State transport group CIÉ has delivered a €20.4 million surplus for 2004 on the back of major property disposals and an increased contribution from its advertising business.

The 2004 results, expected to be published today, show the company significantly improving its financial position despite half of the DART service being shut down at weekends during the year.

Revenue for the year was up to €683 million from €661 million, an increase of over 3 per cent, helping the company record a surplus of €20.4 million. This was after receiving a State grant of €267 million, up from €262 million in the year before.

In 2003, the company reported a deficit of €4 million.

Major property disposals boosted its position in 2004. The annual report says the group's property division had an "excellent year" with the sale of a site in Cabra netting €22.5 million. Rental income increased by 19.6 per cent to €13.6 million.

The company expects to make further property disposals in 2005. "A rolling programme of disposals of surplus lands acquired for level crossings has also commenced," state the accounts.

Despite disruptions to the DART service, the company is increasingly using its various services for advertising purposes. Its advertising subsidiary, Commuter Advertising Network, reported a net profit of €5.9 million for 2004.

The company has also managed to cut its accumulated deficit during the year from €90 million to €69 million. The company accounts state that further efforts will be made to keep costs down and drive revenue up.

The company is in robust financial shape, chairman Dr John Lynch declares in the accounts. "Out of the pain has come the gain," he states.

"This result is all the more striking considering that half the DART service was shut down for most weekends during the year, as part of necessary DART upgrade work. This project will provide a doubling of capacity on the DART when completed later this year," says Dr Lynch in his chairman's statement.

The chairman also points to the performance of CIÉ Tours International, which improved its position in 2004.

The accounts show payroll and related costs rising from €492 million to €517 million, although the number of employees dropped slightly from 12,223 to 12,037. The increase in payroll costs was mainly attributed to increases under Sustaining Progress.

The biggest increase in revenue was recorded by Bus Éireann, followed by Dublin Bus and Irish Rail. The revenue increases were mainly due to increased service levels and price increases.

The annual report also discloses that a former Irish Times financial journalist, Mary Canniffe, was appointed to the CIÉ board in recent weeks.