The Bermuda Press (Holdings) Limited, the parent company of The Royal Gazette, yesterday reported a rise in net income.

The company, which also owns the Bermuda Press Ltd., the Royal Gazette Stationery Store, Office Solutions and property, posted net income of $737,935 in the six months to March 31, 2003, up from $633,607 for the same period last year.

This improvement in net income remained well behind the $940,495 net income for 2001. The results are contained in an interim six-month financial report for the period ended March 31, 2003, which has been given to the Bermuda Stock Exchange.

Report highlights show: revenue at $14,273,579 up from $14,076,003 for the same period last year; net Income from operations rose from $678,481 to $772,119; minority interest fell from $44,874 to $34,184.

Net income for the period was also up from $633,607 to $737,935 while earnings per share rose from 46 cents to 53 cents. A 32-cent per share dividend totalling $441,678 was paid for the period, the same as in the previous year.

In his report to shareholders, company president Roger Davidson stated: "The result this year was accomplished against a background of continued global and local economic uncertainty. Revenue during the period rose by one percent, reflecting difficult and highly competitive trading conditions for local companies and for the Island since 2001.

"Since then the world has experienced the 11th September terrorist attacks, the collapse of the Internet stock bubble and a global economic downturn, the war in Iraq and the SARS outbreak.

"In those circumstances, any company that relies on the retail and tourism trade for a significant part of its revenues would be well satisfied with any form of improvement.

"Your board of directors and the staff of the companies of The Bermuda Press (Holdings) Limited have made efforts to control costs and to introduce operating efficiencies to offset the slowdown in revenue growth.

"Efforts have also been made to diversify the company's operations, most particularly through the construction and letting of office space in Crown House."

Mr. Davidson said competition in the printing marketplace had intensified with all providers of local printing services struggling to maximise their market share.

Overseas competition remained fierce and local printers were often placed at a competitive disadvantage due to high local employment costs.

"Your board is hopeful that the second half of the year should produce results similar to those recorded in the first half, provided that there is no major escalation of destabilising events around the world and that external confidence in Bermuda continues.

"We were saddened by the recent premature passing of Dr. E. S. D. Ratteray who served your company as a Director for more than fifteen years and gave sage advice on a wide range of issues. The value of Dr. Ratteray's efforts to improve life for all in Bermuda is well known."

Mr. Davidson said the current bid price of shares of the company was $12.50, although some shares had recently traded at $15. At September 30 2002 the bid price was $9.50.

"The total interests of all directors and officers of the company in the shares of the company at 31st March 2003 amounted to 167,120 shares.

"No rights to subscribe for shares in the Company have been granted to or exercised by any director or officer.

No company can be successful without assistance and I should like to thank our customers and shareholders for their confidence in the Company and its operations.

"None of the success your company has achieved would have been possible without the skill and support of our employees, many of whom go the extra mile to ensure quality products and service that ultimately benefit all investors."