LAST YEAR must have been one of the toughest on record for Irish advertising agencies. But that didn’t prevent Leo Burnett from increasing its profitability.

Accounts just filed for the Dublin-based agency, show that profits rose to €209,000 from €26,584 in 2008.

The increase in profits was due to a reduction in its overheads and the acquisition of the Martin Larkin Partnership.

“We will do better than that again this year,” managing director Shane McGonigle told me this week.

McGonigle is forecasting profits this year of €350,000.

“We’re having a good year. We recently won the Airtricity account, which is a big piece of business for us, and Tipperary water.

“And we’ve recruited six people to help us expand into the digital area.”

The increased profits last year reduced the deficit in the shareholders’ account to €627,575 from €836,575.

This relates to legacy issues – the agency has been profitable each year since 2004, McGonigle said.

A “going concern” note states that its viability is dependent on the continued support of its parent company Quinn McDonnell Pattison Ltd and its related company Mediavest Ltd.

The directors believe that it will repay its loans within three to five years.