Pretax profits at property advisory firm Jones Lang Lasalle last year slumped by 66 per cent to €2.36 million.
New accounts show revenues declined by 23 per cent from €23.62 million to €18.22 million.
In response, the directors’ took a reduction in pay for 2023 during which aggregate salaries dropped by €1.73 million or 61 per cent, from €2.82 million to €1.09 million.
Chief executive of JLL Ireland, John Moran, pointed to its published market reports which noted 2023 as a tough year for office leasing, capital markets and the private rented sector due to inflation and high interest rates.
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One of the high profile deals where JLL acted as agent last year was the €74 million acquisition by a fund managed by Davy Real Estate of the Hexagon portfolio, a collection of six regional shopping centres built and owned by developer Pat Doherty’s Harcourt Developments.
Operating profits at Jones Lang Lasalle Ltd declined by 99 per cent from €6.5 million to just €21,000. Its profits were boosted, however, by net interest receivable of €2.34 million compared to €542,000 under that heading in 2022.
The €2.34 million in interest income from group companies resulted in the €2.36 million pretax profits for 2023.
Numbers employed increased from 103 to 110, comprising 96 professionals, 10 in support roles and four directors. Pay, including that of directors, increased from €12.04 million to €12.77 million. Accumulated profits totalled €72 million.
The directors said they “are confident about the future prospects for the business”.
Addressing the company’s going concern status, the directors added that “by design, the company has a naturally very resilient business model, which would be able to sustain periods of revenue significantly below current trading levels without needing to draw on external facilities or cut costs”.
The note states that this is achieved “through the flexibility built into the company’s bonus system which tracks the operating profit of the company”.
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