are truly getting their money’s worth; be it vitamins and supplements, beauty products, or any other product that is sold for the purpose of maintaining customers’ health and wellbeing.
Harrods Pharmacy 30
DAY LEWIS ANNUAL REPORT 2015
Since the beginning of their management of Harrods Pharmacy, Day Lewis has been informed that the pharmacy’s sales have now trebled. This may particularly be attributed to the fact that Day Lewis instigated a much more efficient ordering
Business Activities Wells Offshore
service. This allows those at Harrods Pharmacy to sell and provide a wider range of high quality products, available for collection the very next day.
In addition to owning over 250 pharmacies, Day Lewis wholly owns Wells Offshore; which supplies all pharmaceutical products, surgical dressings and items of medical equipment and furniture required for offshore oil installation sick bays.
“...sales have now trebled...”
Being distributors for a large number of manufacturers of medical equipment and first aid consumables enables the company to provide competitive pricing and product support. Furthermore, Wells Offshore is managed and run locally by a dedicated team of pharmacists and staff who have a vast experience of dealing with the needs of the oil and merchant shipping industries.
Further to the exceptional products that are sold at Harrods Pharmacy, the group also ensures that the customer service is first-rate and unparalleled. Whether customers come in to spend 50p on a packet of tissues or £2,100 on a bottle of Korean ginseng, staff members have reported that the feedback that they receive from new and returning customers is consistently positive; thus confirming that Day Lewis is able to provide unprecedented and satisfactory customer service in both local communities and world-class department stores.
“...competitive pricing and product support...” Supplying Medical Equipment toHarrods RemotePharmacy Locations
sick bays, wind farm sick bays and international medical centres in remote locations. The business procures globally across six continents.
EM Pharma
In November 2013, Day Lewis instigated an investment in EM Pharma. Founded in 2005, EM Pharma is one of the fastest growing companies in the UK healthcare supply industry, with year on year growth of nearly 50%. In regards to their main product ranges, EM Pharma is the largest private label supplier of eye care products to the UK retail sector, and is one of the main branded eye care suppliers in the UK with their Vizualize brand. They also supply a large range of licenced pharmacy and GSL products both in private label and branded form, and have a large share of the pregnancy test kit and indigestion market. Overall, they currently have 483 product variants.
Wells Offshore is also a trusted supplier for commercial and passenger shipping sick bays, occupational health sick bays, remote onshore site
DAY LEWIS ANNUAL REPORT 2015
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Corporate Social Responsibility Charity Fun Day
Inhaler recycling
As part of their commitment to the community, Day Lewis encourages all the pharmacy teams to support local charities and sponsor local events, such as fund-raising activities. In the company’s commitment to helping their colleagues engage in community-based projects, Day Lewis established an annual charity fun day, in which both their pharmacy and support office teams are invited to nominate a local health related charity of their choice and to raise funds for this charity.
Since 2012, Day Lewis has been participating in GSK’s “Complete the Cycle” scheme, which aims to reduce the impact on the environment caused by the landfill disposal of inhalers. Indeed, the components of inhalers are recovered and converted into electricity or heat using the ‘waste to energy’ process.
This year, the event coincided with the 40th anniversary of Day Lewis being founded. The response from colleagues was overwhelming; with the Day Lewis team raising an incredible £50,000 in May. This total was then matched pound for pound by Kirit Patel and JC Patel and their families, which is a significant aspect of this tradition, subsequently meaning that £100,000 was raised for local charities.
“...£100,000 was raised for local charities...” Norbury, Day Lewis Pharmacy - Charity Day 32
DAY LEWIS ANNUAL REPORT 2015
Corporate Social Responsibility and raise awareness of dementia. Many have gone on to become accredited as Dementia Champions volunteers who encourage others to make a positive difference to people living with dementia in their community.
Healthy Living Pharmacy In support of the group’s caring family culture and as a health care provider offering healthy living advice to our pharmacy customers, Day Lewis encourages their colleagues and their families to focus on healthy living behaviour. This also provides an opportunity for education on particular areas such as exercise or smoking cessation. Day Lewis will continue to develop these initiatives and look to work with national campaigns that can provide resources, education and tools to support its healthy living workplace.
A fantastic fit with the Day Lewis brand, the group’s collaboration with GSK has benefited patients by reassuring them that their inhalers are responsibly recycled. Over 50,000 inhalers have been collected in the last year, resulting in a 400 tonnes saving of CO2, equivalent to 70 VW car trips around the world. The returned inhalers also help shape conversations about medicines optimisation and wastage – ultimately helping patients get the most from their medicines and manage their condition effectively.
“...focus on healthy living behaviour...”
Dementia Friend Day Lewis continues to support Dementia Friend. A large majority of the Day Lewis team are now qualified Dementia Friends. Many of the pharmacy members strive to link up with local dementia groups
Other Activity
Gosport, Day Lewis Pharmacy
families, local communities and society at large.
Community: The group helps local communities
by providing services that support their customers. These include prescription collection and delivery service, supporting carer’s week and fundraising for local charities throughout the year.
Environment: Day Lewis helps to save the
environment through recycling bins, reducing carbon footprint, their Cycle to Work Scheme and recycling batteries.
Workplace: The company is committed to listening
to its colleagues through the use of colleague satisfaction surveys, forums, training and health and safety procedures. The launch of the Day Lewis Academy is an excellent example of this.
Marketplace: Day Lewis endeavors to offer excellent
customer service and be a preferred industry supplier and partner. This includes care home medication management, working closely with the company’s suppliers and working alongside pharmacy bodies such as the Royal Pharmaceutical Society, General Pharmaceutical Council, Centre for Pharmacy Post Graduate Education and the National Pharmacy Association.
Day Lewis continually strives to behave ethically and contribute to economic development whilst improving the quality of life of the workforce, their DAY LEWIS ANNUAL REPORT 2015
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Profit and Loss
Balance Sheet
Financial Statement 2014 - 2015 Cashflow Statement
Net Cashflow Statement
34
DAY LEWIS ANNUAL REPORT 2015
DAY LEWIS ANNUAL REPORT 2015
35
CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2015
CONSOLIDATED PROFIT AND LOSS ACCOUNT: YEAR ENDED 31 MARCH 2015
2015 2014 Note £000 £000 £000 £000
2015 2014
Note £000 £000
TURNOVER
1,2 264,504 240,830
Cost of sales (195,553) (177,315) GROSS PROFIT 68,951 63,515
Distribution costs (53) (20) Administrative expenses (50,638) (45,810) Exceptional administrative expenses
9
- 187
Total administrative expenses (50,638) (45,623) Other operating income
3
393 406
FIXED ASSETS
Other intangible asssets 87,461 79,157 Goodwill 3,868 3,974 Negative goodwill (156) (188) Net goodwill 3,712 3,786 Intangible assets 11 91,173 82,943 Tangible assets 12 7,966 6,394 Investment 13 207 177 Investments in associates 13 2,400 101,746 89,514 CURRENT ASSETS
Stocks 14 25,564 24,943 Debtors 15 48,493 42,360 Cash in bank 20,015 7,499 94,072 74,802
OPERATING PROFIT
4
18,653 18,278
Interest receivable and similar income 1 82 Interest payable and similar charges
8
(5,787) (5,535)
CREDITORS: Amounts falling
due within one year
16 (86,906) (74,742) NET CURRENT ASSETS 7,166 60
TOTAL ASSETS LESS CURRENT LIABILITIES 108,912 89,574 CREDITORS: Amounts falling due after more than one year
17 (47,910) (38,989) PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 12,867 12,825
Tax on profit on ordinary actitivies
10
(2,894) (3,107)
PROVISIONS FOR LIABILITIES
Deferred tax 18 (3,488) (2,920) NET ASSETS 57,514 47,665 CAPITAL AND RESERVES
PROFIT ON ORGINARY ACTIVITIES AFTER TAXATION
9,973
9,718
Minor interests (120) (189) PROFIT FOR THE FINANCIAL YEAR
20
(9,853)
(9,529)
Called up share capital 19 100 100 Share premium account 20 418 418 Merger reserve 20 757 757 Profit and loss account 20 55,448 45,595 SHAREHOLDERS’ FUNDS
21
56,723
46,870
MINORITY INTERESTS 22 791 795
57,514 47,665
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
2015 2014
Note £000 £000
Net cash flow from operating activities
Returns on investments and servicing of finance Taxation
25
Cash (inflow) /outflow from (increase) /decrease in debt and lease financing
300 (2,514)
25
(11,526) (6,911)
(4,393) 254
Financing 25 8,435 (1,872)
INCREASE/ (DECREASE) IN CASH IN THE YEAR
Note £000 £000
(5,910) (5,569)
(3,130) (3,169)
Increase/ (Decrease) in cash in the year
25
CASH (OUTFLOW) / INFLOW BEFORE FINANCING
2015 2014
15,873 18,417
Captial expenditure and financial investment Acquisitions and disposals
24
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT FOR THE YEAR ENDED 31 MARCH 2015
4,042 (1,618)
26
4,042 (1,618)
(8,435) 1,872
CHANGE IN NET DEBT RESULTING FROM CASH FLOWS (4,393) 254
New finance lease
(1,521) (58)
MOVEMENT IN NET DEBT IN THE YEAR (5,914) 196
Net debt at 1 April 2014
NET DEBT AT 31 MARCH 2015
(58,949) (59,145) (64,863) (58,949)