For the three months ended June 30, 2010, the Company recorded revenues of $1,407 million and a net profit of $3.4 million compared to revenues of $1,477 million and a net loss of $27 million for the comparative period in 2009. For the six months ended June 30, 2010 revenues and net loss were $2,842 million and $6.2 million respectively compared to revenues of $2,981 million and a net loss of $140 million for the same period in 2009. Although there was a 4.0% decline in revenues, the Company returned to profitability in the quarter due to improved margin management, a reduction in interest costs and exchange gains resulting from a revaluation of the Jamaican Dollar. Sales for the second quarter continue to reflect the effects of the general economic slowdown, and the general business interruption experienced in Kingston in May.

Revenues in the retail segment declined by 5.9% in the quarter compared to 2009, due to the continuing contraction in consumer spending power. The Wholesale Hardware segment experienced a 16.5% decline in revenues in the quarter as compared to 2009, mainly due to a reduction in large projects. However, this segment has benefited from improved product availability, delivery and pricing.
The Agricultural segment recorded a 5.1% increase in revenues in the quarter as compared to 2009, by taking advantage of the growth in the agricultural sector. The segment continues to perform well, and the easing of the recent drought has also resulted in increased demand for our products.

We continue to focus on stabilizing the business and monitoring profitability, while developing plans for revenue and profit growth in 2011 and beyond. Critical to our success will be increasing store traffic and product availability, improving customer service, and reducing costs and debt, while maintaining an appropriate level of risk management and controls. During the quarter, work commenced on a major upgrade of our Lane Plaza store, with completion expected in August. This will significantly improve our customer experience at Lane, and serve as a model for our other retail locations. We have also embarked on a programme of enhanced customer service training for all team members. Overall, however, we expect the remainder of 2010 to be challenging. Consumer confidence remains low, but it is anticipated that the several infrastructural and housing projects announced will lead to increased demand for our products.

We wish to thank our customers, employees and other stakeholders for their continued commitment and support.