Estate agent, Sherry FitzGerald, said yesterday that its fee levels and profits for the year would come in ahead of market expectations.

In a statement to the Stock Exchange, the company said that the combination of a stable environment for interest rates and solid underlying demand for property, supported by ongoing uncertainty in other investment markets, had boosted activity.

Business has been buoyant in both the second-hand and new-home markets, according to the statement. The company expects demand for commercial property to remain stable at 2001 levels.

Sherry FitzGerald's broker, Goodbody Stockbrokers, recently raised its forecasts for the company's 2002 performance by 17 per cent to an earnings per share of 25.2 cents.

The broker is forecasting operating profit for the year of €5 million, up 150 per cent on 2001. It cited the performance of the company's new homes division as the main driver behind the upgrade, forecasting that turnover for the sector will grow by 87 per cent on 2001 levels to reach €7.5 million.

Goodbody is expecting an increase of 7.5 per cent in total residential turnover, bringing it to €12.4 million. Within Sherry's commercial arm, turnover will be flat at €7 million, according to the broker. Shares gained five cents yesterday to close at €1.15, outperforming the Dublin market as a whole.