KFC (Bermuda) Ltd.'s performance improved dramatically in the second half of its financial year, as sales jumped by $117,430, the company announced yesterday.

The second half performance offset a poor performance in the first six months of the year, according to chairman Donald Lines, but was not enough to prevent profits for the twelve months ending January 31, 2003 from slumping.

The fast food business, which has been undergoing a lengthy restructuring, recorded net income of $160,174, a decline of 44 percent.

"Sales in the year ended January 31, 2003 were lower than those for year ended January 31, 2002 by only $5,889," Mr. Lines said. "Sales for the first half of the year decreased by $123,319 compared to those in the same period in the previous year.

"Due to the hard work and diligence of the new general manager, Frank Suess, coupled with small price increases on certain food items, sales for the second half of the year increased by $117,430 compared to same period in the previous year."

But he said operating expenses for the year rose by $103,999 due to increases in repairs, maintenance and wage costs.

The company paid out total dividends for the year of 20 cents per share and said it planned to continue to buy back outstanding shares.