Irish-backed health firm records €15.5m profit
Pre-tax profits at the UK-based healthcare group backed by well known Irish investors, Dermot Desmond, JP McManus and John Magnier last year declined by 45pc to £11.48m (€15.5m).
New accounts filed by Barchester Healthcare Ltd show that it recorded the drop in profits in spite of revenues increasing by 5.6pc from £495.4m to £523.4m in 2014.
According to the chairman, John Coleman, the improvement in revenues was underpinned by occupancy growing from 10,973 to 11,075 at the end of last year.
In his report, Mr Coleman said that "the company has a very strong balance sheet, with minimal debt, which leaves us free to explore ways of investing cash to support future growth in the scale of operations".
At the end of last year, Barchester was amongst the top four largest providers in the UK long term care sector with 12,834 registered beds across a portfolio of 198 high quality homes and seven independent hospitals.
The directors state that they are pleased with the group's performance.
The group's operating profits reduced by 44pc from £23.2m to £12.9m and the factors behind the drop in operating including rent increasing by £11m.
The exceptional costs relates to a non-cash write-off of £2.2m and £1.6m from the fundamental restructuring of the senior management team at the business.
The shake up at board level followed founder and chief executive, Mike Parsons stepping down in January 2014 and chief finance officer, David Duncan stepping down in April 2014.
The two were replaced by Dr Pete Calveley and Dr Mark Hazlewood - the accounts disclose that £314,000 was paid to directors last year for loss of office. The highest paid director was last year paid £566,000.
The group's net debt reduced from £17.7m to £7.34m. The board includes two Irish members, Prof John Hegarty and Keith Browne, formerly partner at KPMG and who now works as an independent consultant.
Accumulated profits stood at £178.67m. Shareholder funds totalled £323.76m.
The group's earnings before interest, tax, depreciation and amortisation last year totalled £33m compared to £41m in 2013.
Numbers employed last year increased by 1,696 to 18,683 with staff costs increasing to £265.5m.