Castle Market Holdings, the property company owned jointly by Treasury Holdings and London-based Jermyn Investments, had operating profits of £6.84 million sterling (#11 million) last year, a fall from £7.8 million sterling in 1999.

The results are extracted from Jermyn's full-year results which include the contribution from its 50 per cent stake in Jermyn.

The Castle Market results also include a charge of £1.98 million sterling for breaking the group's existing loan arrangements and substituting them with a new #160 million seven-year facility. Since the end of last year, Castle Market has acquired a development site in Dublin's dockland area, which is suitable for mixed use and may include some residential use.

Overall, including the contribution from Castle Market, Jermyn's pre-tax profits rose slightly to just more than £4 million sterling with turnover up from £1.25 million to £13.3 million sterling.

Net asset value at the end of December was 20 per cent above the previous year at £628.1 sterling.

A month ago, Jermyn disclosed that it had received an approach which might lead to an offer for the company.

Given its involvement in the Castle Market, Treasury was seen in the market as a likely bidder for Jermyn although neither Treasury nor Jermyn has made any comment. In his statement yesterday, Jermyn chairman Mr Ray Horney said the company hoped to make an announcement shortly on this approach.

Since it said that it had received an approach, Jermyn's shares have risen 60p to 545p sterling. This values the company at £91 million sterling, a 13 per cent discount to its net asset value.