Profits at care home chain Barchester up to €19.17m
The chain of care homes owned by three Irish billionaires last year almost tripled its pre-tax profits to £17.34m (€19.17m).
UK-based Barchester Healthcare is owned by Dermot Desmond, JP McManus and John Magnier and the business recorded the jump in profits after revenues increased by 5pc to £621.26m from £591m last year.
The business - which has a workforce of 15,754 employees- was put up for sale last year with a price tag of £2.5bn. Staff costs totalled £323.16m
Earlier this year, Australian infrastructure bank Macquarie pulled out of a deal to purchase Barchester blaming the uncertainty caused by Brexit.
Barchester owns about 200 care homes providing 12,000 registered beds. The directors state that the revenues rise was driven primarily by higher fee rates "but also through an increase in occupancy".
On the group's outlook, Barchester chairman John Coleman said that "the group is trading strongly and has a very strong balance sheet with reduced bank and other debt".
A note states that the UK Competition and Markets Authority (CMA) has begun a consultation relating to alleged past conduct by Barchester in charging an upfront once-off fee and the alleged charging of fees following the death of a resident.
The note states: "In the event that the CMA commences proceedings and is successful, the financial impact would be in the range of nil to £12m." Barchester's legal advice is that it is in a strong position to refute the case.