DUBLIN-BASED Joseph Brennan Bakeries made lots of bread last year although not as much as in 2006, according to accounts just filed for the company.

Sales at the maker of the eponymous Irish sliced pan rose by 15 per cent to €62.2 million in the year to the end of December 2007 but its pretax profit declined to just under €5 million from €5.4 million a year earlier due to a sharp rise in administration expenses.

The breadmaker's administration costs rose by 21 per cent during the year to €10.3 million.

In spite of the drop in profits, its tax bill rose to €845,378 in 2007 from €567,251 a year earlier. This was due a €237,782 charge in relation to non-deductible expenses and a €136,758 depreciation cost.

The company's profits are taxed at 10 per cent, a rate that applies to manufacturers.

Accumulated profits widened to €15.7 million at the end of 2007, up from €11.5 million a year earlier. No dividend was paid to the Brennan family, who control the business. Eight members of the family are listed as directors of the company. The family also have property interests, including famous Hamleys outlet on Regent Street in London.

The directors' report described the company's results as "satisfactory". "We do not foresee any significant changes in the core business activities of the company for the foreseeable future," it added.

Joseph Brennan Bakeries employed 174 staff on average in 2007, two fewer than the previous year. In spite of this, the bread-maker's total employment costs rose by 23 per cent to €12.8 million from €10.4 million in 2006.

This was due mostly to a sharp rise in pension costs to €3.7 million from €1.5 million in 2006.

The accounts seem to indicate that most of the substantial rise in pensions expenses was paid to directors of the group, which is based in Walkinstown, Dublin.

Directors' emoluments, including pension costs, were €4.3 million in 2007 compared with €2.4 million a year earlier.

Founded by Joe Brennan, the Irish breadmaker has become famous for its sliced pans, which come in a yellow wax wrapper, and for its slogan - "Today's bread today".

The company makes a range of bread products - brown and white sliced pans, batch loaves, buns and hotdog rolls - and also serves the catering trade.

But the breadmaker has been under pressure in recent years from rival brands and cheaper own-label bread in supermarkets.

Consumers in the era of the Celtic Tiger also switched away from traditional sliced pan to different types of bread rolls, bagels and other pastries.

These results, however, indicate that Joseph Brennan Bakeries continues to trade well and gain sales.