Estate agency Lisney says it is on course to return to “strong profitability” this financial year after two years of losses attributable to weakness in the commercial property sector.
Managing director David Byrne was commenting on just-published consolidated accounts for Lisney Ltd which show the group recorded a pre-tax loss of €431,813 in the 12 months to the end of March 2023 despite a 10 per cent increase in revenues to €15.62 million.
Following further unspecified operating losses in the 12 months to end-March 2024 “due largely to market conditions”, the directors said they had taken steps “which include business realignment and some cost-cutting measures” to put the business in a position “where profitability can be sustained into the future”.
Mr Byrne said the business is “currently on track to return to strong profitability for the 2024/25 financial year”. The directors said the group had tapped debt funding of €1.5 million earlier this year to support its strategy for recovery, providing funding for investments and working capital requirements.
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Lisney made a profit before tax of €674,826 in the year to March 2022.
[ Probate office delays will hit housing supply, says LisneyOpens in new window ]
Mr Byrne said that while revenues within the residential, advisory and property management segments of the business satisfactorily increased year-on-year in 2022/23, there was reduced transactional activity in the commercial real estate market in the second half of 2022 and into 2023.
This was “primarily due to successive interest rate increases from July 2022 as well as rising inflation and other business costs”, he said, adding: “This impacted the group’s anticipated overall P&L position for the year, resulting in an operating loss at year-end.”
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The firm last year declared a €500,000 dividend.
Staff costs were €2.5 million higher at €11.79 million as headcount jumped by 21 to 127 people. Aggregate directors’ pay increased by 30 per cent from €963,468 to €1.25 million in a year when the number of directors rose by one to six.
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