fiscal 1993 profit of $331,414 -- down 30.8 percent ($147,261) on the previous year.

The company's sales for the 12 months to March 31, 1993, dropped by 5.9 percent ($153,811) to $2.469 million.

The company's general manager, Mr. John Carey, put the drop off in sales down to the constriction of the local economy.

He added: "Early results for the first quarter this year are most encouraging. However, one quarter does not necessarily provide an indicator for the year.

"Although last year's profit level was below that of 1991/1992, it is on a par with 1990/91 and 1989/90.'' In a letter to shareholders, Devonshire Industries' president, Mr. Geoffrey Bird, said that the firm's profit margin had been squeezed by a freezing of the prices of its main selling lines, which it had done because Government asked firms to hold down their costs.

"There is, however, a limit for this process to continue and, in spite of efforts to hold down material and labour costs, some small increases, some small increases in our retail and wholesale prices will have to be made shortly to offset increased costs and increases insurance and ocean freight rates.'' Cost of sales fell by 4.1 percent ($57,903) to $1.353 million, leaving the company with a gross profit margin of 45.2 percent per sale, compared with 46.2 percent for 1992.

Administrative and selling expenses increased by 4.7 percent ($38,552) to $851,541. Other income was up by 16.1 percent ($12,801) to $66,680.

Retained earnings at the end of the year came to $1.731 million, up by 3.1 percent ($52,018) on 1992.

Net income per share for 1993 was 76 cents, compared with $1.10 the year before.

The company paid out dividends of $305,900, up by 16.6 percent ($43,578) on 1992.

Assets increased in value by 1.4 percent ($40,997) to $2.938 million, while liabilities jumped by 12.7 percent ($15,483) to $137,735.

Total capital and surplus remained the same at $275,289.

During the year, the company's inventory level went up by 28.3 percent ($169,737) to $770,104.

Mr. Carey said the company had built up its inventory in anticipation of further industrial action at Bermuda's docks.

He said: "This increase in inventory levels can be attributed to the expiration of the local stevedoring contract this year.

"We built inventory levels to cover us in the event of industrial action but, fortunately, the contract was renewed without industrial action. However, this has had the unfortunate effect of tying up capital unproductively.'' 1993 RESULTS Profit $331,414 Sales $2.469 M Other Income $66,680 Total costs and expenses $2.220 M Assets $2.938 M Liabilities $137,735 Capital and surplus $275,289.