Annual pretax profits in the bar and restaurant empire controlled by publican Louis Fitzgerald almost doubled to €8.38 million on sales of €49.84 million in the year to the end of June 2004, new accounts reveal.

From Co Tipperary, Mr Fitzgerald is one of Dublin's biggest publicans. In spite of his group's robust performance, the directors' salary he shared with Ms Helen Fitzgerald fell to €1.04 million from €1.3 million in 2003. While there were no directors' pension contributions, they received a contribution of €1.27 million a year earlier.

The trading figures suggest that some of the best-known bars in Dublin and Galway are thriving in a market depressed by the ban on smoking in pubs and increased home drinking. However, the results do not fully reflect the ban's impact because it came into force only at the end of the third quarter in the financial year.

Mr Fitzgerald's 22-strong bar chain includes Dublin outlets such as Kehoe's on South Anne Street, and An Poitín Stil in Rathcoole. The Galway pub, the Quays, is also in the chain.

Fitzgerald has continued to buy pubs in spite of a downturn in the sector, the most recent deal being his €5.8 million purchase last May of the Stag's Head in Dublin.

The accounts for Cregagh Investment, an "investment holding" firm co-owned by Mr Fitzgerald and Ms Helen Fitzgerald, were annexed to a recent Companies Office filing for one of its 25 subsidiaries, Darke Entertainments. The group had retained profits of €20.77 million at the end of the financial year.

Freehold lands and buildings were valued at €26.06 million in the balance sheet while refurbishments were valued at €8.93 million. With turnover of €49.84 million up from €45.58 million a year earlier, the increase in pre-tax profits was recorded after a €1.22 million profit on the sale of an unnamed subsidiary and a €371,972 write-back of negative reserves.

Operating profits grew to €7.12 million from €4.4 million. There was no dividend in the year or in the previous year. However, the accounts show significant movement in the directors' loan account. The account opened the financial year at €14.62 million. After €5.02 million in advances from a director and €16.2 million in repayments, the account closed the year at €3.43 million.

The Fitzgerald group's strong performance contrasts with that of the Capital Bars superpub chain, whose losses grew to € 10.5 million in the year to the end of September 2004 from €3.5 million the previous year.

Nobody from the Fitzgerald group was available for comment last night.