The Irish Dairy Board Group increased its turnover by 8.4 per cent to a record £1.423 million (#1.81 million) last year, resulting in an operating surplus of £26.3 million, a 10.1 per cent rise over the previous year.

Announcing the figures yesterday, Dr Noel Cawley, the board's managing director, said members' funds, at £162.3 million (#206 million) were 12 per cent higher than at the end of 1997.

He said no acquisitions were made during the year but Nu-Tek, a subsidiary in the US was sold off because refurbishing the plant would have cost too much.

Profits after taxation were down marginally to £17 million because of the exceptional costs caused by the sale of Nu-Tec, the figures showed.

The board's net debt-to-equity ratio of 22.6 per cent left it well positioned to fund new acquisitions should suitable opportunities arise.