Retail and real estate company Masters Ltd. said net income rose 5.8 percent to $1.92 million for the 2003 financial year.

And the company?s operating earnings rose 26 percent or almost $400,000 for the year.

A statement from the company said the group?s 2003 net income included a net gain on the sale of investments of $291,587 while there were no such gains this year.

?Therefore, earnings on the continuing core business of the company amounted to $1,917,481 ($1.70 per share) for this reporting year-end versus $1,521,305 ($1.35 per share) a year ago,? the company said.

Assets at January 31, 2004 were $19,091,526 compared with $17,329,784 a year earlier.

Liabilities were $1,110,137 compared with $808,509 a year ago.

Shareholders? equity has increased from $16,219,340 ($14.40 per share) to $17,798,898 ($15.80 per share).

But the company said its real value is likely to be much higher because its real estate is recorded at written-down value based on historical cost and its investment in an affiliated company that owns Clarendon House is based on fixed assets valued at written-down historical costs.

?The Board of Directors of Masters Limited have not made any estimates of the current realisable value of the Company?s real estate holdings,? the company said.

Masters also expects to complete a new $2.5 million warehouse on its Bull?s Head site this year.

Masters also announced that long-time director James A. Pearman tendered his resignation as a director at a meeting of the board of directors on Friday.