In a statement issued with the report, President & Chief Executive Officer Randolph French stated: "Group sales for the six-month period ending March 1, 2002 have increased over the same period in 2001 by 6.9% in spite of pressure on advertising sales as a result of the September 11 tragedy and US recession. The overall increase in Group sales is the result of competitive pricing, creative marketing strategies, and sound customer relations.
The cost of sales is down, reflecting improvements in our inventory management and plant utilization. Increased efficiency and sales have resulted in an increase in gross profit of 35.5% over the same period last year.
General and administrative costs are up by 10.9% over the previous year, largely as a result of one-off expenses related to consulting services. The final result is a net profit of $566,885 for the period.
In addition to the above, this is the first six-month period reflecting the full cost saving benefit of not replacing senior management who left last year. The Company has successfully regrouped with Bermudians now occupying most senior positions.
Subsequent to March 31, 2002 the Company, through one of its subsidiary companies, acquired Caribbean Publishing Company and is assuming the publishing of fourteen telephone directories in the Caribbean, most of which are under contract with Cable & Wireless.
Also subsequent to this reporting period, Island Press Limited's contract to publish the Bermuda Telephone Directory was not renewed by the Bermuda Telephone Company (BTC). KeyTech Limited, a subsidiary of BTC, has decided to develop an in-house publishing capability and intends to publish the Directory themselves. The loss of this contract will have a short-term negative effect on future profit but the Company anticipates that in the longer term this loss will be offset by income from Caribbean operations together with on-going improvements in our newspaper and commercial printing activities in Bermuda."