equipment and putting administrative staff in a single office. Ahmed ElAmin looks at the company's finances.

Paint-manufacturer Devonshire Industries Ltd. suffered a 4.6 percent decline in profit to $515,184 or $1.18 a share for the financial year ended March 31.

However, company President Miles Outerbridge remained upbeat about the performance. As a publicly traded company on the Bermuda Stock Exchange, Devonshire Industries operates as Bermuda Paint Co. Ltd.

"Despite above average rainfall, which impacted on our business, we are pleased to report another successful trading year,'' he stated in a report to shareholders. "Sales increased marginally over the prior year. Our gross margin declined slightly due to the rising costs of raw materials and the decision to hold selling prices at March 1995 levels. The higher cost of raw materials was, however offset by savings in operating expenses.'' For the financial year the company had sales of about $3.02 million, about the same as the previous year, and expenses of about $1.7 million, about three percent higher than the 1997 year. The gross margin for the 1998 financial year was about 44 percent, compared to 45 percent the previous year.

Administrative and selling expenses were $903,098, about four percent below the previous year. "Other income'' contributed another $101,807 to the company's net income.

Mr. Outerbridge said the company will invest in new equipment and in the consolidation of administrative staff in a single office for efficiency.

"We have recently invested in new computer equipment and software to make us year 2000 compliant,'' he stated.

Cooper & Lines, the company's auditors, noted Devonshire Industries was not following generally accepted accounting principles by restating the value of land and buildings at a 1992 appraisal.

"If the land and buildings had not been restated at the 1992 appraised value, depreciation and realisation of the excess of appraised value of fixed assets over depreciated cost would be decreased by $20,000, net income would be increased by $20,000, and fixed assets and the excess of appraised value of fixed assets over depreciated cost would be decreased by $465,000,'' the auditors stated.

The company's land was appraised at $225,000 in 1992, carried at the same amount in the current financial report. The buildings were appraised at $802,491 and were depreciated to $614,526. The company noted the appraisal was done by a director of the company through Woodbourne Associates Ltd.

In the year ended March 31, the company had assets of $3.45 million and liabilities of $176,914. Fixed assets were listed as $1.36 million.

The company's stock last traded at $13.75 on April 16. As at March 31 company directors and officers held about 10 percent of the company's issue shares.