provider Bermuda Aviation Services Ltd. (BAS) has declared record results of $992,278 for the year to March 31 -- a 71 percent increase over the year before.

The company, which paid dividends of 40 cents per share (1997: 32 cents) is positioning itself to do even better in the future with initiatives that are expected to grow its revenue base.

Chairman Neville Conyers said that the past year has been one of successful growth and change. But he held out no optimism for tourism in the near future.

Mr. Conyers said, "We have calculated that there will be no appreciable difference in the number of seats into the Island. From our prime market of North America there will be considerably less. This along with our shrinking inventory of beds in Bermuda makes the task of rebuilding our tourism industry a formidable one.'' BAS was able to increase sales 7.5 percent to $13 million, despite the decline in air arrivals. During the same period the firm increased operating income by 87 percent to a record $1,168,000. Expenses rose a marginal 3.2 percent to $11.9 million.

Mr. Conyers said contributions to the improved bottom line came from the first full year of results from subsidiary Crow Lane Bakery. BAS will also open a retail outlet on Church Street in the Washington Mall to support bakery operations.

And the new airport bar facilities, which were under construction at the end of last year, were opened in December. Further, the company's new jet facility came on line in February.

Mr. Conyers stated, "The positive performance from these divisions along with admirable showings from all existing operations helped raise the earnings per share 74 percent to 94 cents. Dividends per share were also 25 percent higher during the period.

"In our continuing effort to strengthen the company, BAS acquired the small but successful business of Mid Atlantic Aviation during this fiscal year. Mid Atlantic has operated at the Bermuda airport since 1992, carrying out the business of passenger service and private jet handling.

"These services were also being provided by BAS, therefore no additional infrastructure or overhead was required to carry out the additional activities.'' Mr. Conyers described the two initiatives as small, but said they are very significant in the firm's effort to broaden operations and ensure consistent and sustained profitability.

He said, "Although our airport operations will always be our core business, it is our opinion that we should, with calculated determination, build or add complementary businesses for such eventualities as the inevitable downturns in this cyclical business.

"But of equal importance, it will position the company so it can capitalise on any positive swings that take place in tourism, aviation, or for that matter, Bermuda in general.

"It should be noted that although our airport operations showed improved profitability this last year, revenues in those divisions were three per cent lower.

"It is refreshing to note that the performance of BAS over the last two years has spurred renewed interest in the company. Our share price, which closed out 1997 at a price of $3.625, was trading at $5 at the end of this year, having traded as high as $5.25.

"And whilst we cannot predict future performance, our management team see the coming year as another year of opportunity for the company.'' The company had a significant outlay for capital expenditures, including money for upgrades to information systems. The final phase of that work includes software changes and an audit to ensure Year 2000 compliance.

Neville Conyers