Pretax profits at the Mater Private Hospital, one of the State's best-known private medical centres, surged by 74 per cent to €13.56 million last year, records just lodged in the Companies Office reveal. Arthur Beesley, Senior Business Correspondent, reports.
The latest filings also show that the hospital booked profits of €29.1 million in the first four years after a group of businessmen acquired it in late 2000 from the Sisters of Mercy.
In addition, they show that the properites occupied by the hospital on Eccles Street, Dublin, were revalued during 2004 by Jones Lang La Salle. An unrealised surplus of €29.44 million was transferred to the revaluation reserve as a result of this exercise, bringing the year-end value of the land and buildings to €57.15 million after depreciation.
When added to the hospital's net profit of €11.55 million, the revaluation surplus brought its total gains in the year to €40.99 million.
The takeover group, chaired by former CIÉ chairman Brian Joyce, comprised the team of directors brought in by the Mercy order in 1990-91 to restructure and reorganise a hospital then struggling with heavy debts.
The latest accounts for Copperway Ltd, parent company of Mater Private Hospital Ltd, show that its turnover rose to €86 million last year from €71.74 million in 2003. With operating profits on the rise to €13.72 million from €8.23 million, the hospital's operating profit margin grew in the year to 15.95 per cent from 11.47 per cent.
In addition to Mr Joyce, its members include former Hibernian chief executive and former CIÉ chairman Eamon Walsh, economist Dr Brendan Kearney and accountant John Murphy. All were non-executive directors of the hospital before the buyout. Mark Moran and John Mooney from the hospital's management team were also involved in the takeover group.
All six shareholders remained as directors on the Copperway board last year. The other board member, Monsignor Alex Stenson, is not a shareholder.
The accounts show that the directors' pay increased to €1.2 million from €1.08 million year. The remuneration in 2004, which was not broken down between individual directors, comprised €156,550 in fees for services as directors and €1.05 in fees for other services.
The group owns 85 per cent of the hospital, while the remaining 15 per cent is held in trust for the hospital staff and consultants. Open since 1986, the hospital has more than 140 specialist consultants.
Under the terms of the 2000 deal, the takeover group assumed the hospital's debts of €13.96 million and agreed to pay the order €27.93 million over 20 years. The group was backed by AIB.
Operating costs rose in the year to €72.29 million from €63.5 million. With staff costs rosing to €32.49 million from €28.82 million, the cost of medical supplied rose to €21.95 million from €19.06 million.
The company had €13.76 million in cash at year-end, up from €7.32 million.
