Fast food outlet KFC Ltd.'s annual net income soared 60 percent to $256,880 as the company recorded a $188,181 increase in sales, the company reported yesterday.

KFC chairman Donald Lines said the company plans to close the Queen Street restaurant for two weeks in late April and early May to completely refurbish the dining room at an anticipated cost of just under $310,000.

He warned the renovations would reduce earnings by as much as $50,000 in the current financial year.

He said gross profit for the year ended January 31 rose by $208,283 due to small price increases on certain food items and control over the cost of the menu items.

Operating expenses increased by $111,467 from the previous year, largely due to a $82,064 increase in salary and wage costs (the company's largest expense) in 2003/04 to $1,356,949.

Mr. Lines said franchise fees increased by $48,510 over the previous year due to an increase in the rate payable for franchise fees from five percent to six percent on higher sales.

Mr. Lines said the company paid a ten cent per share dividend on October 15 during the financial year and intends to repurchase shares to reduce the shares outstanding "to a more acceptable level".

"During the year, repairs and maintenance amounted to $102,229 compared to $156,252 in the previous year," he said. "The company had capital expenditures in the amount of $57,352 and has commitments to purchase an air conditioning unit to replace the existing unit in the office."