Kentucky Fried Chicken (Bermuda) Ltd. is considering delisting from the Bermuda Stock Exchange because of the increasing costs associated with being a publicly listed company.

The revelation came in a letter to shareholders from chairman Donald Lines, as the company announced a 23 percent increase in net income for the year ended January 31, 2009.

Profits for the 12 months totalled $379,835, compared with $310,009 the prior year. Gross margin in the slipped to 74.7 percent from 75.1 percent in 2008 as increases in costs of goods sold outpaced price increases.

"Due to increasing auditing and compliance costs associated with publicly listed companies, the board of directors has resolved to explore de-listing of the company from the BSX during fiscal 2010," Mr. Lines wrote.

"This is in an effort to contain expected increases in audit fees due to compliance with IFRS accounting regulations for public companies and the fees for listing on the BSX where we have noted that during the past three years liquidity in the trading of shares has been largely driven by the company's repurchase of shares for cancellation."

KFC Bermuda's payroll costs and benefits increased by 4.7 percent in 2009 from 2008 due to accrual of the expected cost of wage increases negotiated with its unionised employees. Finalisation of a new union contract, retroactive to April 2008, was completed in April 2009.

Direct operating expenses increased by 8.3 percent year-over-year; with increased costs of electricity being the primary contributor.

The company repurchased and cancelled 9,140 shares during the year and paid two dividends to shareholders, each of 10 cents per share, in July and October.

"At January 31, 2009 the company had a very strong cash position with $2,306,170 cash on hand compared with $2,066,381 last year while total liabilities amounted to $394,760 compared with liabilities of $361,996 at January 31, 2008," Mr. Lines added.

Shareholders' equity at January 31, 2009 was $2,825,490, or $4.86 per outstanding share, compared to shareholders' equity of $2,620,043, or $4.43 per share, a year earlier.

The board paid tribute to its staff for their hard work, naming general manager Frank Seuss, assistant general manager Tracy Robinson, operations manager Jerome Talbot and Basil Outerbridge.