Gazette and Mid Ocean News , improved 73 percent to $1,629,281 or $1.12 per share for the year to September 30.

But President and director Roger Davidson said it remains short of a satisfactory return on shareholders' equity.

He said revenue of $20,264,351 did not represent a substantial increase over the year before but greater profitability was achieved through new rigorous cost controls, prior investment in equipment which is now paying dividends and the continued assistance and dedication of employees.

The cash dividend paid per share was 48 cents and shareholders' equity per share was $12.16. Net income as a percentage of revenue and shareholders' equity was eight percent and 9.3 percent, respectively.

The newspaper and magazine publishers, printers and suppliers of office products and retail stationery concluded negotiations during the year to purchase 80 percent of the equity of Pronto Print Ltd.

Mr. Davidson said, "We are satisfied that this investment will complement our existing product offerings. Pronto Print Ltd. has generally not competed in the past with our long run, full colour work at the Bermuda Press Ltd. and Print Express has established its own separate niche in the highly competitive quick-print market.'' He said, "Commercial printing, publishing, communications and office supplies are all industries in a state of evolution. Although related, each presents unique challenges and opportunities.

"Our goals remain to successfully navigate the hazards we face daily to secure a sound financial future.

"The growth of Bermuda's international business sector has created opportunities for our company. Simultaneously, tourism has continued to decline, with serious consequences for the local economy and retailing, which negatively affect our newspaper and commercial printing business.'' He said the company had financially and editorially supported the Monitor Report on tourism and there was no question that the community had to come together on national issues to resolve problems and help rebuild tourism for the Island's future benefit.

Mr. Davidson pointed out, "Failure to tackle these problems now, and a continuation of partisan political polarisation, will result in a lower standard of living for all of us and for succeeding generations.

"We will continue to use the editorial strength of our newspapers to help inform and educate everyone on this vital issue.

"It is up to each Bermudian and resident to do their part in helping to resolve our current difficulties. Returning tourism to the level of the 1970s should be an objective for all.'' The company has been authorised to buy back up to 70,000 of its own shares but Mr. Davidson expressed continued concern that the current trading range of company shares on the Bermuda Stock Exchange continues to trail their net asset value.

He said the inherent value of the company's shares does not warrant the discount accorded them. But he is confident of a strong future for the firm.

He said, "The board has been considering various matters relating to the interests of shareholders and the responsibilities of the directors in connection with any bid, or potential bid, to purchase a controlling interest in the company.

"As a result, we have made arrangements to update our by-laws. The changes have been adopted by the directors and will be presented to the shareholders for confirmation at the annual general meeting.''