Bermuda Press (Holdings) Ltd Releases Interim Report

Hamilton, Bermuda – 01 July, 2010 – Bermuda Press (Holdings) Limited (“BPHL”) (Ticker: BPH.BH) has released the unaudited Interim Financial Report for the period to 31 March, 2010.

The Board of Directors of BPHL is reporting on certain unaudited financial matters relating to the first six months of the Company’s financial year ending 30th September 2010.

Six Months ended 31st March                                                                                          2010                       2009

(in 000’s of Bermuda dollars)

Revenue                                                                                        16,356             16,596

Net income from operations                                                               724                  927

Minority interest in net income of subsidiaries                                  (165)                (153)

Net income for period                                                                         559                  774

Dividends paid, 20 cents per share (2009 38 cents)                          276                  524

Earnings per share                                                                      40 cents          56 cents

The Company has experienced a decline in revenue during the first six months of the 2010 fiscal year.  Net income for the six months ended 31st March 2010 was $559,000. That compares with $774,000 for the same period in the previous year.  The first six months of fiscal 2010 continued to be impacted by the influence of the economic slowdown in Bermuda.

Cost cutting efforts continue within the Company, however, at March 31 2010 the decline in revenue has not been completely offset by cost cutting as is evident in the reduction of net income for the period.  Bermuda’s economy has continued to soften and your Company’s board is monitoring and responding to the changes in local economic conditions.  The results from the second half of the 2010 will be impacted by increased costs as a result of the Governments 2010-2011 budget.  The 2% payroll tax increase, shared equally by the company and staff, and the 0.5% increase in foreign exchange purchase tax will affect the Group as our operations are labor intensive and the materials and supplies used in manufacturing and production are imported from overseas.

In January 2010 the introduction of the Chief Executive Officer (‘CEO’) within The Bermuda Press (Holdings) Limited structure was completed.  Mr. Jonathan Howes, formerly the Group Controller, was appointed to the position and has been actively reviewing and working with the Group’s subsidiaries to improve profitability.  The Board is closely monitoring the financial performance of its subsidiaries. 

For the past several years the subsidiaries of the Company have countered higher operating costs by exploring areas for greater efficiencies.  In the current year the Company is taking further steps in its effort to modernise traditional print and newspaper business models.  The cost to modernise these businesses and develop long term business plans is high but the Board feels that responding based on appropriate long term plans is critical to the future success and profitability of your company.

The Board’s decision to suspend publication of the Mid-Ocean News in October 2009; the freeze on management and staff wages and the reduction in the working hours of the  print operations are examples of the difficult decisions that are being made in an effort to ensure the future profitability and stability of the Group.  

The Group’s print operations are under pressure from changing business and consumer practices.  Outsourcing overseas, the use of electronic media and cost cutting by businesses continue to impact profitability in the first six months of 2010.   The Board and CEO are working closely with the print division to refine product offerings and enhance existing products to add greater value to customers.

In conjunction with the staff wage freezes, the Board felt it only appropriate to reduce the dividend.  In January 2010 the dividend to shareholders was reduced to 10 cents per share from 19 cents.   The dividend is currently being paid quarterly at a rate of 10 cents per share and the Board expects this rate to be maintained through the end of the year.

The total interest of all Directors and Officers of the Company in the shares of the Company at 31st March 2010 amounts to 256,672 (2009 - 259,330) shares. No rights to subscribe for shares in the Company have been granted to or exercised by any director or officer.

The Board of Directors wishes to acknowledge the efforts of the staff to ensure your Company’s continued success.

Enquiries

Marilyn A Simmons    Company Secretary               (441) 295-5881