$361,282 to June 30, when compared to $974,969 for the same period in 1997.

But the 1997 figures included the recovery of nearly three quarters of a million dollars in fraud costs.

The bakery division's profit rose substantially this year from $30,852 in the first half of 1997 to $103,893 in the corresponding period this year.

Sales in that division rose from more than $2.5 million to more than $2.6 million, as the company marginally trimmed the cost of sales to some $888,000.

The division recorded an operating profit of $42,412 during the 1988 period, compared to an operating loss in the first six months of 1997 of $20,686.

The company derived improved net income from its rental division, through improved rental income of some $63,000 from rents at its Belvedere Building and a more than 20 percent reduction in maintenance supplies and wages, which led to a marginal decline in total expenses.

Total assets of the Bermuda Bakery Ltd. rose from nearly $4.85 million at June 30, 1997 to nearly $5.2 million at June 30, 1998.

Dividends paid rose from $122,211 to $125,505 and shareholders' equity grew from $4,556,396 to $4,994,800.