The largest Irish-owned music retailer, Golden Discs, has reported a 16 per cent rise in pre-tax profits from £328,000 to £383,000 for the year to the end of March, 1997. The company says it expects further growth during this year and is seeking to set up two new stores.

The company now has a network of 28 outlets in the Republic, following the recent opening of its store in Mullingar, Co Westmeath.

According to the company, the last year has seen an increasing presence of British retailers in the sector.

"Securing new prime sites is now a very difficult and expensive process, reflecting the strong presence of these retailers on all the Republic's high streets," said chief executive, Mr Tony Killoran.

He said the company was regularly finding itself in competition with HMV and Virgin for units at newly-opened shopping centres.

Mr Killoran said the company's profit increase was due to the buoyancy of the economy, the fall in unemployment, a strong indigenous music sector and the expanding number of Golden Discs outlets which had given the company a presence throughout the Republic.

He added that the introduction of a new branch management system had already begun to show considerable benefits.