The profits of Bermuda Press (Holdings) Ltd. fell by 15 percent to $1.9 million in the year ending 30 September 2000, due partly to investments in new equipment, improved staff benefits and constructing a new building.

The company, which owns The Royal Gazette , Mid-Ocean News and commercial printers Bermuda Press, last year recorded net income of $2.26 million, which was up 44 percent on the year before.

According to president Roger Davidson and vice president Christopher Whittle, the previous year's net income had been inflated as a result of "a gain on disposal of both capital assets and marketable securities''.

Overall, the publishing and office equipment business had a revenue of $26.26 million, up nearly seven percent on last year's figure of $24.6 million.

The company recorded expenses of $24.32 million, up by the nearly the same 6.7 percent, from $22.79 million in the year 1999/2000 .

The addition of a new building, Crown House on Par-la-Ville, has seen the company's additions to capital assets nearly quadruple, going from $3.3 million to $11.1 million.

The directors' report in the annual report stated: "This year the company has enhanced the content of our newspapers, invested in new printing equipment, constructed a new building, improved the staff health benefits programme, and generally successfully committed in our markets.'' It owns not only The Royal Gazette , but also the Stationery Store in Reid Street, Artcetera in Burnaby Street, Office Solutions in Addendum Lane South in Pembroke, the property holding company Crown House Properties Ltd, commercial and retail printers The Bermuda Press Ltd. and has investments in commercial and retail printers Pronto Print Ltd. and the directory publishers Bermuda Directories Ltd.

Bermuda Press profit declines 15 percent Bermuda Press (Holdings), which is incorporated in Bermuda and listed on the Bermuda Stock Exchange, had revenues from newspaper publishing of $14 million, up five percent on the $13.4 million in 1999.

Printing had revenues of $6.6 million, up on the $5.7 million the year before, and `other' had $5.6 million in revenues.

But the cost of expenses rose from $6.8 million in 1999 to $7.02 million in 2000 and the cost of payroll and employee benefit went from $10.8 million to $11.6 million. Total expenses were $24.3 million.

According to the annual report the total number of pages published by The Royal Gazette and its sister publication The Mid-Ocean News increased as the company added readership products and content to "counter the trends in the underlying economy''.

The annual report stated that the economy in Bermuda would be affected by the slowing down of world economies and would affect retail.

The report stated: "Looking forward the company will continue to seek opportunities to diversify in our quest to provide good returns to investors in the prevailing economic and political climate.

"In the year ahead the company will have to absorb the full costs of new pension and CURE legislation and The Employment Act 2000.'' Chart BUSINESS BUC