company reported yesterday, after its bottom line was affected by the cost of upgrading essential equipment.

The company, which reported its annual earnings for the period ending December 31, 2000 to the Bermuda Stock Exchange, said net income fell from $726,692 in 1999 to $457,965 in 2000.

It also reported earnings per share decreased from $0.64 in 1999 to $0.40 in 2000.

The company reported this decrease was due to an exceptional charge of $257,420 in connection with the company's refurbishment of its North Shore, Devonshire Reverse Osmosis Plant to comply with a Special Development Order.

Total assets for the period declined to $10,023,505 from $10,781,854 in 1999.

Dividends paid remained constant at $136,520 while shareholders' equity grew to $8,111,207 from $7,789,762 in 1999.

Shares of Watlington Waterworks, which has a market capitalisation of $3.4 million, last traded on the BSX on April 27, 2000 when the price of the stock rose 50 percent or $1 to close at $3.

The company's stock has a 52 week high of $4 and low of $2.