Profits tumble by 36pc at Hermitage Clinic
Pre-tax profits at the private health clinic co-owned by businessmen Sean Mulryan and Larry Goodman decreased last year by 36pc to €1.9m.
According to new accounts filed by the Hermitage Clinic Ltd, the clinic last year sustained the drop in profits in spite of revenues increasing by 10pc from €56.95m to €63m. The 101-bed private hospital is situated at Lucan in west Dublin and numbers employed by the company last year increased from 389 to 406, with staff costs totalling €21.9m.
According to the directors' report, "during the year, the hospital continued to suffer further price reductions from health insurers and other purchasers. In order to mitigate this, the hospital increased activity levels and achieved cost savings through improved efficiency and more aggressive procurement".
The directors state that the firm's shareholders have contributed €26m to the business up to the end of last year and the directors point out that they are satisfied the clinic's level of funding is adequate to support the clinic's ongoing financial requirements for the foreseeable future.
A note attached to the accounts states that "the company is expected to continue to generate profits and positive cash flows on its own account for the foreseeable future".
The firm's operating profits dropped by 21pc from €4.32m to €3.4m and a contributor to the reduced pre-tax profits was increased interest payments going from €1.33m to €1.48m.
The clinic's operating charges last year increased from €31.66m to €36.3m
The remuneration for directors last year increased from €442,558 to €453,725.
The profit last year takes account of €1.45m in non-cash depreciation costs.
The rent paid under operating leases totalled €2.4m.
Pay to temporary staff increased from €413,325 to €724,238.