The Gaiety Theatre in Dublin is expected to be sold shortly for more than £3 million by the Break for the Border Group, the British bars and restaurants business which owns the popular Cafe en Seine and other outlets in Dublin. Imminent sale of the multi-venue theatre off St Stephen's Green comes nearly one year since the group failed to find a buyer willing to meet its asking price of £3 million.

Now, however, Break for the Border directors say that they are "in negotiations with interested parties for the disposal of the Gaiety Theatre which we expect to be able to announce in the near future." Break for the Border bought the 127-year-old, Grade One-listed theatre from Mr Gerry O'Reilly in January 1996 in a deal worth around £2.8 million and subsequently invested significant sums on upgrading its amenities. Refurbishment works on its bars and facilities this summer cost around £300,000. Disappointing financial results have led to low returns on capital employed. In 1997-98 annual operating profits of £308,000 were earned on turnover of £2.4 million. Results worsened in the half-year to September 30th when the Gaiety moved from operating profits of £9,000 to losses of £47,000 on turnover reduced from £794,000 to £729,000. Losses were blamed on the lack of success of three productions and closure of weekend clubs for three weeks for refurbishment work.

Break for the Border's chief executive managing director Mr Roger Beaumont emphasised that the imminent sale was not prompted by the poor financial results. The group remained committed to the theatre and renewed negotiations for its sale followed an approach from a buyer willing to meet the group's asking price.

Interim financial results for the Break for the Border Group as a whole detail a slight fall in profits before exceptional items and tax from £463,000 to £444,000 on turnover up £1.0 million to £9.1 million. However, the figures mask a significant reduction in profitability as the group benefited from a £266,000 reduction in net interest costs due to debt repayment.

Although strong growth of 6.5 per cent was achieved on bars and restaurants in Dublin and even stronger growth of 14.3 per cent was seen in London outlets, results were affected by pre-opening costs and slow trading of new outlets in Leeds and Peterborough.

Shares in Break for the Border fell 3p to 35p on the figures having already fallen from their 81p peak in the late spring.