STRONG RESULTS WITH PLENTY TO COME
Another excellent financial performance and strong shareholder returns
- Profit before tax of £42.9m (2013: record £68.9m).
- Total property return of £69.2m (2013: £88.5m):
- Group’s share of net rental income up 33% to £18.8m (2013: £14.1m).
- Development profits of £15.6m (2013: £63.5m).
- Net gain on sale and revaluation of investment properties of £34.8m (2013: £10.9m).
- Adjusted diluted EPRA earnings per share of 11.5p (2013: 40.5p).
- Diluted EPRA net asset value per share up 10.2% to 345p (31 March 2014: 313p).
- Interim dividend payable of 2.10p per share (2013: 2.00p), up 5%.
Improved capital returns
- Investment portfolio valuations increased by 6.5% on a like-for-like basis (4.9% including sales and purchases) during the period.
- Group’s share of property portfolio £919m (31 March 2014: £802m).
Strong financial position
- £100m 4% Convertible Bond issued in June.
- See-through LTV of 33% on a secured basis (31 March 2014: 36%) and 53% overall (31 March 2014: 46%).
- Average maturity of the Group’s share of debt of 3.5 years (31 March 2014: 3.9 years) at an average cost of 4.7% (31 March 2014: 4.5%).
- Group’s share of cash and undrawn bank facilities of £198m (31 March 2014: £186m).
Development portfolio well placed to deliver good profits over next few years
- Assignment of our purchase contract on 99 Clifton Street generates £14.7m profit.
- At Barts Square, London EC1, 45 residential units exchanged on phase 1 out of 88 units released.
- Lettings progress at The Bower, Old Street, London EC1.
- C-Space, London EC1 and Creechurch Place, London EC3 under construction.
Growing investment portfolio
- 9.2% valuation increase on London offices and 8.8% valuation increase on regional offices.
- Portfolio initial yield of 6.0% growing to 7.3% reversionary.
- Acquisitions of £94m (excluding associated costs) of assets during the half year and £46m of assets sold. On average one new property was acquired every eight days during the period.
- Investment portfolio now comprises 40% London offices, 35% retail, 13% industrial, 11% regional offices, 1% other.
Asset management activity
- Helical’s share of gross annualised passing rent from the investment portfolio has increased to £40.9m (31 March 2014: £37.7m) with ERV of £57.1m (31 March 2014: £45.6m).
- £2.0m of new lettings in period.
- Like-for-like rents up £1.0m. Increase driven by new lettings and uplifts at lease renewal of £2.3m, offset by losses at lease end or expiry of £1.3m.
- On average, the Group achieved a new letting or lease renewal every two days in the period.
- £0.6m contracted rental increase in Churchgate and Lee House, Manchester.
Commenting on the results, Michael Slade, Chief Executive said:
“Our strategy of developing in Central London for sale or long term investment whilst maintaining a high yielding regional investment portfolio continues to bear fruit. As the UK economy strengthens outside of London and the South East we anticipate continuing to invest in regional assets both for their relatively high yield and the potential to create added value. Our development programme is expected to provide surpluses for the next three years as we complete and let our schemes.
Although the next 12 months are likely to be impacted by the usual hiatus in the run-up to the General Election and the subsequent flurry of activity which follows, as well as the ongoing uncertainty in the Eurozone and the global economy, we remain confident that our balance of assets held for income and capital gains, with strong exposure to London, provides shareholders with the prospect of substantial growth in value for the foreseeable future.”
For further information, please contact:
|Helical Bar plc||020 7629 0113|
|Michael Slade (Chief Executive)|
|Tim Murphy (Finance Director)|
|Address:||5 Hanover Square, London W1S 1HQ|
|Fax:||020 7408 1666|
|FTI Consulting||020 3727 1000|
|Stephanie Highett/Dido Laurimore/Clare Glynn|
Half Year Results Presentation
Helical will be holding a presentation for analysts and investors at 9.30am (GMT), Friday 28 November 2014 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD. The presentation will be on the Company’s website www.helical.co.uk and a conference call facility will be available. The dial-in details are as follows:
|Participants, local –
London, United Kingdom:
|+44 (0)20 3427 1905|
Half Year Results for the six months to 30 September 2014 (in pdf format).