Half Year Results for the six months to 30 September 2011

Released: 24/11/2011

Helical returns to profit

Financial Highlights:

• Profit before tax of £4.1m (2010: loss £3.2m)
• Group’s share of net rental of £11.0m (2010: £8.4m) – up 31%
• Development profits of £1.8m (2010: loss of £9.2m)
• Gain on revaluation of investment portfolio for the half year, after sales, purchases and capital expenditure of 0.3% (0.9% like for like)
• Ratio of net borrowings to property portfolio of 43% (31 March 2011: 45%)
• Cash and unused bank facilities of over £50m
• Diluted EPRA earnings per share of 4.1p (2010: loss of 9.1p)
• Diluted EPRA net assets per share at 254p (31 March 2011: 253p)
• Interim dividend maintained at 1.75p per share (2010: 1.75p)

Operational Highlights:

• Strategy: The balance within the property portfolio is close to achieving our target of 75% investment and 25% development stock
• Sales of £67.2m of assets during the period, with further disposals of circa £80m expected by March 2012.
• Acquisition of £85.4m of investment assets, of which £73.6m occurred post the period end:
• Land and buildings in Corby Town Centre acquired in November 2011 for £70m at an initial 8% yield. Assets provide significant short and long term opportunities to extract income through asset management activities
• Significant planning consents successfully achieved:
• Mitre Square, London EC3: consent for new 273,000 sq ft of offices and 3,000 sq ft of retail/restaurant use
• Fulham Wharf, SW6: consent for 100,000 sq ft supermarket and 463 residential units secured on behalf of Sainsbury’s, for which Helical has received an initial £1.5m fee
• Parkgate, Shirley: amended planning consent for 85,000 sq ft Asda supermarket and a 70,000 sq ft retail park
• Retirement villages: consents for open market housing obtained at Milton (89 units) and Exeter (69 units).
• Agreement signed post the period end with an institutional client of Standard Life Investments to jointly develop a 66,000 sq m retail park in Gliwice, Poland.
• Significant progress made in respect of our pre-let food store development programme.
• Progress being made on our major mixed use schemes, particularly at our 1.5m sq ft project at White City.

Giles Weaver, Chairman, commented:

“Helical has made good progress towards creating a substantial surplus of rents over finance and administration costs which should enable the Group to deliver continuing operating profits for the foreseeable future.”

Michael Slade, Chief Executive, added:

“The next two years will be tough for the market as the impact of macro-economic factors affect rental flows, covenant strengths and valuation yields. However, we have undertaken significant activity to re-base our portfolio over the last few years and are now in good shape to benefit from continuing and growing income surpluses.”

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Half Year Results for the six months to 30 September 2011 (in pdf format).

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