CLS Holdings posts strong interim results

LONDON (ShareCast) - (ShareCast News) - Investment group CLS Holdings (LSE: CLI.L - news) reported an increase in net assets, pre-tax profit and operating cash flow in the first six months of the year. In the six months to the end of June, the group, which owns assets in Britain, Sweden, France and Germany, posted a 7.9% increase year-on-year in net assets to 1,914.3p, while the value of its portfolio of property investments rose 4.5% to £1.37bn.

The FTSE 250 company reported a 10.4% increase in pre-tax profit to £80.2m, while operating cash flow rose 13.3% year-on-year to £24.7m.

Sten Mortstedt, the group executive chairman, said the group remained well positioned to generate cash and was confident CLS would benefit from future business opportunities.

However, he also warned that the Eurozone was still short of a complete economic recovery.

"The UK economy has continued to grow and the commercial property market has continued to flourish in the first half of the year," he said.

"Within the Eurozone, however, continued strength in the German economy contrasts with that of France, and a solid economic recovery across Europe may still be some way off." CLS shares were up 3.80% to 1,940.00p at 0819 BST on Wednesday.