Bermuda Press (Holdings) Ltd (BPH) posted a full-year profit of $922,000 as the company cut operating expenses by more than seven percent.

The net income for the year ended September 30, 2013, broke down to 40 cents per share and represented a strong rebound from a loss of $438,000 in the previous 12 months.

The company, which owns The Royal Gazette, as well as commercial printing, retail and commercial real estate interests, saw its revenue fall by two percent to $25.1 million. Revenue from publishing and retail activities fell by $511,000, or 2.6 percent, to $18.9 million, while commercial printing fell slightly to $3.2 million. Rental income rose slightly to $2.8 million.

Operating expenses fell by more than $1.8 million to $24.1 million. BPH slashed nearly 15 percent from its materials, merchandise and supplies costs, which fell to $4.83 million, compared to $5.66 million the year before.

The company also shaved 5.8 percent from its payroll and employee benefit costs, which fell by $816,000 to $13.17 million.

Included within operating expenses were redundancy costs of $337,000 as well as an impairment charge of $194,000 against goodwill in recognition of a fall in the carrying value of the commercial printing operations.

In the BPH’s annual report, chairman Michael King said the company had benefited from an ongoing, multi-year restructuring and transformation process, which had positively impacted the bottom line by $2.06 million.

“These initiatives have included the merger of the Bermuda press and Office Solutions operations in the Addendum Lane property, the rationalisation of our workforce across the entire group of companies, and the introduction of new technology platforms to increase efficiencies, reduce operating cost, and the time to bring new products to market,” Mr King wrote to shareholders.

The chairman gave some hints as to how the company might further develop its media offerings.

“The publishing industry continues to evolve, using technology to engage audiences, and your company is responding to this development,” Mr King wrote. “Technology has significantly reduced barriers of entry into television and radio. Leveraging existing content to television and radio represents a future opportunity for your company to expand its audience and offer new products to advertisers.”

Technology will also help to transform BPH’s printing and retail businesses.

Mr King reported that “within months” the Bermuda Press will launch a new website that will allow customers to create designs online and place orders. Office Solutions will also launch a website that will allow customers to view its entire product line, buy items and place orders.

Mr King noted that difficult economic conditions had affected profitability.

“While we read news of economic recovery from around the world, it is evident that Bermuda’s path to recovery has been impeded by Government budget deficits and a decline in the residential population and workforce,” the chairman said.

“There has been an increase in business confidence since the newly elected Government entered office in December 2012. Bermuda’s recovery, from the deepest economic downturn in memory, will require great leadership and action from Government to reduce deficits and increase the residential population.

“The Government has announced initiatives to stimulate and strengthen the economy, such as commercial immigration, increased foreign investment opportunities, gambling and redefining our tourism product.

“It is not clear whether one or some combination of these initiatives will be the answer to rebuilding the economy, but it is clear that change is necessary for Bermuda’s future success.”

BPH shares are listed on the Bermuda Stock Exchange and last traded at $8.50. The company paid a dividend of 40 cents per share during fiscal 2013, representing a yield of 4.7 percent.

Mr King said the board “continues to review the ability of the company to pay dividends with the goal of increasing returns to shareholders”.