The Bermuda Stock Exchange last month launched its “Own Your Share of Bermuda” campaign to raise awareness of opportunities to invest in the island’s public companies. The Royal Gazette is supporting the effort by publishing weekly features on each of the 13 domestic companies listed on the BSX. In the fourth of the series, Scott Neil looks at Bermuda Press (Holdings) Ltd.

One of Bermuda’s largest and oldest publicly traded companies, Bermuda Press (Holdings) Limited can trace its origins back to 1828.

It is the parent company of The Royal Gazette and 11 other subsidiaries that range from office supplies and printing services, to online classified advertising and real estate holdings.

The company has a market capitalisation of $12.9 million. Its assets as at the end of September were valued at $35.5 million, while liabilities totalled $5.5 million and equity was $30 million.

During the past decade the company has navigated through the seven-year economic downturn that began in 2008, while also dealing with challenges specific to the printing and publishing sector, which form a key part of its operations.

Those challenges included embracing digital printing and expanding into new digital platforms and products.

Along the way the company has adapted to changes in the environment of its core businesses.

In the last 15 years, two of Bermuda’s three newspapers have closed, while the three largest printing companies have consolidated into one.

BPHL owns the island’s sole surviving newspaper, The Royal Gazette and, as a result of consolidations, is Bermuda’s dominant printing operation.

Three years ago the company amalgamated the Island Press and Bermuda.com operations. Those consolidations came as Island Press closed its twice-weekly Bermuda Sun newspaper, a reflection of the financial challenges that have faced the printing and publishing industries during the past decade.

BPHL has a long history of paying dividends. However, there was an almost two-year hiatus between June 2014 and March 2016 when the company halted the programme.

The reason for the suspension of dividends was to use the cash to fund the working capital requirements of Island Press and Bermuda.com and related restructuring costs.

Since the reinstatement of the dividends the company has made quarterly payments of five cents per share, for an annualised yield of 2.2 per cent at yesterday’s stock price.

Since 2012, BPHL’s share price has fluctuated within a $6 range, with a high of $11 in 2012, and a low of $5.30 last summer.

This week, the stock was trading at $9 on the Bermuda Stock Exchange.

In its 2016 annual report, released last month, the company reported a profit of $1.26 million, more than double the previous year’s figure.

Cost-cutting measures played a key part in the improved performance, which was achieved even as revenue fell from $27.2 million to $26.6 million.

Consolidation within the company’s print division was the primary driver of the cost savings, while declines in revenue were attributed to falling sales of print advertising in publishing operations.

Stephen Thomson, BPHL chairman, remarked on savings achieved by consolidations and other measures in the annual report.

“During the past 12 months, management focused on consolidation and maximising efficiencies within operations,” he said.

“Many of the changes that occurred during the year were behind the scenes. For several years, the board and management have focused on cost reductions in the operations because of difficult economic conditions.”

The company has 100 per cent ownership of 11 of its subsidiaries, which include online classified advertising site eMoo (Bermuda), Office Solutions, and Bermuda Directories Ltd. It has an 80 per cent ownership of Crown House Properties Ltd.

During the past year, BPHL’s management has expanded its print operations into sign printing, redesigned and improved the eMoo website, and launched a responsive mobile website for The Royal Gazette.

It has also implemented new advertising booking and customer relationship management system, and worked to increase home delivery of The Royal Gazette and enhance marketing of the Stationary Store and Office Solutions.

Looking ahead, Mr Thomson stated in the annual report that the company’s performance is tied directly to the performance of the local economy.

While cautioning that Bermuda’s economy remains fragile, he said: “More than $23 million of our annual revenue is tied to consumer spending. Leading indicators have shown an improvement in consumer confidence and should ultimately result in increased consumer spending.”

• Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Past performance is no guarantee of future results