Masters Limited on Wednesday announced net income of $768,339 for the six-month period ending July 31, 2003, a gain of $83,018, or 12.1 percent, over the same period last year.

The increase in earnings arose from increased activity in the company's retail division.

Sales to July 31, 2003 amounted to $5,281,920 as compared with $4,938,532 for the same period last year; an increase of $343,388 (6.95 percent). Gross margin on sales for the same period amounted to $2,270,667 in 2003 as compared with $2,058,226 in 2002; an increase of $212,441 (10.3 percent).

Expenses in the first half of the current financial period amounted to $2,106,656 compared with $1,949,152 over the same period in 2002. The biggest increase in expenses arose from staff expenses.

In addition to salary increases, the hardware retailer also had to bear the burden of increased pension costs, health insurance costs and the loss of payroll tax relief in the current year, as compared to payroll tax relief in 2002.

Going forward, Masters Limited also reported its bottom line remained unaffected by Hurricane Fabian, which hit the Island on September 5. The Dundonald Street hardware, appliance and dry-goods vendor reported minimal damage from the storm, and a slight upsurge in sales of storm-related supplies, coupled with a downturn in overall sales.

"Bearing in mind that the company is not in the building materials business, we are of the opinion that the sales activities in the company give a fair indicator of what is happening in the Bermuda marketplace," Masters reported in a press release.

"We are therefore cautious about the very important Christmas selling season wherein the company usually earns the most significant portion of its profits."