Profits climb at Barchester Healthcare owned by trio of Irish billionaires

Dermot Desmond: Co-owner of Barchester Healthcare

Profits at Barchester Healthcare, the UK nursing home group owned by Irish billionaires JP McManus, John Magnier, and Dermot Desmond, increased sevenfold last year.  

New accounts filed by Barchester Healthcare Ltd show that annual pre-tax profits climbed to over £31.8m (€36.67m) as revenues rose almost 13.5% to £766.76m. 

Barchester is the UK’s second-largest nursing home operator and provides 14,072 beds across 215 sites, which are mostly located in London and the rest of south east of England. It is co-owned by the three businessmen. 

Staff numbers in the latest year fell slightly to 14,962, but staff costs increased by £5m to £395m and directors’ pay increased by £1m to £2.97m. 

The company also benefited from almost £16.7m in UK government grants linked to containing the pandemic in care homes and hospitals. 

In the accounts, group chairman John Coleman said it "traded strongly throughout 2022 and life in our services returned to normality following the covid-19 pandemic”.

He said that enquiries "were in excess of pre-pandemic levels and occupancy levels increased steadily from April onwards”. Revenues were boosted by "an increase in occupancy and fee rate inflation”, the company said in the accounts.

The directors said that the covid-related costs incurred in the year included £16.1m for agency and recruitment to maintain staff rotas, £4.5m in sick pay, and £2.5m to buy personal protective equipment.