The Irish Times Trust has recorded a 70.6 per cent increase in pre-tax profit from £5,464,011 in 1996 to £9,321,934 in 1997. The increase is attributed to strong circulation growth and buoyant advertising revenue. Mr Louis O'Neill, chief executive and group managing director, described the results as "very satisfactory" and said they "show that the company is growing strongly". The group has achieved "record levels of advertising and circulation" and he noted the "expansion of editorial and paper sizes". Sales grew by 15.5 per cent from £48.5 million to £56.0 million. A breakdown shows a 5 per cent rise in newspaper sales from £17.8 million to £18.7 million, reflecting increased circulation (there has been no price increase for over five years), and a 21.5 per cent growth in advertising revenue from £27.8 million to £33.8 million.

Daily circulation of The Irish Times consolidated above 100,000 for the first time last year and averaged 110,367 in the second six months. The growth in advertising revenue outperformed the industry average of 19 per cent, said Mr O'Neill.

Non-newspaper activities now account for just under £4 million of sales. He said: "We expect to increase this over the next few years."

The cost of sales grew by just 6 per cent, from £30.9 million to £32.9 million, while the 15.7 per cent growth in operating expenses, from £12.7 million to £14.7 million, was similar to the sales growth. This meant that profit margins showed a big improvement; pre-tax profit margins increased from 11.3 per cent to 16.6 per cent.

The outlook for this year is for a further expansion of the group's "activities and trading results". Announcing the results at a series of briefings yesterday, he told employees the group was facing a big programme of investment in building and equipment.

This expansion, involving development of the property at Burgh Quay, Dublin and new editorial and advertising systems, will cost about £11 million over the next 18 months. The Burgh Quay property, the former Irish Press building, is earmarked to be the group's new headquarters and its development "is a top priority for us over the next couple of years", Mr O'Neill said.

He noted that planning permission was obtained from Dublin Corporation but this had been appealed by Lancefort. "The project will now go for decision to An Bord Pleanala and, if all goes well, it should be ready by the end of 1999."

The plan is to move the administration, editorial and sales divisions of the group to the Burgh Quay building, when it is completed. The printing operations will remain in their current location in Fleet Street. The Irish Times Trust has further strengthened its financial position. Cash and near cash almost doubled from £12 million to £21 million. Most of this, £19.6 million, is held in Government gilts. This is reflected in the rise in investment income from £552,325 to £811,450.

Cash, and near cash, now account for 69 per cent of the group's net assets. Also, the profit return on these assets amounts to more than 30 per cent. However, the real return is less because the balance sheet values do not fully reflect the market values for two reasons. First, the original Fleet Street property was last valued in 1981. Second, The Irish Times Trust does not incorporate a value for its titles.

Mr O'Neill noted the group's need to have a strong balance sheet. "As a trust, it has to fund its developments from its own resources," he said.