Sherry FitzGerald, the largest estate agency in the country, expects to double its profits to €6 million in the current financial year on the back of double-digit growth in its revenue, the group’s chief executive, Steven McKenna, said.
Mr McKenna made the projection after the company filed its latest set of accounts for the year ended December 31st, 2023, which showed the group swung back into profit, making €1.3 million following a loss of €226,000 in 2022.
Sherry Fitz’s turnover in the year was €34.8 million, down slightly from €35.3 million in 2022. The accounts show the return to profitability was largely down to a cut in restructuring costs, which were reduced from €3.6 million in 2022 to €564,000 last year.
Its cash position was €8.2 million at year-end, up from €7 million in 2022. The company, which is owned by Tommy Kelly’s CastleGate Investments, did not pay a dividend during the period.
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Sherry FitzGerald sold 8,500 residential properties with a capital value of €4.5 billion in 2023, of which 1,400 were new homes. That equated to an average capital value of €529,412 per property.
The company had a 14 per cent share of the Irish residential market, which was in line with 2022. Mr McKenna described 2023 as “a pivotal year” for Sherry FitzGerald.
“Despite the challenging macroeconomic conditions, including geopolitical tensions, high inflation and rising interest rates, the company delivered a solid financial performance with revenues remaining stable and an Ebitda [earnings before interest, tax, depreciation and amortisation] of €3 million,” he said.
“The macroeconomic landscape in Ireland has improved this year, and with our continued investment in our growing number of people, our expanding network and our innovative technology in MySherryFitz, we are projecting double-digit revenue growth, reaching €42 million, and expect to double our profitability to €6 million in 2024.”
Earlier this year, Sherry FitzGerald announced the acquisition of Simon Brien Residential, one of Northern Ireland’s leading estate agents employing 40 staff from four offices in Lisburn Road, East Belfast, Newtownards and Holywood.
“We are now excited to announce the launch of the new Simon Brien franchise in Northern Ireland, which will happen in early 2025,” Mr McKenna said.
Looking back at last year, the company said its business performance “remained resilient” despite various challenges.
“Housing output in Ireland increased year on year by 10 per cent with new dwelling completions of 32,695, up from 29,851 in 2022,” it said. “However, demand for accommodation continued to outstrip supply due to the rising population, immigration, and a growing economy with latest reports confirming a requirement of over 50,000 new dwellings annually.
“Strong buyer demand combined with historically low stock levels led to house price inflation in the market of 3.4 per cent, down from 5.7 per cent in 2022, according to Sherry FitzGerald research.”
The average number of employees in the group last year was 290, down from 285 the year before. The group spent €25.3 million on staff costs, up slightly from €24.2 million in 2022.
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