O'Brien's Irish Sandwich Bars has recorded a sharp increase in profit, according to figures lodged with the Companies Office, writes Dominic Coyle

The franchise operation, founded and ultimately controlled by Mr Brody Sweeney, saw profits before tax rise 43 per cent to €641,383 in 2002.

At the operating level, profits rose more than 50 per cent.

Turnover also increased dramatically to €2.18 million, up over 25 per cent. Management service fees accounted for the bulk of revenues, at €1.4 million, with franchisees also contributing €633,695 towards the cost of group marketing operations.

Franchise fees contributed €153,917 to group sales.

Stores in the Republic continue to contribute the overwhelming proportion of income, with non-EU outlets accounting for just €10,866 of the total.

Fees paid to non-executive directors in the year to the end of December last rose 22 per cent to €66,531, while salaries to executive directors were almost 19 per cent higher at €355,271. The company also paid a sum of €8,000 to Mr Sweeny in rent.

Wages, however, rose just over 1 per cent to €664,478.

The group paid over €1.5 million in rent for its various outlets, recovering €1.42 million from franchisees.

The group operates wholly-owned subsidiaries in Britain, the United States and Singapore, which all recorded losses in the period. The British operation, which the annual report says has received a commitment of continued financial support from the parent group, lost £325,186 and had net liabilities at the end of last year of just over £1 million.

Brody's Irish Sandwich Bars US Inc lost $208,936 in the 12 months and had net end-year liabilities of $487,975. The Singapore operation, Irish Cafes, lost 72,987 Singapore dollars.

The parent group is owed substantial sums by the foreign subsidiaries, particularly the British operation.

The accounts show that the company is committed to contributing €769,538 to the 2003 Special Olympics World Summer Games, which were held in Dublin during the summer, by the end of this year. O'Brien's was one of the high-profile domestic sponsors of the games.

Retained profits of €562,042 knocked a substantial hole in the bottom-line cumulative loss for the group, which stood at €781,164 at the outset but fell to €142,938 by year-end.