Dublin radio station FM104 made a pretax profit of €2.95 million on turnover of €9.49 million in the year to the end of March 2007, according to accounts just filed.

This equates to a pretax profit margin of 31 per cent and makes FM104 the most profitable local radio station in Ireland. The broadcaster had accumulated profits of €6.9 million at the end of the 12-month period.

The Dublin station is set to be sold by Denis O'Brien's Communicorp to Belfast-based media group UTV for €52 million.

It was one of three stations - Today FM and Highland Radio in Donegal were the others - sold by UK media operator Emap to Mr O'Brien last July as part of a €200 million deal. Mr O'Brien was required by regulators to offload FM104 due to his existing interests in the Dublin market, where he controls 98FM and Spin 106.

Approval for the sale of FM104 to UTV has been granted by the Broadcasting Commission of Ireland, the Competition Authority and Minister for Enterprise, Trade and Employment Micheál Martin. It now requires approval from UTV's shareholders at an extraordinary general meeting.

FM104's strong financial performance has continued since last March. An information memorandum circulated by Emap to potential buyers last year projected that the station would achieve earnings before interest, tax, depreciation and amortisation of €4.6 million on revenues of €10.6 million in the year to the end of March 2008.

Accounts for Capital Radio Productions show it had operating expenses of €6.6 million and paid €390,070 in corporation tax in the year to the end of March 2007. No dividend was paid to Emap.

FM104 spent just more than €2 million on sales and marketing last year and €1.4 million on programming. Directors' remuneration amounted to €531,941, while its 63 employees earned €3.1 million in wages, pensions and social welfare costs.

Led by managing director Tim Fenn, FM104 is Dublin's biggest local radio station.