ORDNANCE Survey, the Southampton based mapping agency, has recorded an annual operating profit of £5.6m on a turnover of £116.3m.

It is the first time the agency has turned in a surplus after being made a self-financing trading fund more than five years ago.

OS, which employs 1,242 people at its headquarters in Romsey Road, Maybush, exceeded tough targets set by government.

The agency, which was founded in 1791, underpins tens of millions of pounds of economic activity in the UK.

Its geographical data has proved invaluable to the emergency services, estate agents, walkers, utility and mobile phone companies and public bodies.

More than 300 companies offer OS data to millions of customers, with commercial partnerships accounting for 15 per cent growth in trading revenue.

Vanessa Lawrence, who heads the OS on a £170,000 salary, said: "We will reinvest in further improvements to meet the growing demand for our data and for speeding its supply to users."

The agency's annual report and accounts were presented to Parliament yesterday.

Details also emerged in the report of staff cuts over the financial year - 355 people went under a voluntary redundancy scheme. It is understood that OS will be able to pay a dividend to its sole shareholder - the government - next year.

The report also listed how much key decision makers at OS earned in 2003-4.

They are directors Neil Ackroyd (£115,000), James Brayshaw (£120,000), Steve Erskine (£75,000), Jan Hutchinson (£105,000), Alastair Matthews (£80,000) and Duncan Shiell (£80,000).

Ed Parsons, chief technology officer, was paid £100,000.

The fees for non-executive directors were up to £15,000 for Judith Anthony, Sir Michael Bett and Piers White, while Lynn Mathieson (to last September) and Michael Sommers (from last September) were paid from £5,000.