£28m profit at care home group
A NURSING home chain in which Irish businessmen Denis Brosnan, John Magnier, JP McManus and Dermot Desmond, have a stake, earned profits of almost £28 million last year, the latest figures show.
Barchester operates private nursing home and other care services for the elderly in Britain. It has one facility in Ireland, the Knightsbridge complex in Trim, Co Meath.
Barchester has just lodged accounts with Britain’s companies’ office showing that its revenues increased by 3 per cent to £438 million last year, from £425 million in 2010. Operating profit fell 13 per cent to £39.8 million from £45.8 million, on the back of a £6 million increase in administrative costs.
After interest charges, pretax profits were £39.1 million from £45.3 million. The group recorded a profit for the year, after tax, of £27.9 million, which was almost 18 per cent less than the £34.3 million it made in 2010.
The group’s balance sheet shows that shareholders’ funds were £72.4 million at the end of 2011, a near 64 per cent increase on 2010, when they stood at £44 million.
Creditors include £428 million due in one year. Of this, £379 million is due to other group companies. The accounts state that this figure is unsecured, interest free and not subject to any repayment date.
“They are, however, legally due on demand and are thus payable within one year, although it is not expected that the demand or that these amounts would be payable in the next year,” the accounts say.
The directors state that they are in talks with Barchester’s banks about the possibility of refinancing some debts that are due to be repaid next year.
Their report also points out that the group has not breached any of the terms of its loan agreements during the year and they did not anticipate this happening.
The company says the long-term growth in Britain’s older population and rising affluence continue to offer opportunities for investment in the sector.
While the Irish businessmen are shareholders, they are not directors. Mr Brosnan was chairman of the company but resigned this position last April.
The Irish investors are also shareholders in Castlebeck, a private hospital group based in Britain, which owned Winterbourne Hospital, which cared for adults with learning difficulties and autism.
A formal inquiry last month found that the hospital, which has been closed, pursued profit over the “humane” treatment of patients.
Castlebeck and Barchester are separate entities and are not connected.