The analysis of the financial period 2022-23 has shown:
- Overall, increased profitability for NHS, Mixed and Private practices compared to 2021-22
- An increase in average net profit per NHS principal from £134,594 to £170,610
- An increase in average net profit per mixed practice principal from £178,802 to £191,003
- An increase in average net profit per private principal from £207,575 to £237,352
- Associate average remuneration sees profit up from £65,393 to £82,073
Roy Hogg, a chartered accountant, chair of NASDAL Scotland, said, “It has been positive to see an increase in profits of NHS, Mixed and Private practices. The biggest rise in NHS was possibly as a result of practice owners being cautious with spending due to inflationary increases. We also expect that key expenses as a percentage of fees such as wages and lab fees will increase during 2024. We had expected to see private practices return to pre-pandemic levels of normality, and they have done so.
“I expect that the number of private and NHS practices should settle as most that were converting to private have now completed this transition in the latter years to 2024. In regard to Associates, the increased profitability is due to returning to normal working conditions following the Covid impact within the 2022 figures. It was interesting to note the rise in shift to private of approximately seven per cent taking the average private percentage to 36.4 per cent.
“We will see if this trend continues - the continuing lack of associates and backlog of work is likely to help maintain it for the coming year. The introduction of associate grants from the new SDR for on boarding should help to close the gap for demand for those in rural areas.”
The annual ‘Benchmarking Survey’ statistics are gathered from the accountant members of NASDAL across Scotland.
The statistics provide average ‘state-of-the-nation’ figures so NASDAL accountants can benchmark their clients’ earnings and expenditures and help them run their practices more profitably.
Johnny Minford, commercial and development director at DJH and NASDAL Media Officer, added, “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 basis of the survey figures is 2023 tax returns and accounts with year ends up to April 5, 2023.