RNS No 1960d
CLS Holdings plc
22nd September 1997
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1997
Highlights:
30.06.97 30.06.96
Net rental income #15.5 m #14.7 m up 5.4%
Operating profit #14.0 m #13.2 m up 5.8%
Profit before taxation #5.0 m #4.5 m up 11.2%
Profit after taxation #4.9 m #4.4 m up 11.8%
Net dividend per share 2.3 p 2.2 p up 4.5%
Net assets per share 142.1 p 130.9p up 8.6% (140.5p 31.12.96)
Gearing 117 % 137 % down 14.6 %(128 % 31.12.96)
* One Leicester Square prelet
* Citadel Holdings plc floated on AIM
* Citadel House, Fetter Lane lease restructuring - refurbishment commences
shortly
* New Malden House disposed of for #10.425m
* 30 residential apartments under construction
EXTRACTS FROM THE CHAIRMAN'S STATEMENT:
"The Group has continued its strong and stable performance with improvements
in all key financial measures.
"We are continuing to make strong progress and are optimistic that we will
continue to provide a good return for shareholders."
CONTACT:
Sten Mortstedt, Executive Chairman CLS Holdings plc 0171 582 7766
Glyn Hirsch, Chief Executive CLS Holdings plc
Brian Basham/Clare Abbot Basham & Coyle 0171 253 3300
CLS Holdings plc
Interim Report 1997
Chairman's Statement
The Board is pleased to announce the Group's results for the six months ended
30 June 1997.
Financial Highlights:
30.06.97 30.06.96
Net rental income #15.5 m #14.7 m up 5.4%
Operating profit #14.0 m #13.2 m up 5.8%
Profit before taxation #5.0 m #4.5 m up 11.2%
Profit after taxation #4.9 m #4.4 m up 11.8%
Net dividend per share 2.3 p 2.2 p up 4.5%
Net assets per share 142.1 p 130.9p up 8.6% (140.5p 31.12.96)
Gearing 117 % 137 % down 14.6 %(128 % 31.12.96)
The Group has continued its strong and stable performance with improvements in
all key financial measures.
Financial
Profit on ordinary activities before taxation was #5.0 million (1996 #4.5
million). Earnings per share were 4.4 pence (1996: 4.1 pence).
Turnover for the period rose to #15.8 million (1996: #15.0 million). This
comprised #15.5 million net rental income (1996: #14.7 million) and #0.3
million other income (1996: #0.3 million). Tax on ordinary activities
represents irrecoverable advance corporation tax expected to arise for the
first half of the year. The Group will continue to benefit from brought
forward losses and capital allowances for the full year.
The Board has declared a net interim dividend of 2.3 pence per share (1996:
2.2 pence) which will be paid on 29 November to shareholders on the register
on 10 October 1997. A scrip dividend alternative will be available to
shareholders.
The unaudited balance sheet at 30 June 1997 incorporates the property
valuation carried out by Allsop & Co. at 31 December 1996. This shows net
assets of #159.1 million (#155.4 million at 31 December 1996), equating to net
assets per share of 142.1 pence; at 31 December 1996 net assets per share
were 140.5 pence.
Gearing as at 30 June 1997 was 117 per cent. (128 per cent at 31 December
1996.)
Commercial Property
We have continued to improve the value of our existing assets and have found
new areas where we believe we can create shareholder value in the long term.
The Board announced on 22 September 1997 that it had signed contracts for the
preletting of the major part of its One Leicester Square property. It will
shortly commence the refurbishment of this building as a major new
entertainment venue. Big Beat group, which is 35 per cent owned by Royal Bank
of Scotland Development Capital, have agreed to enter into a new 25 year FRI
lease at an initial rent of #2 million per annum. When combined with other
lettings agreed in the property this gives a total initial annual rent of
#2.222 million per annum. Big Beat operates 20 venues in Scotland. One
Leicester Square represents the company's first venture in England. It is now
exploiting its success through the Leicester Square development and through
other international ventures.
In April we announced a significant lease restructuring at Citadel House,
Fetter Lane, London EC4. We intend to commence the refurbishment of this
4,190 sq m (45,101 sq ft) building shortly. The structure of the transaction
allows us to complete the refurbishment whilst maintaining a significant
portion of the existing rental income. Demand for midtown offices remains
particularly strong.
In June we sold our freehold interest in New Malden House, New Malden for
#10,425,000. This was the first large disposal for four years and realised a
profit after costs of #85,000 over the valuation at 31 December 1996. After
repayment of debt the disposal released approximately #3.2 million in cash.
We have invested approximately #4.0 million in the ordinary shares of Citadel
Holdings plc, which commenced trading on the AIM market on 23 July 1997.
Citadel Holdings plc is a newly incorporated company formed to invest in
French commercial office property. A circular was sent to shareholders on 25
June 1997 setting out details concerning Citadel and CLS's initial investment.
CLS shareholders approved the transaction on 17 July 1997. Through the
formation of Citadel, CLS and its shareholders have gained an exposure to the
French property market at an opportune time. Through CLS's shareholding and
performance warrants which give the right to invest a further #8.6 million,
there exists significant upside potential for CLS.
At Great West House, Brentford, West London which we purchased last year at an
initial yield of 15.7 per cent, we have agreed with Samsung, one of the major
tenants that it will extend its existing leases from October 1999 until
December 2003. The revised lease also includes an uplift from the existing
level of rent. In addition Samsung has taken a new lease on the 10th floor of
the building on the same terms. In order to accommodate Samsung on the 10th
floor we took a surrender of that floor from Forte who had a break
clause in December 1998. This transaction has secured our rental income
stream and enhanced the value of the property.
We have purchased London House in Hammersmith, London W6, a property which
comprises approximately 1,389 sq m (14,951 sq ft), which is run as a business
centre producing a gross income of #414,000 per annum. After expenses the net
income is #188,000 per annum giving an initial yield of 13.7 per cent on the
purchase price of #1.375 million. This purchase has provided us with access
into the short-term letting market which we believe has substantial cash flow
rewards. The acquisition of a property for less than #100 per square
foot is remarkably good value given the current increase in rents and capital
values in Hammersmith. Since the acquisition we have increased the rental
income stream by a further 5 per cent.
At Chancel House, Neasden, London W10, we have accepted a surrender of
Ladbrokes plc existing lease for a reverse premium of #1 million. Ladbrokes
paid the premium to release their obligations under a lease expiring in June
2000 where the contracted rent was #240,000 per annum. It is our intention to
re-let the space as a business centre and work is well underway to achieve
this.
Residential Property
In February we announced that we had been granted planning consent for three
residential apartments at 142-144 Holland Park, London W11. We are pleased to
report that this scheme was completed on time and within our budget. The
buoyant London residential market has enabled us to exceed greatly our initial
sales target of #825,000. Since 30 June 1997 two apartments have
been sold and we have agreed to sell the third apartment, all for a total
value of #998,000. The profit will be seen in the second half. Our
residential properties under development have been transferred to trading
stock at cost to the Group.
We currently have 20 apartments under construction at Vauxhall Walk, London,
SE11 and have started work on creating 10 apartments at 44/50 New Oxford
Street, London, WC2.
We are continuing to make strong progress and are optimistic that we will
continue to provide a good return for our shareholders.
S. A. Mortstedt
Executive Chairman
Consolidated Profit & Loss Account
6 months to 6 months to 12 months to
30.06.97 30.06.96 31.12.96
# 000 # 000 # 000
(unaudited) (unaudited)
Turnover
Net rental income 15,501 14,707 30,408
Other property related
income 305 278 1,303
15,806 14,985 31,711
represented by:
Continuing operations 15,806 14,903 30,329
Acquisitions - 82 1,382
Administrative expenses (1,258) (1,300) (2,694)
Net property expenses (546) (453) (1,043)
(1,804) (1,753) (3,737)
Operating Profit 14,002 13,232 27,974
represented by:
Continuing operations 14,002 13,147 26,695
Acquisitions - 85 1,279
Gains from sale of
investment properties 85 164
Profit on Ordinary Activities
Before Interest 14,087 13,232 28,138
Interest receivable and
financial income 567 303 592
Interest payable and
related charges (9,650) (9,034) (18,422)
Profit on Ordinary Activities
Before Taxation 5,004 4,501 10,308
Tax on ordinary
activities (141) (150) (871)
Profit For The Period 4,863 4,351 9,437
Dividends (2,575) (2,421) (6,070)
Retained Profit For The
Period 2,288 1,930 3,367
Earnings per Share 4.4p 4.1p 8.7p
'000 '000 '000
Ordinary shares in issue
Cumulative total 111,970 110,027 110,596
Weighted average
number during the
period 110,831 106,002 108,074
Consolidated Balance Sheet
30.06.97 30.06.96 31.12.96
# 000 # 000 # 000
(unaudited) (unaudited)
Fixed Assets
Tangible assets 354,630 351,485 364,965
Investments 41 41 41
354,671 351,526 365,006
Current Assets
Stocks: trading
properties 1,113 83 365
Debtors - amounts
falling due after
more than one year 3,403 3,817 3,751
Debtors - amounts
falling due within
one year 4,130 3,406 4,180
Investments 212 - 202
Cash at bank and in
hand 17,612 9,905 16,786
26,470 17,211 25,284
Creditors: amounts
falling due within
one year (26,278) (26,037) (27,686)
Net Current Assets/
(Liabilities) 192 (8,826) (2,402)
Total Assets Less
Current Liabilities 354,863 342,700 362,604
Creditors: amounts
falling due after
more than one year (195,720) (198,691) (207,213)
Net Assets 159,143 144,009 155,391
Capital and Reserves
Called up share
capital 27,993 27,507 27,649
Share premium account 45,075 43,070 43,603
Revaluation reserve 43,984 33,017 42,692
Other reserves 18,948 19,706 19,300
Profit and loss
account 23,143 20,709 22,147
Total Equity Shareholders'
Funds 159,143 144,009 155,391
Cash Flow Information
30.06.97 30.06.96 31.12.96
# 000 # 000 # 000
(unaudited) (unaudited)(unaudited)
Cash flow from rental
activities 15,880 15,053 30,775
Cash flow from
operating activities 13,951 12,733 27,540
Interest costs (8,026) (6,972) (16,072)
Cost of dividends (1,832) (1,429) (3,173)
New loans - 21,645 49,363
Repayment of loans (11,618) (12,384) (31,753)
Purchase of interest
rate caps - (358) (686)
Purchase and
enhancement of
properties (531) (13,838) (19,568)
Net (decrease) /
increase in cash
and liquid resources 1,833 (1,044) 5,042
END
IR AUAVKBRKKUAR
Cls (LSE:CLI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cls (LSE:CLI)
Historical Stock Chart
From Jul 2023 to Jul 2024
