THE former finance director of Salterforth-based bed and furniture firm Silentnight Holdings received £205,206 compensation for loss of office.

In addition to the payment to Barry McKenzie, who retired from the board in April 1999, his pension was increased by £7,300 a year by the company paying £175,000 into a pension fund.

Mr McKenzie, who joined the board in 1998, had been finance director for nine years.

The report also shows that chief executive Bill Simpson, 52, received an £80,000 performance related bonus on top of his £200,000 salary. Together with benefits his total pay package was £295,000, up from £196,000 in 1998.

Finance director David Adam, 51, who was appointed to the board in August 1999, received £65,000 in salary and a performance bonus of £20,000. His total pay package was £98,000 for the period he served.

Chairman Keith Ackroyd, 65, received £65,000 in fees and benefits, up from £59,000 in 1998. Fees of £19,000 were paid in respect of each of the three other non-executive directors.

During the financial year to January 29, 2000, the firm saw operating profits on continuing operations increase by 15 per cent to £16.3million. In his chairman's statement Mr Ackroyd said it had been a very satisfactory outcome to the year during which it had sold two businesses -- including Wellhouse Wires of Barnoldswick -- for more than £34 million.

"We are actively seeking potential opportunities to invest our cash resources in complementary businesses where we can add value and thereby deliver growth.

"We are prepared to be patient to ensure good value and a good fit to our existing activities."

During the year the firm, which employs 3,760 people, made donations to charity of £40,952. No political donations were made.

The group's annual general meeting will be held at the company's headquarters in Salterforth on June 1.

Silentnight has awarded its £8million advertising account to a new agency.

London-based Mortimer Whittaker O'Sullivan will be responsible for the firm's advertising campaign spanning television, magazines and posters.

Silentnight's famous duck and hippo characters will remain as part of future advertising.