Sims IVF clinic blames ‘fertility tourism’ for €2m revenue slump

New accounts filed by The Sims Clinic Ltd show that the company recorded a €3.2m pre-tax loss after revenues declined by 21.5pc or €2m to €8.07m from €10.16m in the 12 months to the end of June 2023.

The 2023 pre-tax losses are a four-fold increase on the pre-tax losses of €787,868 in the prior year.

In their report, the directors state that “performance is being managed closely due to market conditions and re-introduction of IVF tourism having a negative impact on volumes in Full Year 2023”.

The Sims Clinic operates its network of fertility services clinics at Cork, Carlow, Limerick, Dundalk and two in Dublin at Swords and Clonskeagh.

A spokeswoman yesterday said: “The re-introduction 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.”

However, the directors’ report said 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”.

Staffing is The Sims Clinic’s biggest cost though last year it reduced to €5.8m from €6.03m despite headcount increasing to 100 from 88. The clinic has 73 clinical staff and 27 in administration.

The firm’s revenues were made up of €7.38m in IVF revenues and €687,055 in diagnostic revenues.

Its 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 €3.09m while cash funds decreased to €186,023 from €565,795.

The directors said they are “exploring possibilities for passive income through rental of consulting rooms in addition to the current nature of the business”.

“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,” the report said.

“To this end, stringent controls are in place to safeguard the interests of the patients at all times.”