Irish auctioneering group Sherry Fitzgerald warned today that full-year profits for 2001 would fall short of last year’s performance due to the erosion of consumer confidence in the second half of the year.
"Initial indications are that the summer erosion in consumer confidence, coupled with the recent tragic events in America, will significantly influence second half financial performance." Sherry Fitzgerald said in its interim results statement.
Sherry Fitz reported a 15 per cent increase in half year profits to euro 2.2 million on turnover of euro 13.7 million.
But a reduction in consumer confidence in the Irish residential market in the second quarter resulted in less activity in the second-hand market with transactions down 6 per cent on 2000.
Commenting on the results, Mr Mark FitzGerald, chief executive of Sherry Fitz said while he was pleased with the profit growth in the first six months, the group faced a more challenging second half.
"The environment in which we operate has been impacted by the deterioration in the international economy and we are responding" he said.
"The most immediate impact of the decline in the global economy has been the loss in consumer confidence. There are indications that this has had a negative impact on property prices throughout the country," the company said.
It added that the softening of the residential market could continue until the second half of 2002 when it is estimated that a shortage of supply will revive property prices.