Bermuda Press Holdings more than doubled its profits to $3.4 million for the 2004 financial year.

According to the company?s annual report released yesterday, Bermuda Press Holdings (BPH) ? which is the parent company of saw its profit levels for the year ended September 30, increase 126 percent to $3.42 million from $1.5 million the previous year.

The $3.4 million in net income ? which includes proceeds from the sale of investments in the Bank of Bermuda after that company was sold to HSBC in February, 2004 ? is believed to be a record.

BPH saw its coffers boosted by $420,797 from the sale of its bank shares.

Speaking in the company?s 2004 Directors? Report, director and president Roger Davidson said BPH?s earnings reflected an improvement in revenues last year, although there was an accompanying increase in operating costs and taxes.

In total, the company took in $2.4 million more than in the 2003 fiscal year with revenues improving year-on-year by 8.2 percent to $31.4 million from $29 million.

On the expense side, BPH saw costs increase by a total of 2.9 percent from $27.4 million in the 2003 fiscal year to $28.2 million last year, which Mr. Davidson said had been driven by increases in payroll and employee benefits.

Payroll and employee benefit expenses rose five percent from $11.95 million to $12.5 million, while the cost of materials, merchandise and supplies increased by about 1.7 percent from $7.9 million to $8 million. Administrative and general expenses were more or less constant at $5.7 million and $5.9 million, in 2003 and 2004 respectively.

Mr. Davidson pointed out that BPHhad been moving in recent years to diversify its interests as a prudent financial step.

?Because of potentially volatile global conditions, and the consequential effect in the Bermuda market, we decided some years ago to diversify the company around its core activities,? he said.

?Difficult trading conditions in one of our businesses need not, therefore, be reflected in all of them, allowing us to weather financial storms with more comfort than would otherwise be the case.?

One way the company diversified its interests was through the development four years ago of Crown House, adjacent to building on Par-la-Ville Road.

Mr. Davidson said: ?Crown House has been fully occupied since the day of its completion. The consistent flow of rental income has performed as we anticipated when we made the decision to build. In the years ahead, when the outstanding mortgage is retired, the company should enjoy a steady income stream less affected by vagaries of the tourism and retail sectors of the economy.?

The company?s latest acquisition was announced after the close of the 2004 fiscal year when it merged the operations of Engravers Limited into BPH?s commercial printing company, The Bermuda Press Limited.

Mr. Davidson said: ?Having carefully considered the condition of the printing industry in Bermuda, which remains highly competitive, we are of the view that this action will provide distinct advantages ... in part through economies of scale and also from the enhanced service the merged companies will be able to provide.?

While the cost of the transaction has not been divulged, Mr. Davidson said: ?We will fund this transaction in part with the proceeds of the sale and redemption of marketable securities.?

In addition, space in the Engravers Building will now become home to the company?s Stationery Store warehouse and Office Solutions business.

?The efficiency of both operations will be greatly improved and allow us to better serve our customers,? Mr. Davidson said.

? Two long-time BPH directors ? Catherine Lord and Linda Tucker ? stepped down last year. Subsequently, general manager Keith Jensen and Bermuda Press? general manager Paget Wharton were appointed directors.

Bermuda Press Holdings last year increased its shareholders? dividend to 68 cents per share compared to 64 cents a year prior.