Kentucky Fried Chicken (Bermuda) Ltd. boosted its profits by 10.1 percent for the six months ended July 31, 2009, according to chairman Donald Lines' latest shareholders report.

KFC's net income rose by almost $15,000 to $156,893 compared with adjusted net income of $142,469 in the six months ended 31st July 2008, while sales increased by 6.3 percent or $157,855 over the same period. Gross profit also climbed by $143,860, or 7.7 percent, over the same period in 2008.

Meanwhile the company announced its intention to delist from the Bermuda Stock Exchange, having initially said in May that it was considering the move due to the increasing costs associated with being a publicly-listed company. KFC chairman Mr. Lines said in the report that the company believed it was in the best interests of its shareholders to delist from the BSX, but added that insufficient shareholders were represented at its Annual General Meeting in May to support the shareholders' resolution in favour of such a move.

"The board continues to believe that a delisting of the company at the earliest opportunity is in shareholders' best interests in order to eliminate unnecessary administrative costs which result from a stock exchange listing of a thinly-traded stock," he wrote.

He said a challenging economic climate had made 2009 a difficult year for the company to grow and it was anticipated that further challenges lay ahead in the next year as its customers felt the full effects which the global recession has had on Bermuda.

However, he added that with focused staff and a dedicated management team, KFC would continue to closely control costs while investing in future growth opportunities for the business in order to provide positive returns to its shareholders.

Operating expenses increased by $40,831, or 7.5 percent, from the same period in the previous year and were inclusive of advertising and promotion costs - a vital expenditure in a difficult economic environment.

Elsewhere, payroll costs rose by $63,896, or 7.8 percent, over the same period in the prior year, driven primarily by wage increases agreed with unionised employees in the multi-year agreement with the Bermuda Industrial Union that was finalised in May.

No dividends were paid in the first half of the year, but a subsequent payment of 10 cents per share was paid on September 1 to shareholders of record as at August 17. The directors have declared a further dividend of 10 cents per share to be paid on December 1 to shareholders of record on November 16.