Bermuda Press (Holdings) Limited –Announcement of 2022 Results

Hamilton, Bermuda – 15 March 2023 – In a filing with the Bermuda Stock Exchange (“BSX”), Bermuda Press (Holdings) Limited. (The “Company”; Ticker: BPH.BH) reported their 2022 results. The full filing stated:

Link to Annual Report 2022

Hamilton, Bermuda

March 15, 2022

The Bermuda Press (Holdings) Limited (‘BPHL’) today reported 2022 a comprehensive net loss of $76,000 for the year ended 30 September 2022, a $304,000 decrease compared with 2021.

Overall revenue increased 3% to $19,675,000 compared to $19,095,000 in the prior year, while operating expenses increased 4.7% to $19,744,000 as compared to $18,840,000 in the prior year.  The most significant increase in expenses was related to wage costs that increased $892,000 for the year.  This increase in wage costs was mainly due to the resumption of employee benefits and end of COVID related wage reductions, as well as, inflationary wage adjustments.  The Company continues to restructure operations and reduce expenses to offset the rising costs of raw materials and the significant inflationary pressures post pandemic.  Additionally, the company incurred significant legal costs defending freedom of speech and media rights.  The Board and management continue to evaluate and adjust operations to return the company to profitability in FY23

The Company generated positive cash flows of $423,000 for the year from its rental income and restructured operations.  Positive cash flows allowed the Company to reinstate the quarterly dividend payments of $0.07 per share to shareholders in December 2021.  The market price for BPHL’s shares traded most recently at $8.00, compared with $4.50 a year ago, and in March 2023 the Board increased the dividend to $0.10 per share.

The Company’s local real estate holdings remain the most profitable segment, with an overall occupancy rate of 97% in 2022, of which more than 54% is occupied by third party tenants.

The Board will continue to review your Company’s performance with the goal of maintaining quarterly dividend payments to shareholders.

During 2022, some of the key areas of focus were: 

·         The Royal Gazette rebuilding its online presence with new registration and paywall functionality.

·         The RG Top Ten campaign celebrating Bermuda’s top ten employers returned as an in person event in FY22 for the first time since FY19.  The event was very well received and the FY23 event has already exceeded participation expectations. 

·         The Royal Gazette launched the RG Podcast Sound Lounge, offering a new venue to engage with its audience on news and topics that are important to the residents of Bermuda.

·         The Royal Gazette launched Navigate Bermuda, a standalone business section dedicated to local businesses that operate in global markets.  This product’s objective is raise awareness in both category expertise, as well as, diversity and inclusion in key business leadership roles.  Navigate achieves this by showcasing local subject leadership in all forms of insurance, re-insurance, finance, banking and international business.

·         Bermuda.com continued its transition to meet the needs of the new tourism landscape by relaunching its digital App on the same platform as The Royal Gazette in order to take advantage of the new features of Google Analytics 4.

·         Stationery Store Plus completed its first year of operation with notable success, the second location has allowed for expansion of its STEAM and art supply offering.

·         Office Solutions successfully launched a self-service portal on its website which allows its clients to place equipment service calls and order supplies online. 

·         The Company continued to review and restructure the operations at Bermuda Press to reduce administration costs and implement a strategy for sustained success in the post pandemic environment.

The total number of shares owned or influenced by Directors and Officers of the Company at 30 September 2022 amounts to 118,058 shares, up from 114,058 shares at 30 September 2021.  No rights to subscribe for shares in the company have been granted to, or exercised by any Director or Officer.  The Company recently bought BPHL shares on the BSX pursuant to Listing regulation Section IIB (6.14,2.i), believing this use of cash flow served to return value to our shareholders as the Company shares were being impacted by the lack of liquidity and were trading below book value.

BPHL’s Annual General Meeting is scheduled to be held by video conference for 10:30am on Friday, 31 March 2022.  Please email Sabrina Simmons by email at sls@bphl.bm or alternatively, please call 1-441-278-0102 for details. 

BACKGROUND

The Bermuda Press (Holdings) Limited is the publically traded parent company of The Royal Gazette Limited, Office Solutions Limited,  the Bermuda Press Limited, Island Press Limited, E-MOO (Bermuda) Limited, and Bermuda Directories Limited. The group also includes a number of other Bermuda-based companies that hold real estate assets.

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