Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CLS HOLDINGS USA INC. We currently have 5 research reports from 1 professional analysts.
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CLS HOLDINGS USA INC
CLS HOLDINGS USA INC
Strong 2016 Results
08 Mar 17
CLS has delivered a good set of 2016 year end results with Group revenue at £128.5m (+8%) and Operating profit at £120.2m compared with our forecast of £126.0m and £81.0m respectively. The reduction in Operating profit primarily reflects a profit on revaluation of investment properties at £36.1m, which compared to £98.0m in 2015. EPRA earnings were up strongly at 123p/share (+45%). As expected following the trading update in January, the EPRA NAV has grown substantially to 2456p/share (+18%) primarily reflecting the strong operating performance and FX gains. The EPRS NAV compared to our bottom of the range forecast of 2333p/share. A final dividend of 40p/share has been proposed making an equivalent of c57.7p/share with the interim having been delivered by means of a tender offer buy back. The shares are trading at an unwarranted 31% discount to EPRA NAV of 2456p/share and as such we reiterate our Buy recommendation and increase our target price from 2052p/share to 2161p/share.
Positive news on dividend and liquidity
08 Feb 17
CLS has announced that it intends to make future dividend distributions by way of a twice yearly dividend rather than the previous policy of using tender offer buy backs. The first will be in respect of the 2016 final dividend expected to be announced on 8 March with the prelims. We welcome this move as it will make CLS more comparable with other companies. In addition at the AGM in April a proposed 10 for 1 share split will be proposed to take place following the payment of the final dividend. We view this as another step forward as it should increase liquidity and hence broaden the shareholder base. We maintain our Buy recommendation and believe that the changes will be welcomed by investors.
Panmure Morning Note 24-01-2017
24 Jan 17
Last week CLS issued a trading update saying that it expected its financial results and EPRA NAV for the year ended 2016 to be “ahead of current market forecasts”. The reason given was a strong operating performance and an increase in values of its London and French properties post 1 July. We were at the top of the 3 analyst range with an EPRA NAV forecast of 2333p/share. Although other forecasts have now increased following the update we maintain our estimate ahead of the full year results on Wednesday 8th March. The shares are trading at an unwarranted 30% discount to our NAV forecast which we view as too greater discount and so re-emphasise our Buy recommendation and top of the range 2052p/share target price.
Panmure Morning Note 11-01-2017
11 Jan 17
CLS has announced the acquisition of a portfolio of five freehold properties in the UK from a private investor. The properties are generating rents of £2.5m p.a. from 10 tenants representing a net initial yield of 8%. It is paying £31.4m including costs financed from its existing funds. The portfolio gives CLS the opportunity to work with existing and potential new tenants as well as development potential. We view this as yet another excellent acquisition where own funds are being exchanged for an asset yielding c8%. We maintain our Buy recommendation and top of the range 2052p/share target price.
Panmure Morning Note 23-11-2016
23 Nov 16
CLS has issued a positive trading update for the period 1 July to 22 November. The announcement highlights the continued rebalancing of the portfolio with the disposal of non-core assets in France and London and the acquisition of higher yielding properties in Germany. Occupancy in London remains resilient and vacancy rates have fallen in Germany and France. The geographical spread and weakness of sterling continue to have a positive impact on profitability and NAV. We have increased our 2016/17F adjusted EPS forecasts to 117.0p (+27%) and 105.0p (+4%) respectively to reflect these positive trends. We increase our target price to 2052p/share from 2016p previously reflecting the increase in our 2016F adjusted NAV to 2332p/share from 2290p previously. In our view the shares are currently trading at an unjustified 32% discount to our adjusted NAV. Buy.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Strong set of full-year results, comforting guidance
23 Mar 17
GVC released a solid set of full-year results. Key highlights Pro forma Net Gaming Revenue (NGR) was up 12% at constant currency, or 9% on a reported basis at €895m, in line with the February trading update. Pro forma clean EBITDA was up 26%, at €205.7m, bang in line with AV’s €206m forecasts, translating a three percentage points increase in margin added to the growth in revenue. c.69% of NGR was derived from markets either regulated (including those in the process of regulating) and/or locally taxed (68% in 2015), while 95% of the revenues were derived from GVC’s proprietary platform. Net debt stood at €131.5m or 0.6x clean EBITDA. The board proposed a second special dividend of €0.15, giving a total dividend of €0.30 per share for the year, beating market expectations. Guidance The start of 2017 seems promising as management said that daily NGR had increased by 15% (+16% cc), translating into an 18% (+19% cc) growth in sports labels’ daily NGR and a 6% (+8% cc) increase in games labels’ daily NGR. The gross win margin reached 9.5% while it should move towards the 10% mark on the long term. Regarding dividends, the group confirmed a progressive distribution policy and expects to distribute at least 50% of the group’s free cash flow, starting from 2017. Debt refinancing In the first quarter of 2017, the group issued a €320m Senior Secured Term and Revolving Facility, composed of a €250m term loan (maturity 6 years) and a €70m revolving credit facility (maturity 5 years) used to pay down the Nomura Loan in full.
N+1 Singer - Morning Song 23-03-2017
23 Mar 17
eg solutions (EGS LN) Re-focusing on sales is delivering rewards | Futura Medical (FUM LN) FY results: continued clinical, regulatory and commercial progress | Halfords Group (HFD LN) Confidence in FX mitigation grows; stay at BUY | IFG Group (IFP LN) Top line growth but earnings pressures remain | Realm Therapeutics (RLM LN) FY results in line; on track for Phase II start in 2017 | Safestyle UK (SFE LN) Another good full year performance but valuation up with events | WYG (WYG LN) Mixed conclusion to FY17, reassuring FY18 outlook
Driven by distribution
24 Mar 17
Following results earlier this month, we publish our new forecasts following the segmental consolidation of divisions, and remain cautious relative to consensus (c.2% below at the PBT level in FY18E) mainly due to our UK assumptions. We believe the valuation is relatively attractive, and Inchcape is well placed for further growth given the strength of its balance sheet as it seeks to further utilise its unique global market position.