Kentucky Fried Chicken Bermuda Ltd. reported a 66 percent jump in half year net income of $267,962 compared with $160,989 in the six months ended July 31, 2004.

The fast food restaurant however estimated that it suffered $85,000 in losses when the Belco blackout forced a four-day closure in July.

In its half year earnings statement yesterday, KFC said sales during the first half of 2005 were $300,640 higher than in the same period of 2004.

Modest price increases on certain food items and control over the cost of the menu items were behind a $205,582 increase gross profit over the same period of 2004, the company's statement said. At the same time, payroll costs jumped $88,675 over the same period of 2004 while advertising expenses also increased over the prior year period by $18,450.

The blackout and resulting closure of the Queen Street restaurant between July 14 and July 17 cost $14,924 in staff wages paid for the days which the store was closed and $5,784 in spoiled stock. KFC's loss of estimated profits on sales during the blackout was approximately $64,000. It reopened for business on July 18 with all electrical equipment functioning properly although air conditioner relay switches had to be replaced due to damage from the power outage.

KFC repurchased 4,000 of its own shares at $5 per share during the 2005 period. It intends to continue to repurchase shares periodically to reduce the shares outstanding to a more acceptable level.

As of July 31, 2005 cash resources amounted to $1,499,449 compared with $1,266,521 at January 31, 2005. Total liabilities amounted to $298,522 compared with liabilities of $292,098 at January 31 2005. Shareholders' equity at the end of July stood $2,265,830 or $3.83 per share compared with $2,136,648 or $3.58 per share at January 31 this year.

"We look forward to the second half of the 2006 fiscal year with optimism and hope that the steps we are taking to improve our facilities will continue to generate increased sales and profits in the future," said chairman Donald P. Lines.