The head of the hardware store Masters Ltd. has said she is delighted at the company's year-end results which show a growth in profits, not including sale of investments, of 12.7 percent.

The company, which not only is a retail hardware store but also manages property, made $2,367,339 in 2001, which included $1,180,390 from a sale of stocks held in the local stock market. These proceeds were used to pay of debt held by the company.

Excluding the sale of the investments, the company made $1,186,949, up by over 12 percent from $1,053,597 or 91 cents a share made in the same period a year earlier.

Susan Wilson, president and chief executive officer at Masters Ltd said: "Given the uncertainty of the times we decided to get rid of our debt. This will mean we can weather any storm that comes."

She said the company had used the extra $1.2 million to payoff the company's mortgage. "Now we are totally debt free," she said.When asked what this would mean for Masters, she sad; "On a personal level it takes a great weight off my shoulders. And on the company level it vastly reduces the interest expense the company."

Ms Wilson said that if you removed the $1.18 million the company's profits were still up. She also pointed out that Masters had two core businesses retail and rental, both of which account for 50 percent of net profits. "Rental makes a substantial contribution to our results," she added.

But she said that the company had done very well in a difficult economic climate with all those in the business working hard to turn a profit.

"It is no secret that we did a lot of promotion in November and December - we had personal shopping nights and participated in Buy Bermuda," said Ms Wilson. "We really put our shoulder to the wheel, and given the economic conditions under which we were operating, I am very pleased with the results, as is the board.

"These results would be good in any kind of business, but in retail, they are really something."

She added that although the results had not seen a substantial increase, but been reasonably flat, this was a good result for the retail sector.

"9.11 has become a wonderful excuse, but before this date we had felt the tightening with our customers having less in their pockets to spend," she said. "We have certainly felt the effect of the downturn of the tourism industry. Many of our customers work in related areas, and we have noticed the difference."

The meeting of directors on Wednesday the directors declared a dividend of 15 cents per share to shareholders of record as of April 19, 2002, which will be paid on April 30, 20002. They also declared a payment of 15 cents a share to shareholders of record as of November 15 2002, and payable on November 30, 2002.

Total assets as of January 31, 2002 were $16.3 million compared to $16.4 million a year earlier. Liabilities were $841,262 compared with $2,816,527 as a result of the repayment of the mortgage on the company's real estate.

Shareholders' equity increased from $13.0 million or $11.28 per share to $15.9 million or $13,25 per share.