The country’s leading estate agency, Sherry FitzGerald, anticipates its profits to soar and reach €6 million in the present fiscal year, a double of its previous earnings, according to its CEO, Steven McKenna. The forecast comes on the heels of robust revenue growth in double figures.
Recently, the firm presented its most recent year-end accounts and Mr McKenna flagged this optimistic outlook. For the year concluding 31st December 2023, the records indicate a significant surge back into the profit zone for the group, translating to an earning of €1.3 million. This is a remarkable rebound considering they had recorded a loss of €226,000 in 2022.
The year saw Sherry Fitz’s turnover touching the €34.8 million mark, down marginally from 2022’s €35.3 million. A substantial reduction in restructuring expenses – from €3.6 million in 2022 to €564,000 in the last year – largely underpinned this turnaround to profitability.
The firm’s year-end cash reserves stood at €8.2 million, an increase from 2022’s €7 million. CastleGate Investments, owned by Tommy Kelly, which has possession of the company, refrained from giving out dividends for the duration under review.
In 2023, Sherry FitzGerald sold 8,500 properties with a composed capital value of €4.5 billion. Among these, 1,400 were brand new properties, putting the mean capital value per property at €529,412.
The firm maintained its stake of 14% in the Irish domestic market, on par with its share in the preceding year. Mr McKenna labelled 2023 as a crucial year for the firm. Despite geopolitical threats and economic hurdles such as sky-high inflation and increased interest rates, the company exhibited a sturdy financial performance. The revenues remained stable and the company produced an EBITDA of €3 million, he added.
This year has witnessed an upturn in Ireland’s macroeconomic vista, paralleled by our sustained infrastructural expansion, burgeoning workforce, and cutting-edge technology located at MySherryFitz. We anticipate significant twice-digit earnings surge to €42 million and envision our profit to climb twofold to €6 million by 2024.
Earlier in the year, Sherry FitzGerald publicised its procurement of Simon Brien Residential, a prolific real estate firm in Northern Ireland with four branches in Lisburn Road, East Belfast, Newtownards and Holywood, employing a total of 40 workers.
“We eagerly await the introduction of the Simon Brien franchise in Northern Ireland. The inauguration is set for the onset of 2025,” stated Mr McKenna.
Reflecting on the previous year, despite facing considerable hurdles, the firm maintained its stamina.
The annual housing production in Ireland saw a rise of 10 per cent, with completed housing projects touching the 32,695 mark, a step-up from 29,851 in 2022. Nevertheless, owing to escalating population, immigration and economic expansion, the demand for housing consistently surpassed available options, necessitating over 50,000 new properties annually.
Driven by staunch buyer demand and a scarcity of property options, the housing market saw a 3.4 per cent rise in house price inflation, a decrease from 5.7 per cent in 2022 as per research conducted by Sherry FitzGerald.
Staff count average within the group last year was noted to be 290, a rise from 285 from the previous year. In turn, expenses related to staffing surged marginally from €24.2 million in 2022 to €25.3 million.