Group expects resultant loss after tax.
The Terry White Group has said it will sell the Pharmacy Direct brand assets for $2.75m, with an expected resultant loss after tax.
An “arms length” agreement had been entered into to sell the brand, intellectual property and online retail business, with an expected settlement date of late October or early November, the company said.
As a result, the company expected to see an unaudited, impairment write down of $4.4m in the financial year to 30 June, which would see the company post an expected statutory loss after tax, it said.
“This disappointing outcome reflects the stronger competitive forces at play in the discount pharmacy sector since the assets were acquired.
“The disposal of these assets will however, provide useful cash proceeds for reinvestment, allowing the Company to concentrate even more on the Terry White Chemists retail brand, and freeing-up resources for higher yielding opportunities in the TWC business.”
The company said the sale of the assets was expected to have a positive impact on the company’s underlying future earnings.
For more information, see tomorrow’s Pharmacy Daily.