Sherry Fitz reports fourfold profits increase

Profits at estate agent Sherry FitzGerald jumped fourfold last year following the sale of its investment in MyHome.ie. The company made a profit of €9.1 million on its share of the property portal that was acquired by The Irish Times. Dominic Coylereports.

Group turnover jumped 32 per cent to €63.6 million in the year, according to figures recently filed with Companies Office. However, a sharp rise in operating costs and increased goodwill amortisation related largely to its expanding British operations saw operating profit static at €3.86 million compared to €3.84 million in 2005.

"The numbers are very satisfactory," said group finance director Fergal Walshe. "Top line growth was driven principally by the [ 2005] Marsh & Parsons acquisition in London and the subsequent Vanstons purchase in London last year together with growth in the commercial DTZ practice."

Sherry FitzGerald has 12 branches in London, all trading under the Marsh & Parsons brand.

Turnover in commercial operations jumped almost 33 per cent to €16.2 million last year while residential operations saw sales growth of 44 per cent to €38.1 million. Turnover in the group's new homes division dipped slightly to €9.2 million compared to €9.5 million in 2005. Revenue in the mortgage advisory business was 30 per cent up on 2005.

Mr Walsh said the increasing diversification of the group meant that turnover would exceed €70 million this year, despite the downturn in the Irish property market.

"While the brand still is synonymous with the second-hand residential market in Dublin, we have diversified to a very large degree with our London acquisitions," chief executive Mark FitzGerald said. The current property mar- ket correction was a good thing and "gives us more confidence in the sustainability of the future".

"We see 2007 as the year of the correction and 2008 as the year of the floor, and we don't think we are too far off the floor in the Irish market - especially in Dublin."

Mr FitzGerald said the level of stock coming on to the Irish second-hand market had been falling since the first quarter of 2007. "And if the construction industry is pushing down output, that will limit supply. It is a question of when, not whether, the floor will arrive."

The company said that despite the changing property environment, Sherry FitzGerald had maintained its overall market share.