Devonshire Industries, the parent company of Bermuda Paint, yesterday reported revenues of $1.48 million for the six months to September 31. This represents an increase of more than eight percent over the same period last year, when sales were $1.36 million.

While operating expenses saw a $15,000 or 2.5 percent increase over the previous period, the company's net income was shown to be up by $82,000, or 33 percent.

But, the company's general manager John Carey warned that a strict comparison with last year's figures "has the effect of distorting our performance".

Mr. Carey said 1999 and 2000 were tough years for the company, and while this year's figures are up, they are well below the company's 1997 performance.

For the same period in 1997, the company reported revenue of $1.6 million and net income of $323,452. This represents a nearly $75,000 - or 23 percent - drop in net revenue, over that period some years ago.

Devonshire Industries chairman Miles Outerbridge said of the current results, in a letter to shareholders: "Our subsidiary, Bermuda Paint, recorded mixed results across its main product lines during the six months under review, however, their locally manufactured paint sales recorded an increase of nine percent over the same period last year."

Mr. Outerbridge added: "We are most encouraged by the performance to date, however, with the US being in a recession, and the fact that there is usually a time lag before Bermuda encounters an economic downturn from the US economy, we feel that sales in the second six months will, in all probability lag behind last year's results."

Looking forward, Mr. Outerbridge said: "Optimistically, we will finish with results ahead of last year, based on our strong first six months."

In announcing the six month results, the company also delivered an interim dividend of 50 cents per share, for shareholders of record on November, 28, 2001.