Cost reductions in 2002-03 kept the Land Registry Trading Fund in good balance despite a further significant downturn in revenue.

The fund's profit for the year ending March 31, was $75.4 million, down 17.3% on the previous year.

Land Registrar Kim Salkeld said returns to public funds and investment to improve services for the future have been sustained.

Turnover fell by $37.7 million (9.3%) to $368 million due to lower business volumes for all services.

Costs were reduced by $25.9 million (8.3%) to $285.8 million, with $16.4 million of the cut achieved through reduced staff costs, reflecting streamlining of the department. Reduced depreciation charges accounted for $6.8 million.

The net profit represented an annual rate of return on average net fixed assets of 20.6%. The fund is required to provide a return on average net fixed assets of at least 10%. Over the year, the value of net fixed assets increased 11.2%.

The fund will pay notional profits tax of $13.6 million, down from $15.2 million in 2001-02. The dividend to the Capital Investment Fund will be increased from $27.57 million in 2001-02 to $37.7 million for the last year.

In the coming year, the department's staffing costs will fall as more staff choose to apply for the voluntary retirement programme.

The department will also benefit in the medium term from reduced IT infrastructure costs and increased efficiencies arising from its investments in colour imaging and the Integrated Registration Information System.

The system will contribute nearly $17 million a year in savings after old IT systems are retired.

Mr Salkeld said: "We are investing over $150 million in the IRIS system to improve services to customers."