Pre-tax profits at NAMA-linked nursing home group rise to €2.5m
PRE-TAX profits at the country's largest nursing home group, where two indebted NAMA developers transferred their ownership of the firm to their wives, increased 58pc to €2.5m.
New accounts filed for the Limerick-based Mowlam Healthcare to the Companies Office show that the nursing home recorded the increased profits in 2011 after revenues increased 15pc to €34.79m.
The group operates 16 nursing homes and employs 1,000 people. Chairman of Mowlam Healthcare, Pat Shanahan said yesterday that Mowlam Healthcare's current performance was consistent with 2011, is profitable and continues to invest heavily in each of its homes. The firm was established by Limerick developers, John Shee and Joseph Hanrahan and last year, NAMA appointed PwC as receiver to properties owned by four development firms owned by the two.
The Mowlam Healthcare accounts for 2011 confirm that, at the start of the year, Mr Shee and Mr Hanrahan both had one-third shares along with former chair of the Shannon Airport Authority, Pat Shanahan.
However, the accounts show that as a result of Mr Shee and Mr Hanrahan divesting themselves of their share, Mr Shee's wife Mary acquired 25pc of the business with Mr Hanrahan's wife Vivienne acquiring a further 25pc with Mr Shanahan increasing his share to 50pc.
Mr Shee and Mr Hanrahan resigned from the board in July 2011.
The company would not be drawn yesterday on the rationale behind Mrs Shee and Mrs Hanrahan assuming a combined 50pc share of the group.
Mr Shanahan pointed out that the company had substantial capital commitments and was dealing with these as they arose – the accounts confirm that the firm had entered contracts for future capital expenditure totalling €49.1m.