back Half-Year Results for the six months to 30 September 2013

HELICAL DELIVERS RECORD PROFITS

Financial highlights:

Excellent financial performance and strong shareholder returns

  • Record profit before tax of £68.9m (2012: £5.2m).
    • Total Property Return of £88.5m (2012: £17.4m).
    • Group’s share of net rental income up 16% to £14.1m (2012: £12.2m).
    • Development profits of £63.5m (2012: £4.7m), including our share in joint ventures.
    • Net gain on sale and revaluation of investment properties of £10.9m (2012: £0.5m), including our share in joint ventures.
  • Adjusted diluted EPRA earnings per share of 40.5p (2012: 5.2p).
  • Diluted EPRA net asset value per share up 6.8% to 282p (31 March 2013: 264p).
  • Total Shareholder Return of 27% in the six months to 30 September 2013.
  • Interim dividend payable of 2.00p per share (2012: 1.85p), up 8%.

Improved capital returns

  • Investment portfolio valuations on a like-for-like basis increased by 3.5% (2.3% including sales and purchases) during the period.
  • Group’s share of property portfolio £684m (31 March 2013: £626m), growing to £770m including purchases contracted but not completed at 30 September 2013.

Strong financial position

  • Ratio of net borrowings to value of property portfolio of 40% (31 March 2013: 46%), increasing to 47% on completion of purchases contracted at 30 September 2013.
  • Average maturity of the Group’s share of debt of 3.6 years (31 March 2013: 2.6 years) at an average cost of 4.5% (31 March: 3.9%).
  • The Group’s share of cash and undrawn bank facilities of over £196m, of which £86m is committed to contracted purchases.

Operational highlights:

Development portfolio delivering super profits and well positioned for future growth

  • Exceptional development profits totalling £62m received at 200 Aldersgate, London EC1 and Brickfields, White City, London W12.
  • 113,000 sq ft foodstore led scheme at Leisure Plaza, Milton Keynes pre-let to Morrisons and pre-sold to Aviva.
  • Resolution to grant planning obtained at:
    • 207-211 Old Street, London EC1, a 396,000 sq ft refurbishment.
    • King Street, Hammersmith, London W6, a town centre regeneration scheme in joint venture with Grainger.
    • Cortonwood, South Yorkshire, for a 98,000 sq ft extension to an existing retail scheme.
  • 1 Mitre Square, London EC3 acquired and demolition of existing buildings completed, ready for development to start on securing a pre-letting or obtaining a financial partner.

Growing investment portfolio

  • £69m of new purchases (New Loom House, London E1; Maple House, London EC1; Huddersfield Retail Park) with a further £86m completing post half year (Quartz portfolio; Enterprise House, London W2; Artillery Lane, London E1).
  • Contracts exchanged on the forward purchase of Clifton Street, London EC2 post half year. Completion due in summer 2015 for £21m.
  • Capital recycling through £13.1m of sales (Asda, Clydebank and Iceland, Corby).

Asset management enhancing returns

  • Like-for-like rents up £494,000. Increase driven by new lettings of £881,000 and rental increases of £60,000 offset by losses at lease end or expiry of £447,000.
  • 41 new leases signed in the period with 71.6% of tenants retained at lease end or expiry (excluding Landlord breaks exercised for redevelopment).
  • Including purchases post half year, Helical’s share of gross rent from the investment portfolio has increased to £39.8m (FY 2013: £28.7m).

Commenting on the results, Michael Slade, Chief Executive said:

 “We have had an outstanding first half of the year and we look forward to announcing further improvements in our full year results to 31 March 2014. We are long both in central London offices and in high yielding secondary regional assets, the former to provide capital growth and the other to generate income and cash flow. This has been our aim and strategy for the last three years and I firmly believe we are reaping the rewards as London continues to grow and investors move up the risk curve and into the regions.”

For further information, please contact:

Helical Bar plc 020 7629 0113
Michael Slade (Chief Executive)  
Tim Murphy (Finance Director)  

Address: 11-15 Farm Street, London W1J 5RS
Fax: 020 7408 1666
Website: www.helical.co.uk

FTI Consulting 020 7831 3113
Stephanie Highett/Dido Laurimore/Nina Legge

Half Year Results for the six months to 30 September 2013 (in pdf format).