"Results for the six months ending 31st March 2000 show the continuation of an encouraging trend for Island Press (Holdings) Ltd. with a positive bottom line and a profit per common share of $0.38. A 23% increase in sales continues to underline an inherent dominance of publishing over printing as local and overseas market conditions continually apply pressure to commercial printing.
The cost of sales has grown by 25%, demonstrating the need for vigilant cost control but at the same time highlighting the challenge of operating in a high fixed cost environment. A declining amortization charge has assisted the bottom line improvement and brings our amortization level into line with industry norms. Further, efficient utilization of Group property has resulted in growth in rental income also enhancing the reported result.
While the six-month improvement in results is good news, this should not be interpreted as the advent of a fundamental turnaround. Commercial printing in Bermuda will continue to be challenged and further industry downsizing is expected. The significant benefits of market-size, better access to technology and expertise, and favourable duty privileges granted to overseas competitors represent a collective and formidable challenge to the industry in Bermuda.
No dividend is declared for the period."
See next page for financial highlights
Financial Highlights: 2000 $ 1999 $
Sales 4,865,295 3,940,250
Cost of Sales 2,993,897 2,387,555
Gross Profit 1,871,398 1,552,695
General & Administrative Expenses
1,530,625 1,461,827
Amortization 222,758 364,767
Profit/(Loss) From Operations
118,015 (273,899)
Interest & Finance Charges(51,016) (60,146)
Rental & Other Income 144,087 85,080
Net Profit/(Loss) 211,086 (248,965)
Net Profit /(Loss) Per Common Share
$0.38 $(0.55)