back Preliminary Results for the year to 31 March 2011

Helical establishes platform for future outperformance

Financial Highlights

  • Group’s share of net rental income up 19% to £17.8m (2010: £14.9m).
  • Net gain on sale and revaluation of investment properties of £7.5m (2010: £8.2m).
  • Loss before tax of £6.3m (2010: profit of £7.9m).
  • Diluted EPRA net asset value, including trading and development stock surplus, down 7% to 253p per share (2010: 272p).
  • Group’s share of property portfolio of £532.2m (2010: £494.5m)
  • Ratio of net borrowings to value of property portfolio of 45.3% (2010: 46.3%)
  • Final dividend proposed of 3.15p per share taking total dividends for the year to 4.90p (2010: 4.75p), up 3.2%.

Operational Highlights

Good progress with sales and acquisitions programme and asset management initiatives.

London

  • Purchase, with joint venture partners, of investment at Barts, London EC1 for £55m. Planning permission to be sought for a major new office building and high quality residential apartments.
  • Refurbishment of 200 Aldersgate, London EC1 completed. Considerable interest from potential tenants.
  • Planning permission granted at Mitre Square, London EC3 for a 270,000 sq ft NIA office development.

Poland and Eastern Europe

  • Completion of out of town retail development at Opole, Poland. Pre-lettings at Europa Centralna, Gliwice at 50%.
  • New Thameling joint venture in discussions with a number of potential tenants for distribution warehouses in Eastern Europe.

Other UK

  • £110m of sales of assets during the year and a further £58m sold or agreed since the year end. Sales include £60m of non-income producing assets.
  • To date capital recycled into the acquisition of £125m of investment assets, including Helical’s share of Barts, yielding 8%.
  • Sales of assets totalling £40m from the mixed industrial and office portfolio purchased during the year showing profits generated so far of £5m, with remaining assets showing c.45% cash on cash return.
  • Purchases include two shopping centres for £33.8m, showing a yield of 8.25% net of all void costs, giving us a cash on cash yield of 18.5% after debt.
  • Planning permission granted at Great Alne, Warwickshire for a retirement village of 132 units.
  • Helical Retail engaged in a number of new retail warehouse schemes.

Giles Weaver, Chairman, commented:
“Helical is now actively pursuing new investment and development opportunities. We are pleased with the number and quality of investment purchases, in particular our acquisition at Barts, London EC1, making full use of the proceeds from our recent placing. The number of sales achieved during the year, and subsequently, draw a line under the difficulties of the last four years and the Company can move forward confidently.”

Michael Slade, Chief Executive, added:
“It has been a long and hard four years since the warning bells sounded in mid 2007. It has required patience and discipline, however, the slate is now clean and the platform established to enable us to return to our outperforming ways.”

For further information, please contact:

Helical Bar plc 020 7629 0113
Michael Slade (Chief Executive)  
Nigel McNair Scott (Finance Director)  

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

Financial Dynamics 020 7831 3113
Stephanie Highett/Dido Laurimore/Laurence Jones  

Preliminary Results for the year to 31 March 2011 (in pdf format).