INDEPENDENT optical chain Black & Lizars has underlined its appetite for acquisitions after growing profits six per cent amid difficult trading conditions.
The Glasgow-based company made £761,000 pre-tax profits in the year to September compared with £719,000 in the preceding year. Sales increased by nine per cent annually to £13.9m, from £12.7m.
In Black & Lizars accounts for the year the company said it faced difficult trading conditions in the retail and optical sectors.
Directors highlighted a continued squeeze on real consumer incomes throughout 2013 and 2014 which saw many patients in the lower to middle part of the market, trade down or defer their expenditure entirely.
They noted that competitive pressures are increasing even though the recent growth in the economy may have helped boost demand.
Acquisitions will remain a part of the strategy that the company follows to try to boost growth under Geraldine Wood, who will be promoted from chief operating officer to managing director on 1 April.
Chief executive Mark Ross is joining a company outside the optometry sector.
Ms Wood said Black & Lizars wants to acquire practices in areas of Scotland that match its target demographic. She described this as the older affluent patient.
She said Black & Lizars aims to have 40 branches ultimately. It has 24 in Scotland and one in Belfast currently.
However, Ms Wood said the company will wait to buy practices to ensure those it acquires are a good fit.
The focus for acquisitions will be Scotland but the company could move into England in future.
Ms Wood said while competitive conditions are tough the company can achieve organic growth with a strategy that involves selling more specialist services.
Black & Lizars has invested heavily in advanced technology such as retinal testing systems developed by Dunfermline-based Optos to tap into demand from older patients, who are more health-conscious and willing to pay for services.
Ms Wood noted the company also sees providing services for children as an important growth area.
The company has a dedicated area for children in the flagship outlet it opened recently on Frederick Street in central Edinburgh.
The company will continue its drive into other areas under Ms Wood, who noted: "We are still moving towards being one of Scotland's leading healthcare providers."
Black & Lizars employs three specialist audiologists in its Hearing Care division.
Ms Wood said the company is working on plans to move into other areas.
She said Black & Lizars will use offers to boost trade but will not be a promotion led business.
While targeting affluent consumers, the company will offer products for people on a range of budgets.
Ms Wood said the company has been performing well in the current year.
"All in all the first six months trading has been good," she said, noting that turnover and patient numbers have increased. The Hearing Care division has been trading well.
Based on current trends the company hopes to increase profits in the current year. Ms Wood said it will be keeping costs under close control.
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