reported a profit of $620,675 for fiscal 1993 -- down by 40 percent on the previous year.

The company's revenues increased by 3.7 percent ($575,165) to $16.25 million but its expenses went up by 6.8 percent ($996,316) to $15.63 million. Bermuda Press publishes The Royal Gazette and the Mid-Ocean News newspapers and several magazines.

It also owns Bermuda Press printing operation and The Stationery Store retailer in Hamilton.

The only drop in revenue for the 12 months to September 30, 1993, came in the printing division, whose income fell by 10.7 percent ($444,104) to $3.69 million.

Newspaper publishing revenue went up by 7.5 percent ($700,379) to $10.03 million and `other' revenue increased by 14.4 percent ($318,890) to $2.53 million.

The biggest rise in expenses came in materials, merchandise and supplies, which went up by 12.1 percent ($485,419) to $4.5 million.

Payroll and employee benefits increased by seven percent ($458,139) to $6.99 million and general and administrative expenses went up by four percent ($111,032) to $2.86 million.

Amortisation of capital assets cost $1.29 million, down by 4.3 percent ($58,274) on 1992.

Assets dropped by two percent ($374,874) to $18.84 million.

The company's current liabilities fell by 4.4 percent ($134,656) to $2.92 million and its long-term liabilities dropped by 44 percent ($338,805) to $428,828.

Mr. Roger Davidson, president of The Bermuda Press (Holdings) Ltd., said the year had presented the company with "many challenges''.

"Our fortunes are very much tied to the economy and directly to the purchasing decisions of our clients who are making every endeavour to cut costs to improve their own situations,'' he said.

"The volume of newspaper advertising was marginally ahead for the year, while sales for our printing division were lower.'' A reduction in the volume of printing produced in Bermuda had affected the firm's profit margin, he said.

He added: "This is the most difficult period that the printing industry has faced in Bermuda for the last two decades.'' Total advertising volume had strengthened during the last quarter of fiscal 1993, said Mr. Davidson.

But the amount of shopping done abroad by Bermudians and other residents was of "great concern''.

Commenting on the newspaper division, Mr. Davidson said the company's flagship product, The Royal Gazette , was still read by approximately 39,000 adults, despite the sharp fall-off in the number of work permits on the Island in recent years.

"This is a level of market saturation beyond the expectation of most newspapers around the world,'' he said.

The edition of the newspaper the morning after the General Election on October 5 was singled out for special praise.

"The issue included a full analysis of each constituency result and was available before daybreak,'' he said. "This was a feat of which we should all be proud.'' Two libel actions brought against The Royal Gazette had proved "expensive in both time and effort'' but he added: "In both cases, we fully expect to succeed.'' Mr. Davidson criticised an "unsuccessful effort by a section of the community'' to boycott The Royal Gazette after the election due to alleged bias in favour of the ruling United Bermuda Party.

"Although there was little criticism about our news reporting, the boycott organisers were unhappy with our editorials,'' he said.

"Modern democracy thrives where there is free expression of speech and it is a sad day when intimidation is used to attempt to stifle freedom of the press.'' Fiscal 1993 had been "a most difficult one'' for the commercial printing division of the company, said Mr. Davidson.

"Customers were both reducing their printing requirements as well as seeking cuts in costs of the work they did require,'' he said.

"A disappointingly high level of work is still being sent to overseas printers, resulting in a highly competitive local market.'' Mr. Davidson said one of the most important issues facing Bermuda was the impending closure of the US Naval Air Station.

"The challenge will be for the community to absorb the US Base land and develop it in a way that will provide employment opportunities and earn us foreign exchange,'' he said.

The Bermuda Press (Holdings) Ltd. faced a promising future because it had "good modern premises, excellent equipment, well trained and loyal staff and very little debt''.

BERMUDA PRESS 1993 RESULTS (Thousands of dollars) Profit $620,675 Revenue $16,250 Expenses $15,630 Assets $18,840 Liabilities $3,350 Shareholders' Equity $15,480 Retained Earnings $6,050.