The main company in the Louis Fitzgerald pub group, which runs some of the best-known drinking emporiums in Dublin and Galway, made pretax profits of €13.43 million last year after the disposal of property and the sale of a subsidiary, according to new accounts. Arthur Beesley, Senior Business Correspondent, reports.

The owner of Kehoe's in Dublin, the Quays in Galway and as many as 20 other premises, Mr Fitzgerald is one of the Republic's wealthiest publicans. He also has a number of restaurant, hotel and property interests.

The latest accounts for his vehicle, the Cregagh Investment Company, show its turnover rose by more than 9 per cent to €54.7 million in the year to June 2005 from €49.84 million in the previous period. Cregagh, described in its accounts as an unlimited company, employs 662 people.

Representative bodies such as the Vintners' Federation of Ireland have complained of difficult conditions in the pub trade. However, Cregagh increased its profit margins last year. Operating profits rose to €7.96 million from €7.12 million, so its operating profit margin rose to 14.55 per cent from 14.28 per cent.

The €13.43 million pretax profit was up from €8.38 million, but the bottom line was boosted by a €4.71 million profit on the disposal of unidentified property and a €1.13 million profit on the disposal of an unidentified company. A note in the accounts indicated that an unnamed subsidiary had signed two agreements to sell land in the current financial year for €3.8 million.

Mr Fitzgerald is one of the most acquisitive pub owners in Dublin. His portfolio includes the Palmerstown House, the Poitín Stil in Rathcoole, the Big Tree on Dorset Street and the Grand Central on O'Connell Street.

He bought the Stag's Head in Dame Lane, Dublin, last year for €5.8 million and acquired the Arlington Hotel on Bachelor's Walk, Dublin, for more than €30 million. He also owns Joel's restaurant on the Naas Road.

The Louis Fitzgerald group did not make anyone available yesterday to discuss the Cregagh accounts. Neither Louis Fitzgerald nor Helen Fitzgerald took a dividend payment last year and their combined salaries declined to €500,000 from €1.04 million.

However, the addition of the €11.03 million net profit to the profit and loss account brought the profit retained in the business to €31.8 million at the end of June 2005. As in the previous year, there was significant movement in directors' loan account at Cregagh. The opening balance was €3.43 million. Some €31.95 million was advanced from a director and some €33.29 million was repaid to a director. The balance in the loan account at the end of the financial year was €2.09 million.

Separate filings for a related company, Glenridge Holdings, which is not a Cregagh subsidiary, show it had a pretax loss of €218,250 on sales of €7.86 million. Mr Fitzgerald owns 49 per cent of Glenridge and his associate Patrick Walsh owns 51 per cent. Mortgage records indicate Glenridge's interests include the Baggot Inn in Dublin.