Six-fold increase in Lisney’s profits

Profits at the Dublin-based arm of property firm Lisney increased more than six-fold to €745,000 last year.

New abridged accounts filed by Lisney Ltd to the Companies Office show that the firm’s accumulated profits increased by €745,000 from €663,240 to €1.408m in the 12 months to the end of March 31.

This followed post-tax profits of €111,210 recorded in fiscal 2013.

Lisney managing director James Nugent yesterday said the firm achieved the profits after its gross profit increased by 26% from €6.9m to €8.75m last year.

Mr Nugent said that the firm is on course to record a similar percentage increase in gross profit in the current year.

“There has been a lift in revenues across the business and hopefully we have grown market share as well,” said Mr Nugent

“I am satisfied with the way the business is going and we are cautiously optimistic for the coming year.”

Mr Nugent also confirmed yesterday that Lisney is aiming to open three branch offices in Dublin, with the first to be opened at Dundrum in Easter.

Mr Nugent said that the office openings will lead to the creation of 12 to 15 jobs with Lisney.

He said that the uplift in business last year had resulted in numbers employed at Lisney increasing from 93 to 101 with the firm’s expansion, including its new residential HQ opening at Ballsbridge.

The firm also added three new members to its board last year and Mr Nugent said: “We have reinvested in our business to ensure that we have the right people to catch hold of the recovery.

“We have taken the long-term view and the spend on re-investment isn’t an issue as we have recorded a gradual accumulation of cash where we have had little recourse to borrowing to fund the investment.”

The reinvestment in the firm last year lead to cash at the business taking a hit reducing from €724,497 to €277,820.

Shareholder funds at the end of last year increased from €1.28m to €1.72m.

Mr Nugent said that he has no problem with the thrust of Central Bank’s plans to intervene in the mortgage market to deliver a more sustainable market.

He added: “I believe, however, that the hurdles that the Central Bank are placing in front of people trying to obtain a mortgage are severe and hard.

“For a couple paying rent, it would be near impossible under the Central Bank proposals to gather a deposit.”