THE COMPANY operating the Galway Clinic, the private medical clinic owned by businessman Larry Goodman and the orthopedic surgeon, James Sheehan, among others, made a profit before tax of €3.08 million in 2007, according to accounts filed recently.
The profit compares to a figure of €1.49 million the previous year. The main reason for the increase in profits was the increased turnover, which was €51.56 million in 2007, up from €41.49 million the previous year.
The accounts for Galway Clinic Doughiska Ltd state that the increased profits were driven by "a broad range of inpatient and outpatient services available at the clinic." They also state that the company has a continued reliance on patients with VHI Healthcare cover.
Staff costs during the year were €20.11 million, up from €16.71 million the previous year. The average number of staff increased to 374 from 335 during 2006. The effects of certain matters including finance leases and tax losses, meant no tax was paid.
The accounts state that Marpole Ltd is the operating companys ultimate parent and that Mr Sheehan and his son Joseph Sheehan own 50 of Marpole's 100 issued shares while Mr Goodman owns 40 by way of Parma Investments BV. Another company, BMD Investments Ltd, which is controlled by Brendan McDonald, owns 10 shares in Marpole.
The most recent consolidated accounts for Marpole state the group made a profit almost identical to that of Galway Clinic Doughiska. They show accumulated losses for the group of €3.4 million.
The accounts state that Marpole bought the land in Galway on which the clinic was built while a related company, Blackrock Medical Partners Ltd, developed the medical centre. The land and the buildings were then separately disposed of to unrelated parties. Blackrock Medical Partners is owned by James Sheehan and his son James.
Under the terms of a put and call option, Marpole can repurchase the land and hospital under specified circumstances. The Marpole accounts state that the price would be €54 million in 2015 if expected conditions set out in the put and call agreement are met.
The Galway centre comprises a hospital and medical suites and the accounts for Marpole state that Marpole and Blackrock Medical Partners disposed of their respective interests in the medical suites in 2005.
The accounts show that Marpole had loans from shareholders totalling €24.5 million at the end of 2007, down by €1 million on the previous year.
Of these loans, €18 million was non-interest bearing, with the rest incurring interest at a rate of five to six per cent. Of the loans, €12.25 million came from Blackrock Partners (the Sheehans), €9.8 million from Parma Investments (Mr Goodman) and €2.45 million from BMD Investments (Mr McDonald).
The accounts also show Marpole had non-interest bearing loans of €18 million out to unrelated parties at the end of 2007.
