of Bermuda Aviation Services down 14 percent from last year.

While total sales were up 19 percent to $17.2 million, expenses rose 23 percent to $15.8 million -- leaving a net income of only $1.3 million, down from last year's record of $1.5 million. BAS chairman W. Neville Conyers said that despite the company's lower earnings, he felt that it had performed very well.

"Attaining good results when business is good is quite easy,'' he said.

"But to succeed during difficult times is the true test of a company's underlying strength and fiscal 2000 was just such a year for BAS.'' Mr. Conyers said air arrivals, at their lowest level ever, put severe pressure on bar and restaurant terminal operations. The company also incurred a $120,000 bill due to redundancies caused by dropping business, while upgrading of facilities and rehabilitation of equipment weighed heavily on the performance of bakery operations.

Nonetheless, the company's subsidiary, Aircraft Services Bermuda Ltd., performed better than any other year on record.

"We are very confident of our success in the coming year as we do have a sound strategy for growth and a strong management team to execute our vision,'' said Mr. Conyers, adding that diversification of the company was progressing as planned.

During the fiscal year, BAS acquired Memory Lane Deli, New Deli Bakery and a majority holding in D.E. Mortimer Ltd., a small import agency.

Shares in BAS previously traded at $6 on the Bermuda Stock Exchange. This year's dividend will total $1.22, down 20 cents from last year.