Sherry FitzGerald directors’ boon

THE directors of the estate agents Sherry FitzGerald saw their pay rocket by 300% last year.

Accounts for the company, which have just been filed at the Companies Registration Office (CRO), show the 15 directors shared more than €4 million.

Although no breakdown of individual payments was given, the company’s chief executive Mark FitzGerald is believed to have been the highest-paid director.

The accounts show that the firm, a former plc that was taken private by its management more than two years ago, made a profit of €3.7m last year on turnover of €32m.

Profits were boosted by a €1.5m gain on the partial sale of a subsidiary company.

Comparison with the previous year is difficult, as the period in the accounts covers the date from when Sherry FitzGerald management began the process of taking the company private in March 2003 to the end of the year.

However, turnover for 2003 was in the order of €29.7m and the company had pre-tax profits in the region of €7m.

In the accounts, the company’s chief executive Mark FitzGerald said trading “was in line with expectations and reflected prevalent market conditions”.

Mr FitzGerald said the company would be acquiring the 20% it does not own of the new homes specialist Ross McParland.

Sherry FitzGerald acquired the majority of Ross McParland in 1999.

The accounts show the company had just over €2.2m in cash on its books, while shareholders’ funds increased to €10.7m.

Nearly two-thirds of the company’s turnover is generated from selling residential property, the accounts reveal, with a further €7.2m generated in fees earned from the commercial property sector. Turnover from new homes sales was €4.4m.

The number of people working for the company increased to 209 as Sherry FitzGerald opened a number of new offices during the year.

The increase pushed the wages bill to just over €18m, giving an average annual salary per employee of €86,000.

In 2003 Mr FitzGerald, the son of former Taoiseach Garrett, led a €27m management buy-out of the company that floated on the stock market in 1999.

Sherry FitzGerald has more than 100 branches across the country.