Bermuda Bakery Limited has announced an increase in net profit for 2001, investments in technology to improve efficiency levels and further cost cuts going forward.

The company's chairman James Pearman said consolidated results reflected a 62.1 percent increase in net income over the previous year.

For the year ended December 31, 2001 the company recorded net income of $553,678.

Mr. Pearman said the increase could be attributed in large part to "meeting budgeted cost reductions and improved efficiency in all areas".

The company has diversified earnings with the bakery operation and rental income from its office property on Pitts Bay Road; the Belvedere building.

Going forward, Mr. Pearman said the company had reduced its staff levels and was carefully watching expenditure through the establishment of a finance committee. Mr. Pearman said: "One of the Bakery's strengths is the pride and dedication of its Bermudian workers as typified by the retirement of four long serving employees who represented over 177 years of service.

"Their departure has challenged management to re-structure its systems and with the support of all staff, balance the workload without additional hires.

"This reduction in workforce will result in substantial cost savings in the future," he said.

Mr. Pearman continued: "The establishment of the finance committee and its review and direction of the budget process has proven to be highly effective.

"This close working relationship between management and the board has resulted in a new direction for the bakery management team as well as the development of strategic initiatives that will guide Bermuda Bakery into the future."

Of the company's rental income, Mr. Pearman said: "Our Belvedere office continues at full occupancy with excellent long-term tenants who have invested substantially in improvements to their offices and make the Belvedere one of the prime office locations in the city."

Speaking of the Bakery operation, Mr. Pearman added: "The Bakery division was able to hold its share of the retail bread and snack products market despite a traumatic and weak local economy which saw bakery product sales remain relatively flat, year over year."

"It was the year for laying the foundation for restructuring the bakery operations to meet the challenges of the years ahead."

As an example of the company's restructuring and investment in technology, Mr. Pearman said: "The past year marks the first full year of operation of the hand-held computer sales route management and invoicing system.

"This modern technology has proven invaluable in instant and accurate customer invoicing, detailed data management as well as analysis of customer buying patterns with real-time capabilities."

Mr. Pearman concluded: "As we begin our 80th year of operation the challenge is to retain those strengths and characteristics which have sustained us over the years while changing to meet the needs of our clients and the community we serve.

"I wish to thank the Directors, management and staff for their dedication and support and congratulate all on the excellent results on behalf of our shareholders."