1st Quarter Results

RNS Number:2145O
Carlisle Holdings Ltd
31 July 2003




                                                                  Press Release

Carlisle Holdings Limited


              CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE

                       FIRST QUARTER ENDED JUNE 30, 2003

Belize City, Belize, July 31, 2003 -- Carlisle Holdings Limited (NASDAQ: CLHL,
London: CLH) reported revenue of $291.9m (2002 -- $298.1m) and net income of
$10.0m (2002 -- $8.7m) for the quarter ended June 30, 2003, the first quarter of
fiscal 2004.

Earnings per share for the quarter ended June 30, 2003 was $0.17 (2002 - $0.15).

Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:

"OneSource began the year with a solid quarter and continues to meet
expectations. The business environment remains very competitive but we are
encouraged that our new business efforts remain on track and we continue to be
successful in adding new customers. Customer renewals attest to our ability to
provide high quality services at the right price.

"Bright spots in the UK Facilities Services business include a very strong
performance by our Retail Support Services group. In addition, our single brand
is already proving to be an advantage in extending additional services to
existing customers.

"Staffing Services performed up to expectations in a traditionally slow quarter.
Our presence in the public sector staffing markets is assisting our performance
in the current economic climate and winning important new public sector accounts
in very competitive bid situations was a positive development during the
quarter.

"With most of the structural improvements now in place in all divisions,
management will continue to concentrate on efficiency and improving
profitability."






First Quarter Operational Review

Facilities Services

The Facilities Services division reported revenue of $224.3m for the quarter
ended June 30, 2003 (2002 -- $228.7m). Operating income for the quarter ended
June 30, 2003 amounted to $1.8m (2002 -- $0.7m loss).

Facilities Services United States

OneSource met expectations for the first quarter of the fiscal year. Management
at all levels of the organization maintained focus on customer retention, labor
cost control, receivables management and overhead expenses.

New business efforts remained on pace across key geographic areas and strategic
market segments. Over eighty new contracts were signed during the first quarter,
including the Massachusetts Bay Transportation Authority and Wild Adventures
Theme Park in Georgia.

OneSource continues to renew contracts with key customers in competitive re-bid
situations. Competitive pressures remain high in the commercial real estate
market. Overall, there has been no significant change in our customer occupancy
rates.

Business process re-engineering efforts designed to improve back office
operations and ensure efficient standards of production continue to move
forward. Key areas of focus include contract and labor management. Certain
non-core businesses previously identified for closedown continue to wind-down as
planned.

Facilities Services United Kingdom

Revenue in Facilities Services in the UK and Ireland was down from first quarter
last year, but operating income increased as a result of improved contract
management and the reduced overhead base. In addition, we enjoyed good growth in
the quarter in our Retail Support Services activities for DIY and food
retailers. The simplified brand and organization structure has already helped us
open discussions with existing customers about the delivery of other services.
Successes include a recent agreement to provide a developing range of facilities
services to Dairycrest, including security, cleaning, vehicle recording and
other services across an increasing number of UK locations. In addition,
continued successful development in the transport sector was reflected in the
addition of South West Trains to the growing list of train operating company
contracts.

We expect steady quarter-on-quarter progress in Facilities Services as the year
progresses.




Staffing Services

Carlisle Staffing Services reported revenue of $52.7m (2002 -- $55.4m) for the
quarter ended June 30, 2003. Operating income for the quarter ended June 30,
2003 was $1.3m (2002 -- $2.8m).

The decline in performance from last year reflects the ongoing reduced market
demand for both permanent and temporary staff. The first quarter is
traditionally the weakest quarter of the year and there was a small seasonal
revenue decline from the prior quarter. While private sector markets remain very
difficult, the public sector continues to offer opportunities to offset the
general market contraction. Staffing Services achieved two significant public
sector contract wins in the quarter, the first to provide staff in a range of
specialties for Luton Borough Council for the next four years. In addition, our
Celsian brand was awarded sole supplier status to provide a full teacher supply
service for Leicestershire County schools. The outlook is for market conditions
to remain challenging in the short term and we will continue to focus on our
strengths, especially in the public sector.

Financial Services

Financial Services reported another good performance for the quarter ended June
30, 2003. Operating income increased 6% to $7.1m (2002 -- $6.7m). The results
reflect a 4% increase in net interest income, driven by an increase in the
average loan portfolio, offset by a decline in interest margins.

Belize Telecommunications

Revenue for the quarter ended June 30, 2003 amounted to $14.9m (2002 - $14.0m)
and reflects a 25% increase in cellular revenues as customers continue to sign
up for the new GSM cellular service. International GSM roaming was launched on
June 18, 2003 and is expected to provide a valuable source of incremental income
going forward. However, operating costs remain higher than last year and include
the additional depreciation of the new GSM network and increased legal and other
fees related to the new regulatory framework. Operating income in the quarter
ended June 30, 2003 declined to $5.1m (2002 - $6.6m). BTL recently signed a
contract for the replacement of its core billing and customer service systems,
with phased completion through April 2004, to increase operational efficiency
and improve service capabilities.

Associates

The income from associates in the quarter ended June 30, 2003, arises from the
investment in NUMAR and amounted to $1.1m (2002 -- $1.7m). 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  
                                                     June 30,         June 30,
                                                       2003             2002

Net sales
Facilities Services                                   224.3            228.7
Staffing Services                                      52.7             55.4
Telecommunication Services                             14.9             14.0

Total net sales                                       291.9            298.1

Operating income
Facilities Services                                     1.8            (0.7)
Staffing Services                                       1.3              2.8
Financial Services                                      7.1              6.7
Telecommunication Services                              5.1              6.6
Corporate overheads                                   (1.1)            (1.8)

Total operating income                                 14.2             13.6

Associates                                              1.1              1.7
Net interest expense                                  (1.2)            (1.7)

Income before income taxes                             14.1             13.6
Income taxes                                          (2.6)            (2.5)

Income after income taxes                              11.5             11.1
Minority interests                                    (1.5)            (2.4)


Net income                                             10.0              8.7

Earnings per ordinary share:
Diluted and basic                                     $0.17            $0.15
Number of shares -- diluted                           59.5m            59.1m
Number of shares -- basic                             59.4m            59.1m


                                  - Ends -




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