Earnings jump to €8m at O’Brien-owned Beacon
EARNINGS at the Denis O’Brien-owned Beacon Hospital in Dublin last year increased by 27pc to €7.9m.
New accounts by Beacon Medical Group Sandyford Ltd and subsidiaries show that the business recorded the increase in earnings before interest, taxes, depreciation, amortisation and rent (ebitdar) after revenues increased by 13pc, going from €91.7m to €103.9m.
Beacon Hospital group financial officer Daragh Kavanagh said yesterday that “2017 was a very good year for the hospital in terms of growth, activity and revenue”.
Mr Kavanagh said that 2018 has also been “a very strong year” for the hospital.
The directors said that ebitdar is the metric the hospital uses to measure the underlying profitability of the business.
Mr Kavanagh said: “Last year’s guidance that we were well-positioned to drive margin improvement in 2017 has been delivered. This trend has continued into 2018.”
The hospital today is one of the most advanced in Europe, with over 1,400 consultants, nurses and healthcare professionals working there.
At the end of December last, the group had shareholder funds of €23.4m. In 2017, the hospital enjoyed a 4pc increase in inpatient days with average occupancy of 86pc.
The hospital recorded a 12pc increase in inpatient surgeries, to 5,000, and a 6pc increase in day case surgeries to 11,000. During 2017, it had more than 113,000 patient visits.
The Beacon, which opened in 2006, has 199 private acute beds. Jobs were made secure there in 2014 after the intervention of billionaire Mr O’Brien, who acquired the €212m loans attached to the business.
The business last year recorded a pre-tax loss of €6.1m, but this includes non-cash items including depreciation payment of €8.08m and notional interest payments of €4.86m owed to Mr O’Brien that the company doesn’t pay but which are included due to accounting rules.
Staff costs last year increased from €40m to €44.9m.
According to the directors, the hospital is in the middle of a €70m capital-investment programme to upgrade its equipment and facilities.
The hospital made political donations of €1,560 and charitable donations of €28,676 during the year.
In a post balance sheet event, the directors state that the group increased its banking facilities in February 2018, positioning it to take advantage of property-acquisition opportunities which will allow the hospital to expand its services.