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KFC (Bermuda) Releases Chairman's Report
Hamilton, Bermuda: 29th March 2005 - KFC (Bermuda) Ltd. has released the following report to the Bermuda Stock Exchange (BSX):
"Net income for the year ended 31st January 2005 amounted to $489,961 compared with $256,880 in the year ended 31st January 2004. Sales in the year ended 31st January 2005 were higher than those for year ended 31st January 2004 by $468,084. Due to modest price increases on certain food items and control over the cost of the menu items, gross profit increased by $396,474 over the previous year. Operating expenses increased by $156,332 from the previous year, largely due to a $108,266 increase in salary and wage costs in 2004/05 to $1,481,245. Franchise fees increased by $27,361 over the previous year due to the increase in sales. Repairs and maintenance amounted to $115,834 compared to $102,229 in the previous year.
In May we closed the store for two weeks to carry out renovations to refurbish the dining room at a cost of $338,287. The increase in the use of these facilities has certainly helped raise the level of sales and earnings.
On 14th May 2004 we paid a dividend of $0.10 per share to shareholders of record 30th April 2004. Another dividend of $0.10 per share was paid on 15th November 2004 to shareholders of record 29th October 2004.
The Company repurchased 1,800 of its own shares at $3.58. It is still our intention to repurchase shares from time to time to reduce the shares outstanding to a more acceptable level.
At 31st January 2005 cash resources amounted to $1,266,521 compared with $1,003,415 last year and total liabilities amounted to $292,353 compared with liabilities of $239,422 at 31st January 2004. Shareholders' equity at 31st January 2005 amounted to $2,136,394 or $3.58 per share compared with shareholders' equity of $1,771,910 or $2.96 per share at 31st January 2004.
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, Iris Kehler, Operations Manager , and Jerome Talbot, Operations Manager - Trainee, 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 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.
My thanks to Llewellyn Petty and my fellow Executive Directors, Crayton Greene, Susan Wilson, Bill Thomson and Kevin Gunther for their contribution and assistance during the past year."
Signed by:
Donald P. Lines, OBE, FCA, JP
Chairman