profit of $555,047 for the year ended March 1997, an eight percent increase compared to the previous financial year.

The profit translates into earnings per share of 45 cents. Revenues increased two percent to about $7.1 million. Expenses also increased, by 1.6 percent to about $6.6 million.

Chairman Neville Conyers stated in his report to shareholders that company directors were concerned about the decrease in cargo coming into Bermuda over the past two years. Tonnage has decreased by about three percent over the past two years.

"This established trend is worrisome and managing costs, especially non-productive costs, will be a challenge that must be successfully accomplished for the future success of the company,'' he stated. He noted that industrial relations were "marred'' when unionised staff walked out for three days in support of workers at two local drycleaning businesses.

He added: "Labour negotiations for a new two year contract were, unfortunately, not concluded internally but resulted in arbitration, a course of action mutually agreed to by both sides. We are pleased to report that this course of action did not result in any loss of production on the waterfront.'' The company has long term debts of $682,791 and a net book value of about $2.4 million. Stevedoring Services had a cash flow of $1.3 million for the fiscal year.

The company has 1,244,600 issued shares which last traded on the Bermuda Stock Exchange at $4.25 a share on June 23.

Neville Conyers BUSINESS BUC