31, as the company continues the recovery from the brink of bankruptcy in 1996.

The company reported a profit of $293,605 or 24 cents a share compared with $69,439 in the previous year -- after deduction of extraordinary expenses of $231,182.

The extraordinary expenses in the previous financial year were taken in connection with the closing of the Burnaby Street outlet in October 1997 and other steps taken to return KFC to profitability.

Sales for the year to January 31 were $3.08 million, compared with $2.97 million the previous year. Current assets at January 31, 1999, including cash in the bank of $146,550, amounted to $189,431.

In the previous financial year the company had current assets of $377,198 and cash of $334,090. Liabilities at January 31 were $179,655, compared with liabilities of $800,214 and a bank loan of $377,818 a year ago.

The board of directors reported that the bank loan has been fully repaid.

Shareholders equity at January 31 amounted to $1.38 million compared with $1.08 million a year ago.

KFC was in dire straits at the end of 1996, losing money at about $400,000 a year and had accumulated debts of about $1 million. The company was unable to meet payroll.

Lines Overseas Management Ltd. stepped in to advance the company $100,000 and underwrite a rights issue to raise about $965,000. The company closed its Burnaby Street outlet and renegotiated its lease for the remaining Queen Street location.

A new executive committee to the board of directors was formed with overall responsibility for day-to-day management of the company.

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