when it announced a profit of $1.042 million for fiscal 1992 -- more than double that of the previous year.

But the company said earnings remained substantially less than 1989 or 1990 and less than half that of 1988.

Despite the recession, the company managed to cut costs and increase revenues.

After seeing the firm's profit plunge by 66 percent in fiscal 1991, Chairman of the Board Mr. W. Roger Davidson said he was "pleased'' with its performance, particularly in light of the recession.

"Tighter control of expenses, reduced interest costs and improved sales revenue, as a result of efforts by management and staff, account for this result,'' said Mr. Davidson.

"It is a step in the right direction towards shareholders obtaining an adequate return on their investment.'' Despite the recession, total revenue for the 12 months to September 30, 1992, actually increased by 2.8 percent ($431,000) to $15.675 million.

Expenses, on the other hand, dropped by 0.8 percent ($119,000) to $14.633 million.

This was achieved by cutting salaries and staff benefits by 3.5 percent ($233,251) and general and administrative costs by 3.4 percent ($95,553).

Bermuda Press (Holdings) Ltd. is the parent company of The Royal Gazette Ltd., which publishes The Royal Gazette and Mid-Ocean News newspapers and owns the Royal Gazette Stationery Store, and is the parent company of the printing firm Bermuda Press Ltd.

The company branched out this year into magazines, setting up Crown Communications.

A sharp decline in the number of expatriate workers on the Island had not led to a drop in circulation of the group's two newspapers, said Mr. Davidson.

The publishing arm accounted for 59.5 percent ($9.329 million) of total revenue, with the printing division contributing 26.4 percent ($4.134 million), and "other'' activities bringing in the rest ($2.212 million).

Retained earnings at the end of the fiscal year were up by 5.5 percent ($331,206) to $6.39 million.

Total assets and liabilities dropped by 3.1 percent ($618,652) to $19.212 million. Current assets increased to $7.4 million, while current and long term liabilities fell by 24.3 percent ($1.225 million) to $3.827 million.

Since 1988, the company has invested over $10 million in new plant and equipment, leaving it with unpaid bank loans of $1.09 million, which are scheduled to be repaid by 1997.

Net income per share increased from 34 cents per share in fiscal 1991 to 72 cents per share.

Income as a percentage of revenue improved from 3.2 percent to 6.6 percent.

Mr. Davidson also used his annual address to shareholders of the printing/publishing/retail firm to attack the Bermuda Industrial Union.

He blamed the union for harming local businesses, including Bermuda Press (Holdings) Ltd., through "unnecessary'' and "illegal'' actions.

"The dispute between Bermuda Forwarders Ltd. and the Bermuda Industrial Union once again escalated to include the docks,'' he said.

"This had an immediate adverse effect on us, as many of our customers reacted by cutting back on their advertising when the confrontation unfolded. He added: "Our staff, and most clear-thinking people, have resisted calls for the Island's workforce to participate in industrial action.

"Needless to say, we are happy to see any improvement in the mechanism whereby these disputes can be settled.

"The next generation of Bermudians will not forgive those who destroyed their opportunities through unnecessary, and often illegal, threats, go-slows and strikes.

"Bermuda's future depends on every person giving 100 percent service and value each day. This is the view of the Board of Directors of this Company and, we believe, that of most thinking Bermudians.'' Mr. Davidson said the Board of Directors was "very sensitive'' to the plight of shareholders, who saw their dividend halved to 28 cents per share for the year.

"It is our hope that we will be able to maintain the new rate, but this, of course, will depend entirely on economic developments over the winter and next spring,'' he said.

He said the company was planning to develop its range of goods and services "so there will be no necessity for any print buyer or advertiser to go beyond our doors''.

Mr. Davidson was not getting carried away with the company's improved results.

"After the poor results reported last year, most businesses would be pleased to be able to report a decided improvement for the last period and we are no exception,'' he said.

"However, this is tempered by the realisation that our net profit is still less than half of the profit we reported for fiscal year 1988.'' He said the company would continue to have problems until the economy pulled out of recession.

"As long as Bermuda is in recession, the company will have to struggle to maintain present profit levels,'' he said.

"If the entire population does not have the commitment to turn tourism around, we will certainly continue to have problems.'' Bermuda needed to pull together through "common sense, goodwill and non-partisan'' efforts to turn the economy around, he said.

He added: "With signs of the United States coming out of recession at this time, we would be foolish in the extreme to allow internal troubles to destroy this chance.'' Bermuda Press (Holdings) Ltd. Results PROFIT $1.042M REVENUE $15.675M EXPENSES $14.633M ASSETS $19.212M LIABILITIES $3.827 M RETAINED EARNINGS $6.390 M NET INCOME PER SHARE 72 CENTS.