Profits at Devonshire Industries slipped by 1.3 percent to $167,029 for the six months ended September 31, 2000.

The company, which owns the Bermuda Paint Company, appears to have stopped the slide in demand for paint with the closuree of hotels and guest houses on the Island.

The company said yesterday that revenue fell by $16,000, or 1.1 percent, net income is down marginally by $2,000 or 1.3 percent and operating expenses were reduced by $13,000 or two percent.

And the company announced it was to start a share repurchasing scheme in a bid to boost flagging share prices.

For the six months revenue was at $1,366,715, as apposed to $1,382,478 for the same period last year.

Net income for the six-month period was $167,029, compared to $169,298 in 1999.

Earnings per share were $0.38, down from last year's figure of $0.39.

Dividends per share declared and paid for the period remained the same, $0.50.

Company chairman Miles Outerbridge said: "Danny Fagundo, a long time director, resigned from the Board and we wish to thank Mr. Fagundo for his many years of service and for his contributions to the Board. John Pereira recently joined the Board, replacing Mr. Fagundo.'' Devonshire Industries "Your directors are concerned that the market price of our shares has fallen by almost 50 percent, from their high a few years ago.

"Your company has been able to maintain a consistent dividend, despite only slightly reduced volume, due mainly to hotel closures.

"The board has authorised that the Finance Committee may repurchase some of our shares, as deemed appropriate, in the future. A repurchase option may provide future investment opportunities on behalf of the shareholders, depending on the circumstances prevailing at the time.'' In last year's year-end report, Devonshire Industries blamed a 13.5 percent fall in profits on the closure of hotels and guest cottages for the fall in demand for paint on the Island.

A statement from the company said: "With the closure of major hotels and guest cottages, sales have been impacted with the loss of sales to those accounts and delayed scheduled maintenance programmes at a number of accounts has also tended to reduce demand for our products during the year.'' The year before the company saw profits fall by 11.2 percent, with net income dropping from $515,184 to $457,606.

Devonshire Industries has a market capitalisation of $2.8 million, and last traded at $6.50 on November 8, 2000. The stock's 52 week high is $8.00 and its low $6.50.