Building and hardware supplier SAL Limited posted net income of $1.23 million for the six months ended August 31 - an 18 percent jump over the same period last year - but management warned the company could see a slow down in sales during the second half of the fiscal year.

SAL president John Berg said yesterday, in an announcement made through the Bermuda Stock Exchange: "Once again, I am pleased to be able to report to you that your company's trading record over the first half of fiscal 2004 has proved to be very satisfactory.

"Sales at $10.94 million show a three percent improvement over the same period last year. While in a similar upward trend the net income realised of $1.23 million is an improvement of over eighteen percent on last year."

Sales for the six months stood at $10.94 million compared to $10.57 million for the same period last year.

The company's net income of $1.23 million compared to $1.04 million last year.

Mr. Berg was cautious in his predictions for the next six months, saying sales levels could be lower: "Our expectations for the second half of this fiscal year are slightly less positive. This follows a trend that has been experienced in past years where the second period undergoes a drop in trade. That said, I am confident that the final net income for the year will end up ahead of last year."

It is understood that the company may have seen healthy sales following Hurricane Fabian due to demand for roofing materials, including DuraSlate, an alternative to Bermuda slate imported by the company.

Calls were made to Mr. Berg and SAL CEO and general manager Bill Morrison to enquire on whether or not the post-storm sales could positively impact results, but those calls had not been returned by press time yesterday. SAL also announced a dividend to shareholders of $6.50 per common share, which the company said it was able to do after taking into consideration its "present favourable cash position of $3.7 million".