The directors of fertility services clinic The Sims Clinic have blamed a slump in revenue on in-vitro fertilisation (IVF) tourism – where patients travel overseas for treatment.
Accounts filed by The Sims Clinic Ltd show that the company recorded a €3.2 million pretax loss after revenue declined by 21.5 per cent or €2 million from €10.16 million to €8.07 million in the 12 months to the end of June 2023.
The 2023 pretax losses are a fourfold increase on the losses of €787,868 the previous year.
In a note with the accounts, the directors said “performance is being managed closely due to market conditions and reintroduction of IVF tourism having a negative impact on volumes in full year 2023″.
The Sims Clinic operates facilities in Cork, Carlow, Limerick, Dundalk and two in Dublin at Swords and Clonskeagh.
A spokeswoman for The Sims Clinic on Wednesday said: “The reintroduction of patients from Ireland travelling overseas for IVF treatment resulted in a reduction of patient numbers during the period covered under these accounts.
“This followed a turbulent period for the sector during the pandemic, with travel restrictions and other factors resulting in higher volumes attending the clinic.”
The accounts said that the company “has sufficient liquidity and other resources to support its ongoing operations through the support provided by its intermediate parent company Virtus Health Pty Ltd”.
The Sims Clinic’s biggest cost is staff costs, which reduced last year from €6.03 million to €5.8 million, though numbers employed increased from 88 to 100, made up of 73 clinical staff and 27 in administration.
The firm’s revenue was made up of €7.38 million in IVF revenue and €687,055 in diagnostic revenue.
The firm’s losses last year take account of combined non-cash depreciation and amortisation costs of €422,725.
At the end of June last, the company’s shareholder funds totalled €3.09 million, while cash funds decreased from €565,795 to €186,023.
On future developments, the directors state that they “are exploring possibilities for passive income through rental of consulting rooms in addition to the current nature of the business”.
The directors state that the company’s activities are governed by the Health Products Regulatory Authority (HPRA).
The directors said “it is crucial to the survival of the business that the HPRA licence is maintained and that strong controls are in place to ensure that professional malpractice or patient error does not occur”.
“To this end, stringent controls are in place to safeguard the interests of the patients at all times.”
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