has seen its net income increase by 7.6 percent for the six months ending August 31, 2000.

This is despite turnover falling by 7.8 percent, according to the company's management.

The company reported net income of $1,206,871 or $4.33 per share, up from $1,121,207 ($4.01 per share) in 1999.

Sales for the period fell to $8.70 million from $9.44 million in 1999.

In his report to shareholders, Mr. John R. Berg, president of the company, said that although turnover was down by 7.8 percent an increase of 7.6 percent has been realised in the net income due to a gain on the sale of assets. He also reconfirmed that the company would redeem all outstanding preference shares at their par value of $10.00 each on November 6.

The company announced in August it would buy back all its preference shares in November at a cost of $1.3 million. SAL issued 8 percent cumulative preference shares in 1983 to raise capital, and said it always intended to buy the stocks back.

SAL, which has a market capitalisation of $3.2 million, saw its common shares last trade at $12 in November 1998. The preference stock last traded at $9.00 in January 1999.

The preference shares, which allow a preferential pay out in share dividends, have a yield of $8.89 and last paid a dividend of 80 cents.

The preference shares will be de-listed from the Bermuda Stock Exchange on completion of the buy-back.