back Half-Year Results for the six months to 30 September 2015

STRONG RETURNS & PATH SET FOR FUTURE GROWTH

Michael Slade, Chief Executive, commented:
‘Our portfolio is primarily targeted towards London for capital growth and development profits, and the regions for high yielding investment assets and trading profits. London continues to deliver strong returns and the Company is looking to increase its commitment to London by retaining its refurbishment schemes at C-Space, Charterhouse Square and, most notably, The Bower. Our larger balance sheet and our belief that the London office market will show continued growth has encouraged the Company to increase its exposure to locations which we believe will outperform.

‘I have been Chief Executive of Helical since 1984 and one of its major shareholders for most of that period. In July 2016, at the next AGM, I will hand over the reins to Gerald Kaye, my fellow director for the past 21 years. I have been asked to take over from Nigel McNair Scott, our current Chairman, when he retires at next year’s AGM and I am delighted to be able to continue to be part of the Helical story.’

Financial Highlights

Record half year results

  • EPRA net asset value per share up 13.2% to 436p (31 March 2015: 385p).
  • EPRA earnings per share up 145% to 13.0p (2014: 5.3p).
  • IFRS profit before tax of £85.9m (2014: £42.9m) –up 100%.
  • Total Property Return of £107.6m (2014: £69.2m) –up 55%.
    • Group’s share of net rental income of £20.8m (2014: £18.8m).
    • Development profits of £18.7m (2014: £15.6m).
    • Net gain on sale and revaluation of investment properties of £68.1m (2014: £34.8m).
  • Interim dividend of 2.30p (2014: 2.10p) per share –up 9.5%.

Growing capital returns

  • Group’s share of property portfolio £1,066m (31 March 2015: £1,021m).
  • Investment property valuations, on a like-for-like basis, up 11.8% (8.8% including sales and purchases) with London office valuations up 20.3% (18.1% including sales and purchases).

Strong financial position

  • See-through loan to value of 31% (31 March 2015: 34%) on a secured basis and 49% overall (31 March 2015: 52%).
  • Average maturity of the Group’s share of debt of 4.3 years (31 March 2015: 4.3 years) at an average cost of 3.8% (31 March 2015: 4.1%).
  • Group’s share of cash and undrawn bank facilities at 30 September 2015 of £224m (31 March 2015: £229m).

Operational Highlights

London portfolio boosting performance

  • 18.1% valuation increase of London investment portfolio (2014: 9.2%), now valued at £417m (47% of total investment portfolio).
  • Contracted gross rents on London portfolio of £10.8m compared to ERV of £29.8m.
  • At The Bower, Old Street, London EC1, the offices in The Warehouse are 92% let. Empire House was sold for £20.65m in November.
  • Post half year end, Helical exchanged contracts to buy the offices at The Bower from the joint venture for £248m, while joint venture partner Crosstree will acquire the retail parade for £23m.
  • At Barts Square, London EC1, One Bartholomew Close, a 211,000 sq ft office site, was sold for £102.4m and the redevelopment was forward funded, releasing £34m cash to Helical.
  • At Barts Square, London EC1, 93 residential units are now exchanged on Phase One out of 144 released.

Regional portfolio performance benefits from increased investment in distribution warehouses

  • Contracted gross rents on regional investment portfolio of £31.6m (53% of total investment portfolio).
  • Regional investment portfolio increased with the purchase of £71m of high yielding distribution warehouses.
  • Regional investment portfolio now comprises 12% offices, 18% in town retail and retail parks, 22% industrial/logistics and 1% other (see page 11).

Board Changes (also refer to separate announcement today)

  • Michael Slade to step down as Chief Executive at 2016 AGM and remain on the Board as Non-Executive Chairman.
  • Gerald Kaye to be appointed Chief Executive from 2016 AGM.
  • Nigel McNair Scott, Chairman, and Andy Gulliford, non-executive director, to retire at the 2016 AGM.
  • Helical to appoint up to two additional non-executive directors to provide further independence and balance to the Board.

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
Website: www.helical.co.uk

 

FTI Consulting 020 3727 1000
Dido Laurimore/Tom Gough/Clare Glynn

Half Year Results Presentation

Helical will be holding a presentation for analysts and investors at 10:45am (GMT), Thursday 26 November 2015 at Andaz Hotel, 40 Liverpool Street, London EC2M 7QN. If you would like to attend, please contact Clare Glynn at FTI +44 (0) 20 3727 1883 or clare.glynn@fticonsulting.com

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 1908
Confirmation Code: 4893461

Half Year Results for the six months to 30 September 2015 (in pdf format).