Headline numbers don't tell the real story at CLS Holdings (CLI). The drop in profits simply reflected a lower revaluation surplus of £98m compared with £186m a year earlier. In fact, net rental income was up a fifth at £99m, and adjusted net assets per share grew by 17.4 per cent to 2,083.2p.
Concerns over the group's exposure to high-end residential apartments look to have been overdone, and while the shares are down from late last year, they have made a recovery from the lows seen in early February. In fact, CLS's prime residential scheme in London represents less than 6 per cent of book value.
Elsewhere, at the group's Vauxhall site, the Miles Street car park was sold to Urbanest, with plans for a 454-bed, 30-storey student tower, netting £24.8m to go towards development of the rest of the scheme.
Given the fall in the share price since last year, CLS has decided to initiate, in April, a one-in-57 share buy-back at 1,810p a share. This is a 12 per cent premium over the share price on the day of the announcement and, together with earlier buybacks, is the equivalent of a 3.1 per cent yield.
Analysts at Peel Hunt are forecasting adjusted net asset value of 2,395p at 31 December 2016, compared with 2,083p a year before.
| CLS HOLDINGS (CLI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,611p | MARKET VALUE: | £678m | |
| TOUCH: | 1,609-1,621p | 12-MONTH HIGH: | 2,023p | LOW: 1,358p |
| DIVIDEND YIELD: | * | TRADING PROPERTIES: | £58.6m | |
| DISCOUNT TO NAV: | 11% | |||
| INVESTMENT PROP: | £1.37bn | NET DEBT: | 90% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 818 | 37.7 | 82 | nil |
| 2012 | 963 | 56.1 | 106 | nil |
| 2013 | 1094 | 71.4 | 147 | nil |
| 2014 | 1521 | 237 | 449 | nil |
| 2015 | 1810 | 151 | 306 | nil |
| % change | +19 | -36 | -32 | - |
Ex-div: na Payment: na *See text for the share buyback details | ||||
