CLS (LON:CLI) Posts Earnings Results

CLS (LON:CLI) issued its quarterly earnings results on Wednesday. The company reported GBX 2.70 earnings per share for the quarter, Digital Look Earnings reports. CLS had a negative net margin of 36.01% and a negative return on equity of 6.67%.

Here are the key takeaways from CLS’s conference call:

• Near-term earnings pressure intensified: H1 EPRA earnings per share fell 32.5% to £0.027, and full-year guidance was reduced to £0.046–£0.055 per share due to asset disposals, prior tenant departures and the Spring Gardens tenant not extending its lease.
• No interim dividend will be paid; the board will instead consider a single final dividend after year-end earnings are known. Portfolio valuations declined 4.6% in local currency, pushing LTV up to 51.6%, above the company’s 35%–45% target range.
• CLS made progress on deleveraging and refinancing, completing or exchanging approximately £75.7 million of property sales and remaining on track for its £100 million 2026 sales target. Refinancings covering 89% of 2026 maturities are completed, credit-approved or agreed, with no additional lender covenants reported.
• Leasing activity remained steady, with £5.7 million of annual rent secured in H1 and a further £1.9 million signed in July, while vacancy held at 14.5%. Management sees potential to increase contracted rent from £100.4 million to more than £125 million through leasing vacant space and refurbishment projects, although timing depends on capital availability and market conditions.

CLS Stock Down 1.8%

Shares of LON CLI opened at GBX 46.30 on Thursday. The company has a debt-to-equity ratio of 121.99, a current ratio of 0.29 and a quick ratio of 0.59. The stock has a market capitalization of £184.33 million, a PE ratio of -3.67 and a beta of 1.02. CLS has a one year low of GBX 45.30 and a one year high of GBX 64.70. The business’s fifty day moving average price is GBX 49.31 and its 200-day moving average price is GBX 51.79.

Insiders Place Their Bets

In other news, insider Fredrik Widlund acquired 20,109 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were acquired at an average cost of GBX 46 per share, for a total transaction of £9,250.14. Company insiders own 60.13% of the company’s stock.

Analyst Upgrades and Downgrades

CLI has been the topic of a number of research analyst reports. Berenberg Bank dropped their target price on shares of CLS from GBX 58 to GBX 51 and set a “buy” rating on the stock in a research note on Wednesday. Peel Hunt restated a “reduce” rating and set a GBX 45 price target on shares of CLS in a research note on Tuesday, August 4th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of GBX 48.

CLS Company Profile

We are a commercial property investment company with a £2.1bn portfolio listed on the Premium Main Market on the London Stock Exchange, specialising in future-focused office space in the UK, Germany and France. Through geographical diversification, local expertise and an active management approach, we transform office properties into sustainable, modern spaces that help our tenants’ businesses to grow.