Irish-owned nursing home group sees profits rise by nearly 50pc
A HEALTHCARE group backed by JP McManus, John Magnier and Dermot Desmond saw its profits jump by nearly 50pc last year, new accounts show.
Barchester Healthcare recorded profits after tax of £30.9m (€35m) for 2010 on the back of revenue that increased nearly five pc to £432.7m (€491m), according to accounts just filed.
Barchester, which runs some 180 care and nursing homes in the UK, said business continued to improve, with occupancy rates increasing.
Despite the strong results, the group's directors warned that access to finance could become a 'key risk and uncertainty' in the future.
"Due to the economic situation, an area that may be perceived as a risk is the ability in the future to secure financing to enable the group to continue to finance any acquisitions or extensions," they said.
"However, the group believes that, due to available facilities held within related undertakings, this is not a major risk.
"The business is supported by strong future demand based on the demographics of the UK population.
"The long-term growth in the older population and rising affluence continue to offer opportunities for investment in the sector and the directors continue to believe these projections still hold true despite the current economic situation."
Company chairman Denis Brosnan, the former Kerry Group chief executive, was pleased with the company's performance.
"During 2006, Barchester was restructured into separate property and operating companies subject to an internal lease arrangement between the two.
"During 2007, 2008, 2009 and 2010 the reorganisation continued, with the trade of a number of operating subsidiaries being hived up into the holding company Barchester Healthcare Homes Limited.
"Looking ahead . . . the directors are confident that Barchester Healthcare Group will continue to make progress in 2011," he said.