CB Richard Ellis hoping to get back in profit
ONE of the country's largest property firms, CB Richard Ellis, said it expects to return to profit this year after posting losses over the previous two years.
Documents just filed with the Companies Office, show that the company recorded the pre-tax loss of €876,509 as revenues slumped 41pc to €8.3m last year. The company posted a pre-tax loss of €554,405 the previous year.
The figures show operating losses last year almost doubled from €1m to €1.98m. However, the returns show that exception items totalling €159,262 and interest receivable totalling €949,721 reduced the company's losses to the pre-tax loss of €876,509.
"After two difficult years, 2010 will see a return to profitability for the company following an expected 50pc growth in fee revenue and a growth in numbers employed," CB Richard Ellis Ireland's managing director Guy Hollis said yesterday.
According to the directors' report, "performance to date in 2010 indicates a return to profitability".
The company was the only property firm to be appointed by the National Assets Management Asset (NAMA) to provide property valuations in Ireland, the UK and the US.
"The year 2009 was a very difficult year for the company as a result of the impacts of the world banking and economic crises coupled with the many domestic Irish problems, particularly in the banking and property sectors," Mr Hollis said.
He admitted that the company's performance "was disappointing, but it is understandable that revenues declined last year as values halved and the number of transactions more than halved".
The company's pre-tax loss mitigated due to very tight cost control, a strong focus on customer needs and expanded service offerings to clients in a declining property market, he added.
"The company had shareholder funds of €20.2m at December 31 and so is extremely well resourced to withstand the losses of the last two years and plan with confidence for the future."
The figures show that the numbers employed by the firm reduced from 124 to 101 last year, but Mr Hollis confirmed that the company had recruited 15 staff this year, which included a doubling of staff at the Belfast office.
The reductions in 2009 contributed to the company cutting its staff costs, including executive directors, by 35pc, from €10.2m to €6.6m.
CB Richard Ellis Ireland is a subsidiary of the US-based CB Richard Ellis that employs 29,000 worldwide.
Last year, CB Richard Ellis Inc recorded $4.2bn (€3.3bn) of global revenues.