Bahrain Duty Free saw revenues down by 7.7 per cent while net income saw an increase of 2.1 per cent last year.

But given the impact of the worldwide economic recession these are excellent results, chairman Farouk Almoayyed said at the company's annual meeting at the Gulf Hotel.

'Consolidated sales for the year amounted to BD30,494,641 representing a gross profit decline by 4.9 per cent year-on-year, but the gross margin percentage increased by 3.2 per cent, signalling better stock efficiencies, reduction in stock loss provisions and improved supplier agreements,' he said.

'Operating profits of BD6,647,525 were down 4.9 per cent and other non-operating income grew 10.2 per cent due to a strong performance in our investment and advertising income. Net profits after royalties and impairment charges stands at BD6,163,727.

'The unprecedented deterioration in global and regional market conditions throughout last year had an adverse impact on most companies including Bahrain Duty Free,' he said.

'As a result our investment portfolio had a negative fair value adjustment of BD747,000 of which BD322,000 represented impairment provisions were written off to income statement.

Bahrain Duty Free's balanced investment portfolio had total funds of BD13.3 million under management at the end of the year.'

'Operationally, last year was a good one, with passenger volumes at Bahrain Airport reaching 8.7 million, an increase of 4 per cent,' he said.

'The Gulf Air Bahrain Grand Prix held in April was another successful event, which continues to attract more visitors.'

The company agreed a dividend distribution of BD2,613,600, equivalent to 50 fils per share.

Director's fees were BD156,000 and the board agreed a bonus share issue of 30 per cent equivalent to BD1,568,160.-TradeArabia News Service