The parent company of The Royal Gazette has announced profits of $514,000 for its last fiscal year.

The figure was $391,000 down on the $905,000 recorded in 2014.

Bermuda Press (Holdings) Ltd posted revenues of more than $27.2 million for the year ended September 30, 2015, up $1.9 million on the previous year.

BPH chairman Stephen Thomson said 2015 was “a year of transition” for the company.

He added the major focus for last year was the amalgamation of printing company Island Press and information and events website Bermuda.com into BPH’s existing business structure.

Mr Thomson said: “We are now beginning to realise the synergies from the combined and revitalised operations.”

He added that the past seven years had seen a deterioration in the Bermuda economy.

Mr Thomson said: “Through the economic downturn, we focused on cost-cutting by finding operational efficiencies, by modernising production and through the physical consolidation of operations.

“We introduced new products and diversified revenue by expanding our digital print operations and by growing our digital advertising platforms.”

He said in the annual report: “The largest project of 2015 was the merging of the Bermuda Press and Island Press operations into one building.

“The move involved reducing the amount of space occupied by the Office Solutions warehouse and relocating all of the equipment, inventory and employees from the Elliott Street property into the Bermuda Press building, while we remained fully operational.

“The move was completed before the end of September 2015 and had a significant impact on the cost of the print operations in the year.

“Looking forward, the print division will recognise substantial cost savings during 2016.”

And Mr Thomson told shareholders: “When Bermuda emerges from the recession, your company will be in a position to leverage an improving economy and to continue its 188 years of service to the Bermuda community.”

Mr Thomson said that the increase in revenue in 2015 was due to the first full year of amalgamation of Island Press and Bermuda.com, combined with an increase in print and digital advertising sales at The Royal Gazette.

He added that increase had been “slightly offset” by a decline in revenues from business supplies store Office Solutions, which had now been addressed.

Mr Thomson said that the decision to suspend dividends to shareholders last September was “difficult”, but that it had been necessary to preserve cash and limit borrowing related to the acquisition of Island Press and Bermuda.com.

But he added that the board had announced in January that shareholder dividends would be restored this month.

The sales teams from online shopping portal eMoo and The Royal Gazette merged into a single entity, called BP Media.

Mr Thomson said: “BP Media has been repositioned as the sales arm of our publishing companies to streamline customer relationships, increase customer engagement and to enhance the value proposition to the customers through bundled products.”

He added: “The Royal Gazette soft-launched its IOS and Android mobile and tablet apps for news. A public launch will be tied to the release of a new content subscription model in 2016.”

Mr Thomson added that there had been signs of recovery in the economy, with several quarters of GDP growth, although the economy is “still very fragile”.

He told shareholders: “Your company’s and Bermuda’s largest hurdle to success remains the declining population and workforce.

“Examining our key operational units, it is obvious that the size of the workforce will have a dramatic effect on our success.”

Mr Thomson added that a share repurchase programme started at the beginning of this month.

The BPH board has approved the repurchase of up to $1 million worth of shares, a total of 153,846 shares, about 11 per cent of outstanding shares.

Mr Thomson said: “We believe that the repurchase is the best strategic way to add value to our shareholders as the shares are trading below their book value on the BSX at present.”

And he added the BPH board was “confident that the company is positioned correctly to take full advantage of any future improvement in the local economy.”