REG-Helical Bar PLC Half Yearly Report - Part 2
Released: 26/11/2009
Part 2 : For preceding part double-click [nRn1Z1077D]
Newmarket * Acquired 2007 I
Amberley Court, * Partial refurbishment of 31,000 sq ft office campus 95%
Crawley I
166, Buchanan Street, Glasgow * Part of a multi-let office block in Glasgow City Centre 100%
* Acquired 2005 I/T
Retail - in town Description Helical Share
Morgan Department Store, Cardiff * 160,000 sq ft retail - Borders, White Stuff, Molton Brown, 100%
Shoon I
* 56 flats, the remaining 11 of which were sold since the
year end
* Completed 2008
Morgan & Royal Arcades, Cardiff * 56 units opposite new St David's 2 Shopping Centre 100%
* Acquired 2005 I
1-5 Queens Walk, East Grinstead * 37,000 sq ft of retail opposite a proposed new retail scheme 87%
* Acquired 2005 I
Retail - out of town Description Helical Share
Otford Road Retail Park, Sevenoaks * 43,000 sq ft with open A1 consent let to Wickes, Currys and Carpetright 75%
* Acquired 2003 I
Stanwell Road, Ashford * 32,000 sq ft Focus DIY store 75%
* Acquired 2004 I
215 Brixham Road, Paignton * 24,000 sq ft Focus store with open A1 consent (including food) 67%
* Acquired 2005 I
Industrial Description Helical Share
Waterside, Fleet * 54,000 sq ft of industrial property with redevelopment potential. Acquired 2000 100%
I
Westgate, Aldridge * 208,000 sq ft 80%
* Let to Greenstar Environmental Ltd I
* Acquired 2006
Dales Manor, Sawston, Cambridge * 70,000 sq ft of industrial property 67%
* Acquired 2003 I/D
Standard Industrial Estate, North Woolwich * 50,000 sq ft estate 95% let 60%
* Acquired 2002 I
Hawtin Park, Blackwood * 249,000 sq ft estate, 78% let 100%
* Acquired 2003 I
Golden Cross, Hailsham * 102,000 sq ft unit recently vacated 100%
* Acquired 2001 I
Bushey Mill Lane, Watford * 24,000 sq ft fully let with development potential 80%
* acquired 2006 D
Independent Review Report to the Members of Helical Bar Plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2009 which comprises the consolidated income statement, the
consolidated statement of comprehensive income, the consolidated balance sheet,
the consolidated cash flow statement, the consolidated statement of changes in
equity, and the related notes. We have read the Chairman's Statement, Financial
Highlights and Property Portfolio contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with guidance contained
in ISRE (UK and Ireland) 2410 "Review of Interim Financial Information performed
by the Independent Auditor of the Entity." Our review work has been undertaken
so that we might state to the Company those matters we are required to state to
them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusion we have
formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, ''Interim Financial Reporting,'' as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2009 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
Grant Thornton UK LLP
Chartered Accountants
London
26 November 2009
Consolidated Income Statement
For the Half Year to 30 September 2009
Unaudited Unaudited Audited
Half Year To 30 September Half Year To 30 September Year To
2009 2008 31 March
£000 £000 2009
£000
Notes
Revenue 3 22,753 55,174 81,770
Net rental income 4 8,516 8,238 17,682
Development (losses)/profits (3,700) 7,853 (7,704)
Trading losses (10) - (514)
Share of results of joint ventures (13) 59 1,846
Other operating income 161 2,547 6,752
Gross profit before loss on sale and revaluation of 4,954 18,697 18,062
investment properties
Net loss on sale and revaluation of investment properties 5 (4,397) (32) (66,670)
Gain on sale of investments 11 - 1,892 1,892
Gross profit/(loss) 557 20,557 (46,716)
Administrative expenses (3,988) (5,735) (8,090)
Operating (loss)/profit (3,431) 14,822 (54,806)
Finance costs 6 (6,537) (3,329) (9,718)
Finance income 835 787 2,082
Change in fair value of derivative financial instruments 16 1,576 (210) (13,412)
Foreign exchange (losses)/gains (1,275) 628 3,999
(Loss)/profit before tax (8,832) 12,698 (71,855)
Tax on (loss)/profiton ordinary activities 7 878 (4,311) 18,359
(Loss)/profit after tax (7,954) 8,387 (53,496)
- attributable to minority interests (33) - 143
- attributable to equity shareholders (7,921) 8,387 (53,639)
(Loss)/profit for the period (7,954) 8,387 (53,496)
(Loss)/earningsper 1p share 8
Basic (7.5p) 9.2p (56.6p)
Diluted (7.5p) 8.8p (56.6p)
Consolidated Statement of Comprehensive Income
For the Half Year to 30 September 2009
Unaudited Unaudited Audited
Half Year To Half Year To Year To
30 September 30 September 31 March
2009 2008 2009
£000 £000 £000
(Loss)/profitfor the period (7,954) 8,387 (53,496)
Reclassification of prior year fair value adjustment - - (1,028)
realisedin the year on disposal of available-for-sale
investments 4,333 (1,892) 5,170
Fair value movements on available-for-sale investments (1,291) 530 (1,159)
Associated deferred tax on fair value movements (141) - (309)
Exchange difference on retranslation of net investments
inforeign operations
Total comprehensive income and expense for the period (5,053) 7,025 (50,822)
- attributable to equity shareholders (5,020) 7,025 (50,965)
- attributable to minority interests (33) - 143
(5,053) 7,025 (50,822)
Consolidated Balance Sheet
At 30 September 2009
Unaudited Unaudited Audited At
At At 31 March
30 September 30 September 2009
2009 2008 £000
Notes £000 £000
Non-current assets
Investment properties 9 205,328 309,361 241,287
Owner occupied property, plant and equipment 1,678 1,870 1,745
Available-for-sale investments 11 15,900 9,899 13,310
Investment in joint ventures 3,985 6,136 7,924
Goodwill 30 30 30
Deferred tax asset 7 3,792 - 3,440
230,713 327,296 267,736
Current assets
Land, developments and trading properties 10 199,790 188,282 210,415
Available-for-sale investments 11 9,705 12 7,684
Trade receivables and other receivables 12 34,017 54,253 40,591
Corporation tax receivable 54 - 868
Cash and cash equivalents 13 51,068 78,920 72,776
294,634 321,467 332,334
Total assets 525,347 648,763 600,070
Current liabilities
Trade payables and other payables 14 (44,219) (72,116) (51,215)
Borrowings 15 (35,682) (51,166) (48,155)
(79,901) (123,282) (99,370)
Non-current liabilities
Borrowings 15 (206,373) (238,908) (249,297)
Derivative financial instruments 16 (9,558) (1,135) (14,337)
Deferred tax provision - (15,471) -
(215,931) (255,514) (263,634)
Total liabilities (295,832) (378,796) (363,004)
Net assets 229,515 269,967 237,066
Consolidated Balance Sheet (continued)
At 30 September 2009
Unaudited Unaudited Audited
At At At
30 September 30 September 31 March
Notes 2009 2008 2009
£000 £000 £000
Equity
Called-up share capital 17 1,336 1,239 1,336
Share premium account 70,378 44,038 70,378
Revaluation reserve - 56,933 529
Capital redemption reserve 7,478 7,478 7,478
Other reserves 291 291 291
Retained earnings 149,908 161,427 158,494
Own shares held - (1,596) (1,597)
Equity attributable to equity holders of the parent 229,391 269,810 236,909
Minority interests 124 157 157
Total equity 229,515 269,967 237,066
Consolidated Cash Flow Statement For the Half Year to 30 September 2009
Unaudited Unaudited Half Year To Audited
Half Year To 30 September 2008 Year To
30 September 2009 £000 31
£000 March 2009
£000
Cash flows from operating activities
(Loss)/profitbefore tax (8,832) 12,698 (71,855)
Depreciation 164 149 321
Revaluation (surplus)/deficit on investment properties (102) - 68,005
Net interest payable 5,702 2,542 6,999
Gain on sale of investments - (1,892) (1,892)
Loss/(gain) on sales of investment properties 4,499 32 (1,335)
(Gain)/loss on valuation of derivative financial instruments (1,576) 210 13,412
Share based payment charge/(credit) 392 (1,654) (1,363)
Share of results of joint ventures 13 (59) (1,846)
Other non-cash items (830) 18 (448)
Cash flows from operations before changes in working capital (570) 12,044 9,998
Change in trade and other receivables 6,461 (10,355) 3,503
Change in land, developments and trading properties 11,209 (1,767) (23,632)
Change in trade and other payables (8,962) 5,358 (8,688)
Cash flows from changes in working capital 8,708 (6,764) (28,817)
Cash inflow/(outflow) generated from operations 8,138 5,280 (18,819)
Finance costs (7,287) (7,875) (16,992)
Finance income 948 972 2,497
Dividend received from joint ventures 3,926 - -
Tax received 810 85 1,439
Tax paid - (250) (331)
Cash flows from financing (1,603) (7,068) (13,387)
Cash flows from operating activities 6,535 (1,788) (32,206)
Cash flows from investing activities
Purchase of investment property (2,850) (9,750) (15,024)
Sale of investment property 35,868 8,061 10,340
Purchase of shares by ESOP - (3,107) (3,107)
Sale of shares by ESOP 6 - -
Cost of cancelling interest rate swap (3,203) - -
Purchase of investments - - (5,048)
Sale of investments - 2,100 2,100
Sale of plant and equipment 28 - 14
Purchase of leasehold improvements, plant and equipment (107) (29) (77)
29,742 (2,725) (10,802)
Cash flows from financing activities
Issue of shares - 1,535 27,972
Borrowings drawn down 7,895 85,891 93,250
Borrowings repaid (62,984) (18,593) (18,398)
Equity dividends paid (2,896) (2,490) (4,130)
(57,985) 66,343 98,694
Net (decrease)/increase in cash and cash equivalents (21,708) 61,830 55,686
Cash and cash equivalents at start of period 72,776 17,090 17,090
Cash and cash equivalents at period end 51,068 78,920 72,776
Consolidated statement of changes in equity
At 30 September 2009
Capital Own shares held
Share Share Revaluation redemption Other reserves Retained £000 Minority interest
capital premium reserve reserve £000 earnings £000 Total
£000 £000 £000 £000 £000 £000
At 31 March 2008 1,222 42,520 57,072 7,478 291 163,911 (3,992) 157 268,659
Total comprehensive expense - - - - - (50,965) - 143 (50,822)
Dividends paid - - - - - (4,130) - - (4,130)
Revaluation deficit - - (56,360) - - 56,360 - - -
Realised on disposals - - (183) - - 183 - - -
Issue of shares 114 27,858 - - - - - - 27,972
Minority interest - - - - - - - (143) (143)
Purchase ofshares - - - - - - (3,107) - (3,107)
Performance share plan - - - - - (1,363) - - (1,363)
Own shares held - - - - - (5,502) 5,502 - -
At 31 March 2009 1,336 70,378 529 7,478 291 158,494 (1,597) 157 237,066
Total comprehensive expense - - - - - (5,020) - (33) (5,053)
Dividends paid - - - - - (2,896) - - (2,896)
Revaluationsurplus - - 102 - - (102) - - -
Realised ondisposals - - (631) - - 631 - - -
Purchase ofshares - - - - - - 6 - 6
Performance share plan - - - - - 392 - - 392
Own shares held - - - - - (1,591) 1,591 - -
At 30 September 2009 1,336 70,378 - 7,478 291 149,908 - 124 229,515
The charge against retained earnings of £392,000 (2009: credit of £1,363,000)
adds back the share based payments charge/(credit), in accordance with IFRS 2
Share Based Payments.
Capital Own shares held
Share Share Revaluation redemption Other reserves Retained £000 Minority interest
capital premium reserve reserve £000 earnings £000 Total
£000 £000 £000 £000 £000 £000
At 31 March 2008 1,222 42,520 57,072 7,478 291 163,911 (3,992) 157 268,659
Total comprehensive income - - - - - 7,025 - - 7,025
Dividends paid - - - - - (2,490) - - (2,490)
Revaluationdeficit - - (93) - - 93 - - -
Realised ondisposals - - (46) - - 46 - - -
Issue of shares 17 1.518 - - - - - - 1,535
Purchase ofshares - - - - - - (3,107) - (3,107)
Performance share plan - - - - - (1,655) - - (1,655)
Own shares held - - - - - (5,503) 5,503 - -
At 30 September 2008 1,239 44,038 56,933 7,478 291 161,427 (1,596) 157 269,967
Unaudited notes to the Half Year Statement
1. Financial Information
The financial information contained in this statement does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The full accounts for the year ended 31 March 2009, which were prepared under
International Financial Reporting Standards and which received an unqualified
report from the Auditors, and did not contain a statement under s237(2) or (3)
of the Companies Act 1985, have been filed with the Registrar of Companies.
These interim condensed consolidated financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting. The principal accounting
policies have remained unchanged from the prior financial period to 31 March
2009, except for the adoption of IAS 1 (revised 2007) and IFRS 8 as described
below.
They do not include all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated financial
statements of the Group for the year end 31 March 2009.
In line with industry practice, Helical has moved to valuing its investment
portfolio on a six monthly basis and this half year statement accounts for
valuation movements in the investment portfolio to 30 September 2009.
The adoption of IAS 1 (revised 2007) does not affect the financial position or
profits of the Group but gives rise to additional disclosures. The measurement
and recognition of the Group's assets, liabilities, income and expenses is
unchanged.
IFRS 8 has been adopted and segments are identified based on the internal
management reports used by the Board.
Directors have a reasonable expectation that the Company will continue in
operational existence for the foreseeable future and have, therefore, used the
going concern basis in preparing the financial statements.
The half year statement was approved by the Board on 26 November 2009 and is
being sent to shareholders and will be available from the Company's registered
office at 11-15 Farm Street, London W1J 5RS and on the Company's website at
www.helical.co.uk.
2. Statement of directors' responsibilities
The directors confirm that, to the best of their knowledge, this condensed set
of financial statements has been prepared in accordance with IAS 34 as adopted
by the European Union, and that the interim management report herein includes a
fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.
Balances with related parties at 30 September 2009 and 31 March 2009 are
disclosed in note 21.
A list of current directors is maintained at 11-15 Farm Street, London W1J 5RS
and at www.helical.co.uk.
On behalf of the Board
Nigel McNair Scott
Finance Director
26 November 2009
3. Segmental information
The Group divides its business into the following segments for internal
management purposes:
* investment properties, which are owned or leased by the Group for long-term
income and for capital appreciation, and trading properties, which are owned or
leased with the intention to sell; and,
* development properties, which include sites, developments in the course of
construction, completed developments available for sale, and pre-sold
developments.
Investment and trading Half year to 30.9.09 Developments Half Year to 30.9.09 Total Half Year to 30.9.09 Investment and trading Half Year to 30.9.08 Developments Half year to 30.9.08 Total Half year to 30.9.08
Revenue £000 £000 £000 £000 £000 £000
Rental Income 9,441 963 10,404 9,682 183 9,865
Trading property sales 525 - 525 - - -
Developments - 11,663 11,663 - 42,763 42,763
9,966 12,626 22,592 9,682 42,946 52,628
Other 161 2,546
Revenue 22,753 55,174
Investment and trading Year to 31.3.09 Developments Year to 31.3.09 Total Year to 31.3.09
More to follow, for following part double-click [nRn3Z1077D]
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