Beacon Hospital posts €6.1m loss

By Gordon Deegan

Beacon Hospital, which is owned by businessman Denis O’Brien, last year posted a pre-tax loss of €6.1m as revenues climbed 13%.

New accounts filed by Beacon Medical Group Sandyford Ltd and subsidiaries show revenues rose to €103.9m from €91.7m.

The pre-tax loss includes non-cash items, including a depreciation payment of over €8m and “notional” interest payments of €4.86m that are due to be paid to Mr O’Brien.

Its earnings before interest, taxes, depreciation, amortisation, and rent rose 27% to €7.9m.

In a post balance sheet event, the directors revealed the group increased its banking facilities in February to provide for property acquisition opportunities.

Staff costs at the private hospital, which employs more than 1,400 consultants, nurses, and healthcare workers, increased to €44.9m from €40m in the previous year.

The Beacon’s group financial officer, Daragh Kavanagh, said that “2017 was a very good year for the hospital in terms of growth, activity, and revenue” and that 2018 was “a very strong year”.

“Last year’s guidance that we were well positioned to drive margin improvement in 2017 has been delivered. This trend has continued into 2018,” he said.

At the end of the year, the group had shareholder funds of €23.4m.

Mr O’Brien acquired the €212m loans attached to the business four years ago.

The hospital is about half-way through a €70m investment programme, which started in 2014 and is due to run to 2021.