Fitzwilton, the engineering and financial services business owned by the O'Reilly and Goulandris families, recovered strongly last year.

The group yesterday reported a profit before tax of €271,000 for last year, compared with a loss of €3.8 million in 2005.

The turnaround reflected a significant improvement at its manufacturing subsidiaries, Rennicks Group and Mobile Traffic Solutions, as well as an increased contribution from Portfolio Design Group, its 36 per cent-owned associate.

Fitzwilton said yesterday that all the "trading entities" were performing extremely well and predicted a further increase in operating profits this year.

According to the accounts released yesterday, group operating profits were €1.6 million, and were bolstered by a €1.8 million contribution from Portfolia Design Group (PDG) and a €690,000 profit on the disposal of fixed assets.

Interest costs of €3.5 million resulted in the lower pre-tax figure and the group reported a loss after tax of €326,000.

The company said that in October last year it repaid €115 million to bondholders and had no bank or other borrowings on its balance sheet at the end of the year, eliminating annual interest charges of €11 million.

Rennicks Group, the main operation within Fitzwilton, increased operating profit by 29 per cent, according to last year's accounts.

PDG, which buys and sells life policies, recorded an increase in operating profit of 149 per cent. It has two main subsidiaries, Surrenda-link Ltd and LPVC, both regulated in the UK.

Surrenda-link advises clients on investing in life assurance policies and provides support services. LPVC values life policies and provides consultancy and research.

PDG is forecasting a further improvement in pre-tax profits in 2007, according to Fitzwilton.

The two largest shareholders in Fitzwilton are Sir Anthony O'Reilly and his brother-in-law, Peter Goulandris, who both own just under 49 per cent.