Sherry FitzGerald, Irelands only publicly quoted estate agency, has recorded a 15% rise in pre-tax profits to £1.37m in the six months to 30 June.
Group turnover was up 7% to £8.6m. Turnover rose by 2% to £4.4m in the second-hand residential and mortgage business. Fee income in new homes rose by 16% to £1.6m, while fee income in the commercial division, in which DTZ has a 20% share, rose by 16% to £2.57m.
However, while expressing satisfaction with the performance, managing director Mark FitzGerald warned that “the environment in which [Sherry FitzGerald] is operating has been impacted by the deterioration in the international economy and we are responding.”
He warned that if recent trends are maintained pre-tax profits for 2001, excluding exceptional gains, would be materially less than 2000.
The group is taking steps to reduce its permanent staffing levels by 12% to 235 people. Some of the reduction will include nine staff being transferred in the franchising of two of its Dublin branches at Castleknock and Lucan.
FitzGerald has committed the group to expanding its franchise operation around the country. Its mortgage and life brokerage grew its mortgage business by 62% to £54.7m.
FitzGerald said he expected the softening of the Irish residential market to continue until the second half of next year when a shortage of supply “would renew upward transaction movement”. Commercial transaction numbers have moderated and there is likely to be no growth in this area until the US economy has stablilised, FitzGerald predicted.
Earnings per share excluding exceptional items increased by 13% to £0.06 per share.
EGi News 26/09/01
