CLS (LON:CLI) Posts Quarterly Earnings Results

CLS (LON:CLI) announced its quarterly earnings data on Friday. The company reported GBX (12.60) earnings per share (EPS) for the quarter, Digital Look Earnings reports. CLS had a negative return on equity of 7.34% and a negative net margin of 38.97%.

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

• Signed approximately £70m of leases (highest in seven years) with stronger leasing in H2; vacancy is 14.5% but concentrated in a few assets and management expects it to reduce as pre-lets and targeted lettings convert.
• Refinanced or repaid all of the peak 2025 maturities (~£373–400m) with no change to the average cost of debt (3.8%) and extended average debt maturity to 3.6 years, smoothing the near-term refinancing profile.
• Disposals of £144m in 2025 and planned £100–150m of 2026 sales have reduced net debt by ~£90m, but portfolio valuation falls left LTV at 50%, still above the 35–45% target.
• EPRA EPS fell 17% to 7.6p and EPRA NTA declined 7% to 200.7p; the board maintains a final dividend of 2.7p (total 4p) and offers an enhanced scrip option to preserve capital.
• Management is rebasing the business with stricter capital allocation, lower overall CapEx, a focus on pre-lets/short payback investments, and selective asset conversions (residential, hotel, life science) to drive medium‑term value.

CLS Trading Down 11.1%

LON CLI traded down GBX 6.50 on Friday, hitting GBX 52. 5,456,739 shares of the company were exchanged, compared to its average volume of 536,860. The company has a debt-to-equity ratio of 121.03, a current ratio of 0.74 and a quick ratio of 0.59. CLS has a twelve month low of GBX 50.78 and a twelve month high of GBX 73.50. The firm has a market capitalization of £207.02 million, a P/E ratio of -3.64 and a beta of 0.92. The company’s 50 day moving average price is GBX 60.53 and its 200-day moving average price is GBX 59.47.

Analysts Set New Price Targets

Several research firms recently commented on CLI. Peel Hunt reissued a “hold” rating and set a GBX 70 target price on shares of CLS in a research note on Wednesday, December 3rd. Berenberg Bank upped their price target on CLS from GBX 70 to GBX 80 and gave the company a “buy” rating in a report on Monday, January 26th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of GBX 75.

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.