MediaHouse Ltd., formerly known as Island Press, saw its profit for the six-month period ended March 31, 2005 decline 40 percent compared to the same period a year ago due to a subsidiary?s recovery efforts after Hurricane Ivan.

MediaHouse, the parent company of the Bermuda Sun and Vanilla Ltd., which it formed to acquire Bermuda.com and The Tourist Box, posted a net profit of $268,592, or 47 cents per share, in the six months ended March 31, 2005 compared to profit of $448,207, or 91 cents per share, in the same period ended 2004.

Chairman and chief executive oficer Randolph French said in his interim six-month report released yesterday that the period had been one of ?continued challenge? with much of the focus placed on rebuilding the Grand Cayman head office of Caribbean Publishing Company following Hurricane Ivan in September 2004.

?Alternative premises were acquired which required build-out, new furnishings, computer and network systems. Inevitably this disrupted operations in Grand Cayman and caused the deferral of some directories resulting in the decrease in turnover shown in the income statement,? Mr. French said.

He added that while a settlement with the company?s insurers covered the book value of the assets destroyed, it did not cover the full replacement cost.

He said that the consolidation of the Group?s Bermuda-based activities into its Elliott Street premises in May 2004 helped reduce overheads and increase efficiencies.

Mr French said: ?The board is encouraged by progress made during the period despite the temporary setback in Grand Cayman.?