New insurance provision gives €30m boost to CIE

The company's latest annual report, to be published next week, also shows group sales rose 5pc to a record €785.5m last year.

One of Ireland's largest surviving semi-states, CIE's assets include Irish Rail, Dublin Bus, Bus Eireann and Rosslare Harbour.

The company is heavily subsidised by the Government, receiving €320m last year in capital grants and other subsidies as it continues to invest substantially in infrastructure.

Before subsidies, CIE's main businesses all recorded higher day-to-day losses last year, while exceptional profits on asset sales fell €21m to €8m, largely linked to 2006's €26m gain on the sale of a site in Cabra.

The poorer operating results and lower exceptional gains resulted in annual losses after subsidies of almost €1.5m last year, well behind 2006's profit of close to €22m.

CIE closed the year €28.2m in the black, beating 2006's result by more than €6m after it took a €29.7m gain by releasing some of its reserves. This reflected the company's lower exposure to future claims.

That lower exposure is linked to the Government's Insurance Reform Programme, which includes the Personal Injuries Assessment Board and increased vigilance against fraudulent claims, an Irish Rail spokesman said.

Company's reaction to 2007's performance in view of the losses made before the insurance gain, a spokesman said the company was "pleased that going forward, the success of our actions will benefit the financial position of the group".

Bus Eireann was the group's most financially viable business last year, returning operating losses of €35.5m on turnover of almost €283m.

Irish Rail, meanwhile, sustained the heaviest losses, returning a day-to-day deficit of €278m on sales of €230m.

That €278m includes a €3.9m profit at Rosslare Harbour, which is held by Irish Rail, as well as a €57.4m loss on the DART suburban rail service and a €224m loss on national train services.

The Irish Rail company also includes 'road freight', where losses slipped back to €121,000 last year as CIE pared back activities ahead of the division's closure this spring.

CIE's third key wing, Dublin Bus, made operating losses of €86m on revenue of €200m.

The group company, including tours and 'central business', made operating profits of almost €8m on turnover of close to €72m, the accounts show.

Other features of the accounts include a €657,000 of remuneration to board members, virtually unchanged from 2006's levels.