Long Botham Boats, the holding company for Henry VIII Pub and Restaurant, yesterday reported a profit of nearly $700,000 for the year ending 30 June, 2001, but added that revenue has reportedly fallen off following the September 11 terrorist attacks.

The company, which also owns and operates Henry's Pantry and the Horseshoe Bay Beach concession, reported a net gain of $665,752 compared to $529,009 during the previous year.

Of that amount, Henry VIII posted a profit of $364,632 compared to $202,654 during the previous period.

Long Botham Boats president and chief executive officer Paul King said: "The board recognises the company enjoyed a reasonably successful year with the restaurant showing positive gains."

But Mr. King added: "Whilst earnings in the last year have improved, we cannot ignore the consequences of the diabolical acts of September 11. Subsequent to year-end, July and August posted excellent figures giving rise to the the hope that this would be a banner year. However, we must advise that our projections are off by as much as 40 percent subsequent to September 11 which has resulted in the board deferring any decision on declaration of dividends until spring of next year.

"The board is cognisant that dividends are paid on the previous year's earnings but the board remains concerned by the grim forecast for tourism recently enunciated by Government's economic advisor (Dr. Andrew Brimmer).

"Accordingly, prudence dictates the company maintain its cash reserves, especially over the winter months in the hope that there will be positive indicators in the spring."

The company said it expects to hold its annual general meeting during the first week of February, and will advise of a specific date.

In conclusion, Mr. King said the board wants to "express appreciation to all staff who in these uncertain times continue to put on a brave face and maintain positive service standards".

Mr. King cited Henry VIII manager John Ferris, Pantry manager Anthony Faries and Beach manager Louis Ooi as being behind the driving force behind the company's return to profitability.