The staffing division of Carlisle Holdings has reported reduced income for its second quarter because of a 20% fall in permanent placement revenues.

Operating income before goodwill amortisation was $2.8m, down from $3.3m in Q2 last year. Year-on-year growth in overall revenue was 9%, rising to $58.5m. Revenue from temps showed ‘modest organic growth’.

The recent changes to vacation pay rules are expected to have a ‘negative impact’ on the company, putting pressure on growth and margins. The current economic situation is also affecting business, the company said.

Commenting on the results, chairman Lord Ashcroft warned: ‘The full impact of the terrorist event and related developments, together with the faltering economy, have not yet filtered through to our services businesses. The medium-term consequences are not yet measurable.’ The UK businesses produced ‘a satisfactory result’ given the context of a slowing economy, Ashcroft added.

Carlisle acquired Stirling Recruitment in July to increase its presence in the office and industrial markets in southern England.