Final Results

RNS Number:2275L
Carlisle Holdings Ltd
16 May 2003

Carlisle Group


Carlisle Holdings Limited


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              CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE

              FOURTH QUARTER AND FISCAL YEAR ENDED MARCH 31, 2003

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Belize City, Belize, May 16, 2003-- Carlisle Holdings Limited (NASDAQ: CLHL,
London: CLH) reported revenue of $291.4m (2002 -- $295.4m) and net income
(before non-recurring items) of $9.2m (2002 -- $4.5m) for the quarter ended
March 31, 2003, the fourth quarter of fiscal 2003. Earnings per share (before
non-recurring items) for the quarter ended March 31, 2003 was $0.16 (2002 --
$0.08).


For the year ended March 31, 2003, revenue was $1,194.7m (2002 - $1,246.5m) and
net income (before non-recurring items) was $35.9m (2002 - $26.9m). Earnings per
share (before non-recurring items) for the year ended March 31, 2003 was $0.61
(2002 -- $0.46).



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


"OneSource continued to meet expectations in the fourth quarter. The underlying
business structure has been substantially improved, overhead costs are under
control and we expect the full financial impact of the initiatives taken during
the past year to be reflected in the coming fiscal year. To fully leverage our
growth opportunities, certain under-performing, non-core operations identified
in the fourth quarter are winding down or have been sold, freeing local
management to concentrate additional sales, operational and financial resources
on more promising portions of the business.


"Our UK businesses turned in respectable performances in a very challenging
environment and management continues to carefully control costs as demand
remains depressed. The brand and organizational structure in Facilities Services
has been integrated to present a simplified approach to customers who seek
single or multi-service delivery. The quality of our Staffing Services business
is reflected in our ability to grow in areas such as managed human resources and
healthcare.


"We are confident that we have the right management skills and leaner business
structures in place to continue to meet our goals and improve performance if
business conditions pick up in the coming year."


Fourth Quarter Operational Review


Facilities Services


The Facilities Services division reported revenue of $223.3m for the quarter
ended March 31, 2003 (2002 - $228.3m). Operating income for the quarter ended
March 31, 2003 amounted to $1.7m (2002 - $3.6m loss). Operating income for the
year ended March 31, 2003 amounted to $3.5m (2002 - $3.3m loss) on revenues of
$917.2m (2002 - $973.5m).




Facilities Services United States

OneSource met earnings expectations for the fourth quarter and full fiscal year
2003. Prudent management of existing core businesses and careful expansion of
the customer base have enabled OneSource to successfully manage its service
businesses through the full year.

OneSource returned to a primary focus on four key business elements, which
include: customer retention, labor cost control, receivables management, and
overhead cost reduction. These initiatives were balanced with the company's
continued focus on providing quality facility services at competitive rates.

Fourth quarter janitorial sales were strong. The company's sales and operational
teams are concentrating their efforts in certain key geographic areas and
selective business sectors. OneSource has seen an increase in new business
volume in many metro markets as building and facilities managers move to manage
costs through effective outsourcing efforts.


OneSource continues to renew contracts with key customers in competitive re-bid
situations although there have been volume reductions due to higher vacancy
rates associated with the US economy. Additionally, customer efforts to reduce
costs in the hospitality and other landscaping sectors have slowed growth in
these markets.

Earnings have also benefited from reductions in SG&A costs. Back office
processes were streamlined earlier in the year and are generating savings. Data
communications improvements are progressing in tandem with these and other
management information system improvements. Back office efficiencies will
continue to be a priority.

Facilities Services United Kingdom


Fourth quarter revenue in the UK and Ireland was down from the prior year but
operating income improved, reflecting reduced overheads. Security services was
adversely impacted by a specific bad debt in the quarter, but gross margins have
stabilized. Cleaning services continues to make a solid contribution,
particularly in the Transport and Retail sectors. The Retail Support Services
business enjoyed ongoing growth, expanding business with such key clients as
Tesco and Sainsbury's while continuing to develop in the DIY marketplace.

The priority for the coming year will be to gradually win new contracts while
maintaining the stability of existing business.


Staffing Services


Carlisle Staffing Services reported revenue of $55.2m for the quarter ended
March 31, 2003 (2002 -- $54.8m), in a market of continuing reduced demand.
Operating income for the quarter ended March 31, 2003 amounted to $2.0m (2002 --
$1.8m). Operating income for the year ended March 31, 2003 amounted to $9.8m
(2002 -- $10.7m) on revenues of $222.3m (2002 - $217.5m).


With a few niche exceptions, demand for both permanent placements and temporary
and contract workers remains depressed making top-line growth a challenge.
However, the division continues to maintain tight control on overheads, has
successfully rolled out improved front-office technology and continues to grow
the outsourced Human Resources services, extending the relationship with Ernst &
Young across the UK and implementing on-site services with Camelot. The recent
healthcare acquisition in the Celsian business is beginning to develop combined
opportunities with the existing Care and Health activities. Short-term market
conditions are unlikely to improve but the company's talented staff and reduced
cost base position it well for when general market conditions pick up.


Financial Services


Financial Services reported another record result for the year ended March 31,
2003. Operating income of $7.0m (2002 - $7.6m) for the fourth quarter brought
the full year operating income to $27.5m (2002 -- $24.7m), an 11% increase. The
results reflect a 10% increase in net interest income, driven by a 22% increase
in the average loan portfolio, offset by a decline in interest margins.


Belize Telecommunications


Revenue for the quarter ended March 31, 2003 amounted to $12.9m (2002 - $12.3m)
and remains flat as the negative impact of tariff rebalancing is offset by
volume growth in established and new services, including GSM cellular. Since the
commercial launch of the new GSM service in December 2002, nearly 12,000
customers have taken the service. Operating costs were higher than last year due
to accelerated depreciation of the existing cellular network, the additional
carrying value of the GSM network and legal and other fees related to the new
regulatory framework. Operating income in the quarter ended March 31, 2003
declined to $3.4m (2002 - $6.3m).


Associates


The income from associates in the quarter ended March 31, 2003, arises from the
investment in NUMAR and amounted to $0.9m (2002 -- $0.4m). The business has
benefited from some further improvement in the market price of 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
11,000 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 2,700 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    12 months ended     12 months ended
                                       March 31,         March 31,          March 31,           March 31,
                                        2003               2002              2003                2002

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Net sales
Facilities Services                     223.3               228.3            917.2                      973.5
Staffing Services                       55.2                54.8             222.3                      217.5
Telecommunication Services              12.9                12.3             55.2                       55.5

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Total net sales                         291.4               295.4            1,194.7                   1,246.5

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Operating income
Facilities Services                     1.7                 (3.6)            3.5                        (3.3)
Staffing Services                       2.0                 1.8              9.8                        10.7
Financial Services                      7.0                 7.6              27.5                       24.7
Telecommunication Services              3.4                 6.3              19.2                       26.0
Corporate overheads                     (1.5)               (2.0)            (6.5)                      (7.2)

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Operating income                        12.6                10.1             53.5                       50.9

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Associates                              0.9                 0.4              4.9                         3.1
Net interest expense                    (1.2)               (1.3)            (6.3)                      (6.2)

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Income before income taxes              12.3                9.2              52.1                       47.8
Income taxes                            (2.2)               (2.2)            (10.0)                    (11.9)

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Income after income taxes               10.1                7.0              42.1                       35.9
Minority interests                      (0.9)               (2.5)            (6.2)                      (9.0)

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Net income                              9.2                 4.5              35.9                       26.9

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Earnings per ordinary share:
Diluted                                 $0.16               $0.08            $0.61               $0.46
Number of shares - diluted              59.3m               59.0m            59.2m               58.9m

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The results for the three months and the twelve months ended March 31, 2003 are
stated before non-recurring items of $0.7m and $0.3m net income, respectively
(2002 - $2.4m and $3.7m net charges, respectively). Non-recurring items in
fiscal 2003 principally comprise net gains on asset disposals less employee
severance costs. Net income for the three months and the twelve months ended
March 31, 2003, after non-recurring items, amounted to $9.9m and $36.2m,
respectively (2002 - $2.1m and $23.2m, respectively) and earnings per share was
$0.17 and $0.61, respectively (2002 - $0.04 and $0.39, respectively).

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     - Ends -


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