Profits at Devonshire Industries fell marginally by 2.5 percent due to lower gross margins, according to the company, but the company is guardedly optimistic for sales for the rest of this year.

Sales for the year ending March 31, 2001 were up marginally - by $10,500 or 0.4 percent - over the year before for the owners of Bermuda Paint Ltd.

Devonshire Industries vice president, David Gutteridge said: "Sales results for the initial quarter of this year, through June 30, 2001, are most encouraging and we are guardedly optimistic for improved results at year end."

Net income for the year, compared to the year ending March 31, 2000, excluding the prior year's write off for the discontinued operations of $100,000, was down by $10,000.

He added: "The decline in net income resulted from lower gross margins this year, which were offset to a large extent by lower administrative and selling expenses incurred, year over year. On a direct comparison, including the prior year write off, reported profit for the year was up by $90,000, or 30.5 percent."

Cash flow for the year was down by $133,000, or 24.6 percent, due mainly, the company said, to higher receivables from increased sales and higher inventories at year end this year.

Mr. Gutteridge said: "Above average rainfall, for three quarters of the year, had an impact on sales during that period, however, stronger sales volumes in the last quarter enabled us to offset the earlier deficit."

The company said that it was pleased to advise that the work permit for Bruce Quayle, its Technical/Production Manager, was renewed in April.

Mr Gutteridge said: "With his experience and knowledge, Bruce is able to assist our customers in many areas. On a regular basis, he is available to solve problems, to make product recommendations and to assist in drawing up painting specifications, which in the long term leads to significant savings for our valued customers."

The company said the results achieved would not have been possible without the hard work and dedication by their staff and thanked them for all their efforts.

Mr Gutteridge said: "In addition, we express our sincere thanks to our loyal customers for their continued support of locally manufactured products."