Hardware retailer Masters Ltd. made a profit of $702,710 for the financial year ended January 31, 1998. The profit of $476,130 in the story yesterday (WEDNESDAY) was for the financial year ended January 31, 1997 and not 1998.

A decision to upgrade and expand its hardware and appliance store continues to pay off for Masters Ltd.

The company reported half year profits of $376,909 to July 31, compared to $53,317 earned over the same period last year.

Masters renovated its retail operation on Dundonald Street West in the first half of last year at a cost of about $3 million. The amount included money spent on doubling the store's inventory.

The current reported half year profits reflect a full six month period of operating the renovated store. During the same period last year, the renovated store was only in full operation for about six weeks.

Net sales in the six month period to July 31, 1998 were $5.35 million, a 28 percent increase over the same period last year. Gross margin on sales increased 35 percent to $1.98 million. Expenses increased 15 percent to $2.14 million.

"The directors are cautiously optimistic that the economy will remain strong enough for the remainder of this financial year and that the company should achieve second half profits equal to those achieved in the previous year,'' the company stated in a press release. "This forecast is based on external factors remaining very much the same as last year.'' Masters made a profit of $476,130 in the fiscal year ended January 31, 1998, or about 40 cents a share.