NASDAL Scotland’s benchmarking: profits fall back and costs rise
Private practices saw a big drop and it's not good news for Associates.
NASDAL Scotland today published its annual Benchmarking Report for the financial period, 2023-24. The statistics show:
- 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 to £180,018 from £170,610 in the year ending 2023. Net profit as a percentage 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 up significantly.
- Not good news for Associates with a year-on-year decline for the previous three years in net profit and a 1.3% decrease in net profit percentage compared with the prior year.
Roy Hogg, of Johnston Carmichael, Specialist Dental Accountant and Chair of NASDAL (National Association of Specialist Dental Accountants and Lawyers) 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 12-24 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.”
The annual Benchmarking Survey statistics are gathered from the accountant members of NASDAL across Scotland and the UK who together act for more than a quarter of self-employed dentists.
The statistics provide average ‘state-of-the-nation’ figures so NASDAL accountants can benchmark their clients’ earnings and expenditure and help them run their practices more profitably. The basis of the survey figures is 2024 tax returns and accounts with year ends up to 5 April 2024.