Appetite remains positive despite difficult trading conditions...


The last few years have been difficult for the pharmacy sector with Category M clawback impacting heavily on margins, and an environment of rising costs with Living Wage increases continuing to bite.

Whilst we have seen some real impact on operators' EBITDA levels, the market has held up well, with valuations indicating business values have remained solid. 


However, there is still a huge amount of interest in good quality units where operators have broadened their activities to maintain turnover levels.


The new five-year deal from the Department of Health and Social Care (DHSC) will offer some stability in terms of confidently projecting income levels, though it does appear to represent an overall cut in funding and a further challenge to the market.

Lender sentiment remains buoyant, with a positive view on the sector and a willingness to support both new entrants acquiring their first unit and groups adding to their portfolios.


There is also support available for operators to invest in their pharmacies with refurbishment programmes and the installation of new technology to keep up with a changing marketplace, and customer expectations.

Having worked with some innovative providers and seen them work through the issues the market has presented, we see good potential for future growth and will continue to work closely with specialist lenders and leading sector professionals to ensure our clients get the best advice and support.

Call: 07718 476159


Shital Koria

Director of Healthcare Finance

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MAF Healthcare Finance, Unit 22-24 Maisies Way, South Normanton, Derbyshire, DE55 2DS | Tel: 0115 958 6872 | Email:

MAF Healthcare Finance is a division of Midlands Asset Finance Limited which is authorised and regulated by the Financial Conduct Authority (FRN: 734580) and is registered in England and Wales under company number 06995483.

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