Profits almost halve at Hermitage Clinic in 2018

Accounts indicate decline in pretax profits but revenues advance 6% to nearly €80m

The Hermitage is co-owned by Larry Goodman. Photograph: Eamonn Farrell/Photocall Ireland

The Hermitage is co-owned by Larry Goodman. Photograph: Eamonn Farrell/Photocall Ireland

 

Pretax profits at the Hermitage Clinic in Dublin almost halved to €935,982 in 2018. New accounts for the private hospital co-owned by Larry Goodman and Seán Mulryan show that the 46.5 per cent drop in pretax profits came as revenues grew by 6 per cent to €77.9 million.

Numbers employed at the 112 bed private hospital based at Lucan in west Dublin increased from 450 to 495, with staff costs growing from €25 million to €26.7 million.

In a note within the accounts for Torcross Ltd and subsidiaries, directors said “growth in turnover was driven by a combination of volume growth across a number of specialities and some very modest price increases with health insurers after 10 years of compounded discounting”.

A factor behind the drop in pretax profits was non-cash depreciation costs increasing from €4.3 million to €5.4 million.

The directors state that the business has received €39.25 million in funding from shareholders since the business commenced.The group had a shareholders’ surplus of €1.29 million at the end of December 2018. Its cash increased from €1 million to €2 million.