CAVAN-BASED builder P Elliott Co increased pretax profits by 31 per cent to €15.1 million in 2007, newly filed accounts show, despite a drop in turnover and the general downturn in the construction industry.

Turnover at the company dipped below €300 million last year, falling 2.6 per cent to €298.7 million from €306.5 million, according to the accounts.

The company showed no signs of curtailing its workload last year amid the housing slowdown - the value of work-in-progress projects rose to €96.8 million at the end of last year, up 74 per cent from €55.5 million a year earlier.

The company made an after-tax profit of €12.9 million in 2007 and benefited by a further €5.7 million from property revaluations, bring its gain for the year to €18.6 million.

Despite the slowdown in the building sector, the company increased its workforce from 359 to 377 staff in 2007, bringing its wages and salaries bill to €25.7 million from €19.2 million.

At the end of last year, Elliott had shareholders' funds of €51.5 million, including retained profits of €41.1 million in its reserves.

Bank loans jumped to €52 million from €10.3 million. The firm says in the accounts that loans and overdraft facilities from Ulster Bank, listed as the company's main bank, are secured by properties in Dublin, Cavan, Louth and Wicklow, and cross-guarantees from group companies.

Bank of Scotland (Ireland) has its loans secured by properties, mortgage policies and personal guarantees, while AIB has provided a loan facility secured by a mortgage over lands in Co Cavan.

The company earned investment income of €958,000 last year, which helped offset €390,000 written off on the value of some assets and an interest bill of €857,000 on bank loans and overdrafts, and finance charges.

The firm paid a dividend of €415,000 to shareholders Noel Elliott Jnr, Mark Elliott and Darragh Elliott during the year, compared with a dividend of €286,000 paid the previous year.

In a show of confidence, the company met clients and bankers privately last month to reassure them that it was on target for double-digit profit growth this year and was capable of weathering the housing downturn.

David Mackey, chief executive of P Elliott, was reported as saying last month that the private company decided to publish its figures to show that the economic situation was "not as difficult as a lot of people make out".

The company has published figures for its 2007 performance on its website. Mr Mackey was unavailable for comment yesterday.

The company, which was established in 1942, is planning to build 636 apartments and 123 houses at Aiken's Village in Stepaside, south Co Dublin.

The company is also developing the old Irish Times building on D'Olier Street in Dublin city centre.