Public relations firm Murray Consultants paid out €1.56 million in management fees to its co-founders Jim Milton and Joe Murray in 2006, newly filed accounts reveal.

The payments reflect a transfer of shares to top management under a succession plan and a "realignment of overheads".

Managing director Pat Walsh said underlying operating profits grew to €1.3 million in 2006 from €1.15 million in 2005, when management fees were stripped out of the figures. "Current trading is very strong and the outlook is good based on a good flow of new business, increased capacity and a broader range of services."

Abridged accounts for 2006 show an actual operating profit of €37,672. An operating loss of €814,435 in 2005 came after the payment of €2.46 million in management fees to the company's founding directors.

Mr Milton and Mr Murray started in 2005 to reduce their interest in the company they founded in 1974. They remain very active on the client side of business, with a roster including Independent News & Media, Ryanair, Davy and Kellogg's.

Abridged accounts for 2006 indicate that 28 per cent of the business was in the hands of non-founder directors by autumn last year. Mr Walsh's stake stood at 23 per cent at that time and director Pauline McAlester owned some 5 per cent, it is understood. The succession plan allows them and other executive directors to increase their stake to 49 per cent this year.

Asked whether managers will have scope to increase that stake, Mr Walsh said: "There's a strong interest and confidence in the company on the part of senior management. If anything, that commitment is likely to increase beyond the 49 per cent level."