Allsop Space, the auction house for distressed properties, recorded profits of almost €400,000 in its second year operating in Ireland.
Accounts filed with the Companies Office show the Dublin-based Allsop Space Ltd increased its profits to €387,693 in the 12 months to the end of Mar 31.
Last year’s performance represents a 26% increase on the €307,011 profit recorded in the firm’s first year.
The profit resulted in accumulated profits standing at €694,704 at the end of March last year, while the firm’s cash pile more than doubled to €767,807
The business’s first Irish auction at the Shelbourne Hotel in Apr 2011 needed gardaí to control the crowds that attended.
The growing demand for the firm’s auctions has resulted in the company now staging them at the RDS.
Allsop Space is a 50/50 venture between UK auction house Allsop and Dublin-based property consultants Space.
Yesterday, Robert Hoban, director at Allsop Space, said the increased profit “reflects the growing popularity of our auctions and a slight improvement in the property market here”.
He said the firm’s auctions last year recorded sales of €82m on 606 properties offered for sale, compared to sales of €70m in 2012 on 532 properties.
Mr Hoban said the firm staged five auctions each year in 2012 and 2013, and plan to stage six this year, with the first on Feb 25. He said 92% of the properties offered at auction do sell.
The firm continues to recruit surveyors and graduates, with the numbers employed now at 40 staff, up from a start-up level of less than 10 employees.
Mr Hoban said 55%-60% of properties offered for sale at auction come from receiverships, with the remainder being private sales.
“The process is open to anyone who wants to sell,” said Mr Hoban. “The number of private sales is increasing and I think that we have now normalised the business and people have a better understanding of what we do.”
Mr Hoban said that typically 150,000 online catalogues are downloaded for the firm’s auctions in 130 countries, with 100,000 downloaded in Ireland.
The numbers outside Ireland include around 25,000 in the UK, with potential buyers from the US, Australia, and Spain being the largest other markets.
Mr Hoban said the growing strength of the Irish bidder is underlined by overseas sellers now accounting for 11% of purchases, compared to 15% one year ago.
He said sellers like the transparency of public auctions and “we have shown that we achieve the same, if not better, price than is achieved through private treaty sales”.
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