CIHL.L Regulatory News (CIHL)

29 Jul 2005 15:30

Carlisle Holdings Ltd29 July 2005 Press ReleaseCarlisle Holdings Limited CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2005 Belize City, Belize, July 29, 2005 -- Carlisle Holdings Limited (NASDAQ: CLHL,London: CLH) reported revenue of $359.1m (2004 -- $337.8m) and net income of$10.7m (2004 -- $10.3m) for the quarter ended June 30, 2005, the first quarterof fiscal 2006. Earnings per share from continuing operations for the quarter ended June 30,2005 was $0.18 (2004 - $0.17). Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said: "OneSource had a good start to the year and met its performance goals. Byhelping clients effectively manage costs, OneSource is successfully retainingcustomers in a competitive environment as well as attracting new business in itsmain markets. "UK Facilities Services turned in a solid performance and achieved growth inrevenue and operating income despite an extra week in the prior year firstquarter. Results reflect efforts to successfully expand contracts with existingcustomers as well as the addition of new contracts. "The recently integrated Staffing Services business continues to progressivelyachieve greater efficiencies and good quarter-on-quarter revenue growth. Thedivision is investing in new locations to serve the Office and Technologysectors and also sees good prospects for growth in Managed HR Solutions in theyear ahead. "Management in all divisions continues to focus on improving efficiency andcontrolling costs." First Quarter Operational Review Facilities Services The Facilities Services division reported revenue of $241.0m for the quarterended June 30, 2005 (2004 -- $232.2m). Operating income for the quarter endedJune 30, 2005 amounted to $3.0m (2004 -- $2.2m). OneSource met performance expectations for the first quarter. Continuedoperational focus on quality assurance and client based total cost managementprograms resulted in continued solid customer retention. These programs alsosupported first quarter strategic sales initiatives which contributed 11 new andexpanded multi-state clients, and over 50 primary market contracts. In addition to these strategic growth objectives, management continues to pursueefficiency initiatives in labor management, administrative and back officesupport functions, and safety programs throughout OneSource's national coverageof 187 metro areas in 45 states. UK Facilities Services produced good results in the first quarter. Revenuegrowth was helped by several factors including an earlier than anticipated peakseasonal workload in retail merchandising services and a solid contribution fromcleaning services. In addition, security services benefited from the jointventure arrangement in Ireland which, as expected, has successfully addedrevenues to that operation's fixed cost base. A new contract gain to providesecurity services for the Department of Constitutional Affairs will helpprogress in coming quarters. In both the US and the UK, customer retention and effective cost controls remaintop priorities. Staffing Services Carlisle Staffing Services reported revenue of $118.1m (2004 -- $105.6m) for thequarter ended June 30, 2005. Operating income for the quarter ended June 30,2005 was $1.1m (2004 -- $1.6m). In spite of an additional week in the first quarter of last year, the divisionachieved good sales growth with average weekly sales showing a positive trendthrough the quarter, driven by contract and temporary volumes, offset by reducedpermanent fee income in the quarter. However, operating income in the currentquarter includes one less week of contribution. Greater efficiencies areprogressively being achieved now that the integration of Professional Staff islargely complete and investment in new locations for Office and Technologymarkets has been made. Performance in the Technology/Telecoms markets continuesto be strong and the division expects to further develop its brand presence inthis market while also targeting the Office, Scientific and Managed HR Solutionsareas for organic development. Financial Services Financial Services reported another good performance for the quarter ended June30, 2005. Operating income increased by 9.6% to $8.0m (2004 - $7.3m). The results for the quarter reflect a 14.3% increase in net interest incomedriven by an improvement in the Bank's net interest margin from 7.7% to 8.4%. Background Information Through its OneSource brand, Carlisle Group is a leader in the outsourcedfacilities services sector in the US and provides janitorial, landscaping,general repair and maintenance and other specialized services for more than10,000 commercial, institutional and industrial accounts. In the UK and Ireland,Carlisle Group is also a leading provider of business services. CarlisleFacilities Services is a national provider for a broad range of people-dominatedfacilities services (specializing in the industry sectors of Retail, Transportand Public Sector). Carlisle Staffing Services continues to develop asignificant position in the staffing services sector with a presence in themarkets for Professional Services, Office and Industrial, Public Services,Scientific and Telecoms/Technology and the developing Human Resources Servicesmarket. This business has over 80 locations with a weekly temporary/contractorbase of over 9,000 workers employed across more than 5,000 clients. TheFinancial Services division, operating through The Belize Bank, is the largest,full service, commercial and retail banking operation in Belize. Forward Looking Statements Certain statements in this press release constitute "forward looking statements"within the meaning of the Private Securities Litigation Reform Act of 1995. Inparticular, statements contained herein regarding the consummation and benefitsof future acquisitions, as well as expectations with respect to future revenues,operating efficiencies, net income and business expansion, are subject to knownand unknown risks, uncertainties and contingencies, many of which are beyond thecontrol of Carlisle, which may cause actual results, performance or achievementsto differ materially from anticipated results, performance or achievements.Factors that might affect such forward looking statements include among others,overall economic and business conditions, the demand for Carlisle's services,competitive factors, regulatory approvals and the uncertainty of consummation offuture acquisitions. Additional factors which may affect Carlisle's businessesand performance are set forth in filings by Carlisle Holdings Limited with theUnited States Securities and Exchange Commission. For further information contact: Carlisle Group Makinson CowellBelize 5012 277178 212-994-9044 Note: This and other press releases are available at the Company's web site:http://www.carlisleholdings.com. Carlisle Holdings LimitedFinancial InformationSummarized Consolidated Statements of Income (unaudited)US dollars in millions except per share data 3 months ended 3 months ended June 30, June 30, 2005 2004------------------------- ----------- -----------Net sales Facilities Services 241.0 232.2 Staffing Services 118.1 105.6------------------------- ----------- -----------Total net sales 359.1 337.8------------------------- ----------- -----------Operating incomeFacilities Services 3.0 2.2Staffing Services 1.1 1.6Financial Services 8.0 7.3Corporate expenses (1.5) (1.1)------------------------- ----------- -----------Total operating income 10.6 10.0------------------------- ----------- -----------Associates 1.5 1.2 Net interest expense (0.7) (0.3)------------------------- ----------- -----------Income before income taxes 11.4 10.9 Income taxes (0.2) (0.3)------------------------- ----------- -----------Income after income taxes 11.2 10.6 Minority interests (0.5) (0.3)------------------------- ----------- -----------Net income 10.7 10.3------------------------- ----------- -----------Earnings per ordinary share: Basic and diluted:Net Income $0.18 $0.17 Number of shares - basic 60.3m 60.3mNumber of shares - diluted 60.8m 60.8m------------------------- ----------- ----------- - Ends - This information is provided by RNS The company news service from the London Stock Exchange