Fitzwilton, the privately held investment vehicle, has significantly cut its losses for 2003. Its results show pre-tax losses fell to €8.8 million from €46 million the previous year, while group turnover was down to €26 million from €33 million. The directors are not recommending a dividend.

The 2002 results had been hit by an exceptional write-off from the sale of the group's stake in Safeway. At an operating level, losses were steady at €2.8 million, but there was an improved performance at the group's wholly owned Rennicks and Wood & Wood subsidiaries, where operating losses fell from €6.79 million to €1.89 million.

The 2002 results had benefited from a €3.9 million operating profit in an associated undertaking which did not recur in 2003. Mr David Roxburgh, director and secretary, said the company made strong progress in 2003 and losses had been cut "dramatically".

He said the company was no longer involved in 12 Safeway stores in Northern Ireland and had sold its stake in this business.

Sir Anthony O'Reilly and his brother-in-law, Mr Peter Goulandris, each own 49 per cent of the equity in the company. Apart from property activities, it consists of three main businesses: Rennicks, Wood & Wood and Portfolio Design Group. The first two of these firms are involved in signage with Portfolio Design Group.

Losses in 2002 were high because Fitzwilton took a €28.3 million hit on the disposal of its 50 per cent stake in the Safeway stores. Fitzwilton sold its holding in the operation in July 2002, realising net proceeds of €22 million. However, this was transformed into a loss after multimillion provisions for goodwill, debts and impairment of fixed assets.

Rennicks provides about €20 million of Fitzwilton's turnover and the accounts say it should see a further improvement in its sales and profits in 2004.