CLS Holdings profits, revenues fall due to Covid pandemic

Commercial property investment company CLS Holdings reported lower interim profits and revenues on the back of a fall in valuations and higher vacancies due to the Covid-19 pandemic.

Pre-tax profit for the six months to June 30 fell to £24.7m from £31.5m a year earlier. Revenue slipped to £67.6m to £71.1m. An unchanged interim dividend of 2.35p a share was declared.

Contracted rent rose to £109.9m from £107.9m.

"We are hopeful we will see some improvements in the second half of the year as people continue to return to the office and our recent increased level of enquiries translates into letting deals," said chief executive Fredrik Widlund.

"Our first half 2021 performance has naturally been shaped by the pandemic with higher vacancy and stable property valuations. This was compounded by a strengthening of sterling which has resulted in lower NTA and earnings.”

The company also unveiled its sustainability strategy, committing to reaching net-zero carbon emissions by 2030, among a range of other goals. It estimated it will need to invest a total of £58m over nine years to reach its target.