A bill of €20.8 million for environmental works and redundancies contributed to a 60 per cent drop in profits at at the Irish subsidiary of pharmaceutical giant, Roche last year.

Accounts filed to the Companies Office, show that Roche Ireland Ltd returned a profit of €6.1 million to the end of 2005 compared to the €14.9 million profit secured after tax in 2004.

The drop in profits at the Clarecastle plant in Co Clare is explained by the €11.8 million spent on various environmental works at the site and a redundancy programme costing €8.9 million that resulted in the loss of 35 jobs at the plant.

The accounts show that turnover fell from €124 million to €118 million in 2005, while operating costs also dropped - from €111 million to €106 million .

However, in spite of the drop in profits and turnover, the overall financial health of the company remains strong, with accumulated profits standing at €99 million.

The company - which has been operating since 1974 - paid its 268 staff €20.1 million in salaries and pensions. This represented a slight increase on the €19.9 million paid out to staff in 2004.

The director's report state the 5 per cent drop in revenues was "due to the reduction in the production and sale of d, I Acid".

The report states the principal risks and uncertainties facing the company included the identification of new products to fill spare capacity after the closure of the d, 1 Acid Plant in 2006.

These risks are managed by the Roche group centrally.

It goes on: "The company has been identified as a 'strategic' site by the Roche chemical strategy review group in 2005 and the directors intend to continue to work closely with the Roche group centrally to evaluate further opportunities for the company."

The accounts state that for the second year running, the company does not propose a dividend. Emoluments to directors in 2005 amounted to €260,000 - a rise of €15,000 on the 2004 total of €245,000.