DEMOGRAPHIC AND INDUSTRY INFORMATION
Demographic and Competitive Environment
PAGE SIX
Location
A site inspection was not undertaken and the following trading environment has been indicated from
the inspection and public available data:
The pharmacy is located in Cobar, a town in central western New South Wales, 712 kilometres
north-west of Sydney, part of the Cobar Shire Local Government Area.
You are referred to the Demography charts and comments below.
The town of Cobar is growing at a rate lower than the national average and has a level of
residents over 55 lower than the National average levels - see page 7. This demographic
segment is a particularly strong user of pharmacy services.
The pharmacy is located in the centre of the town in the main shopping area, opposite a
Supa IGA Supermarket.
Competition comes from local supermarkets, SUPA IGA Plus Liquor Cobar opposite the
pharmacy and Supa IGA Cobar at 34 Linsley Street 130 metres away. There is only one other
pharmacy in the town, Cobar Chemsave Pharmacy at 66 Marshall Street 520 metres away.
The closest other pharmacies are; Nyngan Pharmacy in Nyngan approximately 132
kilometres away, The Towers Drug Co Pharmacy in Bourke approximately 160 kilometres
away and Warren Pharmacy in Warren approximately 208 kilometres away.
The nearest medical centres are Dr Indra's Surgery Cnr Harcourt and Linsley Streets 270
metres away and Cobar Primary Heath Care Centre at 26 Harcourt Street 280 metres away
with three doctors. The closest other medical centres are; Bogan Shire Medical Centre in
Nyngan approximately 132 kilometres away, RaRMS Health practice listing three doctors,
NSW Outback Division of General Practice Ltd and Bourke Aboriginal Health Service, all in
Bourke approximately 160 kilometres away and RaRMS Health - Warren Family Health Centre
in Warren approximately 208 kilometres away.
Lilliane Brady Village aged care facility is located at 2 Nullamutt Street 1.5 kilometres away.
Benchmarks
You are referred to the Benchmark charts above for the financial performance of the pharmacy against
benchmarks.
Market for Pharmacies
The market for pharmacy businesses in Australia remains strong and is characterised by acquisition
activity from both purchasers of whole pharmacy businesses and also from syndicates. We are of the
view that demand continues to outstrip supply. This demand is also evident in regional and even more
remote locations. Recent yields have indicated continued strength in demand in all metropolitan areas
with major regional centres also commanding yields comparable with metropolitan areas. Yields for
larger regional centres where competition is weaker have also strengthened.
We are of the view that under current conditions the pharmacy business could be sold at valuation
within six months of business sale program. The market for pharmacies has participants nationwide
with significant numbers of cross border transactions.
Armstrong Business Valuations Pty Ltd
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