Building and hardware supplier SAL Ltd.?s profits jumped by 42.5 percent for the year ended February 2004 as Bermuda?s construction industry boomed ? and it is predicting similar growth for the upcoming year.

SAL, with offices in Devonshire, Bailey?s Bay and Southampton and a quarry in Warwick, said that its profits had reached $2.71 million, up $0.81 million on year ago figures.

And with improved profits the company said it will buy and install a new concrete block factory, as well as improve its stores and update its computers and telephones.

?It was a very successful year,? said Bill Morrison, chief executive officer of SAL. ?It was the most successful year to date as an operating company, thanks to a very, very good staff and to our customers.?

Mr. Morrison said that the last year was the busiest in the industry that he had seen in his 25 years in Bermuda.

?And we are expecting the same improved growth, revenue and profitability this year,? he said.

?We will match the growth this year and it is our aim to improve upon it.?

Mr. Morrison said that while Fabian had been a factor in the huge improvement in earnings, it was the construction boom that was powering the profits.

SAL yesterday released its year-end earnings, and SAL president John Berg said he was pleased to report that the company?s successful trend seen in the first six months of the fiscal year continued in the second half of the year.

Total sales revenue for 2004 rose 10.4 percent to $22.32 million, up by $2.10 million on the $20.22 million reached in fiscal 2003.

Earnings per share rose from $7.13 to $10.15.

?In that all of the various departments of the company contributed to achieving this very pleasing result, our position looking forward is seen as strong,? said Mr. Berg in a letter to shareholders. ?With the construction industry continuing to exhibit even higher growth for the coming year, I am confident that the future performance will also be one of solid growth.?

He said that after consideration of the results and having taken into account the favourable cash position at year?s end of $3.6 million the board of directors declared a dividend of $7.50 per common share, leaving a total dividend for fiscal 2004 of $14 per common share, when the first half dividend of $6.50 is included.

Mr. Berg said that as in previous years a significant capital allocation had been set aside to allow the purchase of further plant and equipment to supplement and improve the company?s current operational position.

?Major amid this will be the provision carried forward from last year to purchase and install a new concrete block factory,? he said.

?Further enhancements in the stores and yards of the retail division are also included, together with improved IT and telecommunication systems.?

He said that coupled with the above-mentioned improvements, the directors were aware of the need to continue to add new product lines and to ensure that SAL strived to offer a better quality product in terms of both goods and service to customers.

?To do so, the forward strategy includes outsourcing expertise when and where required, increasing the educational opportunities for our employees, and formulation of an organisational structure that will fit with our future plans,? said Mr. Berg.