back Preliminary Results for the year to 31 March 2013

Financial Highlights

  • Total Property Return up 31% to £35.9m (2012: £27.5m)
    • Group’s share of net rental income up 7% to £24.5m (2012: £22.9m)
    • Development profits of £7.0m (2012: £0.7m)
    • Net gain on sale and revaluation of investment properties of £4.4m (2012: £3.9m)
  • Unleveraged return of property portfolio as measured by IPD of 8.6% compared to 3.9% for the benchmark index, Helical’s highest return since 31 March 2007
  • Total Shareholder Return of 28.4% in the year to 31 March 2013
  • Profit before tax of £5.0m (2012: £7.4m)
  • Adjusted diluted EPRA earnings per share of 8.2p (2012: 3.8p)
  • Diluted EPRA net asset value per share up 5.6% to 264p (2012: 250p)
  • Group’s share of property portfolio £626m (2012: £573m)
  • Ratio of net borrowings to value of property portfolio of 46% (2012: 49%)
  • Cash and undrawn bank facilities of over £80m
  • Final dividend proposed of 3.70p per share taking total dividends for the year to 5.55p (2012: 5.15p), up 8%

Operational Highlights

Investment Portfolio

  • Investment portfolio valuation including capex, sales and purchases, increased by 1.3% (2.1% on a like-for-like basis) during the year, comparing favourably to the IPD monthly index which fell -1.7% over the same period
  • Acquisition of 207-211 Old Street, London EC1, in joint venture with Crosstree for £60.8m
  • Like-for-like rents up £377,000. Increase driven by new lettings (£1,484,000) and rental increases (£378,000), more than compensating for losses from administrations and breaks/expiries
  • 70 new leases signed in the period, with 69% of rent retained at lease expiries and 86% retained at breaks
  • Vacancy by floor area fell to 5.7% from 8.8% in March 2012

Development Programme

  • Resolution to grant planning consent obtained at Brickfields, White City W12 for a c.1.5m sq ft mixed use scheme and contracts exchanged for the sale of the site
  • Planning consent obtained at Barts Square, London EC1, for a 450,000 sq ft mixed use scheme
  • 200,595 sq ft let at 200 Aldersgate, London EC1 since September 2012, increasing occupancy from 32% to 90%
  • Fulham Wharf, London SW6 sold during the period crystallising our additional profit share
  • Planning consent granted for a new 220,000 sq ft headquarters for Scottish Power in Glasgow
  • Sales of £29.5m of non-income producing development sites, including the Milton retirement village site (£6.9m) and part of the Exeter retirement village site (£7.6m)

Retail Developments

  • At Parkgate, Shirley, West Midlands an 80,000 sq ft Asda store is under construction and agreements reached to let 50% of the additional 78,000 sq ft retail/leisure
  • We have eight other proposed retail schemes at Milton Keynes, Evesham, Truro, Nottingham, Ross-on-Wye, Kingswinford, Leicester and Birmingham

Poland

  • Europa Centralna, Gliwice, a 66,300 sq m retail park and shopping centre, opened on 1 March 2013
  • Scheme now 80% let to Tesco, H&M, Castorama, Sports Direct and others

Nigel McNair Scott, Chairman, commented:
“After a challenging five years, I believe we are on the cusp of returning to delivering outperformance. Looking forward, we will benefit from our rebalanced portfolio with a strong and growing income stream which we intend to increase significantly in the next year. In addition, our development portfolio is expected to deliver substantial profits and cash returns over the same period and in the following years. We look forward to these two elements of our business combining to generate strong returns and value on behalf of all our shareholders.”

Michael Slade, Chief Executive, commented:
“Our path through the next three years becomes clearer by the day. We will maintain our high yielding investment portfolio and look to reinvest cash receipts from sales of our trading and development stock into accretive acquisitions with a strong emphasis on central London. I regard our successful investment in foodstore development and the retirement village business as valuable profit generators that sit beside our main focus on the opportunities we see in central London.”

“Overseas equity continues to be a vital element in today’s property market. It is not and never has been our role to compete to invest in prime stock, but rather to use our expertise to create prime investments for sale into a strong market. We are very confident that given the skills and experience we provide and the financial partners with whom we are involved, the next few years will see enhanced profits.”

“We were delighted to announce the letting of 80,909 sq ft to FTI Consulting at 200 Aldersgate which triggers our entitlement to a profit share. In similar vein we have announced the sale of the White City project where we have acted as development partner on behalf of Aviva. Once this sale contract has been completed, we will be entitled to a profit share, the details of which we will be able to disclose at that time. We anticipate both the above transactions will create substantial profits to be recognised in the accounts for the year to 31 March 2014.”

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
Website: www.helical.co.uk

FTI Consulting 020 7831 3113
Stephanie Highett/Dido Laurimore/Daniel O’Donnell

Preliminary Results for the year to 31 March 2013 (in pdf format).