nearly a quarter of a million dollars last year -- but shareholders were not paid a dividend.

Company President and Chief Executive Officer, Randy French, attributed the turnaround to an increase in sales but warned that the change "should not be interpreted as the advent of a fundamental turnaround''. "Commercial printing in Bermuda will continue to be challenged and further industry downsizing is expected,'' he said.

"Results for the six months ending March 31 2000 show the continuation of an encouraging trend for Island Press Holdings Ltd. with a positive bottom line and a profit per common share of 38 cents,'' he said.

"A 23 percent increase in sales continues to underline an inherent dominance of publishing over printing as local and overseas market conditions continually apply pressure to commercial printing,'' he continued.

Island Press recorded a net profit of $211,086 for the six months ended March 31 2000 compared with a loss the year before of $248,965.

Sales for the period rose almost $1 million from $3,940,250 to $4,865,295. A declining amortisation charge bringing the level in line with industry norms combined with "efficient utilisation of Group property'' also aided in the move into the black.

Better access to technology combined with a larger market and favourable duty privileges were the major factors, according to Mr. French, that negatively impacted the local printing business.