Bermuda Bakery Limited yesterday reported a 48 percent decline in half-year net income to $485,154 compared with $929,362 earned in the same period of 2004.

Earnings for the six month period ended June 30 was $1.68 per share compared to $3.24 per share in the first six months of 2004.

The 2004 net income reflected the net result of redundancy pay, disposal of assets and inventories, a one-time $1.1 million gain on the sale of the Bank of Bermuda shares and $225,282 special dividend received after the purchase of Bank of Bermuda by HSBC, the company said in its earnings release yesterday.

Operating income for 2005 was $413,703 compared to an operating loss of $114,743 in year 2004.

David A.J. White, chairman of the board, said: ?The Belvedere Building and investments continue to perform well as a result of the significant improvement in the control of costs and the capital investments made to improve energy efficiency over the past two years.?

Total revenue declined from $2.4 million in the first half of 2004 to $1.06 million in the same period of 2005 reflecting the closure of the Bakery Division in June 2004.

Total assets increased by 3.6 percent or $210,602 and shareholder?s equity increased by 5.2 percent or $296,000 during the first six months of the year compared to the same period in year 2004.

Mr. White said: ?Revenue and profits are expected to increase during the second half of 2005 due to the short-term rental of the rest of the Bakery property and increased parking revenue. The company is continuing to evaluate its options for the future utilisation of the Pitts Bay Road property, which is the largest undeveloped commercial property west of Hamilton.?