Cost controls and modest price increases of menu items helped Kentucky Fried Chicken Bermuda to achieve gross profits that were up by $24,166 in the six months ended July 31, 2006, compared to the same period last year.

A statement yesterday from company chairman Donald Lines revealed that net income in that period was $208,102, compared with $267,962 in the six months up to the end of July 2005. And sales in the same period in 2006 were $3,117 lower than the corresponding period last year.

Payroll costs increased by $28,974 over the same period in the prior year. And operating expenses increased by $10,617 from the same period in the previous year, largely due to the net result of a $14,765 increase in electricity costs.

At July 31, 2006, cash resources amounted to $1,708,298 compared with $1,675,791 six months earlier. Total liabilities amounted to $314,671 compared with liabilities of $315,073 at January 31, 2006.

Shareholders’ equity at Julyt 31, 2006 amounted to $2,421,497, or $4.09 per share, compared with shareholders’ equity of $2,390,965, or $4.04 per share, at January 31, 2006.

“While it is still our intention to repurchase shares from time to time to reduce the shares outstanding to a more acceptable level, none were repurchased this year to date,” Mr. Lines’ statement said.

“On behalf of the board I would like to pay tribute to all our staff for their hard work. I would particularly like to thank Frank Seuss, general manager, Tracy Robinson, assistant general manager, and Jerome Talbot, operations manager, who have worked hard to improve sales and earnings. I would also like to express our appreciation to Graham Redford, marketing consultant, for his help and advice.

“We look forward to the second half of the 2006 fiscal year with optimism and hope that the steps we are taking to improve our facilities will continue to generate increased sales and profits in the future.”