5.5 percent or $83,000 over the previous year, according to the company's annual report.

SAL had earnings per share of $5.59 for the year ended February 28, and a book value per share of $26.40. The closely-held company operates two bulders' supply retail outlets, manufactures ready-mix and concrete blocks and rents warehouse space.

This is the second year in a row the company registered profits, compared to losses in the financial years ending in 1995 and 1994. The rebound to profitability was attributable to the continuation of a growth in the construction industry.

Profits grew even though sales in fiscal 95/96 slipped by 5.6 percent to about $14.9 million from $15.8 million the previous year. Company president John Berg said higher gross margins, lower costs and net gains on the sale of land contributed to the increase in profit especially in the retail division. The addition of a new automated system to handle lumber and building material added efficiency to the company's operations and contributed to retail profits.

"The continuation of the stronger, if variable, construction market has resulted in another year in which the manufacturing performance was strong and this is again reflected in the contribution,'' he stated. "Future prospects for this division look excellent with the potential start up of several major contracts. We can, therefore look forward with confidence to the coming year, which will allow your company to continue the positive trend of the past two years.'' During the last fiscal year, the company had net operating income of about $2.1 million and general and administrative expenses of $861,000. It paid about $202,000 in interest on its long term debt during the year. SAL had bank loans totalling $1.7 million at the end of the year.

The company sold off six parcels of land during the year, earning $573,636 on its books from the sales. The remaning land has been appraised at about $5.9 million.

General manager Bill Morrison said management had decided to sell the land because the company had no future need for the lots, which it had quarried for stone and slate.

The company also paid $92,269 in royalties to Southpro Ltd. for the right to quarry aggregate from two properties. Mr. Berg is the owner of Southpro. The company has the contract with the Bermuda Government to dipose of waste from the Tynes Bay incinerator plant for five years from March 31, 1994.

By the end of the fiscal year, the company's directors and officers collectively held 234,983, or 88 percent of the 266,828 common shares issued.

They also held 79,854 or 62 percent of the 129,137 preference shares. The preference shares traded up 13 cents yesterday to $8 on volume of 1,000. The common shares last traded at $4 in October, 1996.

Under new Bermuda Stock Exchange rules, this is the first period in which locally listed companies are required to reveal the collective holdings of their officers and directors.

The rules require companies to have had 15 percent of their securities in the hands of the public by May 31. Main board issuers must have a minimum of 30 shareholders and small capitalisation stock issuers, such as SAL must have 20 shareholders.

Mr. Morrison said the company complies with the regulations, having more than 100 shareholders and more than 15 percent of its common and preference shares in the hands of the public.

SAL's directors are Raymond Constable, Mr. Morrison, Hope S. Berg, Michel Bouchard, Anthony Gaade, C.N.A. Butterfield, Jr., board secretary Nicholas B.

Dill, Jr., and Mark Smith, some of whom may not be shareholders.

Most of the officers and directors' shares are held through Southampton Holdings Ltd. which has an 80 percent interest in SAL, founded by Mr. Berg in 1972. The company went public in 1984. It employes 80 staff.

IN PROFIT -- John Berg