Nucare Plc is seeking to raise almost £9m through a share issue to fund further expansion and the development of its brand image. In the prospectus for the share issue, issued on May 22, Nucare says that the funds raised will be used to recruit more independent community pharmacists as members.
The company is planning "an aggressive programme of image development and branding", which will include branding of pharmacies, development of own-label products and consumer marketing. Investment will be made in e-commerce and retailing systems.
Nucare was founded in 1993 with a share capital of nearly £500,000. This was subscribed by 185 shareholders of whom approximately 130 were independent pharmacists. These formed the core of the company's customer base. Nucare currently has around 1,200 customers and assets of around £3.3m.
Mr Veni Harania (managing director, Nucare) told The Journal on May 23 that it was the company's wish to see more of its customers become shareholders. It was hoped that the shares would qualify for capital gains tax exemption under the Government's enterprise investment scheme, although this had not yet been confirmed by the Inland Revenue. A stock market flotation on the Alternative Investment Market would be considered in three or four years time.
Nucare made pre-tax profits of £1.5m on a turnover of £7.4m in the year to September 30, 1999. Bonus shares worth £950,000 were distributed to shareholders.
The company is holding a series of roadshows to discuss its share issue and to encourage independent pharmacists to become members. They are to be held at Ealing (May 31), Brentwood (June 1), Northampton (June 6), Birmingham (June 14), Cumbernauld (June 15) and Haydock (June 21).
Further details and copies of the prospectus can be obtained from Nucare Plc, Raebarn House, 86 Northolt Road, Harrow HA2 0EL (tel 020 8515 9800).