operator Stevedoring Services led to a near 27 percent decline in annual profits this year.

The Company, which handles all cargo on Hamilton Docks, saw net income fall $189,109 to $514,837.

The president's report details that revenue rose $427,127 or seven percent to $6,979,199 as expenses rose $926,582 or 14 percent to $6,774,708. Investment income totalled $204,491, compared to $135,305 a year earlier.

President Neville Conyers conceded the earnings were only "marginally satisfactory and reflective of the increased cost of doing business at this time''.

He pointed out that the downturn in cargo over the past year was a matter of concern, because it was a trend evident in other local industries.

And he was not optimistic about the company results for the current fiscal year, should that current trend continue. He said the 1997 results will also be affected as no comparative downturn in expenses is being noted.

Mr. Conyers lamented: "A moderate revenue increase experienced during the year is far outstripped by increased expenses.

"Costs associated with health care, insurance, repairs and maintenance, and increased demands for overtime work continue to rise at levels well aboveinflation.'' Still, Mr. Conyers was able to express appreciation to all management and staff who worked diligently to achieve the profit position.

"The company continues to monitor its operations and a positive attitude shown by all members of staff has allowed us to improve service to all port users,'' he said.

"We are pleased at the advances being made in the quest to implement a computerised system for cargo monitoring, clearance and delivery in the port.

This is a project we have supported for many years as we feel the beneficial effects will be widespread.'' The company was responsible for 324,245 tons of cargo last year, down from 331,696 tons in the year to March 1995 even though they moved more containers -- 29,898 compared to 29,362 -- the year before.

Return on sales fell to 1994 levels (seven percent), after being more than ten percent the year before.

Total assets for the company improved to $6.2 million (1995: $5.9 million).

Total shareholders' equity was $4.75 million.

At a glance (All figures in '000s, except per-share amounts) 1996 1995 Net Income $514.8 $703.9 Sales $6,979 $6,552 Net income per share $0.41 N/A SHIPPING SHI