The Ryan Hotels Group has announced a 24 per cent increase in pre-tax profits to £5.02 million, an all-time high. The company says the figures are the result of buoyancy in the economy and growth in tourism numbers. The company is now seeking to expand by acquisition, most likely by buying a small hotel chain in Britain for between £20-£25 million.

While pre-tax profits are up significantly, turnover only rose 4.1 per cent from £27.3 to £28.4 million for the period ended January 29th, 1998, compared to the same period last year. The profits are partly explained by the 9 per cent increase in margins and other "operational efficiencies", according to Mr Patrick Coyle, chief executive.

Earnings per share increased by 29.2 per cent from 5.18p to 6.69p, while dividend per ordinary share went up by 20 per cent to 2.25p. The group is proposing to pay a total net dividend for the year of 2.25p per share, compared to 1.875p per share.

During the year, capital expenditure totalled £4.7 million, with the new 100-bedroom extension and multi-storey car park at the Gresham in Dublin accounting for the bulk of this.

Overall room occupancy increased by only 1 per cent to 76 per cent, with the average rate per room going from £58 to £60.

Mr Coyle said the group would not need to sell its three European hotels to fund an acquisition in Britain. He said the purchase could be carried out from the £7.5 million of cash the company is producing each year and funds from other projects. One of these is the plan by the group to lease out its car park facility at the Gresham for 10 years which Mr Coyle said would be very lucrative.

Mr Coyle said the company was "concerned" about the significant increase in hotel developments in the Dublin area. He said if there was an economic downturn many of the hotels might find themselves "in trouble".

Mr Coyle said delays in building the National Conference Centre were a major concern to the company. "The centre has not yet materialised but it hasn't even been decided where it will be located," he said.

On the future of Bord Failte, Mr Coyle said it was "disturbing to see the organisation having difficulty in retaining the services of first-class personnel due to restraint on remuneration levels".