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Boots rise sees Hornby bounce back from HBOS
3 Nov 2009Andy Hornby might have looked out of his depth as a banker, but his strengths as a retailer have seldom been in doubt.
Today the former Asda boss, who had the misfortune to be in charge when HBOS collapsed, unveiled his first set of figures as chief executive of Alliance Boots.
The chemist has been on the up since being taken off the stockmarket in a £12 billion deal which was orchestrated by Italian private equity king Stefano Pessina in 2007.
In the six months to the end of September Hornby arrived at the company in July sales are up 11.6% to £9 billion, a result which few retailers can match.
The High Street arm saw sales rise 5.4% while the wholesale operation medicines to hospitals is up by 6.7%.
Last month Boots unveiled WebMD, an internet portal that offers health advice online.
It also opened four doctors' surgeries in stores, taking the total to 10 as it seeks to maintain its position at the heart of the UK health industry.
The takeover deal left Boots saddled with debts of £9 billion. Finance director George Fairweather said that this is being paid down slowly, with £367 million of borrowing bought back during the period.
On most of our debt the interest is capped rather than fixed, so we are benefiting from low interest rates, Fairweather added.
Boots bought Dollond & Aitchison last year, which it is now merging with its own opticians business.
Reader views (5)
The owners of boots have no business ethics or morals taking on Andy Hornby.
I have boycotted the store ever since Andy Hornby's appointment.
For the employees' sake - I hope he does not fail
- Jackie, london, 06/12/2009 22:26
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History will regard Mr Andy Hornby as a banking faliure and a poor Director, who destroyed shareholders value. Your article does not fool the public and if Boots goes under I will not be suprised.
- Andrew, London, 03/11/2009 18:08
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In past times, the uncontrolled bad behaviour of oligarchs has lead to revolution.
That Hornby can get any kind of job anywhere, let alone one which involves decision making and control of budgets, illustrates a country and government that is bereft of decency, divorced from any interest in the opinions, ambitions or welfare of its nation's citizens.
But then, if you are a government that takes spin and lies as a given, then it isn't a surprise is it.
- Serena Hope-Graeme, London, 03/11/2009 15:39
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I still fail to understand how Hornby and other bank directors have not yet faced civil or perhaps even criminal charges for gross corporate negligence.
- Jim, London, 03/11/2009 10:26
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How on earth can this "expert" take ANY credit for these results? He was not employed at the time when the business decisions were taken which gave rise to these figures. He hasn't had time yet to bring his HBOS experience to the fore, so let's wait and see just how "skilled" he is......
- David Low, Cirencester, UK, 03/11/2009 10:22
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