CLS nearly quadruples profit

7th Mar 2011 08:08

Property investment company CLS reported close to a fourfold increase in annual profit, despite difficult conditions and spending cuts in the UK, after gains from revaluation of investment properties.Pre-tax profit rose 283% to £70.9m in the year ended 31 December 2010. Net assets rose 16% to £357.2m. Property revaluation gained £30.1m compared with a loss of £6.7m the year before. CLS said its £877m property investment portfolio in London, France, Germany and Sweden benefited from its exposure to four different economies.The group, which recently bought Apex Tower in New Malden for £21.5m, also said it plans to pursue acquisition opportunities in the short term.Executive chairman Sten Mortstedt commented, "Our balance sheet is strong, so we intend to exploit attractive acquisition opportunities as they arise and benefit from some very interesting development opportunities both in London and in Sweden."Net assets per share rose 19% to 766.7p, while portfolio value rose 3.5% on a like for like basis to £876.9m.CLS issued an ambivalent outlook. "The economic signals have rarely been more mixed. In an era of government austerity, inflation is rising, credit is tightening and sovereign debt is a concern."The group also said signals from the property sector are uncertain. "We are letting space, arrears are negligible and interest rates are at all time lows; yet, due to the banks' restrictive credit policies, there are fewer buyers for high-yielding property."