Strong growth in aircraft leasing has generated profits of $63 million (£42 million) at the Shannon-based GPA Group in the year to the end of last March. The net profits were substantially lower than 1997 levels of $105 million but the earlier year included a once-off gain of $50 million from the sale of 229 aircraft to the Airplanes Group. This leaves the underlying profit last year marginally ahead.

Revenues were sharply lower at $261 million, compared with $374 million in 1997. Group borrowings amounted to $514 million, a drop of $243 million during the 12-month period and cash balances stood at $286 million. Net interest income was also down, falling from $19 million to $6 million, while net cash-flow rose from $96 million to $179 million.

The improved cash-flow position was largely due to the release of cash previously restricted as collateral for GPA's obligations under certain head leases and interest rate swap contracts.

GPA chief executive Mr Patrick Blayney said the current trading outlook for the group was very positive, although he expressed some concern about any slowdown in the world economy. "The more uncertain outlook for the world's economy and increased levels of new aircraft production give me some cause for concern for the future, but GPA's financial position is strong and we are well placed to deal with further challenges and opportunities."

Mr Blayney added that the current underlying rate of profit growth should continue for the next two years at least with further trading depending on the strength of the world economy.