Profits at family-owned Joseph Brennan Bakeries, the producer of Brennans Bread, approached €5.5 million last year, the latest figures show.

According to accounts just lodged with the Companies' Registration Office, the company, one of the best known in its business in the Republic, had sales of €54.1 million in 2006. This was a 7 per cent increase on the €50.6 million turnover recorded in 2005. Operating profit grew 28 per cent in 2006 to €5.41 million from €4.2 million the previous year.

An €80,000 interest payment boosted profits before tax to €5.49 million, a near 25 per cent increase on the 2005 pre-tax surplus of €4.35 million.

The Brennan family own the company through two firms: the Argosy Trust and Century Holdings. Most of the company's directors are family members.

Its balance sheet shows that shareholders' funds were up 80 per cent to €11.5 million on December 31st 2006 from €6.6 million a year earlier. The company did not pay its shareholders any dividend last year and reinvested the €5 million after-tax profit. It had €5.1 million in cash at the end of the year, according to the balance sheet.

The company paid its 11 directors €2.36 million in salaries and pension contributions in 2006, compared with €3.4 million the previous year.

Its wage bill also fell slightly, to €10.46 million in 2006 from €11.2 million in 2005. The number of workers employed dropped to 173 from 175.