One of Ireland's largest building and engineering firms has put a hospital building deal as security and collateral for an extended debt package, according to the Irish Independent.

John Paul Construction has set out the plans with St Vincent's Private hospital Dublin.

The construction firm reported an operating profit of €2.2m for 2010, a loss of €2.6m on the previous year.

The construction of Classon House, Dublin 14 saw a three-year extension to an existing loan agreement, with accounts showing that the bank took charges over Classon House, nine apartments and three car parking spaces as part of the new package. The agreement was buffered by the group’s additional guarantees, including the building contract for St Vincent's Private Hospital and a charge over a deposit account containing €250,000.

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The contractor, which reported revenues of €105m for 2010, has also signalled plans to expand their operations abroad as "difficult trading conditions" continue in Ireland.

The company mainly earns its income from Ireland and the UK, but is turning its focus abroad in the hopes of new opportunities.

"The group will continue to focus on projects in the healthcare and education sectors and civil engineering projects, and are confident of further successful expansion outside of Ireland," state the accounts.

Scaled back payroll numbers at John Paul's show a fall from 204 to 155, with the total salaries dropping from €15.3m to €11.9m. Director's remuneration and pension contributions came to €1m, showing no change on the previous year.

The accounts also show that a director, DJ O'Brien, had a loan outstanding with the company worth €2.5m, due for repayment in November 2012.

(HMcE/CD)