Pretax profits at the UK nursing home group owned by three of Ireland’s best known businessmen last year increased by 44 per cent to £54.8 million (€63.18 million).
New consolidated accounts filed by Barchester Healthcare Ltd show that the business recorded the sharp rise in pretax profits as revenues increased by 11 per cent to £966.8 million.
The group is co-owned by three of Ireland’s best known and most successful businessmen, JP McManus, John Magnier and Dermot Desmond.
Barchester is the UK’s second largest nursing home operator and provides 14,849 registered beds, spread across its portfolio of 232 registered services with the largest proportion located within London and the southeast.
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Numbers employed at the group increased by 950 from 16,250 to 17,200.
In his report, group chairman, John Coleman said that “Barchester performed strongly from both care quality and commercial perspectives during 2024 “.
He said: “Enquiries for places in our care homes and hospitals remained strong and translated into occupancy levels that were consistently higher in 2024 than in 2023. Improvements were also seen in our fee rates and the private resident mix.”
He said: “In addition to enhancing our existing estate, we continued our new build programme, opening eight brand new, purpose-built, premium care homes in 2024.”
Mr Coleman said that the business has continued its commitment to pay above the National Living Wage and “encouragingly, the need for the use of agency staff in our care homes and hospitals more than halved for the second consecutive year”.
The group’s earnings before interest tax depreciation amortisation and rent (EBITDAR) last year increased from £262.2 million to £294 million.
The directors state that the rise was driven by an increase in occupancy, fee rate inflation and a reduction in agency usage, offset by increases to labour pay rates and other home and central costs.
The group’s operating profits increased by 26 per cent to £94.03 million and net interest charges of £39.18 million reduced profits to a pretax profits of £54.84 million.
The group last year recorded post tax profits of £35.2 million after incurring a corporation tax charge of £19.63 million.
Staff costs last year increased by £57 million to £519.3 million that included share based payments of £5.65 million.
Directors’ pay decreased from £4.12 million to £2.62 million. Pay to the highest paid director last year decreased from £1.98m to £1.07m.
The profit takes account of non-cash depreciation, amortisation and impairment costs of £44.9m.
The profits also take account of operating lease expense of £150.2 million.
The business continued to expand last year and the accounts show that the group paid out £53.06 million on the acquisition of assets.
At the end of December last, shareholder funds totalled £256.45 million that included accumulated profits of £211.65 million.
Cash funds decreased from £31.1 million to £15.55 million.
