modest increase in sales and a marginal increase in net income for the year to March 31.

President Miles Outerbridge reported to shareholders: "We have developed new niche markets during the past year and the results of our efforts, from technical and marketing aspects, are leading to positive results in the first quarter of the current financial year.

"There are, however, two factors which cause us concern, over the longer term: The continued downturn in the tourist numbers which, eventually, will impact on the economy at all levels.

The unsettled political situation, which impacts negatively on investor confidence.'' Mr. Outerbridge said that despite the effects on the economy caused by the Independence issue, the hurricanes and the decline in tourist arrivals, sales increased by 2.6 percent over the prior year, and net profit was up 1.4 percent.

The company declared a profit of $447,095 (1995: $440,952) on sales of $2,872,918 (1995: $2,826,386). The company also reported other income of $104,863 (1995: $102,317).

Cost of sales exceeded $1.5 million, while administrative and selling expenses of $985,824 were paid from the gross margin of more than $1.3 million.

Net income per share increased by a penny to $1.02 for 1996. Dividends were listed at $327,750 (1995: $437,000).