Experts at NASDAL reveal that associates have experienced a reduction in profit and income

Experts at NASDAL reveal that associates have experienced a reduction in profit and income, thus, bearing the brunt of the impact of the pandemic. The association revealed patterns and trends within dentistry, at this year’s launch of the NASDAL annual benchmarking statistics, for the financial period.

Dental practices saw an upsurge in average net profit per principal from £129,178 to £151,649. In addition, private practices witnessed an upsurge in average net profit per principal from £133,192 to £145,498. Furthermore, NHS practices saw an upsurge in average net profit per principal from £116,284 to £145,498.

The average remuneration for associations declined by approximately seven thousand pounds, with one commentator highlighting that they are worse off than they were in the 2000s.

Direct costs and wages saw a slight decline, from 43% in 2020 to 42.2% in 2021. In addition, lab fees and materials also saw a decrease from 13.6% in 2020 to 11.8% in 2021.

Specialist dental accountants and chairman of NASDAL, Nick Ledingham, stated: “It is important I think to view the 2021 figures in a wider context. Whilst it may appear to be a big jump in profits of NHS practices, it is worth noting that NHS profits are still lower than they were more than a decade ago in 2010. Associates’ pay has seen a big fall over the last decade in both real and relative terms, associates have been used to their profits flat-lining and the 2021 report showed no let-up in this. In real terms, associates are considerably worse off than they were in the Noughties.”

A chartered accountant and a partner in Humphrey and Co, Ian Simpson, stated: “This year’s benchmarking figures are the first to reflect the seismic change that was the Covid pandemic. The increase in profits seems to demonstrate that despite being closed from late March to early June, practices bounced-back to recover lost revenue in the latter part of the year when pent up demand was unleashed.”