The battle for ownership of Arnotts came into renewed focus yesterday as the company posted a 14 per cent jump in pre-tax profits for 2002.

A revaluation of property assets saw the retailing group's net asset value per share climb by 13.4 per cent to €12.71 over the same period, leaving it just four cents below the last indicative offer lodged by bid vehicle Carrgran in January.

Mr Brian Davy, chairman of the committee of independent directors at Arnotts, yesterday restated the committee's view that €12.75 "failed to value the business and its prospects adequately". He said the committee remained engaged in "a process" with Carrgran and the group of Arnotts directors, who have also expressed an interest in the company.

This group, led by chairman Mr Michael O'Connor, has not yet made an indicative offer.

Neither party has proceeded to the due diligence stage, although confidential information has been made available to both.

Mr Davy said it should not be assumed that a recommended offer would result from current discussions, noting that a further statement would be made "in due course".

A note issued by BCP Stockbrokers last night suggested the process had taken long enough and called on the committee to set a timetable for conclusion.

BCP analyst Mr Neil Osborne reiterated his belief that the Carrgran indicative offer fully valued the business, despite yesterday's unexpectedly strong results.

Pre-tax profits of €20.5 million were recorded in 2002, while earnings per share were 17 per cent higher at 96.6 cents. Debt fell dramatically from €19.9 million to €7 million on the back of improved cashflow.

Arnotts managing director Mr Seamus Duignan said the company's outlets had continued to trade well in the first two months of 2003, despite uncertainty over trends in consumer spending.