(Holdings) Ltd. has declared net profits to September 30 of $1,567,252, a 3.8 percent decline.

But president and director, Roger Davidson has expressed concern about political and market moves being made elsewhere.

He said that while nations were acting to avert a global economic downturn, he was confident that tourism and international business would afford the Island some protection from international market fluctuations.

But he said, "The United Kingdom is determining its policy toward its overseas territories in light of its commitment to European partners.

"The danger of short sightedness on the part of the Organisation for Economic Cooperation & Development (OECD) threatens Bermuda's infrastructure and there has even been talk of renegotiating the Tax Treaty with the United States.

"Despite these ominous clouds on the horizon, history will record 1998 as the year in which the Progressive Labour Party formed the Government in Bermuda for the first time.'' Mr. Davidson was quick to offer congratulations to the new Government, and hoped Bermuda would continue its prosperity under their stewardship.

But he was quick to get an early lobby in, stating: "We hope that the new Government will look afresh at the needs of local business and maintain the downward trend in import duties, which handicap the local commercial printing industry.

"Your company invested $1,407,408 in capital assets during the year and this included substantial payments in duty.

"International competitors, by comparison, have lower operating costs and importers pay no duty on a range of printed products.'' Net income per share was $1.09, slightly down from $1.12 the year before as revenue rose about 10.7 percent or $2.2 million to $22,436,747 and expenses grew 11.8 percent or $2.2 million to $20,837,000. Shareholders' equity per share rose 49 cents to $12.65 per share. Mr. Davidson said this year's results reflect a period of consolidation for the company and its subsidiaries, in which operating margins have been eroded somewhat by increased competition in our markets.

The publisher of The Royal Gazette and The Mid Ocean News newspapers, together with the RG and The Bottom Line magazines, the company also owns Bermuda Press Ltd., the Stationery Store, Artcetera and Office Solutions.

Mr. Davidson pointed out that the various arms of the company faced active competition here and abroad.

He said, "Increasing technological sophistication and the growing use of the Internet present the company with new opportunities and challenges.'' And yesterday, Mr. Davidson noted that growth for the company will have to come from further diversification and further development of new lines. His report states: "The company has been involved in preliminary discussions with interested parties relating to the potential development of our property on Par-La-Ville Road North. "It would be premature to divulge details of these negotiations, but we shall report when and if a development is likely to proceed.'' Bermuda Press (Holdings) paid out $774,999 in dividends or 54 cents per share and committed $229,721 for the repurchase of 22,070 its own shares, in accordance with an earlier authorisation of the directors to repurchase up to 70,000 shares.