OPERATING PROFITS at independent pharmacy chain Sam McCauley Chemists fell by two-thirds last year to €2.25 million as a drop in revenues and increased costs hit its bottom line.

Wexford-based Sam McCauley Chemists operates a chain of outlets in the south, southeast and southwest of the Republic and employs more than 550 people.

Recent returns to the Companies’ Registration Office (CRO) show that in the 12 months to September 30th, 2010, the group’s sales dipped by 4.2 per cent to €81.16 million from €84.76 million during the previous 12-month period.

Operating profits fell by 70 per cent to €2.25 million in 2010 from €7.5 million the previous year.

The figures show the combined cost of sales and administrative expenses increased to €81 million last year from €78.7 million in 2009.

At pre-tax level, the company reported that profits for 2010 year were €1.6 million, down from €2.2 million the previous year.

The 2009 profit and loss statement included a €4 million charge for a fall in the value of some of its properties. There was no such charge included in the 2010 accounts.

For the second year in a row, the directors did not recommend the payment of a dividend to shareholders.

The group’s balance sheet remained solid. Net assets increased over the 12-month period to €28 million on September 30th from €26.6 million.

The group’s bank loans stood at €26.5 million on September 30th, down from €29 million a year previously. Its interest bill halved to €666,000 from €1.3 million over the same period.

Employee numbers at the group fell to 553 from 564. Its wages bill was €13.4 million in 2010, down from €14.5 million in 2009.

The McCauley group also owns 25 per cent of Amplifon Ireland, which supplies hearing aids.