Monday 24 July 2017

Profits dip at property firm Lisney as it predicts Brexit boost

Lisney’s Office Agency chairman James Nugent
Lisney’s Office Agency chairman James Nugent

Gordon Deegan

Pre-tax profits at Dublin-based property firm Lisney decreased by 14pc to €700,175 last year - according to new accounts.

They show that the firm recorded the drop in pre-tax profits as its gross profits declined from €12.76m to €12.57m in the 12 months to the end of March last year.

The year under review proved to be another pay bonanza for the executives who served on the board of Lisney.

The figures show that the 15 executives last year enjoyed average pay of €197,888 or an aggregate of €2.968m.

This was down on the €3.64m that was shared by the directors in 2015.

In addition to directors' pay, they shared pension payments of €78,872 in 2016.

Outlining the risks facing the firm, the directors stated that the principal risks and uncertainties facing the company "are a decline in transactional activity, lack of funding for property transactions and the impact of the global economy on Ireland and in turn the Irish property market".

Numbers employed by the firm last year increased from 104 to 114 with 67 professional staff, 32 in administration and support staff and 15 executive directors. Overall staff costs last year - including pension payments - declined from €9m to €8.64m.

The profit last year takes account of non-cash depreciation costs of €245,004.

At the end of March last year, the firm had accumulated profits of €2.5m. The firm's cash decreased from €1.49m to €1m.

Operating profits last year decreased by 11pc going from €845,588 to €752,959.

The firm is set to capitalise on a positive impact from Brexit on the Dublin office market in 2017.

This followed a recent report by Lisney stating that Brexit should have a positive impact on the Dublin office market this year.

The report states: "There will be increased activity from companies looking to relocate from London and elsewhere in the UK as a result.

"This is likely to culminate in various deals being agreed towards the end of 2017.

"In terms of what was under construction at the end of 2016, the figure reaches almost 320,000 sq m in the entire Dublin region."

The business recorded post tax profits of €601,248 in fiscal 2016 after paying tax of €98,927.

The business also recorded an actuarial gain of €220,000 on its pension scheme last year.

Irish Independent

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