Profits surge at Sherry FitzGerald property advisory firm

One of the country’s leading property advisory firms, Sherry FitzGerald, saw profits surge to over €3.1m last year as the property market roared back into action.

Having made made an operating profit of €197,000 in 2013, last year’s accounts show a 15-fold increase in profits in the following 12 months.

The improved profitability was delivered on the back of a 50% surge in turnover during the year to more than €31m, from €20.7m the previous year.

Sherry FitzGerald finance director, Steven McKenna, said the firm was satisfied with the results having seen an uptick in business across its different business areas.

The group sold 5,000 residential properties worth a combined €1.5bn last year between its wholly-owned offices in Dublin, Cork, Limerick, and Galway and its 68 franchise offices across the country.

Find the home of your dreams with us here at Sherry Fitzgerald John Rohan. https://t.co/kNvqCPCmAC#home #dreamhome pic.twitter.com/5fJhIrU8m5

— SF John Rohan (@sfjohnrohan) December 3, 2015

Its 22 owned offices in the four major cities accounted for 2,000 homes with a total value of just under €1bn while 3,000 additional units across the country sold for a combined €0.5bn.

Outside of the pick-up in its residential business, DTZ Sherry FitzGerald, the company’s commercial arm, delivered an even bigger boost to the group’s fortunes.

Almost 60% of the increase in turnover came via its commercial business.

In the year, its professional services team carried out 3,000 commercial valuations with a total value of €11bn and 14,000 residential valuations valued at more than €3bn.

The group paid corporation tax of €157,000 on its bumper profit take and had after-tax profits of €2.74m.

Staff costs amounted to €21.57m of which €19.4m was attributable to wages and salaries.

Both these figures represented a significant increase on the previous year when staff costs amounted to €15.32m.

The company employed close to 50 additional staff on average during the year.

The directors’ report describes 2014 as a year of growth for the group “as the economy in general continued to recover and more confidence returned to the construction sector”.

Sherry FitzGerald’s net asset position at the end of the year was €3.22m compared to €1.01m in 2013, with cash at €4.55m.

According to the directors, the improvement in the group’s balance sheet position is reflective of the strong operating performance and the continued investment in the business.