Jones Lang LeSalle profit €1.2m up on lower turnover

THE COMMERCIAL property advice firm Jones Lang LeSalle made a pretax profit of €1.2 million in 2010, despite a 9 per cent reduction in turnover.

No dividend was paid by the company and its directors said the decline in business was expected to continue into 2011 as a result of the global economic downturn.

As a result, the company has to focus on cost control and client interests to maintain profitability and grow market share, directors said.

Operating revenues fell to €9.2 million from €10.1 million. Pretax profits in 2009 were €1.7 million. Shareholders’ funds at the end of the year were €28 million.

All of the company’s revenues arose in the Republic from the provision of advice about commercial real estate. The company is a subsidiary of Jones Lang LeSalle Inc, which has its headquarters in Chicago in the United States.

The Irish company employed 61 people during the year, including directors, down from 62 the previous year. Staff wages, including that paid to directors were €6.2 million, down from €6.8 million in 2009.

Other directors’ emoluments fell sharply, to €2.58 million from €4.19 million the previous year.

The accounts state that in April 2005 the company purchased 140,000 3 per cent preference shares at €100 each in JLLS Luxembourg, a related entity.

“No accrual has been made for the yield accruing on the preference shares as the directors do not consider it to be recoverable at this time,” the accounts say. The value of investments in subsidiary undertakings remained unchanged at €14 million.

The notes in the accounts for the company’s defined benefit scheme show that of its assets property comprises just 2.5 per cent. The previous year property comprised 3.1 per cent.