DÚN LAOGHAIRE Harbour Company - the State-owned commercial entity responsible for the harbour's development, maintenance and conservation - made a pre-tax profit of €3.1 million last year, up 12 per cent on the year before, after turnover increased 4 per cent to €10.7 million.

The growth was driven by a 15 per cent jump in ancillary revenues, including a 29 per cent jump in both marina revenue and parking fees in the harbour. But shipping revenues slipped 2 per cent as passenger numbers on the Stena Line ferry fell.

The decline in passengers was less steep than in previous years and Dún Laoghaire Harbour Company chief executive Michael Hanahoe said he believed the impact of the availability of cheap flights on ferry passenger traffic had now levelled off.

Mr Hanahoe, who steps down as chief executive next April, said 2007 had been "a good year for the company", with developments including the addition of 233 berths to the marina, which can now accommodate 830 leisure craft, making it the largest public marina in Ireland.

The company has appointed marine consultancy firm RPS to look at the logistics and economics of constructing an additional 900-berth marina.

In May, developers of a major scheme planned for the harbour's Carlisle Pier pulled out and the company is now considering alternative options for the site.

Last year, it spent €3 million on capital projects, including the commencement of a €5 million resurfacing of the east pier walkway and a €1.6 million restoration of the listed Harbour Lodge building. It also started work on repairing the quay walls, a project it expects to spend €10 million on over the next five to six years.

The company's pre-tax profit of €3.1 million does not include a €6 million sum from the sale of land.