Estate agency Lisney returned to profit last year

ONE of the country’s largest real estate firms, Lisney, last year returned to profit in spite of revenues falling 32% to €8.9 million.

In accounts just filed by Lisney Ltd to the Companies Office, they show the company recorded pre-tax profits of €427,793 to the end of March last year, after recording a pre-tax loss of €393,999 in 2009.

However, those results were adversely affected by amortisation of €2.25m in goodwill and there was no write down last year.

Before the write down is taken into account, Lisney Ltd’s profits decreased 75% last year from €1.86m to €466,115.

Revenues fell €4.2m from €13.2m to €8.9m, with operating expenses dropping from €11.4m to €8.5m.

According to the directors’ report attached to the accounts, “it was a difficult year for the company as a result of the continuing credit difficulties and the general state of the economy, both of which had a negative impact on the property market”.

“In keeping with activity levels, the directors continue to review operating costs and take corrective action where necessary.

“The directors expect that market conditions will remain difficult for the next 12 to 18 months, but are satisfied that the company has sufficient resources to address these issues.”

Managing director of Lisney, Peter Stapleton, confirmed that the numbers have further reduced to 95.

However, Mr Stapleton said yesterday the numbers employed have bottomed out and he is anticipating employing new staff this year as the company is planning to increase revenues.

He said: “We are looking at growth again this year and there are areas of growth in the business such as the advisory area. The business is moving from a transaction-based to advisory.”

Lisney is one of a number of property firms on a panel to advise NAMA on property valuations.

Mr Stapleton said that turnover was down last year “reflecting the enormous changes in the property market in the past two years. The market has been very tough”.

The accounts show that the company wrote down €300,000 in a property and this followed a write down of €400,000 in 2009.

Staff costs, including directors’ remuneration, fell €2.3m from €7.8m to €5.5m. The staff costs includes the remuneration of 14 executive directors. The figures show that directors’ aggregate salaries last year increased by 45% from €934,048 to €1.35m.