Preliminary Results for the year to 31 March 2008

Released: 05/06/2008

Financial Highlights

• Profit before tax, revaluation and loss on sale of investment properties of £8.5m (2007: £19.5m).


• Valuation of investment properties down 11.3%/£32.8m (2007: up 14.4%/£40.6m).


• Loss after tax of £12.3m (2007: profit £52.1m).


• Diluted EPRA net asset value, including trading and development stock surplus, down 6% to 352p per share (2007: 374p).


• Diluted EPRA earnings per share of 11.6p (2007: 16.6p) – down 30%.


• Final dividend maintained at 2.75p per share (2007: 2.75p).


• Increasingly diversified activities deliver unleveraged return of 7% above IPD benchmark.


• Significant latent potential within Company’s development and trading portfolio.


• Ratio of net borrowings to value of property portfolio 38.6% (2007: 28.9%).

Giles Weaver, Chairman, commented:

“The next 12 months will be a difficult time for the sector and there may well be further setbacks to the economy during that time. However, I am confident that we have the skills, financial resources and diversity of projects to take advantage of whatever opportunities the future brings.”

Michael Slade, Chief Executive, added:

“Helical anticipated the rise in yields by greatly reducing the proportion of its assets held in the investment portfolio and by diversifying its exposure into a broader spread of activities including planning deals, mixed use developments, retirement villages and retail warehouse developments in Poland. This approach has delivered an unleveraged return of 7% above benchmark returns as measured by IPD despite our valuation yields rising 90 basis points, in line with the market. There remains significant latent potential to be unlocked within our development and trading portfolio which should continue to mitigate any underlying slide in market values.

With threats come opportunity and Helical has put together many of its best deals in difficult markets. We need to remain patient whilst the major adjustment in prices is unfolding. However, we expect to re-enter the market during 2009 and 2010 and rebuild our investment portfolio at prices that will serve us well during the next upswing in the property cycle.”

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Preliminary Results for the year to 31 March 2008 (in pdf format).

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