Property investment company Cls Hldgs (LON:CLI) today reported that pre-tax profit had jumped by 113% to £28.1m in the six months to the end of June. After-tax profits rose 137% to £24.7m and earnings per share increased 142% to 51.8p with adjusted EPS up 246% to 39.4p. The news caused shares in CLS to rise by 9.7% to 505.5p.
Executive chairman Sten Mortstedt said: "The group has had an encouraging first half of 2010, which demonstrates the quality of our assets, the strength of our balance sheet and the benefits of diversification into liquid corporate bonds generating a much higher return than bank deposits. Our results have been achieved against a backdrop of tough economic and political conditions. The period has seen a sovereign debt crisis, concern over the stability of the Eurozone, further bank stress testing, a coalition government in the UK, and anxiety over the durability of the economic recovery. The fundamentals of our business remain sound, we are heartened by the signs of new tenant demand, we have a solid, diversified portfolio, and we have substantial cash available for new investment. There are opportunities and challenges ahead and we are well prepared to meet them both."
CLS has a property portfolio in London, France, Sweden and Germany valued at around £792.3m. Earlier this month the company exchanged contracts to buy Apex Tower in New Malden for £21.46m including costs. Apex Tower is located on the opposite side of the High Street to CI Tower, which is also owned by CLS. The deal marked CLS’s first acquisition in the London market since 2006.
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