CLS Holdings reported a full-year pre-tax loss of £72m last year and said it was restructuring the company in a move which will see Sten Morstedt step down as chairman.

The Swedish property company said in its annual results this morning that its loss, which compares against a £176.6m profit the year before, was due to a ‘significant downturn’ in the property market in the second half of last year.

Its adjusted net asset value at 764.2p a share dropped 7.3% from a high of 824.4p a share on 31 December 2006. The company said the fall in UK property values at the end of last year had caused a write down of £68.1m of its UK property portfolio which had resulted in the reduced adjusted net asset value.

'Tough year'

CLS said the sale of its 33% interest in the Shard development in the London Bridge Quarter had ‘crystallised the fall in value of our interest in its net assets by £38.4m.’

Dubbing 2007 a ‘tough year’ it said it was considering a number of options to restructure the group, including relocating to another established European city and re-listing in London or another mainstream European market.

Chairman Sten Mortstedt has also announced he will step down as chairman in May and will be replaced by Anders Boos. Mortstedt will, however, continue as vice chairman.

CLS’ outlook for 2008 is also bearish and it said it would be another hard year where property values and its NAV could decline further.

It said: ‘During 2008 we intend to focus all of our energy and creativity on our core property operations. During the first half of 2008 it is our intention to sell some selected properties in the UK, France and Germany with a view to generating cash for potential purchasing opportunities in the future.’