disclosed a more than 31 percent drop in profit for the year to March 31, when compared with the previous fiscal year.

The report, due to the Bermuda Stock Exchange (BSX) originally at the end of September, has now been delivered at the expiry of a 45-day grace period.

The BSX normally requires the annual accounts of listed companies within six months of the end of the fiscal year. Staples Ltd. would have been required to have had their audited accounts available for inspection by the end of September. The company requested an extension earlier this year and the grace period expired Mid-November.

The recently released annual report put net earnings at $434,636, down from $630,424 last year even though the company was then faced with reorganisation costs of $111,864. Earnings before reorganisation costs are down nearly 42 percent even though the first full year of subsidiary, Atlantic Medical International Ltd. (AMI), brought a $2-million increase in sales to $2,179,000.

Staples reports drop in profits AMI is a distributor of medical and surgical products and supplies and continues to strengthen its business relationship with the Island's sole medical hospital.

The dominant operating subsidiary, Staples Ltd., recorded a net decrease in sales and rentals of $324,000 for the year to $12,821,000.

Staples Ltd. is a distributor of office equipment and office supplies. Assets of the parent company grew during the year by about three quarters of a million dollars to more than $12.6 million.

The parent, Staples Holdings, is an investment holding company with the two wholly owned subsidiaries.

For Staples Holdings, the gross profit as a percentage of sales and rentals dropped from 47.17 percent to 45.03 percent, as sales and rentals rose from almost $13.3 million to more than $15 million and costs of sales rose from nearly $6.3 million to nearly $6.8 million.

Expenses rose some $800,000, most of which were attributed to general and administrative selling expenses.

Basic and fully diluted earnings per common share of three cents last year turned into a loss of 18 cents per share this year.

The company paid out dividends totaling $588,316 for the year, down from $667,506 for the year before. The company report points to a brighter future ahead for the company, citing Bermuda's economic expansion.

The report states: "The 1997 construction surge continues in 1998 and building permits remain up after years of a sluggish construction market.

"The new construction is for office buildings and mixed-used complexes up to 100,000 square feet. Completion dates are throughout 1998 and extend to 1999 and 2000.

"These projects result from a growing need for office space, not a replacement of existing space. Such commercial growth brings business expansion and opportunities for all business lines at Staples.'' And with regard to its medical supplies division, it states; "The healthcare market in Bermuda is buoyant. The recent expansion of King Edward VII Memorial Hospital has improved the quality of medical care in Bermuda.

"Disposable supplies reduce the threat of infection from transmittable diseases. Advanced new products assist medical practitioners to deliver better healthcare.

"AMI is positioned strategically to support the present and future medical needs of the Island.''