Tuesday 20 February 2018

Agent's profits soar on back of property boom

Enda Luddy Managing Director CBRE
Enda Luddy Managing Director CBRE

Gordon Deegan and Peter Flanagan

Pre-tax profits at property agents CBRE surged 61pc to €2.6m last year as the firm benefited from the boom in the Dublin commercial property market.

New accounts show that revenues at the Dublin-based firm increased by 74pc, from €11.8m to €20.59m.

Revenues almost doubled as the US-owned firm's operating profits increased from €1.134m to €2.58m and received interest of €79,259 added to the profits.

The accounts list five directors: Enda Luddy, Florence Stanley, Philip Emburey, Edward McNestry and Michael Strong. Aggregate pay for directors jumped two-thirds to €1.385m. The directors' pay works out at €277,000 on average per person.

According to the directors' report, the improvement in profits "was a consequence of improved revenues, a significant increase in headcount and prudent control of all costs".

The report adds that "2015 has witnessed continued good activity levels in the domestic commercial property market with a high level of both asset and loan transactions".

Numbers employed increased from 92 to 109 with salaries rising from €6.33m to €10.8m. The profit in 2014 resulted in the firm's accumulated profits last year increasing from €1.179m to €3.44m.

It was a similar story at rival DTZ Sherry FitzGerald, which saw profits increase ten-fold during 2014.

Accounts just filed for Sherry FitzGerald (Ireland) Holdings show that the firm posted a profit of €2.3m for 2014, compared to just €241,000 a year earlier. Turnover surged more than 50pc to a shade over €31m.

The company said the growth came as the "economy in general continued to recover and more confidence returned to the construction sector".

Staff costs increased 29pc to €21.6m, while the company's employees jumped to 271 from 224.

Irish Independent

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