Irish division Boots best performer

The Irish division of pharmacists Boots posted the highest turnover increase in the group last year as sales of its healthcare…

The Irish division of pharmacists Boots posted the highest turnover increase in the group last year as sales of its healthcare products in the Republic surged.

Revenues across 28 stores in the Republic rose by double digits - although the company declined to provide an exact figure.

The Irish performance contrasted sharply with British operations, where static turnover has prompted the company to cut 500 administrative jobs.

Overall, group sales climbed 6 per cent, although the cost of disposing of the Halfords car maintenance chain pushed profits before tax down 16.9 per cent to €775 million

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Chairman Mr John McGrath said Boots would focus on core health and beauty segments going forward. He said: "This has been a year of progress and significant change and we have also been investing for the future."

"We have exited non-core activities and we are now focused on two businesses, Boots the Chemists and Boots Healthcare International."

" The underlying performance of both these businesses has been strong during the past year,"Following years of pedestrian growth, Boots, which makes Nurofen painkillers and No 7 cosmetics, recently made a big push to improve sales by cutting prices.

Mr Richard Baker, the new chief executive, has been hired to revitalise the company's core chemist chain, which contributes about 85 percent of group profits.

"The actions we are taking are just to recognise the competitive situation we are in," Mr McGrath said .

"Richard will have an opportunity to review everything." Recent speculation has centred on whether Boots will sell and lease back its stores, most of which are in prime high street locations.

Boots employs 950 in the Republic, rising to 1,000 when it opens two new branches in early autumn. Capital expenditure in Ireland and Britain is expected to rise to €349 million this year from €208 million last year as the company invests in improving its chain of stores.

It has 1,100 more people in customer-facing jobs but is axing at least 500 from its Nottingham headquarters as part of a €139 million pound cost-saving plan announced last November.