Operating profits for the business that operates multi-award winning animation studio Brown Bag Films last year increased by 5pc to €5.73m.

The increase in operating profits at Niagara Films Ireland Ltd followed revenues declining by 14pc from €50.12m to €42.92m in the 12 months to the end of August last.

Founded in Dublin in 1994 by managing director Cathal Gaffney and creative director Darragh O’Connell, Brown Bag Films was acquired by Canadian based 9 Story Media Group in 2015.

In a strong indication of a very busy 2021, two Brown Bag Films productions have debuted on streaming services Netflix and Disney+ this summer.

Ridley Jones debuted on Netflix earlier this month. A preview of the first episode recorded three million view in one week in June on Netflix Junior’s Youtube channel.

Another Brown Bags Films production, Sadie Sparks, debuted on another streaming service, Disney+ in June.

In a post balance sheet event, the directors state the business shut down its studio in Manchester last November and consolidated its 2D production in Toronto.

The directors state the decision “will allow the group to achieve long-term objectives with one 2D studio”.

They state they were satisfied with the results for the year and later add that the Covid-19 pandemic “has not had a significant impact on the results of the group”.

The group last year recorded pre-tax profits of €5.56m after paying interest charges of €171,147.

The business recorded post-tax profits of €4.38m after paying corporation tax of €1.17m.

Today, Brown Bag Films – whose work includes global children’s television hits Doc McStuffins and Henry Hugglemonster – has studio locations in Dublin and Toronto.

Other productions include Daniel Tiger’s Neighborhood, Bing, Peg + Cat, Peter Rabbit, Wild Kratts, Olivia, Noddy in Toyland, The Magic School Bus: Rides Again, and Octonauts.

The business last year paid out dividends of €1.57m. Directors’ pay increased by 42pc from €531,739 to €756,174.

Shareholder funds at the end of August last year totalled €57.3m which included accumulated profits of €17.69m.