six-month period ended July 31, its directors have reported.

"Net income for the six-month period amounted to $453,553 compared to $407,710 for the same six-month period a year ago,'' a statement outlining the company's half-year financial results said.

"This represents an increase of 11 percent which is attributable mainly to the improved performance of the retail division.'' Net sales increased four percent from $5,473,062 to $5,696,734 and gross margin on sales increased three percent from $2,054,862 to $2,122,506.

And expenses increased one percent from $2,224,941 to $2,247,742 due to increased personnel expenses.

The statement noted: "The directors are not optimistic that the second half of the financial year will produce results at least equivalent to the same period last year.

"There has been a significant fall off in growth in the third quarter of this financial period and there seems to be a tightening of discretionary expenditure.

"Like most retailers, the significant profit months for our company are November and December and transactions in these months will ultimately make or break the second half-year results.

"At the time of writing this report, these months remain a very large unknown factor in our financial projections.'' The directors have declared a dividend of ten cents per share to shareholders as of November 30. The dividend will be payable on December 15 and together with the dividend paid in April will total 30 cents per share for the current financial year.