cut their losses to $233,127 last year.

The drop in losses from $402,922 -- down 42 percent -- has been attributed to "streamlining'' in the company.

Revenue grew to $8.7 million, reflecting an underlying shift in the business with print sales declining to $3.03 million and publishing revenues growing to $5.7 million.

Island Press chairman Randy French said that overseas competition and a saturated marketplace were the key factors in the struggle to turn the company around.

He said: "We operate in a print market place that has considerable over-capacity. This local competition is now magnified by overseas printers shipping finished print into Bermuda duty free.

"We are endeavouring to address the issue of overseas competition and local tariffs through ongoing dialogue with Government, the Bermuda Employer's Council and the Bermuda Industrial Union.'' Mr. French said the growing publishing revenues seen last year were set to continue.

"We are continually reviewing our costs and methods of operation with a view to streamlining our operation into an efficient vehicle that will be well equipped to face the challenges of the future.

"In this regard cash flow has continued to improve as is reflected in our balance sheet liquidity.

"Overall we are pleased with the significantly improved bottom line performance of the group compared with the previous year.

"However we are not satisfied with the lack of return on investment and continue to implement strategic and other initiatives designed to capitalise on our achievements to date and improve returns for the future.'' No shares in Island Press traded hands yesterday. The last time shares traded was in November when they closed at $4.25.

BUSINESS BUC