Music retailer Golden Discs, which increased profits and turnover last year, has announced plans for a new online retail service.

The service, which will allow consumers to access chart and promotional products as well as gift tokens online, can be accessed through the company's website at www.goldendiscs.ie or via www.online.ie, the new Irish-based Internet destination site.

The company announced an 8 per cent increase in pre-tax profit to £3.96 million (€5.03 million) in the year to the end of March 1999, while turnover rose by 13 per cent to £19.2 million.

Golden Discs chief executive Mr Tony Killoran said the strong rise in profits was partly accounted for by a once-off exceptional item relating to a transaction on one of its properties. Golden Discs said some 85 per cent of all album sales were on compact disc format last year, up from 55 per cent in 1995. The sale of music on cassette declined accordingly.

The company aims to continue to grow and develop its network of stores and has identified a number of possible opportunities, particularly in north County Dublin and Cork.

But it said that the recent move to edge-of-town locations, which has been fuelled by British retailers seeking to grow in the Republic, had increased the pressure on the cost of leases and rents and was creating a challenge for indigenous retailers such as Golden Discs.