Sherry FitzGerald posts 7% rise in revenues

Estate agent’s profit slips due to investments in staff, offices and technology systems

Sherry FitzGerald sold about 5,800 residential units last year with a capital value of €1.8 billion. Photograph: Frank Miller

Sherry FitzGerald sold about 5,800 residential units last year with a capital value of €1.8 billion. Photograph: Frank Miller

 

Sherry FitzGerald, Ireland’s biggest estate agent, recorded a 7 per cent increase in revenues last year but profits declined due to investments in additional staff, new offices and its technology systems.

Accounts for Sherry FitzGerald (Ireland) Holdings Ltd show that turnover rose to €33.2 million from €31 million in 2014. But its after-tax profit fell to €2.2 million last year from €2.7 million previously.

Staff numbers rose by 10 per cent in the year while the company added offices in the Dublin suburbs of Sundrive and Foxrock to its network, and spent about €2 million upgrading its IT systems and refurbishing branches.

“Overall, we are satisfied with the result,” group finance director Steven McKenna told The Irish Times. “We probably saw some timing issues in closing in the fourth quarter of 2015, which would have reduced the revenue slightly and would have reduced the bottom line. But we went into 2016 with the pipeline up 30 per cent year on year.”

Mr McKenna expects revenues to rise by about 10 per cent year on year in 2016, along with increased profitability.

Urban markets

He said Sherry FitzGerald sold about 5,800 residential units last year with a capital value of €1.8 billion. It sold about 2,300 units in its core business in Dublin, Cork, Galway and Limerick, with a combined value of €1.1 billion.

The company had a market share across the State of 13 per cent, and in Dublin of 28 per cent.

On the commercial side of the business, the Irish company became an affiliate of Cushman and Wakefield, one of the top-three real estate groups in the world, earlier this year.

Sherry FitzGerald employs about 650 staff at 97 offices across the country, which include 67 franchisees.