Donegal Investment Group, formerly Donegal Creameries, recorded pre-tax profits of €3.5m for its financial year to the end of August 2017.

The business made a loss of €545,000 in the previous financial year (eight months).

Turnover stood at €77m, generating an operating profit of €4.5m, returning a profit margin of 5.9%. The company’s balance sheet had cash reserves of €12m, more than offsetting year-end debts of €5m. On top of this, the company is in line for a €45m payout from the sale of its 30% stake in Monaghan Mushrooms, which Donegal expects to be completed by February 2018.

The settlement follows a four-year legal battle between Donegal and Danbywiske, the shareholding company of Monaghan Mushrooms founder Ronnie Wilson, over the value of its shareholding in the mushroom company. Donegal also disposed of a number of non-core assets during the year including Chef in a Box, a London-based sandwich business, and the 2,400ac farm An Grianan Estate, to the McElhinney family’s Glenmore Estate Farms for €17.4m.

Managing director Ian Ireland said the business would continue to sell off non-core assets which would ultimately allow for capital to be released back to shareholders.

Donegal’s seed potato business, which accounts for almost 40% of the business, generated sales of €30m in 2017. It had operating profits of €2.2m and margins of 7.2%.

It’s agri-food and property division reported sales of €47m, operating profits of just under €2.4m and margins of 5.1%. This division includes Donegal’s speciality dairy business based in Killygordon.

Shares are up 39% over the last 12 months and closed at €7.64 on Tuesday.

The company did not pay a dividend for its 2017 financial year.