Earnings at McManus, Desmond and Magnier backed healthcare group top €196m in 2017
Earnings at the UK-based healthcare group backed by well known Irish investors, JP McManus, Dermot Desmond and John Magnier last year increased by 6.6% to €196m.
Last week, JP McManus received a mix of praise and criticism after his €3.2m donation to 32 GAA County Boards.
Now, new accounts filed by the Limerick man's backed Barchester Healthcare Ltd to Companies House in the UK show that it recorded the earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) of £174m as revenues increasing by 5% to £591.2m in the 12 months to the end of December 31st last.
At the end of last year, the group provided over 12,000 beds in the UK.
In his chairman’s report, John Coleman said that increase in revenues was “underpinned by higher fee rates year on year”.
He said: “The group has a very strong balance sheet, with reduced bank and other debt, which leaves it free to explore ways of investing cash to support future growth in the scale of operations.”
Earlier this year, it was reported that the three Irish businessmen are in line for a major windfall with Barchester being prepared for sale with a price tag of £2.5bn.
In his report, Mr Coleman said that the introduction of the National Living Wage in the UK in April 2016 “has increased the cost base of the group significantly and will continue to do so”.
The group’s pre-tax profits almost doubled going from £3.73m to £6.86m last year.
The group recorded the pre-tax profits after paying out £17m in interest charges.
The group’s operating profit also increased by 15% to £24.06m.
The accounts show that £98.79m was paid in rent to a firm owned by common controlling shareholders.
The directors state that they are pleased with the performance of the group and expect to see continued growth in revenue and EBITDAR in the coming year.
At the end of last year, Barchester was amongst the top four largest providers in the UK long term care sector and has its 12,000 registered beds across a portfolio of 200 homes and seven independent hospitals.
Accumulated profits at the group last year stood at £102.76m. Shareholder funds totalled £122.5m that included cash of £19m.
The firm proposed an interim dividend of £1m in 2017.
Numbers employed by the group last year decreased from 15,710 to 15,462. Staff costs last year increased from £286.32m to £303.46m. Remuneration for directors decreased marginally from £1.6m to £1.86m. The remuneration for the highest paid director totalled £914,000.
The directors state that the group’s strategy “is one of continued growth through new builds, the extension of existing facilities and where appropriate, through the acquisition of new nursing homes of a suitable quality".
The group’s net debt last year decreased from £151m to £150m “as a result of the group fully repaying its bank borrowings”.
