NEWCOURT GROUP, the Dublin-based student accommodation to security company, downplayed the potential for acquisitions in the near term as it reported a 39 per cent jump in operating profits last year.

Unaudited profit before tax rose 39 per cent to €9.3 million for the year to the end of December, on the foot of a 42 per cent increase in revenues, the company reported yesterday.

Adjusted earnings per share came in at 11.7 cents, ahead of analysts' forecasts of 11.4 cents.

A one-off charge of € 928,000 was booked against profits as a result of costs associated with a failed tender for a Government contract and another transaction, the company said.

Newcourt's student accommodation division - Ely Property - was the strongest performer, posting a 61 per cent increase in trading profits to €4.8 million . The group grew out of the purchase of Federal Security in 2002 by chief executive Ted O'Neill and co-founder Phil Sykes.

Support services, including security work, remains the largest contributor to group profits. Trading profits in this division were up 33 per cent to €4.3 million on foot of revenues of €109.2 million.

Recruitment and aviation outsourcing, which includes pilot training and aviation contract recruitment, saw its trading profits rise 28 per cent to €4.3 million.

Newcourt said yesterday that it planned to increase investment in this part of the business.

However, it said after an acquisitive year in 2006, it had no concrete plans for bolt-on acquisitions in the current financial year.

"Organic growth has been very strong the last couple of years," Mr O'Neill said.

He added: "Acquisitions would be only contemplated if the pricing is right. And I am not sure that the pricing is right at the moment."

Mr O'Neill expected all three divisions to "perform well" in 2008, declining to isolate one part of the business as the top performer.

Philip O'Sullivan, an analyst at AIB, rated the company's stock a "buy", forecasting earnings per share to grow by 12 per cent in 2008 to 13.1 cents.