Estate agents Sherry FitzGerald, a barometer for the Irish property market, has warned that full-year profits this year will be "materially less" than last year's €4.1 million (£3.23million). The warning was sounded despite a rise in first-half profits from €1.9 million to €2.1 million and suggests that Sherry FitzGerald and the property market in general is facing a significant downturn in the second half of the year. Company chairman Mr Mark FitzGerald said the erosion of consumer confidence over the summer and the recent tragic events in America would affect the group's performance in the second half.

Even in the first half there were clear signs of a slowdown in the residential market with Sherry FitzGerald's turnover from this sector up just 2 per cent to €7.04 million and the number of transactions down 6 per cent on first half 2000.

In comparison, commercial turnover was up 9 per cent to €4.09 million while turnover from sales of new homes was up 16 per cent to €2.55 million. Earnings per share were 13 per cent higher at 9.61 cents but the interim dividend remains unchanged at 1 cent per share.

During the first half, Sherry FitzGerald reduced its total staff from 269 to 235 following the franchising of its Castleknock and Lucan offices in county Dublin. The number of Sherry FitzGerald Countrywide franchised offices increased from 55 to 72.