operated for 35 years, is to cease trading from June 1 following the loss of its contract with King Edward VII Memorial Hospital.

"The loss of this contract unfortunately makes it financially impossible for us to continue operations in Bermuda,'' said Mr. Clark Fraser, managing director of the Island Gases group of companies.

"The hospital contract, which we'd held for about ten years, was the reason to be here. We're going to take all our capital assets in Bermuda and redistribute them within the group.'' Island Gases, which will continue to be registered in Bermuda but has its head office in Florida, has a further six subsidiaries in the Caribbean and Bermuda. Two jobs will be lost locally.

Even though the Bermuda subsidiary is owned by a US company, it was allowed to do business locally on an annual renewable licence because it was providing an essential service.

The Island Gases group was formed in Bermuda in the late 1950s by Commander Gordon Gutteridge.

The group lost its KEMH contract to Swan Brothers when it came up for renewal.