Boston Scientific posts 15% gain

Pre-tax profits at the Irish business of Boston Scientific and a number of overseas subsidiaries last year rose over 15% to $488m (€454m).

The leading US medical device manufacturer is one of the largest companies in Ireland, employing almost 5,000 people at sites in Galway, Cork, and Clonmel.

According to accounts for Boston Scientific Group, just filed with the Companies Office, the business recorded the sharp increase in profits after revenues grew by 5% to $5.54bn in the 12 months to the end of December last.

The firm last year paid a dividend of $450m.

The holding company’s registered office is at Ballybrit Business Park, Galway and it includes the performance of a number of overseas subsidiaries.

The company’s corporation tax bill last year increased by 60% from $39.74m to $63.8m and the tax paid last year represents a 13% rate on profits.

The chief factor behind the increase in tax was prior year adjustments of $10m adding to the bill, while deferred tax of $4m also added to the tax bill.

In the accounts, the firm’s directors state that they are “satisfied with the performance of the group to date” and the increase in sales revenues last year.

The group’s gross margin was 58% last year compared to 56% in 2013.

Last year the corporation generated global revenues of $7.38bn.

The revenues by the Irish-based holding firm accounted for 75% of the group’s overall 2014 global revenues.

No breakdown is provided in relation to the specific performance of Boston Scientific’s Irish subsidiaries.

The profits for 2014 also take account of combined non-cash costs of amortisation and depreciation of $557m.

The group had accumulated profits totalling $6.716bn last year with shareholder funds totalling $7bn.

The filings show that the numbers employed by the group increased last year from 11,800 to 12,020 with payroll costs increasing from $947m to $1bn.

Directors’ remuneration stood at $580,000.

Last year, the company spent $548m on research and development.

The holding company’s subsidiaries are based in Ireland, Europe, Asia, Africa and Central and South America.

Underlining the investment by Boston Scientific in Ireland, the accounts show that a number of Irish subsidiaries have received a total of €27m in grants from the IDA “which may be revoked, cancelled or abated in certain circumstances”.

Profits last year increased through much lower interest payments, declining from $81.7m to $48m.