Property firm returns to profit

THE managing director of one of the country’s largest property firms, CB Richard Ellis said yesterday that he is “quite pleased” that the firm returned to profit last year.

Guy Hollis commented on new accounts filed with the Companies Office that show that US-owned CR Richard Ellis recorded a pre-tax profit of €1.7 million after revenues increased by 63%.

The company recorded the profit in the 12 months to the end of December last year after recording a pre-tax loss of €962,638 in 2009.

The firm recorded the positive swing of €1.66m after revenues increased from €8.3m to €13.6m last year.

The boost resulted in the firm increasing its staff number by 18 to 119.

According to the directors’ report “2010 marked a return to profitability for the company following a 63% growth in turnover from the depressed 2009 levels. Growth was achieved in the consultancy sector”.

Mr Hollis said yesterday that consultancy work “as part of the NAMA process represented a reasonable percentage of revenue” but declined to state what proportion of revenues the work represented.

He said: “The performance last year was better than 2009 and sets a benchmark for the next three to four years”.

Mr Hollis said that he expects revenues and profits to be similar this year

He said: “We should be there or thereabouts. It has been a pretty good year.”

The profit last year contributed to the firm having €20.1m in accumulated profits at the end of December last.

The €21.7m in shareholder funds contributed to the firm having €1.1m in cash at the end of last year.

The filings show that remuneration to the company’s 13 directors last year increased from €2.3m to €2.59m.

The figures show that administrative expenses last year increased from €10.4m to €12.7m.

Interest receivable totalling €651,578 along with a write-back in the carrying of a financial asset of €133,601 resulted in pre-tax profit of €1.7m.