Cushman & Wakefield’s Irish arm sees €3.5m loss over Covid curbs

Covid curbs left property dealer Cushman & Wakefield’s Irish arm with a €3.5 million loss last year, the latest figures show.

Accounts filed by Cushman & Wakefield Commercial Ireland Ltd with the companies’ registrar show turnover almost halved to €10.7 million in 2020 from €19.6 million the previous year.

The company made a net loss after tax of €3.55 million last year, against a profit of more than €2.1 million in 2019, the year before the pandemic struck.

Directors Aidan Gavin and George Roberts blame the fall in sales during Covid-19 lockdowns, which froze many of the Republic's businesses during 2020.

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Those measures resulted in the delay or postponement of some revenues, their report says.

“The reduction in revenue in 2020 is only seen as a temporary reduction,” Mr Gavin and Mr Roberts say.

“Costs also reduced during 2020 as a result of Government subsidies received during the year, plus other temporary cost-saving measures imposed by management.”

The accounts show that Cushman & Wakefield Commercial Ireland Ltd received a total of €1.1 million in Government Covid-19 subsidies during the year.

The directors add that overall management is satisfied with Cushman & Wakefield’s response to the challenges posed by Covid-19 and believe the company is well positioned for future growth.

They caution they cannot fully foresee all the risks and uncertainties posed by the virus to the business.

Action

The report notes that directors may have to take further action that alter the company’s business, either mandated by State authorities or deemed to be in the best interests of workers, customers or shareholders.

The company was formed in 2018 when local player Sherry FitzGerald sold 80 per cent of its commercial business to Cushman & Wakefield, which owned the other 20 per cent.

As part of the deal, Cushman & Wakefield acquired minority stakes in commercial property businesses in Belfast and Cork.

Cushman & Wakefield deals in offices, factories, hotels, development land and other commercial properties.

It is the selling agent for Corrib Shopping Centre in Galway, which came on the market this week with an €18.5 million price tag.

The firm also reported this week that factory and warehouse vacancy rates around the the Republic are at a 20-year low of 6 per cent.

Cushman & Wakefield Commercial Ireland is part of a global property group with offices in more than 60 countries and 50,000 workers.