The Bermuda Bakery has recorded a 28 percent leap in profits for the first six months of this year due to cost savings in operating expenses despite a small decrease in total revenue.

Board chairman James A. Pearman said: "The unaudited, consolidated, financial results of the Bermuda Bakery Limited for the first six months of 2001 compared to last year, show a positive trend in net income for the company. The sales of bakery products remain flat and reflect the increased competition in the retail sector. At the same time, declining tourism numbers have had a corresponding impact on the food service industry."

He said cost containment and efficiency programmes have been set in place and the results are starting to be seen on the bottom line.

He added: "The real estate division performed well especially as a result of the significant improvement in the control of costs and operations. Total revenue of $3,02 million is 1.4 percent ($43,213) less than the first six months of the year 2000. Net income for the period increased $59,012 to $268,897 or an improvement of 28.1 percent, due to cost savings in operating expenses."

Operating expenses should decline due to cost savings programmes being implemented.

Earnings per share were up $0.20 or 27 percent and amounted to $0.94 per share for the first half of 2001 compared to $0.74 per share in 2000.

The company paid $0.22 per share dividend in the first quarter of the year, and the Board has similarly declared a dividend of $0.22 per share for the second quarter payable on those shares of record of August 8, 2001, and payable August 15, 2001.