THE NUMBER of people employed by the award-winning Dublin-based Brown Bag Films has more than doubled to 125 in the past two years.

The animation studio yesterday confirmed numbers have grown to 125 from the 59 employed at the end of 2010 – an increase of 111 per cent.

New accounts filed by Brown Bag Films Ltd with the Companies Office show that pretax profits declined by 75 per cent to €93,709 for the eight-month period to the end of December 2010 from €386,560 in the prior 12-month period.

Revenues in the eight-month period declined by 33 cent to €3 million, compared to €4.5 million in the 12 months to the end of April 2010.

The firm’s most recent Disney series, and the top-rated pre-school show in the US, Doc McStuffins, attracted almost five million viewers and will air here this autumn. The firm is currently in full production for a second season of the Bafta-nominated Octonauts for the BBC and a second season of Doc McStuffins, while the Happy Hugglemonsters will first air for Disney Junior in over 150 countries this autumn.

Significant investment in scaling up the Brown Bag Films business last year had the directors anticipating a loss for 2011.

However, the directors state in the 2010 accounts that the investment is anticipated to lead to long-term profitability.

On the 2010 performance, the directors state that they are “satisfied with the company’s performance given the level of investment during the period”.

Numbers at the firm have now grown to 125 and in addition, the company, based in Smithfield, is currently advertising posts for at least a further 15 posts, including animation director, production manager, 3D modeller, 3D VFX artist and lead animator.

In the past, Brown Bag Films – established by Cathal Gaffney and Darragh O’Connell – has received Oscar nominations for short films Give Up Yer Aul Sins and Granny O’Grimm.

Last month, Brown Bag Films expanded its entertainment range by establishing a new entertainment brand, Icehouse, that is dedicated “to creating, producing and distributing entertainment for grown-ups”.

In the 2010 accounts, the directors said that any failure by Government to extend or replace the section 481 tax incentive scheme beyond 2015 “poses a risk to our ability to compete effectively for new business”.

The directors also warn that “animation studios in lower-cost countries are rapidly increasing their capabilities to compete in our markets”.

The firm’s shareholder funds stood at €3.4 million at the end of December 2010, which includes €3.3 million in accumulated profits. Staff costs in 2010 decreased from €2.3 million to €1.9 million, with directors’ emoluments increasing from €197,128 to €227,412. The company made a dividend payout of €16,066 in 2010. None of the company directors was available for comment.