Tycoons’ health business in red

Aviation tycoons Ulick and Desmond McEvaddy’s loss-making healthcare business was the chief factor behind the brothers’ group of firms going into the red in 2012, recording pre-tax losses of €491,351.

According to accounts just filed by Dublin-based Omega Aviation Services Ltd and subsidiaries, the McEvaddys continued to count the cost of their foray into the health business in 2012.

The loss in 2012 followed the group recording a pre-tax profit of €713,786 in 2011.

This followed revenues at the group decreasing by 11% from €22.1m to €19.69m in the 12 months to the end of December 2012.

The accounts show that the McEvaddys’ healthcare campus venture in Naas was again weighing down the group’s overall performance.

The figures show that 80%, or €15.7m, of the group’s revenues stem from aircraft leasing and the sale of aircraft parts and engines, while healthcare-related income accounted for 17%, or €3.3m, of sales.

This included income of €1.2m from a diagnostic medical centre and €2.04m from pharmacy sales. A further €522,949 is generated through rental income and €135,614 in property management charges.

According to the directors’ report “as was the case in the previous period, the loss incurred is directly as a result of a further impairment of the inter-company loan balance with the company’s subsidiary, Nass Primary Care Campus Ltd”.

The directors state that the 2012 impairment totalled €1.93m. “Excluding the impairment of the loan, the company has traded successfully with a profit before impairment of €1.27m,” they stated.

At the end of 2012, Omega was owed €12m by Naas Primary Care Campus Ltd.

The directors stated: “The level of inter-company loan impairment will be reduced significantly in 2013 and the company will return to a position of overall profitability.”

The figures show that the group recorded a minor operating loss of €29,731 in 2012 following an operating profit of €1.59m in 2011.

Interest payments totalling €491,620 added to the group’s losses.

The figures show that the McEvaddys last year paid themselves an aggregate €507,896 in remuneration and other emoluments — the same amount as 2011.