Masters Limited yesterday credited an 11 percent improvement in sales from its retail division for a jump in net income for the first six months of the year.

The company?s net for the period ending July 31 was $1,008,409 compared to $896,969 for the same period last year, a 12.4 percent jump.

The increase was also offset by a small reduction in gross margin.

This was despite losing three days of sales during July?s power failure. Sales improved to $5,865,210 compared to $5,290,771 in the prior year.

?We saw especially good results from the appliances, housewares, electrical, and bedding departments,? president and CEO Susan Wilson said.

Gross margin on sales was $2,554,177 compared to $2,332,745 in 2004, an increase of $221,432 or 9.5 percent.

?Sales showed positive growth throughout the period with the second quarter being especially strong.

?Improvements can be attributed to improved material handling as a result of the new warehouse construction and focused buying on areas where we have seen opportunities develop in the local market.

?Results to date have continued this trend, leading us to be cautiously optimistic for the year, though as we always warn shareholders we still have ahead the important Christmas selling season where the company usually earns the most significant portion of its profits.?

Expenses totalled $2,218,792 compared to $2,119,490 for the same period last year, a 4.7 percent increase. The largest increase came from payroll, where direct costs rose 7.6 percent and benefits rose 8.8 percent.

There was also an increase in depreciation costs which related to the new warehouse and related equipment.