CLS Holdings Share News (CLI)

(Alliance News) - CLS Holdings PLC on Wednesday reported a half-year loss and lower revenue despite stating progress continues to be make in reshaping the business.

Shares in the London-based commercial property investment company fell 2.1% to 61.95 pence each in London on Wednesday afternoon.

Pretax loss narrowed to GBP24.3 million in the six months to June 30 from GBP65.7 million a year prior. The loss reflected valuation declines on investment properties of GBP32.3 million, although these improved from a GBP82.8 million drop a year ago.

Revenue fell 7.6% to GBP71.9 million from GBP77.8 million with net rental income falling 9.5% to GBP53.3 million from GBP58.9 million as a result of property sales and lease expiries, partly offset by higher income from new lettings and renewals, and indexation.

EPRA net tangible assets per share dropped 2.6% to 209.5p from 215.0p primarily as a result of property valuation declines of 1.6% in local currencies, with some offset from a 3.6% weakening of sterling against the euro. Statutory net asset value per share declined 2.5% to 192.3p from 197.3p.

Chief Executive Officer Fredrik Widlund said CLS continues to make progress in reshaping the business.

"Our main priorities in the first half of 2025 included increasing letting momentum, reducing leverage through asset sales, meeting refinancing targets, and investing strategically in our properties to unlock their potential," he added.

"Lettings in the first half increased by 17% compared to the same period last year, underscoring the significant opportunity within our existing portfolio. Positive leasing momentum has further accelerated post-period end, a trend we expect to continue through the remainder of the year," he said.

Looking ahead, Widlund said CLS enters the second half with "clear strategic direction and cautious optimism, supported by improving market fundamentals, a robust leasing environment and a somewhat more stable macroeconomic outlook."

The interim dividend of 1.30p per share was halved from 2.60p last year, to retain cash to invest in the portfolio.

By Jeremy Cutler, Alliance News reporter

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