Nursing home profit rise

Pre-tax profits at the country’s largest nursing home group, where two indebted Nama developers transferred ownership of the firm to their wives, increased by 58% in 2011 to €2.5m.

Accounts filed to the Companies Office by the Limerick-based Mowlam Healthcare Ltd show the nursing home group recorded the profits rise after revenues increased by 15%, from €30.1m to €34.79m.

The group operates 16 nursing homes and employs 1,000.

Chairman Pat Shanahan said yesterday that its current performance is consistent with 2011, is profitable, and continues to invest heavily in each of its homes.

The firm was established by Limerick developers John Shee and Joseph Hanrahan. Last year, Nama appointed PWC as receiver to properties owned by four development firms which the pair owned.

The Mowlam Healthcare accounts for 2011 confirm that at the start of the year, Mr Shee and Mr Hanrahan both had a third of shares along with Mr Shanahan, a former chair of the Shannon Airport Authority.

However, the accounts show that as a result of Mr Shee and Mr Hanrahan divesting themselves of their shares, Mr Shee’s wife Mary acquired 25% of the business and Mr Hanrahan’s wife Vivienne a further 25%. Mr Shanahan thus increased his share to 50%. Mr Shee and Mr Hanrahan resigned from the board in Jul 2011.

The company would not be drawn yesterday on the rationale behind Mrs Shee and Mrs Hanrahan assuming a combined 50% share of the group.

Mr Shanahan pointed out that the company has substantial capital commitments and is dealing with these as they arise. The accounts confirm that Mowlam had entered contracts for future capital expenditure totalling €49.1m.

Referring to the board and ownership shake-up, Mr Shanahan said: “The Mowlam Healthcare Group was restructured in 2011/2012 to put it in the best position to meet these substantial future capital commitments..”

The group has applied to reregister as an unlimited company and will not in future have to file annual accounts. The 2011 set of accounts will be the last to be publicly available.

Mr Shanahan said: “The company operates in a highly regulated environment. We are committed to enhancing the quality of care for all our residents and continue to invest heavily to maintain our facilities to the highest standards.”

The firm operators nursing homes across the country including Swords Nursing Home in Dublin, on the site of the former Leas Cross nursing home.

The firm’s shareholder funds stood at €6.7m at the end of Dec 2011, which included €2.5m in cash. The 2011 profit takes account of €189,446 in non-cash depreciation costs. Staff costs increased from €18.27m to €20.3m, with aggregate remuneration to directors last year increasing from €150,000 to €183,333.