Jones Lang LaSalle profits down by 39pc
PRE-TAX profits at one of the country's best-known property firms, Jones Lang LaSalle, dropped by 39pc to €2.9m in 2008.
The Dublin-based firm, which specialises in commercial property, sustained the drop in pre-tax profits after revenues fell 28pc from €20.4m to €14.6m to the end of December 2008. In accounts recently filed to the Companies' Office, they show the firm sustained a 51pc drop in operating profits from €4.4m to €2.1m in 2008.
However, in spite of the drop in profits and turnover, the 12-member board of the company increased directors' remuneration by 12pc to an average €583,083 in 2008.
The accounts show the board increased the remuneration to the 12 directors to an aggregate €6.9m in 2008 from €6.1m in 2007. The directors' remuneration was made up of €6.1m in emoluments and expenses, pension contributions of €538,000 and share-based payments of €307,000. The figures also show that the directors' emoluments, including expenses, increased by 24.5pc from €4.9m to €6.1m in 2008.
The remuneration to directors accounts for 74pc of the pay to the 72 people employed by the company, where the aggregate payroll costs were €9.4m. The directors' remuneration also represented 47pc of the company's turnover and was more than twice the company's pre-tax profit of €2.9m.
According to the directors' report, "the key risk faced by the company is the downturn in the Irish economy and commercial property market. This downturn is evident with turnover and net profit decreasing by 28pc and 39pc respectively."
"With the impact of the global economic downturn, this decline is expected to continue well into 2010 resulting in a need for the company to focus on cost control and client interests to maintain profitability and grow market share."
The directors state that they do not propose the payment of a dividend.
Although the company's pre-tax profits were boosted by €1.2m in interest payments received, profits were still down from €4.9m to €2.9m.
The US-owned company, which established its first Irish office in Dublin in 1964, has strong cash reserves of €24.5 m.
The accounts show that the company incurred an actuarial loss of €2.7m on its pension scheme during the year.