"We are pleased to report a profit of $749,706 or $1.43 per common share for the year to September 30th, 2001, an increase of 34% over the previous year.
Sales were relatively flat for the year with the cost of sales increasing by $452,178, leaving a gross profit reduction of $391,231 or 9%. However this was countered by a reduction in general and administrative expenses of $544,856 or 16% resulting in an improvement in profit from operations of $178,897, up 44%.
Rental and other income is consistent with the previous year, except for the sale of our shares in Antigua Printing and Publishing Company the prior year. Interest expense is down reflecting the drop in rates.
Cash flow increased marginally (10%) to $897,940 with the balance sheet reflecting this and other strong working capital improvements. Receivables and inventories have declined over the prior year while accounts payable and accrued liabilities have also been reduced.
The performance for the year is encouraging, and a significant improvement over the previous year. Notwithstanding this, we are aware that the commercial printing industry together with print related publishing activities in Bermuda are in a long-term decline. It is for these reasons your Board of Directors have sanctioned the development of opportunities outside Bermuda.
In the Notes to Consolidated Financial Statements, you will see that U.S. and Caribbean subsidiaries have been created in anticipation of expanding internationally in 2002. These companies are Global Directories (Caribbean) Ltd and Global Directories (USA) Inc. The third company is Global Directories (Bermuda) Ltd.
During the year under review, Mr. Bruce Gordon joined your Board of Directors and more recently Messrs. David Dodwell and Dennis Tucker resigned from the Board. We would like to welcome Mr. Gordon to the Board and thank Messrs. Dodwell and Tucker for their many years of service and contribution to the company.
As a public company listed on the Bermuda Exchange, it should be noted that the directors and officers of the company hold 319,646 common shares and 51,934 preference shares. No rights to subscribe for shares in the company have been granted to any director or officer and there are no service contracts with any director or officer. No dividend is declared for the year under review.
Finally, the Board thanks all of our company members for their hard work and enthusiasm for making the company more efficient and customer driven." Signed, Randy French, Chairman.