profit for the first time since the companies came together under one banner five years ago.

But the company's chairman, Randy French, warned that while the year's performance was encouraging, it should not be taken as signalling a turn-around.

And yet again, no dividend was declared for the year 2000 for the company's shareholders.

Mr. French said "As I have stated in previous reports, commercial printing is a diminishing industry in Bermuda and continued downsizing of our commercial print operation is to be expected going forward.'' In 1994, Island Press Holdings, the majority shareholder of the Bermuda Sun took the publication over, and has made a loss in 1996, 1997, 1998 and 1999.

On Friday, the company released its year-end results to September 30, 2000, in which the company made a net profit of $559,530.

This compares to a net loss the year before of $233,127, and $402,922 in 1998, $95,000 in 1997, and $182,000 and there were fears that continued loss was eating into the company's cash reserve.

But the company, which is listed on the Bermuda Stock Exchange, appears to have turned itself around.

The company made $3.4 million from sales in its printing division, and $6.3 million from sales in publishing, leaving a total of $9.7 million earned in sales for 2000.

This is up almost 11 percent on the year before, when sales were $8.7 million.

The cost of sales also went up by 4 percent from $5.1 million in 1999 to $5.3 in 2000.

Operations made a profit of $408,478, compared to a loss the year before of $309,238.

Retained earnings at the beginning of the year are listed at $1.96 million for 2000 and at $2.2 million for 1999, a drop of nearly 11 percent.

Retained earnings at the end of the year are $2.48 million, compared to $1.96 million the year before -- up 26 percent.

The net profit per common share was $1.04 for 2000, while in 1999, the company registered a net loss of 56 cents.

In a directors' report issued on Thursday by the Bermuda Stock Exchange, Mr.

French said: "The balance sheet is strong at September 30, 2000, and it is gratifying to be able to report that shareholder equity and the book value per common share have strengthened.''