Devonshire Industries Ltd.'s profits dropped by 10.3 percent or $45,656 during the year ended March 31, 2010, due to the recession, a decline in the construction industry and reduced consumer spending.

The company, which owns Bermuda Paint, saw its net income slide to $399,230 from $444,886 over that period.

In a letter to shareholders, Devonshire Industries' general manager, Richard Moulder, writing on behalf of company chairman, Barry Hanson, said: "This year has been another very challenging year for the company - the global recession, the decline in the construction industry and the reduced spending by consumers left sales flat.

"Further during the last three months of our fiscal year, we had two and a half months of rain and unsettled weather. These factors resulted in a drop in net income by $45,656 or 10.3 percent.

"The company still has strong cash flow and the first quarter of the new fiscal year has been surprisingly strong, however we still are predicting a difficult year ahead.

"However the year also has promise with the introduction of the new branding of our manufactured products, an updated website and the introduction of our own colour system."