2nd Quarter Results
October 30 2003 - 12:00PM
UK Regulatory
RNS Number:5130R
Carlisle Holdings Ltd
30 October 2003
Press Release
Carlisle Holdings Limited
CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE
SECOND QUARTER ENDED SEPTEMBER 30, 2003
Belize City, Belize, October 30, 2003 -- Carlisle Holdings Limited (NASDAQ:
CLHL, London: CLH) reported revenue of $289.9m (2002 -- $302.0m) and net income
of $10.0m (2002-- $8.5m) for the quarter ended September 30, 2003, the second
quarter of fiscal 2004. Diluted earnings per share for the quarter ended
September 30, 2003 was $0.17 (2002 - $0.14).
For the six months ended September 30, 2003, revenue was $581.8m (2002 -
$600.1m) and net income was $20.0m (2002 - $17.2m). Diluted earnings per share
for the six months ended September 30, 2003 was $0.33 (2002 - $0.29).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"The overall Facilities Services business continues to demonstrate marked
improvement. Revenues are marginally down year on year primarily due to the
divestiture and closure of certain non-core operations in the US in the fourth
quarter of fiscal year 2003, offset by some net organic growth.
Staffing Services continues to be faced with weak market demand but remains well
positioned with a broad range of service offerings. The managed human resources
solutions business is an expanding niche for the division and demand for these
services is showing encouraging growth.
In the second half of the fiscal year our focus will remain on customer
retention, with top priority being continued operational efficiency
improvement."
Second Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $224.7m for the quarter
ended September 30, 2003 (2002 - $233.4m). Operating income for the quarter
ended September 30, 2003 amounted to $1.7m (2002 - $0.7m). Operating income for
the six months ended September 30, 2003 amounted to $3.5m (2002 - nil) on
revenues of $449.0m (2002 - $462.1m).
The Facilities Services business continues to demonstrate overall improvement
for the second quarter of the fiscal year and six months ending September 30,
2003. OneSource continued to meet its performance goals and improved the quality
of revenues during the second quarter. UK Facilities Services results were
behind plan, principally due to the general economic environment and costs
associated with new contract start-ups.
Total revenues were marginally down compared to the prior year, principally due
to the recent divestiture or closure of certain non-core operations in the US.
However, OneSource continues its controlled growth strategy and achieved a 3
percent organic growth rate in its revenues for the first half of the fiscal
year as compared with the same period last year.
Ongoing re-engineering efforts continue to improve back office processes.
Customer retention, effective cost management on existing business, together
with selective organic growth strategies remain key priorities.
Staffing Services
Carlisle Staffing Services reported revenue of $49.9m for the quarter ended
September 30, 2003 (2002 -- $54.8m), in a market of continuing reduced demand.
Operating income for the quarter ended September 30, 2003 amounted to $0.7m
(2002 -- $2.6m). Operating income for the six months ended September 30, 2003
amounted to $2.0m (2002 -- $5.4m) on revenues of $102.6m (2002 - $110.2m).
The year on year decline in revenues reflects the continuing reduced market
demand and lower volumes in the general marketplace for both permanent and
temporary staff. The second quarter traditionally displays a seasonal decline,
particularly in the educational sector summer non-trading period.
In other sectors, revenue was more stable. Business retention and renewal was
strong and new business included key contracts for managed resource solutions.
The company continues to focus on its strengths, pushing forward on identified
sector opportunities and further developing managed HR solutions opportunities.
Our broad business mix provides some opportunities to offset the challenging
market conditions, which are expected to continue in the short term.
Financial Services
Financial Services reported another strong performance for the quarter ended
September 30, 2003. Operating income increased 6% to $7.1m (2002 -- $6.7m). In
the six-month period, operating income increased by 6% to $14.2m (2002 -
$13.4m). The results reflect a 5% increase in net interest income, driven by a
16% increase in the average loan portfolio, offset by reduced margins.
Belize Telecommunications
Revenue for the quarter ended September 30, 2003 amounted to $15.3m (2002 -
$13.8m), driven by increased cellular revenues, up 32% since the launch of GSM
service in December 2002. The results reflect higher operating costs, including
increased depreciation for the new GSM network and higher license fees.
Operating income increased in the quarter ended September 30, 2003 to $5.3m
(2002 - $4.5m).
A second full telecommunications license holder is expected to launch service at
the end of October and therefore competitor activity is expected to increase.
Associates
The income from associates in the quarter ended September 30, 2003, arises from
the investment in NUMAR and amounted to $1.1m (2002 -- $1.5m). The business
continues to benefit from stabilization in the world market for edible oils.
Background Information
Through its OneSource brand, Carlisle Group is a leader in the outsourced
facilities services sector in the US and provides janitorial, landscaping,
general repair and maintenance and other specialized services for more than
10,000 commercial, institutional and industrial accounts. In the UK and Ireland,
Carlisle Group is also a leading provider of business services. Carlisle
Facilities Services is a national provider for a broad range of people-dominated
facilities services (specializing in the industry sectors of Retail, Transport,
Public Sector and Distribution). Carlisle Staffing Services continues to develop
a significant position in the staffing services sector with a presence in the
markets for Professional Services, Office and Industrial, Public Services and
the developing Human Resources Services market. This business has over 70
locations with a weekly temporary/contractor base of circa 7,000 workers
employed across more than 5,000 clients. The Company also has interests in
Financial Services and Telecommunication Services businesses.
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. In
particular, statements contained herein regarding the consummation and benefits
of future acquisitions, as well as expectations with respect to future revenues,
operating efficiencies, net income and business expansion, are subject to known
and unknown risks, uncertainties and contingencies, many of which are beyond the
control of Carlisle, which may cause actual results, performance or achievements
to 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 of
future acquisitions. Additional factors which may affect Carlisle's businesses
and performance are set forth in filings by Carlisle Holdings Limited with the
United States Securities and Exchange Commission.
For further information contact:
Carlisle Group Makinson Cowell
561-368-3899 212-994-9044
Note: This and other press releases are available at the Company's web site:
http://www.carlisleholdings.com.
Carlisle Holdings Limited
Financial Information
Summarized 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,
2003 2002 2003 2002
Net sales
Facilities Services 224.7 233.4 449.0 462.1
Staffing Services 49.9 54.8 102.6 110.2
Telecommunication Services 15.3 13.8 30.2 27.8
Total net sales 289.9 302.0 581.8 600.1
Operating income
Facilities Services 1.7 0.7 3.5 -
Staffing Services 0.7 2.6 2.0 5.4
Financial Services 7.1 6.7 14.2 13.4
Telecommunication Services 5.3 4.5 10.4 11.1
Corporate overheads (1.1) (1.6) (2.2) (3.4)
Total operating income 13.7 12.9 27.9 26.5
Associates 1.1 1.5 2.2 3.2
Net interest expense (1.0) (1.8) (2.2) (3.5)
Income before income taxes 13.8 12.6 27.9 26.2
Income taxes (2.1) (2.7) (4.7) (5.2)
Income after income taxes 11.7 9.9 23.2 21.0
Minority interests (1.7) (1.4) (3.2) (3.8)
Net income 10.0 8.5 20.0 17.2
Earnings per ordinary share:
Diluted $0.17 $0.14 $0.33 $0.29
Basic $0.17 $0.14 $0.34 $0.29
Number of shares - diluted 59.9m 59.2m 59.8m 59.1m
Number of shares - basic 59.5m 59.2m 59.5m 59.1m
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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