Sherry Fitzgerald losses up 310%

See today’s Examiner online (excuse lack of link - its easy to locate)

Announcement of f £15.50 million losses at Sherry Fitzgerald - losses up by 310% ( they add that it includes diminution of ‘goodwill’ - wonder if someone in there has a sense of humour in putting in that addendum)

Tin of glee anyone ?

irishexaminer.com/business/s … 03612.html

Executive Summary:

  • The latest accounts filed with the CRO, for the 12 months to the end of December 2008
  • Fee and commission income down by €25m
  • Losses surged by 310% to €15.55m
  • Turnover in 2008 €39.97m down from €64.95m in 2007 (38.6% drop).
  • 2008 Pre-tax losses €15.55m; 2007 losses were €3.8m.
  • Number of employees in the Irish businesses by reduced by 30% in 2008.
  • Total staff numbers at the company fell from 476 in 2007 to 404 at the end of 2008.
  • The company had bank loans of €18m at the end of 2008.
  • Company sold its Cork offices at 6 Lapps Quay for €5.25m in a sale and lease-back arrangement to some of it’s own directors & leased back for €275,000 a year, over 25 years. (275k x 25 =6 875 000)

examiner.ie/business/sherry- … 03612.html

Ah consolidation of Sherry Fitz Losses - much better

I put the accounts up here

scribd.com/doc/21283598/SherryFitz-2008

I foresee job cuts, pay cuts and some vigorous pursuit of rent renegotiations (if possible) or movement of premises.

It’s interesting how they reduced both their creditors and debtors by so much over 1 year.

Also interesting how they needed to sell those premises to the directors to plug a big hole in their cashflow.

Someone should really tell Sherry Fitz that there isn’t a property crash, I mean, what are they doing!!! :unamused:

tribune.ie/article/2009/oct/18/is-property-past-its-sell-buy-date/

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No further comment required

Pyramid5 - his reasons for it being risky:
“A lot of people used the proceeds of their house sale to buy what they thought were very safe Irish bank shares, lost all of their money, and now can’t buy back in to the market.”

So, having made a sensible decision they then decided to stick the lot on black? I don’t fucking think so. What a ridiculously stupid thing to say.

Is it just me or is this a pretty poor deal for the directors?

Wonder why they put that in a seperate paragraph

Maybe not the lot but lots of anecdotes of people buying safe blue chips including Irish banks because of the leaning towards same in the ISEQ. Might be some legal cases pending against some financial advisers :nin

Have they considered renting the spare rooms in their offices?

I’d take it. That’s a yield of 1.1% when most commercial property in Europe is trading at 6% plus.

All they’re doing is giving back millions that it turns out the company couldn’t afford to
give them in the first place.

-Rd

Ahh, the old “non-cash items” chestnut. You find that in Accounting101 under the heading “How to Polish a Turd” :unamused:

Upward only rent reviews!

Is the yield not 5.2381% ?

I see the directors still managed to average €237,500 each.