The directors of The Sims Clinic, a fertility services provider, have pointed to IVF tourism – the practice of patients seeking treatment abroad – as the reason for a downturn in revenue. Financial accounts reveal that The Sims Clinic Ltd experienced a €3.2 million pretax loss, following a 21.5% (or €2 million) reduction in revenue from €10.16 million to €8.07 million during the year ending June 2023. This loss is four times larger than the previous year’s deficit of €787,868.
The directors ascribed this decrease in performance to unfavourable market conditions and the revival of IVF tourism in 2023, both of which lowered patient numbers. The Sims Clinic oversees multiple centres in Cork, Carlow, Limerick, Dundalk and Dublin (two facilities in Swords and Clonskeagh). Comments from a Sims Clinic spokeswoman confirmed that the return of Irish patients seeking IVF treatment abroad had reduced patient counts in the covered period.
She also noted that the pandemic had put the sector through a period of instability, with travel restrictions and other factors leading to an influx of patients at the clinic. Nonetheless, the clinic’s accounts affirmed that through the backing of its intermediate parent company, Virtus Health Pty Ltd, the firm maintains sufficient liquidity and resources for continued operations.
The company’s largest expense stems from staffing costs, which decreased from €6.03 million to €5.8 million in the past year. Meanwhile, the workforce grew from 88 to 100, comprising 73 clinical staff and 27 administrative personnel. The company’s revenue streams included €7.38 million from IVF services and €687,055 from diagnostic services. Depreciation and amortisation costs accounted for non-cash losses of €422,725 last year.
As of June’s end, the company’s shareholder funds amounted to €3.09 million, although cash reserves fell from €565,795 to €186,023. Looking ahead, the directors are investigating potential passive income opportunities, like renting out consultancy rooms. The company’s operations comply with regulations from the Health Products Regulatory Authority (HPRA).
According to the board of directors, preserving the HPRA licence is vital for the business to continue and robust measures must be implemented to prevent any professional negligence or patient mishaps. They affirmed the presence of rigorous protocols, always in effect, to protect the patients’ welfare.