Profit surges at Sherry FitzGerald

The buoyant Irish property market has been reflected in bumper half-year results from estate agents Sherry FitzGerald, with pre-tax profits in the six-month period up to €1.9 million (£1.5 million). And for the first time since the group was floated 15 months ago, shareholders will receive a dividend, which has been set at one cent per share.

There was strong growth across Sherry Fitzgerald's three divisions - residential, commercial and new homes - with the biggest growth coming from new homes as a result of the first-time inclusion of the Ross McParland business, acquired in September last year for £4.5 million (€5.7 million). This makes Sherry Fitzgerald the biggest player in the new homes market, the group claims.

Turnover from new home sales jumped from €595,000 in the first half of 1999 to just more than €2 million. Turnover from second-hand homes rose from €4.9 million to €6.7 million while the commercial side of the business generated turnover of almost €3.8 million from €2.2 million in first half 1999.

Sherry Fitzgerald's chairman and chief executive, Mr Mark FitzGerald, said the 40 per cent increase in the group's turnover in the second-hand residential market had strengthened Sherry FitzGerald's market leader position, with the increase in sales significantly ahead of capital appreciation in the sector. In the first half of the year, the group expanded its Sherry FitzGerald Countrywide franchise chain to 32 members in 38 offices, bringing the group's total number of branded outlets to 55.

During the period, Sherry FitzGerald sold its Merrion Row head office for €3.4 million, and the accounts include a €2 million exceptional gain on the deal. Profit retained for the period after paying almost €136,000 in dividends is just more than €3 million.