Private practices in Scotland saw a big drop in average net profit per principal – down more than £30,000 in 2022-23.
But NHS practices showed an increase – the net profit per principal rose by almost £10,000 in the same period.
This is according to NASDAL Scotland (National Association of Specialist Dental Accountants and Lawyers) in its annual benchmarking report for the financial period 2023-24.
The report found:
- Private practices saw a big drop in average net profit per principal – down to £206,276 from £237,352 in 2022-23. However, net profit as a percentage has increased 0.9%
- NHS practices showed an increase on last year – net profit per principal up to £180,018 from £170,610 in the year ending 2023. Net profit as a percentage has also decreased slightly by 0.2%
- Mixed practices did see a small growth in average net profit per principal – to £199,471 from £191,003 in 2022-23, but a fall in net profit as a percentage of 3.5%
- All NHS and private practices saw a decrease in associate fees
- Increases in costs across the board and laboratory fees were up significantly
- Year-on-year decline for previous three years in associate net profits and a 1.3% decrease in net profit percentage compared with the prior year.
In addition, the overall largest rising cost was lab fees with an increase of 1.2% (private 2.7%, NHS 0.8%, mixed 1.2%).
| NHS | Mixed | Private | |
| Year ended March 2022 | £134,594 | £178,802 | £207,575 |
| Year ended March 2023 | £170,610 | £191,003 | £237,352 |
| Year ended March 2024 | £180,018 | £199,471 | £206,276 |
Global economic conditions
Roy Hogg, of Johnston Carmichael, specialist dental accountant and chair of NASDAL Scotland, said: ‘Costs are definitely on the rise with laboratory costs being the largest of these in 2023-24.
‘A reduction in profitability for private and mixed practices was expected – 2022 was higher due to the impact of the pandemic and the last couple of years have perhaps seen less disposable income in the economy. It will be interesting to see the effects that global economic conditions have on costs on profits in the next 12 to 24 months.
‘The NASDAL annual profit and loss benchmarking report is a unique and valuable tool which enables NASDAL accountant members to compare their practice owning clients with industry norms. It means that we help our clients really understand what is happening in their dental business.’
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