CLS's assets on the up

published 15 August 2012

Property investment company CLS Holdings saw the value of its assets increase in the first half of the year.

Net assets per share in the six months to June 30th rose 5.6% to 1037.7p from 983.1p at the end of 2011. The aggregate value of net assets rose 3.1% to £458.5m from the year-end figure of £444.9m, as the company enjoyed a boost from receiving planning permission for its Spring Mews mixed-use development and completed the second of its German pre-lets.

Group revenue in the first half of the year edged up to £40.0m from £39.9m the year before, but profit before tax fell to £27.3m from £37.1m, in part because the gain on the revaluation if investment properties was lower this time round at £10.1m versus £14.1m last year.

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The company prefers to strip out what it sees as one-off items, and on an EPRA (European Platform of Regulatory Authorities) basis, profit before tax moved up to £17.9m from £16.4m the year before.

Rental income at £33.1 million (2011: £32.7 million) was up 3.1% like-for-like in local currencies, helped by the property portfolio's occupancy rate hitting its highest level in over ten years at 96.5%.

Earnings per share (EPS) fell to 47.8p from 69.9p in the first half of 2012. EPRA EPS fell to 30.7p from 37.4p the year before.

"The group continues to be well placed to deliver good returns to shareholders: generating a high income surplus with a very low cost of debt; maintaining low vacancy levels; adding value through selective development; and being well financed with substantial liquid resources," said Executive Chairman Sten Mortstedt.

"I remain confident that the group is in an excellent position to benefit from any attractive investment opportunities in the short to medium term," he added.

No interim dividend was announced.

The shares were up 34.5p to 710p in the afternoon trading session.

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