CLS posts drop in full-year profits, EPS

Office space specialist CLS Holdings said on Wednesday that pre-tax profits and earnings per share had both declined in 2020 due to lower portfolio valuation gains.

CLS said profit before tax was down 39.3% to £96.5m and basic EPS was 42.9% lower at 19.0p.

However, CLS stated its "diversified approach and clear strategy" had led to an EPRA net tangible asset per share increase of 5.8% to 345.2p per share.

The value of CLS' property portfolio, now worth roughly £2.2bn, was boosted by £68.5m of acquisitions net of disposals, £54.9m due to the weakening of sterling, £17.9m in capital expenditure and £29.8m from net valuation increases of 1.4% in local currencies.

The FTSE 250-listed firm generated £44.3m in net cash from operating activities in 2020, down from £48.9m in 2019, with £30.1m returned to shareholders in the form of a 7.55p full-year dividend.

Chief executive Fredrik Widlund said: "The strengths of our diversified business model and close relationships with our tenants proved invaluable during a challenging year and led to the delivery of positive financial results with EPRA EPS and EPRA NTA both increasing.

"Our portfolio is strategically well placed for the future, concentrated on great locations and offering high quality, flexible space and leases. CLS' balance sheet remains strong and once the six most recent acquisitions complete, which were exchanged at the end of 2020 and the start of 2021, contracted annualised rent will increase to £115.0m."

As of 0845 GMT, CLS shares were up 2.40% at 223.74p.