THE STATE company that runs prize bonds reaped a windfall of its own last year, with gross sales receiving a 7.4 per cent boost after it upped its top monthly prize from € 150,000 to € 500,000 and its December jackpot to € 1 million last September.

According to the Prize Bond Company's 2007 annual report, published yesterday, gross sales increased to € 143.2 million last year and the number of bonds purchased surged 18.3 per cent to €243,777.

The number of prizes awarded rose 1.7 per cent to €148,231 but the amount paid out, reflecting the increase in jackpot values, jumped by 15 per cent to reach €15.9 million.

The increase in gross sales was the first since 2005.

The value of the money invested on behalf of bond holders, which is guaranteed by the State, rose by 7.2 per cent to € 631.1 million last year.

The company introduced the new prize structure in September to celebrate its 50th anniversary.

The bulk of the increase in sales of bonds came in the final quarter of last year, the company said.

It plans to increase this month's jackpot to € 1 million and promised to boost the size of monthly prizes later this year.