St Vin­cent’s Group make gain of €127m on value of land

Com­pany racked up losses de­spite in­come ris­ing 3% to €429m

The Irish Times - Business - - BUSINESS NEWS - PE­TER HAMIL­TON

St Vin­cent’s Health­care Group (SVHG) reval­ued its land port­fo­lio last year, record­ing a gain of €127 mil­lion, its re­cently filed ac­counts show.

The com­pany be­hind St Vin­cent’s Univer­sity Hos­pi­tal, St Vin­cent’s Pri­vate Hos­pi­tal and St Michael’s Hos­pi­tal recorded the gain af­ter Cush­man & Wake­field car­ried out a reval­u­a­tion on the as­sump­tion the lands could be de­vel­oped for the “high­est and best use”.

Ac­counts for the 12-month pe­riod to the end of De­cem­ber 2017 show the group racked up fur­ther losses last year af­ter in­come from pri­vate pa­tients fell. The com­pany’s deficit in­creased from €3.25 mil­lion to €4.6 mil­lion in the pe­riod.

In­come, mean­while, rose by 3 per cent to over €429 mil­lion, al­most two-thirds of which, or €271 mil­lion, came from HSE fund­ing. Both pa­tient in­come and “other in­come” dropped in the year, with the for­mer fall­ing 1.5 per cent to €139.9 mil­lion.

Last year the Re­li­gious Sis­ters of Char­ity an­nounced its in­ten­tion to re­lin­quish its share­hold­ing and to trans­fer own­er­ship into a newly formed char­i­ta­ble com­pany. As a re­sult of the change the Sis­ters can no longer ap­point di­rec­tors. A note in the ac­counts said: “Upon com­ple­tion of the trans­ac­tion the SVHG con­sti­tu­tion will be amended to re­flect com­pli­ance with na­tional and in­ter­na­tional best prac­tice guide­lines on med­i­cal ethics, and the laws of the Repub­lic of Ire­land.”

In their re­view of the ac­counts the di­rec­tors noted the com­pany plans to “con­tinue pro­vid­ing high qual­ity health­care, to­gether with keep­ing pace with ap­pro­pri­ate de­vel­op­ments and im­prove­ments in med­i­cal and clin­i­cal health­care prac­tices”.

Age­ing de­mo­graphic

Em­ployee num­bers across the three hos­pi­tals in­creased by 150 to 3,908 in the year while wage and salary costs rose by 7.5 per cent to al­most €225 mil­lion.

The com­pany be­lieves the Repub­lic’s age­ing de­mo­graphic will cause a “con­sid­er­able in­crease in de­mand for health­care and man­age­ment of chronic ill­ness”.

As a re­sult its in­fra­struc­ture and equip­ment as­sets will need “sub­stan­tial in­vest­ment over the next num­ber of years”.

The hos­pi­tal group made a gain on in­ter­est rate swaps of €6.3 mil­lion in the year, hav­ing made a €2.9 mil­lion gain in 2016. It en­tered into swaps to hedge the group’s ex­po­sure to in­ter­est rate move­ments on its fi­nanc­ing li­a­bil­ity and loans of €128 mil­lion re­lat­ing to the pri­vate hos­pi­tal.

The group’s earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­sa­tion (Ebitda) fell al­most 3 per cent to €13.7 mil­lion in the year.

PHO­TO­GRAPH: AI­DAN CRAW­LEY

■ St Vin­cent’s Health­care Group owns three fa­cil­i­ties in Dublin.

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