CIHL.L Regulatory News (CIHL)

28 Oct 2005 17:08

BB Holdings Ltd28 October 2005 BB HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005 Belize City, Belize, October 28, 2005 -- BB Holdings Limited (NASDAQ: BBHL,London: BBHL) ("BB Holdings") reported revenue of $205.8m (2004 -- $196.9m) andnet income from continuing operations of $7.8m (2004 -- $8.8m) for the quarterended September 30, 2005, the second quarter of fiscal 2006. Diluted earningsper share from continuing operations for the quarter ended September 30, 2005was $0.13 (2004 -- $0.15). For the six months ended September 30, 2005, revenue was $403.1m (2004 --$391.8m) and income from continuing operations was $17.4m (2004 -- $17.9m).Diluted earnings per share from continuing operations for the six months endedSeptember 30, 2005 was $0.29 (2004 -- $0.30). Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said: "The demerger of the UK and Ireland businesses was successfully concluded inAugust 2005 and the company's priority now is to maximize the performance andvalue of its continuing businesses. "In the second quarter, $2.3m ($0.04 per share) of one-time legal andprofessional costs were incurred, principally relating to the demerger of the UKoperations as Carlisle Group Limited and the cash shell dividends of Seashell IILimited and Bombshell Limited. "OneSource produced another good quarter and met its performance objectives. Itcontinues its good track record on customer retention and new businessdevelopment is bringing in additional opportunities in a very competitivemarket. "As the leading and largest banking institution in Belize, the Belize Bankcontinues to achieve solid loan portfolio growth and has made an excellentcontribution to the company's net income."Management in both divisions continues to focus on providing high qualityservice and cost-effective solutions to clients, improving efficiency andcontrolling costs."Second Quarter Operational Review Facilities Services The Facilities Services division, comprising OneSource in the US, reportedoperating income for the quarter ended September 30, 2005 of $2.5m (2004 --$2.0m) on revenues of $205.8m (2004 -- $196.9m). Operating income for the sixmonths ended September 30, 2005 amounted to $4.7m (2004 -- $3.9m) on revenues of$403.1m (2004 -- $391.8m). OneSource met performance objectives for the six months ended September 30,2005. Continued success in account retention, expanded client services and newbusiness development continue to drive a strong revenue run rate. OneSource secured more than twenty major contract wins and renewals during thesecond quarter in addition to the expansion of services with eight of the topfifty customers. OneSource continues to distinguish its service offering through value addedprograms including strategic account management and the newly launched OneSourceGreenSweep(TM) environmentally responsible facility maintenance program.Management continues to emphasize strategic efficiency improvements that drivemore value into service operations, back-office environments and clientpartnerships. Financial Services For the three months ended September 30, 2005, Financial Services reported asolid performance with operating income amounting to $7.5m (2004 -- $7.4m). For the six months ended September 30, 2005, operating income increased by 5.4%to $15.5m (2004 -- $14.7m). The results for the six months reflect a 13.9%increase in net interest income which is principally driven by a 9.4% increasein the loan portfolio in the six month period. Discontinued Operations In August 2005, the company completed the demerger of its United Kingdom andIreland businesses into Carlisle Group Limited, a Belizean company listed on theAlternative Investment Market in London. As a consequence of the demerger, theconsolidated net income of the demerged company for the period up to the date ofthe demerger, amounting to $1.2m (2004 - $1.4m) and $2.3m (2004 - $2.6m) for thethree month and six month periods ended September 30, 2005, respectively, hasbeen reclassified and included as income from discontinued operations in thesummarized consolidated statements of income. Background Information Through its OneSource brand, BB Holdings 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. Through the BelizeBank, the company is the largest, full service commercial and retail bankingoperation in Belize with a head office in Belize City and twelve branchesextending into each of the six regions of Belize. The principal operations ofthe bank are commercial lending, consumer lending, deposit-taking and relatedbanking activities 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 BB Holdings, which may cause actual results, performance orachievements to differ materially from anticipated results, performance orachievements. Factors that might affect such forward looking statements includeamong others, overall economic and business conditions, the demand for BBHolding's services, competitive factors, regulatory approvals and theuncertainty of consummation of future acquisitions. Additional factors which mayaffect BB Holdings' businesses and performance are set forth in submissions byBB Holdings Limited with the United States Securities and Exchange Commission,(the SEC), which are available without charge from the SEC at www.sec.gov. For further information contact: Makinson Cowell BB Holdings Limited+1 (212) 994 9044 UK +44 (0)20 7248 6700 Belize +501 227 7178 Note: This and other press releases are available at the Company's web site:http://www.bbholdingslimited.com. BB Holdings LimitedFinancial InformationSummarized Consolidated Statements of Income (unaudited)US dollars in millions except per share data 3 months ended 3 months ended 6 months ended 6 months ended September 30, September 30, September 30, September 30, 2005 2004 2005 2004----------------------------------------------------------------------------------------------------------Net salesFacilities Services 205.8 196.9 403.1 391.8---------------------------------------------------------------------------------------------------------- Total net sales 205.8 196.9 403.1 391.8----------------------------------------------------------------------------------------------------------Operating income (loss)Facilities Services 2.5 2.0 4.7 3.9Financial Services 7.5 7.4 15.5 14.7Corporate expenses (3.3) (1.0) (4.4) (1.9)----------------------------------------------------------------------------------------------------------Total operating income 6.7 8.4 15.8 16.7----------------------------------------------------------------------------------------------------------Associates 2.4 1.3 3.9 2.5 Net interest expense (0.2) (0.3) (0.5) (0.1)----------------------------------------------------------------------------------------------------------Income before income taxes 8.9 9.4 19.2 19.1 Income taxes (0.4) (0.1) (0.6) (0.4)----------------------------------------------------------------------------------------------------------Income after income taxes 8.5 9.3 18.6 18.7 Minority interests (0.7) (0.5) (1.2) (0.8)----------------------------------------------------------------------------------------------------------Income from continuing operations 7.8 8.8 17.4 17.9Income from discontinued operations 1.2 1.4 2.3 2.6----------------------------------------------------------------------------------------------------------Net income 9.0 10.2 19.7 20.5----------------------------------------------------------------------------------------------------------Earnings per ordinary share: Basic and diluted:Continuing operations $0.13 $0.15 $0.29 $0.30Discontinued operations $0.02 $0.02 $0.04 $0.04Net Income $0.15 $0.17 $0.33 $0.34 Number of shares - basic 60.2m 60.4m 60.1m 60.3mNumber of shares - diluted 60.7m 60.9m 60.7m 60.9m---------------------------------------------------------------------------------------------------------- BB Holdings LimitedFinancial InformationSummarized Consolidated Balance Sheets (unaudited) September 30, March 31, 2005 2005 $m $m AssetsService Businesses current assets:Cash and cash equivalents 11.3 19.9Trade accounts receivable - net 91.2 170.8Other current assets 25.7 28.8-------------------------------------------------------------------------------Total Service Businesses current assets 128.2 219.5Goodwill - net 175.9 400.4Other long-term assets 101.9 118.1-------------------------------------------------------------------------------Total Service Businesses assets 406.0 738.0Total Financial Services assets 483.2 461.3-------------------------------------------------------------------------------Total assets 889.2 1,199.3------------------------------------------------------------------------------- Liabilities and shareholders' equityService Businesses current liabilities:Short-term debt 36.1 46.2Other current liabilities 64.9 147.1-------------------------------------------------------------------------------Total Service Businesses current liabilities 101.0 193.3Total Service Businesses long-term liabilities 62.6 65.9-------------------------------------------------------------------------------Total Service Businesses liabilities 163.6 259.2Total Financial Services liabilities 386.0 364.7-------------------------------------------------------------------------------Total liabilities 549.6 623.9 Total shareholders' equity 339.6 575.4-------------------------------------------------------------------------------Total liabilities and shareholders' equity 889.2 1,199.3------------------------------------------------------------------------------- BB Holdings LimitedFinancial InformationSummarized Consolidated Statements of Cash Flows (unaudited) For the six months ended September 30 2005 2004 $m $m Cash flows from operating activitiesNet income 19.7 20.5Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5.4 6.6 Other 3.5 0.5 Changes in assets and liabilities - net (20.6) 2.8-------------------------------------------------------------------------------Net cash provided by operating activities 8.0 30.4-------------------------------------------------------------------------------Cash flows from investing activitiesPurchase of property plant and equipment (net of disposals) (2.6) (6.8)Decrease (increase) in interest-bearing deposits 12.1 (4.9)(Increase) in loans to customers (34.1) (47.1)Other (1.5) (4.6)-------------------------------------------------------------------------------Net cash utilized by investing activities (26.1) (63.4)-------------------------------------------------------------------------------Cash flows from financing activities(Decrease) increase in short-term debt (1.2) 6.6Increase in deposits 21.9 21.4Decrease (increase) in restricted cash deposits 2.4 (1.3)Dividends (12.0) (9.3)Other 0.3 0.4-------------------------------------------------------------------------------Net cash provided by financing activities 11.4 17.8-------------------------------------------------------------------------------Currency translation adjustments - 0.1Net change in cash, cash equivalents and due from banks (6.7) (15.1)Cash, cash equivalents and due from banks at beginning of period 46.8 54.2-------------------------------------------------------------------------------Cash, cash equivalents and due from banks at end of period 40.1 39.1------------------------------------------------------------------------------- - ENDS - This information is provided by RNS The company news service from the London Stock Exchange