After two years of losses Long Botham Boats Co. Ltd., the company that operates Henry VIII Pub & Restaurant, has rebounded to make a profit of $69,882 for the year ended June 30.

In the previous financial year ended June 30, 1997 the company registered a loss of $110,869, similar to the 1996 year.

President Andrew Allan attributed the rebound to a more healthy tourism industry and to cost cutting measures. Sales increased by $216,917 during the financial year to $4.05 million.

Mr. Allan said the increase in sales and profits happened in the last three months of the financial year. He said the trend has continued into July, August and September.

The company benefited from increased occupancy rates at the nearby Southampton Princess and Sonesta Beach hotels, he said.

The company expects profits of about $200,000 in the first quarter of the current financial year with sales $150,000 above that of the previous year.

He forecast that if the trend in increased tourism continued the company will be in a cash surplus position at the end of the financial year 2000.

During the financial year ended June 30 the company's bank debt increased by $356,649 to $1.57 million. The company renegotiated the loan with the Bank of N.T. Butterfield and Son Ltd. in November 1997 to extend the term of the loan to November 30, 2012. The secured amount was increased to $1.65 million.

Under the terms of the arrangement Long Botham will pay monthly installments of $16,982.

The company's unsecured advance to Mr. Allan increased by about $8,000 during the financial year to $244,316. In 1991 the company provided a guarantee of $750,000 to the bank as security of a loan taken by Mr. Allen. The guarantee is secured by a second mortgage of $750,000 on the company's land and buildings.

At June 30 Mr. Allan's liability to the bank was about $133,400.

ANDREW ALLAN -- Healthy tourism industry and cost-cutting measures boosted profits.

RESTAURANT EAT