REG-Helical Bar PLC Half Yearly Report - Part 3
Released: 26/11/2009
Part 3 : For preceding part double-click [nRn2Z1077D]
Revenue £000 £000 £000
Rental Income 19,989 792 20,781
Trading property sales - - -
Developments - 54,097 54,097
19,989 54,889 74,878
Other 6,892
Revenue 81,770
All sales were external sales. All revenue is attributable to continuing
operations. There were no inter-segmental sales.
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
Profit before tax £000 £000 £000 £000 £000 £000
Net rental income 7,926 590 8,516 8,155 83 8,238
Development (losses)/profits - (3,700) (3,700) - 7,853 7,853
Trading losses (10) - (10) - - -
Share of results of joint venture 12 (25) (13) 96 (37) 59
Loss on sale and revaluation of investment (4,397) - (4,397) (32) - (32)
properties
3,531 (3,135) 396 8,219 7,899 16,118
Other operating income 161 4,439
Gross profit 557 20,557
Administrative expenses (3,988) (5,735)
Net finance costs (4,126) (2,752)
Foreign exchange (losses)/gains (1,275) 628
(Loss)/profit before tax (8,832) 12,698
Investment and trading Half Year to 31.9.09 Developments Half year to 31.9.09 Total Half year to 31.3.09
Profit before tax £000 £000 £000
Net rental income 17,008 674 17,682
Development losses - (7,704) (7,704)
Trading losses (514) - (514)
Share of results of joint venture (332) 2,178 1,846
Loss on sale and revaluation of investment properties (66,670) - (66,670)
(50,508) (4,852) (55,360)
Gain on sale of investments 1,892
Other operating income 7,752
Gross loss (46,716)
Administrative expenses (8,090)
Net finance costs (21,048)
Foreign exchange gains 3,999
Loss before tax (71,855)
Investment and trading At 30.9.09 Developments At 30.9.09 Total At 30.9.09 Investment and trading At 31.3.09 Developments At 31.3.09 Total At 31.3.09
Balance sheet £000 £000 £000 £000 £000 £000
Investment properties 205,328 - 205,328 241,287 - 241,287
Land, development and trading properties 179 199,611 199,790 878 209,537 210,415
205,507 199,611 405,118 242,165 209,537 451,702
Other assets 120,229 148,368
Total assets 525,347 600,070
Liabilities (295,832) (363,004)
Net assets 229,515 237,066
The segmental information has been provided in respect of the two main divisions
of the Group, the investment and trading department and the development
department. Details of capital expenditure are included in note 9.
4. Net rental income
Half Year To Half Year To Year To
30 September 30 September 2008 31 March
2009 £000 2009
£000 £000
Gross rental income 10,404 9,865 20,781
Rents payable (9) (8) (12)
Property overheads (1,565) (1,451) (2,394)
Net rental income 8,830 8,406 18,375
Third party share of net rental income (314) (168) (693)
Group share of net rental income 8,516 8,238 17,682
5. Net loss on sale and revaluation of investment properties
Half Year To Half Year To Year To
30 September 30 September 2008 31 March
2009 £000 2009
£000 £000
Net proceeds from the sale of investment properties 35,868 8,061 10,340
Book value (note 9) (38,911) (8,093) (9,005)
Other costs (1,456) - -
(Loss)/profit on sale of investment properties (4,499) (32) 1,335
Revaluation profit/(loss) on investment properties 102 - (68,005)
Net loss on sale and revaluation of investment properties (4,397) (32) (66,670)
6. Finance costs
Half Year To Half Year To Year To
30 September 30 September 2008 31 March
2009 £000 2009
£000 £000
Interest payable on bank loans and overdrafts (6,228) (8,075) (15,890)
Other interest payable and similar charges (463) (113) (362)
Finance arrangement costs (708) (75) (321)
Interest capitalised 862 4,934 6,855
Finance costs (6,537) (3,329) (9,718)
7. Taxation on profit/(loss) on ordinary activities
Half Year To Half Year To Year To
30 September 30 September 2008 31 March
2009 £000 2009
£000 £000
The tax charge is based on the profit for the period and
represents:
United Kingdom corporation tax at 28%. (762) (158) -
- Group corporation tax
- adjustment in respect of prior periods (6) - 1,915
Current tax (charge)/credit (768) (158) 1,915
Deferred tax - revaluation deficits - 781 12,566
- capital allowances 341 (251) (480)
- tax losses 2,889 - 5,285
- other temporary differences (1,584) (4,683) (927)
Deferred tax credit/(charge) 1,646 (4,153) 16,444
Total tax credit/(charge) for period 878 (4,311) 18,359
Deferred tax provision At 30 September 2009 At 31 March 2009
£000 £000
Capital allowances (2,868) (3,205)
Available-for-sale assets (5,244) (3,218)
Tax losses 8,472 5,579
Other temporary differences 3,432 4,284
Deferred tax provision 3,792 3,440
Under IAS 12, deferred tax provisions are made for the tax that would
potentially be payable on the realisation of investment properties and other
assets at book value.
If upon sale of the investment properties the group retained all the capital
allowances, the deferred tax provision in respect of capital allowances of £2.9m
would be released and further capital allowances of £14.1m would be available to
reduce future tax liabilities.
The deferred tax asset in respect of other temporary differences (income
statement) arises from the recognition of tax relief available to the Company on
the mark-to-market valuation of financial instruments and the future vesting of
share awards, calculated at the 30 September 2009 share price of 375.1p (31
March 2009: 287.5p) per share.
8. (Loss)/earnings per 1p share
The calculation of the basic (loss)/earnings per share is based on the
(loss)/earnings attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period. Shares held by the ESOP,
which has waived its entitlement to receive dividends, are treated as cancelled
for the purpose of this calculation.
The calculation of diluted (loss)/earnings per share is based on the basic
(loss)/earnings per share, adjusted to allow for the issue of shares and the
post tax effect of dividends on the assumed exercise of all dilutive options.
The (loss)/earnings per share are calculated in accordance with IAS 33 and the
best practice recommendations of the European Public Real Estate Association
("EPRA")
Reconciliations of the (loss)/earnings and weighted average number of shares
used in the calculations are set out below.
Half Year to 30 September 2009 000s Half Year to 30 September 2008 000s
Ordinary shares in issue 107,087 95,732
Weighting adjustment (1,821) (4,352)
Weighted average ordinary shares in issue for calculation of basic 105,266 91,380
(loss)/earnings per share
Dilutive effect of share options - 3,801
Weighted average ordinary shares in issue for calculation of diluted 105,266 95,181
(loss)/earnings per share
(Loss)/earnings used for calculation of basic and diluted (7,921) 8,387
(loss)/earnings per share
Net loss on sale and revaluation of investment properties 4,397 32
Fair value movement on derivative financial instruments (1,576) 151
Deferred tax in respect of investment properties - (529)
Deferred tax in respect of capital allowances (341) -
(Loss)/earnings used for calculation diluted EPRA earnings per share (5,441) 8,041
Basic (loss)/earnings per share (7.5p) 9.2p
Diluted (loss)/earnings per share (7.5p) 8.8p
Diluted EPRA (loss)/earnings per share (5.2p) 8.5p
9. Investment properties
Valuation Cost
£000 £000
Fair value at 1 April 2009 241,287 240,583
Additions at cost 2,850 2,850
Disposals (38,911) (23,880)
Revaluation 102 -
As at 30 September 2009 205,328 219,553
All properties are stated at market value as at 30 September 2009 and are valued
by professionally qualified external valuers except for investment properties
valued by directors - representing £4.0m (1.9%) of the portfolio. The following
external valuers valued the investment properties: Cushman & Wakefield LLP
(£196.4m) and Drivers Jonas LLP (£4.9m).
Interest capitalised in respect of the refurbishment of investment properties at
30 September 2009 amounted to £5,767,000 (31 March 2009: £6,205,000). Interest
capitalised during the period in respect of the refurbishment of investment
properties was £ nil.
10. Land, developments and trading properties
At At
30 September 31 March
2009 2009
£000 £000
Development properties 199,611 209,537
Properties held as trading stock 179 878
199,790 210,415
The directors' valuation of trading and development stock shows a surplus of
£45m (31 March 2009: £45m) above book value.
Total interest capitalised to date in respect of the development of sites is
included in stock to the extent of £9,196,000 (31 March 2009: £8,749,000).
Interest capitalised during the period in respect of development sites amounted
to £862,000 (30 September 2008: £4,007,000).
11. Available-for-sale investments
Non-
current Current
£000 £000
Fair value at 1 April 2009 13,310 7,684
Revaluation to fair value 2,590 2,021
As at 30 September 2009 15,900 9,705
During the half year to 30 September 2008 the Group sold part of its interest in
Quotient Bioscience Group Ltd at a profit of £1,892,000.
12. Trade receivables and other receivables
At At
30 September 31 March
2009 2009
£000 £000
Trade receivables 11,642 19,001
Other receivables 15,654 16,049
Prepayments and accrued income 6,721 5,541
34,017 40,591
13. Cash and cash equivalents
At At
30 September 31 March
2009 2009
£000 £000
Rent deposits and cash held at managing agents 3,150 1,215
Cash secured against debt and cash held at solicitors - 15
Cash deposits 47,918 71,546
51,068 72,776
14. Trade payables and other payables
At At
30 September 31 March
2009 2009
£000 £000
Trade payables 3,449 3,611
Other payables 16,251 15,702
Accruals and deferred income 24,519 31,902
44,219 51,215
15. Borrowings
At At
30 September 31 March
2009 2009
£000 £000
Bank overdraft and loans - maturity
Due within one year 35,682 48,155
Due after more than one year 206,373 249,297
242,055 297,452
Current borrowings :- less than one year 35,682 48,155
Bank loans repayable with :- one to two years 69,378 69,642
two to three years 14,030 54,150
three to four years 113,941 65,075
four to five years 10,120 61,890
after five years - -
207,469 250,757
Deferred arrangement costs (1,096) (1,460)
206,373 249,297
At At
30 September 31 March
2009 2009
Net Gearing £000 £000
Total borrowings 242,055 297,452
Cash (51,068) (72,776)
Net borrowings 190,987 224,676
Net borrowings exclude the Group's share of borrowings in joint
ventures of £3,353,000 (31 March 2009: £5,644,000).
£000 £000
Net assets 229,515 237,066
Gearing 83% 95%
16. Derivative financial instruments
At At
30 September 31 March
2009 2009
£000 £000
At 1 April (14,337) (925)
Change in fair value in the period 1,576 (13,412)
Interest rate swap cancelled in the period 3,203 -
At 30 September / 31 March (9,558) (14,337)
17. Share capital
At At
30 September 31 March
2009 2009
£000 £000
Authorised 39,577 39,577
39,577 39,577
The authorised share capital of the Company is £39,576,626.60
divided into ordinary shares of 1p each and deferred shares of
1/8p each
Allotted, called up and fully paid 1,071
- 107,087,012 ordinary shares of 1p each 1,071
- 214,145,300 deferred shares of 1/8 p each 265 265
1,336 1,336
Share options
At 30 September 2009 unexercised options over 320,510 (31 March 2009: 320,510)
new ordinary 1p shares in the Company and nil (31 March 2009: 1,057,095)
purchased ordinary 1p shares held by the ESOP had been granted to directors and
employees under the Company's share option schemes. During the period no new
options were granted.
18.Dividends Half Year To Half Year To Year To
30 September 30 September 31 March
2009 2008 2009
£000 £000 £000
Attributable to equity share capital
Ordinary
- interim paid 1.75p per share - - 1,640
- prior period final paid 2.75p (2008: 2,896 2,490 2,490
2.75p) pershare
2,896 2,490 4,130
The interim dividend of 1.75p (30 September 2008: 1.75p) per share was approved
by the board on 25 November 2009 and will be paid on 23 December 2009 to
shareholders on the register on 4 December 2009. This interim dividend,
amounting to £1,851,000, has not been included as a liability at 30 September
2009.
19. Own shares held
Following approval at the 1997 Annual General Meeting, the Company established
the Helical Bar Employees' Share Ownership Plan Trust (the "Trust") to be used
as part of the remuneration arrangements for employees. The purpose of the Trust
is to facilitate and encourage the ownership of shares by or for the benefit of
employees by the acquisition and distribution of shares in the Company.
The Trust purchases shares in the Company to satisfy the Company's obligations
under its Share Option Schemes and Performance Share Plan.
At 30 September 2009 the Trust held 1,291,844 (31 March 2009: 2,338,814)
ordinary shares in Helical Bar plc.
At 30 September 2009 options over nil (31 March 2009: 1,057,095) ordinary shares
in Helical Bar plc had been granted through the Trust. At 30 September 2009
awards over 4,870,283 (31 March 2009: 4,738,900) ordinary shares in Helical Bar
plc, made under the terms of the Performance Share Plan, were outstanding.
20. Net assets per share
30 September 2009
30 September Number of shares pence
2009 000's per share
£000
Net asset value 229,515 107,087
Less:own shares held by ESOP - (1,292)
deferred shares (265) -
Basic net asset value 229,250 105,795 217
Add: unexercised share options 454 321
Diluted net asset value 229,704 106,116 216
Adjustment for
- fair value of financial instruments 9,558
- deferred tax on capital allowances 2,868
Adjusted diluted net asset value 242,130 106,116 228
Adjustment for
- fair value of trading and development properties 45,246
Diluted EPRA net asset value 287,376 106,116 271
Adjustment for
- fair value of financial instruments (9,558)
- deferred tax on capital allowances (2,868)
Diluted EPRA triple NAV 274,950 106,116 259
The adjustment for the fair value of trading and development properties
represents the surplus as at 30 September 2009.
31 March Number of shares 31 March 2009
2009 000's pence
£000 per share
Net asset value 237,066 107,087
Less: own shares held by ESOP - (2,339)
deferred shares (265) -
Basic net asset value 236,801 104,748 226
Add: unexercised share options 454 321
Diluted net asset value 237,255 105,069 226
Adjustment for
- fair value of financial instruments 14,337
- deferred tax on capital allowances 3,205
Adjusted diluted net asset value 254,797 105,069 242
Adjustment for
- fair value of trading and development properties 45,455
Diluted EPRA net asset value 300,252 105,069 286
Adjustment for (14,337)
- fair value of financial instruments (3,205)
- deferred tax on capital allowances
Diluted EPRA triple net asset value 282,710 105,069 269
The net asset values per share have been calculated in accordance with the best
practice recommendations of the European Public Real Estate Association
("EPRA").
21. Related party transactions
At 30 September 2009 and 31 March 2009 the following amounts were due from and
to the Group's joint ventures.
At At
More to follow, for following part double-click [nRn4Z1077D]
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