The firm, owned by the Galwaybased Smyth family, had turnover of almost Euro185m for the period from March 2005 to March 2006, up from Euro113m over the preceding eight months.

Pre-tax profits were reported at Euro6,213,000, down from Euro11,267,000.

An increase in staffing levels, with an associated rise in costs, appears to be main contributing factor. The company added an extra 179 staff to its workforce over the reported period;

it now employs 692 people, 584 of whom are based in retail. Staff costs in turn went from Euro6.9m to Euro12.4m, the difference of Euro5.5m roughly equalling the company's drop in profit.

Turnover had been Euro113m for the previous eight months and was at Euro133m for the year before.

Directors' fees for the reported period were over Euro1m, up from Euro765,000 in previous accounts.

Shareholders' funds increased from Euro59,716 to Euro64,627 while they closed the year with Euro17,737,000 worth of cash at the bank and in hand.

The company's overall profit levels are retained at Euro63,991,000, and it reported freehold property worth Euro11,744,000 as tangible assets. The company also has an extensive property portfolio managed by a subsidiary company, Zarafine.

Smyths operates 23 stores throughout Ireland, five of which are in the North. It is Ireland's largest toy retailer, focusing on warehouse-type retailing.

It is still a family-based business with Anthony, Patrick, Liam and Thomas Smyth all named directors.

The Smyth toy empire was established more than 20 years ago when Paddy and Bernadette Smyth opened a toy shop in Claremorris, Co Mayo.