Half Yearly Report

RNS Number : 6807S

Helical Bar PLC

24 November 2011

H E L I C A L B A R P L C

("Helical"/"Company"/"Group")

H a l f Y e a r R e s u l t s

For the Six Months to 30 September 2011

HELICAL RETURNS TO PROFIT

Financial Highlights:

§ Profit before tax of £4.1m (2010: loss £3.2m)

§ Group's share of net rental of £11.0m (2010: £8.4m) - up 31%

§ Development profits of £1.8m (2010: loss of £9.2m)

§ Gain on revaluation of investment portfolio for the half year, after sales, purchases and capital expenditure of 0.3% (0.9% like for like)

§ Ratio of net borrowings to property portfolio of 43% (31 March 2011: 45%)

§ Cash and unused bank facilities of over £50m

§ Diluted EPRA earnings per share of 4.1p (2010: loss of 9.1p)

§ Diluted EPRA net assets per share at 254p (31 March 2011: 253p)

§ Interim dividend maintained at 1.75p per share (2010: 1.75p)

Operational Highlights:

§ Strategy: The balance within the property portfolio is close to achieving our target of 75% investment and 25% development stock

§ Sales of £67.2m of assets during the period, with further disposals of circa £80m expected by March 2012.

§ Acquisition of £85.4m of investment assets, of which £73.6m occurred post the period end:

o Land and buildings in Corby Town Centre acquired in November 2011 for £70m at an initial 8% yield. Assets provide significant short and long term opportunities to extract income through asset management activities

§ Significant planning consents successfully achieved:

o Mitre Square, London EC3: consent for new 273,000 sq ft of offices and 3,000 sq ft of retail/restaurant use

o Fulham Wharf, SW6: consent for 100,000 sq ft supermarket and 463 residential units secured on behalf of Sainsbury's, for which Helical has received an initial £1.5m fee

o Parkgate, Shirley: amended planning consent for 85,000 sq ft Asda supermarket and a 70,000 sq ft retail park

o Retirement villages: consents for open market housing obtained at Milton (89 units) and Exeter (69 units).

§ Agreement signed post the period end with an institutional client of Standard Life Investments to jointly develop a 66,000 sq m retail park in Gliwice, Poland.

§ Significant progress made in respect of our pre-let food store development programme.

§ Progress being made on our major mixed use schemes, particularly at our 1.5m sq ft project at White City.

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

"The Group has taken great strides towards implementing its strategy of recycling capital with the acquisition of over £250m of investment property since January 2010, doubling our annual gross rental income from £15m per annum to over £30m. In the coming months, we will continue to make progress towards meeting our objectives with further sales of non-core assets and additional investment in income producing assets where we see good value and can apply our asset management skills. We anticipate these assets will comprise primarily London offices, multi-let industrial estates and trading portfolios. In addition, we will seek to implement selective London or food store led developments.

"The next two years will be tough for the market as the impact of macro-economic factors affect rental flows, covenant strengths and valuation yields. However, we have already undertaken significant activity to re-base our portfolio over the last few years and we are now in good shape to benefit from growing income surpluses. Our next objective is to monetise our large development programme. We are especially excited by our mixed use development schemes in West London, particularly at White City, our flexible involvement in a number of City schemes giving us plenty of options as to timing and financial structures and our plans for a number of pre-let food store projects now in the planning process. Finally, we have the courage, skills and resources to take advantage of the buying opportunities that will arise in these straitened times."

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

FTI Consulting 020 7831 3113

Stephanie Highett/Dido Laurimore

FINANCIAL HIGHLIGHTS

Adjusted Income Statement	Notes	Half Year To 30 September 2011 £m	Half Year To 30 September 2010 £m	Year To 31 March 2011 £m
Group's share of net rental income	1	11.0	8.4	17.8
Development property profits/(loss)		1.8	(9.2)	(16.6)
Trading property loss		-	(0.4)	(0.4)
Share of results of joint ventures	2	1.0	0.6	2.9
Profit/(loss) before property write-downs, investment gains and tax		4.5	(0.9)	2.9
Provisions against trading and development stock		(0.5)	(10.2)	(14.9)
Gain on sale and revaluation of investment properties		0.1	9.7	7.5
Impairment of available-for-sale assets		-	(1.8)	(1.8)
Profit/(loss) before tax		4.1	(3.2)	(6.3)
Earnings and Dividends Basic earnings/(loss) per share Diluted earnings/(loss) per share	3 3	pence 3.4 3.4	pence (3.7) (3.7)	pence (3.6) (3.6)
Diluted EPRA earnings/(loss) per share Dividends per share paid in period	3	4.1 3.15	(9.1) 0.25	(6.4) 2.00

Adjusted Balance Sheet Value of investment portfolio Trading and development stock at directors' valuation Group's share of property portfolio held in joint ventures Net borrowings Group's share of net borrowings of joint ventures Group's share of total net borrowings Net assets Diluted EPRA Net Asset Value per share Ratio of net borrowings to property portfolio Net gearing	4 5 6	At 30 September 2011 £m 236.2 176.4 82.4 495.0 179.4 35.6 215.0 255.4 254p 43% 84%	At 30 September 2010 £m 254.5 188.1 59.2 501.8 209.0 35.5 244.5 230.4 261p 49% 106%	At 31 March 2011 £m 271.9 180.0 80.3 532.2 206.1 35.2 241.3 255.4 253p 45% 94%

Notes

1. Includes Group's share of net rental income of joint ventures of £2.7m (2010: £1.9m).

2. The Group's share of the results of entities controlled equally by the Group and its joint venture partner.

3. Calculated in accordance with IAS 33 and the best practice recommendations of the European Public Real Estate Association ("EPRA"). See note 8 of Half Year Statement.

4. Includes the trading and development stock surplus of £33.5m (31 March 2011: £32.4m). See note 11 of Half Year Statement.

5. Calculated in accordance with the best practice recommendations of EPRA. See note 21 of Half Year Statement.

6. Net gearing is the ratio of net borrowings, including the Group's share of net borrowings of joint ventures, to net assets.

C h a i r m a n ' s S t a t e m e n t

Introduction

The six months to 30 September 2011 saw a return to profit for Helical with a positive substantial growth in net rental income and a modest level of development profits, the first contribution since 30 September 2008. The ongoing transformation of the Group's property portfolio which commenced in January 2010 has continued since the period end with the acquisition of Corby Town Centre and the agreed sale of a substantial part of our retail development at Europa Centralna, Gliwice, Poland. Helical's property portfolio is now close to its target balance of 75% investment and 25% development stock, a ratio which should ensure sustainable operating profits are generated which can be augmented by development profits, when our schemes deliver returns.

Results

The Group's profit before tax, property write-downs and investment gains increased to £4.5m (2010: loss of £0.9m). The development programme generated profits at Fulham Wharf, London SW6 and Bramshott Place, Liphook partially offset by negligible stock write-downs of £0.5m (write-downs in 2010: £10.2m). Net development profits were £1.8m (2010: loss of £9.2m).

The Group's share of net rental income was £11.0m (2010: £8.4m), an increase of 31%. Net rental income, excluding that held in joint ventures, increased by 29% to £8.4m (2010: £6.5m) as a result of an increased contribution from our shopping centre purchases.

Administration costs reduced from £3.7m to £3.3m with a credit for the cost of share awards of £0.4m (2010: charge of £0.3m). Net finance costs before capitalised interest increased to £5.9m (2010: £5.1m) reflecting a higher average level of borrowings during the half year. Capitalised interest increased from £1.8m to £2.4m. There was a loss on the mark to market valuation of the Group's financial instruments of £1.4m (2010: loss of £1.1m). The Group made a gain on currency movements of £0.3m (2010: loss of £1.5m) on its overseas operations.

The investment portfolio rose 0.3% including capex, sales and purchases (31 March 2011: 2.5%) and 0.9% on a like for like basis, reflected as a gain on revaluation of £1.2m (31 March 2011: £2.7m). A loss on sale of investment properties of £0.7m (2010: profit of £0.2m) primarily reflects the transaction costs of those sales.

There was a net profit before tax of £4.1m (2010: loss of £3.2m) in the half year. Diluted earnings per share were 3.4p (2010: loss per share of 3.7p) and diluted EPRA earnings per share were 4.1p (2010: loss per share of 9.1p). The Group's diluted EPRA net asset value per share was 254p (31 March 2011: 253p). The directors' valuation of trading and development stock showed a surplus of £33.5m (31 March 2011: £32.4m).

The Board is declaring a maintained Interim Dividend of 1.75p per share (2010: 1.75p), payable on 22 December 2011 to shareholders on the register on 2 December 2011.

Financing

At 30 September 2011 the Group had net borrowings of £215.0m (31 March 2011: £241.3m) and gross property values of £495.0m (31 March 2011: £532.2m), with these net borrowings and property values including the Group's share of the properties and borrowings held in joint ventures. The ratio of net borrowings to the value of the property portfolio (including the surplus on directors' valuation of stock) was 43% (31 March 2011: 45%). Net debt to equity gearing at 30 September 2011 was 84% (31 March 2011: 94%). However, since 30 September 2011 we have acquired Corby Town Centre for circa £70m. Had we completed this before our half year end, the value of our property portfolio would have been £565m and Group net borrowings would have been £285m, reflected in a ratio of net borrowings to the property portfolio of 50% and net gearing of 112%.

During the half year the Group took advantage of the low interest rate environment to acquire £77m of interest rate caps at 4%, effective from April 2011 to April 2015/16. The acquisition of these caps allows the Group to continue to benefit from current low interest rates without having to enter into more expensive hedging arrangements.

At 30 September 2011, the Group's share of fixed rate borrowings was £120.1m (31 March 2011: £130.0m) with an effective rate of 5.23% (31 March 2011: 5.38%) and an average maturity of 2.0 years (31 March 2011: 2.5 years). The Group's share of floating rate borrowings was £145.3m (31 March 2011: £146.8m) with an effective interest rate of 4.21% (31 March 2011: 3.79%). The Group's share of interest rate caps at 30 September 2011 was £136m at an average rate of 4.8% (31 March 2011: £91m at 4.9%). In addition, the Group has a £41m interest rate floor at 4.5% until 2013. Overall, the Group's share of borrowings of £265.4m at 30 September 2011 had an effective rate of interest of 4.67% (31 March 2011: 4.54% on £276.8m).

Outlook

The impact of the turmoil in the Eurozone both abroad and in the UK cannot yet be determined with any degree of certainty. Negative sentiment pervades all economic and political commentary and, until the countries within the Eurozone deal comprehensively with the issues being faced, there will remain doubt as to the ability of Europe and, therefore, the UK to return to a period of sustained and stable economic growth.

However, Helical has made good progress towards creating a substantial surplus of rents over finance and administration costs which should enable the Group to deliver continuing operating profits for the foreseeable future. The challenge for the Group is to ensure its many development opportunities are turned into profitable schemes and, as detailed in the property portfolio section below, good progress is being achieved in this regard.

Giles Weaver

Chairman

24 November 2011

CHIEF EXECUTIVE'S STATEMENT

Helical's Strategy

Helical Bar plc is a property investment and development company which operates in all sectors and whose objective is to maximise returns to shareholders through income returns, development and trading profits and capital growth. The Group's strategy to achieve these returns is:

§ To maintain and expand our investment portfolio, providing a blend of high yielding retail, office and industrial property which offers considerable opportunity to increase income and enhance capital value through proactive asset management and skilful stock selection.

§ To have circa 75% of our gross assets in the investment portfolio creating positive net cash flow for the business.

§ To carry out London based redevelopments whether new build or refurbishment, creating value through land assembly, planning and implementation in the office, residential, mixed use and retail sectors.

§ To carry out food store led / pre-let regional retail developments.

§ To maximise returns by minimising the use of equity in development situations.

§ To divest itself of non-core assets i.e. overseas properties and retirement villages.

Helical's Progress

The Group has taken great strides towards implementing its strategy of recycling capital with the acquisition of over £250m of investment property since January 2010, doubling our annual gross rental income from £15m per annum to over £30m. The total property portfolio, including our share of assets held in joint venture, has increased in size from circa £455m to circa £565m over that period. The balance of investment to trading and development assets has moved from circa 45:55 to 66:34 and we expect this to reach 75:25 by 31 March 2012.

Future

In the coming months, we will continue to make progress towards meeting our objectives with further sales of non-core assets and additional further investment in income producing assets where we see good value and can apply our asset management skills. We anticipate these assets will comprise primarily London offices, multi-let industrial estates and trading portfolios. In addition, we will seek to implement selective London or food store led developments.

Our investment purchases are very much focused on generating income surpluses. We do expect capital growth, despite the general downturn, but this growth will come from improvements to our income, driven by our own actions with tenants, rather than from any economic or rental growth or from falling yields. We like "secondary" retail centres for their yield and spread of tenants; not to be confused with "tertiary" shopping centres that are now struggling with many falling off the cliff. The challenge is to acquire both high and sustainable yield.

Outperformance will come from our developments and we are strategically placed into London mixed-use projects, pre-let food store schemes throughout the UK and our City schemes. Cash is once more king which explains our exit from some of our retirement village developments which although an excellent long-term business, take too long to monetise to satisfy Helical's "thirst" for equity to pursue larger and quicker returns. In the future we will look back and consider the next two years to have been a time of great opportunity.

Summary

The next two years will be tough for the market as the impact of macro-economic factors affect rental flows, covenant strengths and valuation yields. However, we have already undertaken significant activity to re-base our portfolio over the last few years and are now in good shape to benefit from growing income surpluses. Our next objective is to monetise our large development programme. We are especially excited by our mixed use development schemes in West London, particularly at White City, our flexible involvement in a number of City schemes giving us plenty of options as to timing and financial structures and our plans for a number of pre-let food store projects now in the planning process. Finally, we have the courage, skills and resources to take advantage of the buying opportunities that will arise in these straitened times.

Michael Slade

Chief Executive

24 November 2011

PROPERTY PORTFOLIO

A complete list of the Group's ongoing projects is set out in the tables at the end of this section but a summary of the more significant matters that have progressed since 31 March 2011 follows.

The tables below show how we invest our capital.

Property Portfolio Analysis - At 30 September 2011

Investment	Value	Overall Portfolio			Equity
	£m	%			£m
London Office	90.0	20.5			34.6
Provincial Office	7.6	1.8			2.1
Industrial	20.8	4.7			12.5
In town retail	146.0	33.2			63.6
Out of town retail	14.2	3.2			6.4
Retirement village	4.8	1.1			4.8

Total	283.4	64.5			124.0

Trading and Development	Book Value	Overall Portfolio	Fair Value	Surplus Fair Value over Book	Equity
	£m	%	£m	£m	£m
London Office	2.4	0.5	5.3	2.9	8.3
Provincial Office	8.0	1.8	8.1	0.1	-2.0
Industrial	8.3	1.9	8.3	-	8.3
In town retail	9.2	2.1	9.5	0.3	7.6
Out of town retail	3.3	0.8	3.3	-	3.3
Retirement villages	60.4	13.7	72.9	12.5	47.0
Change of Use	4.3	1.0	6.4	2.1	8.6
Mixed use	4.3	1.0	14.9	10.6	22.5
Poland	56.0	12.7	61.0	5.0	32.0

Total	156.2	35.5	189.7	33.5	135.6

Grand Total	439.6	100.0			259.6

This table includes all assets included in the consolidated accounts, less our profit-share partners' share of these assets plus our share of assets held in associated companies

Equity is defined as being the fair value of the property less borrowings.

Trading and Development Portfolio

Office Development

200 Aldersgate, London EC1

Helical has an asset and development management agreement with the owners of the building under which we have refurbished the building, creating a 'vertical village' for office users. Marketing of the building commenced in January 2011 and since then we have let 92,000 sq ft to office tenants and 35,000 sq ft in the basement to Virgin Active for their flagship UK gym, with a further 20,000 sq ft under offer, of a total space of 370,000 sq ft. There is an encouraging level of interest in the remaining space.

Mitre Square, London EC3

Planning consent for a new building comprising 273,000 sq ft NIA of offices and 3,000 sq ft of retail/restaurant use was granted in June 2011. We are planning to commence demolition early next year. Construction of the new building will commence once a pre-let or forward funding is obtained.

Barts Square, London EC1

We acquired this investment asset, let to the Barts and NHS Trust until 2014/2016, in February 2011 in joint venture with Baupost Group LLC. Good progress has been made towards submitting a detailed planning application for a major mixed use development comprising over 450,000 sq ft of offices, residential and retail. We expect to submit this planning application in early 2012 with a redevelopment of the site planned for 2014/2016.

Mixed-use developments

White City, London W12

At Wood Lane, White City, we have transferred our interest in Stadium House, an office property adjacent to our development site to Aviva, our development partner. Eric Parry Architects is leading the overall master planning exercise on our site with a view to submitting an application during Q2 2012. This application is expected to be for a circa 1.5 million sq ft residential-led mixed use scheme.

Fulham Wharf, London SW6

At Fulham Wharf, London SW6, we have secured planning consent for a 100,000 sq ft supermarket and 463 residential units on behalf of Sainsbury's and are now in the process of assessing, with Sainsbury's, bids for the site. We have received our initial £1.5m fee for obtaining planning permission and hope to receive a further fee once the site is sold.

Retail developments

Parkgate, Shirley, West Midlands

At Parkgate, Shirley we have secured, with our 50:50 partners, Coltham Developments, an amended planning consent for a 85,000 sq ft Asda Supermarket, 72,000 sq ft of retail and circa 120 residential apartments and townhouses. We anticipate commencing building work in early 2012.

Tyseley, Birmingham

At Tyseley, Birmingham, our joint venture with Oswin Developments has exchanged conditional contracts to purchase a 13 acre site with plans to develop a 71,600 sq ft Asda supermarket and a 70,000 sq ft retail park.

Poland

Europa Centralna, Gliwice

At Europa Centralna, Gliwice, we signed, following the period end, an agreement with institutional clients of Standard Life to jointly develop a 66,000 sq m retail park and shopping centre. Construction of the retail development has already commenced with completion due in October 2012. The development is currently 51% let (60% in area) to Tesco, Castorama, H&M and others with heads of terms agreed on a further 12%. The development will be funded by a combination of a €72m development loan and €40m of cash from the joint venture partners. The deal will return the majority of Helical's current equity invested (circa £16m) whilst leaving €4m in the venture, retaining a 37.5% equity stake in the joint venture. Standard Life Investment's client will acquire Helical's remaining equity stake two years after completion of building works for a sum reflecting its share of the value of the development.

Park Handlowy Myln, Wroclaw

This 9,600 sq m out of town retail development is under offer to an institutional investor and the sale is expected to complete by the end of 2011.

Retirement Villages

Bramshott Place, Liphook, Hampshire

We have now completed or exchanged on 79 units. 13 sales, for £6m, have completed since 31 March 2011. We have reservations on a further 25 units out of a total scheme of 151 units. The third and final phase of construction is due to complete by summer 2012 and we hope to sell the remaining units by the end of 2012.

Durrants Village, Faygate, Horsham

We are putting everything in place so that we are in a position to start construction of this site in the first quarter of next year and have commenced marketing to potential buyers.

Ely Road, Milton, Cambridge

We received planning consent for 89 open market housing units on this site in September and have marketed it for sale. We are currently considering a number of offers received and expect to complete a sale of the whole of the site by early 2012.

St Loye's College, Exeter

We received planning consent for 69 open market housing units on part of this site in August. We have marketed this part of the site and received a number of offers which we are considering, with a view to completing a sale in the first quarter of 2012.

Industrial developments

We have continued our programme of disposals with the sale of all our remaining units at Southall (four since 30 September 2011) for £3.25m. At Stockport we have completed enabling works and Section 278 works and 2.5 acres have been sold subject to planning, leaving six acres where a 13,000 sq ft pre-let has been agreed. The remaining units are being marketed ahead of construction.

Investment Portfolio

There was a valuation increase of 0.3% in the six months to September including capex, sales and purchases which compares to the IPD monthly index of 0.6% over the same period. On a like-for-like basis the increase was 0.9%.

The yields on of the investment portfolio as at 30 September 2011 were as follows:

	Initial Yield	Reversionary Yield	Yield on letting voids	Equivalent Yield (AiA)
	%	%	%	%
Industrial	8.2	9.4	8.8	8.9
London Offices	5.1	8.2	7.7	7.6
South East Offices	7.4	8.6	7.4	9.3
Retail	7.1	7.9	7.6	7.6
Total	6.7	7.9	7.7	7.8

Note: Includes our share of Clyde Shopping Centre but excludes our share of Barts.

Acquisitions

Since March, we have completed on the acquisition of £146m of assets, although it should be noted that both Barts and East Kilbride exchanged prior to 31 March 2011 and both Corby and Chiswick have completed after 30 September 2011. The acquisitions include:

Asset	Price	Net Initial Yield	Category
	£m
Barts	55.0	6.6%	Office with major redevelopment planned
Basildon	11.1	8.1%	Retail
East Kilbride	5.9	9.9%	Industrial
Corby Town Centre	69.9	8.0%	Retail
The Powerhouse, Chiswick	3.7	10.0%	Office

Total	145.6

All of these assets are income producing, with significant redevelopment or asset management potential.

Sales

Since March, we have sold £66.0m of assets of which £49.5m were from the investment portfolio. In aggregate, these sales were 1.9% above the 31 March 2011 book values.

·      67,000 sq ft of offices at 61 Southwark Street to a private property company for £19.5m. Helical acquired this asset for £3.35m in 1998.

·      Stadium House, Wood Lane to Aviva, Helical's joint venture partners in our White City development. This property was acquired by Helical to facilitate the development of the site and has now been incorporated into the existing JV as originally planned.

·      A retail unit in East Grinstead let to Sainsbury's.

·      An industrial portfolio (the Union Portfolio), including properties in Motherwell, Blackwood, Fleet and Hailsham.

·      An industrial estate in Woolwich which was acquired under CPO powers for the implementation of Crossrail.

·      A single let industrial estate in Aldridge, sold to a private investor.

·      13 units at our retirement village development in Liphook with a value of £6m.

·      All remaining units at our industrial development in Southall for a total of £3.25m (four of which exchanged contracts after 30 September).

Future acquisitions

We continue to see the three tier market that we have described in the past, as follows;

· Prime/trophy 'institutional' assets enjoying reasonable demand from buyers, especially foreign investors seeking a 'safe haven', with limited opportunities to add value. Helical develops and sells into this market.

· Well located, good quality assets but in need of active management and/or capex. Often off the institutional radar screen and hard to finance without a strong balance sheet. Our preferred area of buying.

· Weak secondary/tertiary assets with a severe danger of falling rents and increasing voids. Avoid.

We will continue to concentrate on the middle tier, which could be described as 'good secondary', but the key driver in all acquisitions is tenant demand. Properties are likely to be multi-let to give a spread of tenant risk and opportunities for active management and yielding 7.5-10% (lower in London) as, in a 'no growth' economic environment, we expect the majority of returns to come from income. We expect to be able to achieve day one cash on cash returns of 10-15% pa after gearing.

The principal assets we will buy will be: London offices with low rents (£20's & £30's per sq ft) in 'villages' such as Southwark, Camden & Hammersmith, often with vacancies and in need of capex; trading portfolios, mainly in the industrial and retail sectors, where there is increasing pressure from banks to sell; and multi-let industrial estates, principally for surplus cash flow in a low growth environment.

Asset Management

We completed 43 new lettings, increasing our contracted income by £1,130,000, and have completed 23 lease renewals, securing a further £1,020,000 of annual rent (an increase of £20,300 pa). Excluding 200 Great Dover Street, where we fully anticipated the tenant leaving to allow a 47,000 sq ft refurbishment scheme, this was offset by the loss of 34 tenants during the six months due to lease expiries, breaks or tenants falling into administration, resulting in a reduction of £1,740,000 to our annualised income. The loss solely attributable from administrations totalled £134,000.

Individual properties:

Clydebank Shopping Centre

We continue to make good letting progress at this centre. Current net rental income is £6.2m compared with £5.85m at acquisition in January 2010 with a further £500,000 of rent due upon expiry of rent free periods, the most significant of which are JD Sports, Bank and Costa Coffee which between them have rent frees of £250,000 expiring in 2012. These rents are all net of head rents. Significant recent transactions include the completion of leases to JD Sports and Bank with a simultaneous surrender of HMV to facilitate this letting securing £250,000 of rent, a new letting to Costa Coffee as well as eight further renewals or new lettings. Mall income is predicted to be c. £250,000 in 2011, compared with £131,000 in 2010 and £0 at acquisition.

Basildon

Located on the prime pitch in Basildon, we acquired this retail asset with offices in the upper parts for £11.12m, at an 8.1% net initial yield. Since acquisition, we have agreed lease renewals with three of the retail tenants (all currently in solicitors' hands) and a number of the office occupiers where we also hope to upsize some of their space. Significant costs have been taken out of the service charge which will be accretive to net operating income.

Silverthorne Road, Battersea

We have let a further 11,997 sq ft producing £237,000pa of rent during the last six months. The original Battersea Studios building (56,000 sq ft) is now fully let and we have 39,900 sq ft available in the newly built Battersea 2. We have strong interest, or are under offer, on almost 11,000 sq ft of this.

East Kilbride

This industrial estate was acquired for £5.9m, a 9.9% net initial yield. Since acquisition we have re-geared one lease, although we have lost a small tenant due to insolvency. We continue to pursue lettings of the vacant units.

Ashford, Middlesex

Our tenant, Focus DIY, went into administration in May and we have re-let the unit on a 25 year lease to 2036 at £530,000pa, with the cost of the rent free period covered by a previous tenant who was still liable for part of the premises.

Corby

We acquired the freehold interest in land and buildings in Corby Town Centre for a total consideration of approximately £70m, reflecting an initial yield, net of all void costs, of circa 8%. We believe that the 25 acre freehold interest, which shares many attributes with our Clydebank asset, provides good long and short term opportunities for Helical to use its bottom up approach to asset management to extract further value for the Company. The holding comprises the following elements:

·      Willow Place, a new 175,000 sq ft shopping centre completed in 2007 and anchored by Primark and TK Maxx;

·      Corporation Street and surrounding areas, the 290,000 sq ft original Corby shopping centre with Iceland, Poundland, Peacocks and Wilkinsons as principal tenants;

·      Oasis Retail Park, 35,000 sq ft let to Argos, Dreams, Farmfoods and Home Bargains;

·      A number of ancillary buildings and development land.

Key asset management initiatives include:

·      the continued leasing of vacant space (currently at 7.5% by ERV) where seven new leases have been agreed in the last three months;

·      the conversion of a block to A3 use to create a leisure hub (this block already has A3 consent and is opposite the new civic centre of the town, where planning applications are lodged for a new cinema and hotel);

·      the extension of the Willow Place mall upon securing a pre-let; and

·      conversion of vacant upper parts to residential (subject to planning).

Morgan Quarter, Cardiff

We have completed nine lettings in the listed arcades, adding £192,000pa to the annual rent. A further two lettings producing £42,000pa are in solicitors hands. Evidence from the opposite side of the Hayes and from within our holding shows that rental values have continued to rise from £155 Zone A to £160 Zone A during the last six months. Rents in March 2010 were £135 Zone A.

Chiswick

We have completed, since the period end, this off-market sale and leaseback to Metropolis Music Group for £3.7m, a 10% yield. This transaction involved acquiring three separate long leaseholds from Metropolis and the freehold from a third party whilst Metropolis concluded a management buy-out and the leaseback agreement. We now hold the freehold of an attractive and iconic west London building with the benefit of a 25 year leaseback with RPI uplifts.

PROPERTY PORTFOLIO
INCOME PRODUCING ASSETS
LONDON OFFICES
				Area	Helical		Average passing	Vacancy
Address	Region	Tenure	Acquired	sq. ft. (NIA)	interest	Description	rent per sq ft	rate
Shepherds Building, Shepherds Bush, London W14	London	Freehold	2000	151,000	100%	Media style offices refurbished in 2001	£ 20.79	2%
200 Great Dover Street, London SE1	London	Leasehold	2008	36,000	100%	Vacant office building with re-development potential	£0.00	100%
80 Silverthorne Road, Battersea, London SW8	London	Freehold	2005	56,000	75%	Media style offices refurbished in 2006	£15.30	0%
82 Silverthorne Road, Battersea, London SW8	London	Freehold	2008	51,000	75%	Media style offices built in 2008	£17.00	78%
Barts, London EC1	London	Freehold	2011	387,000	33%	Offices let to NHS, subject to future development	£9.20	0%
The Powerhouse, Chiswick, London W4*	London	Freehold	2011	24,000	100%	Media style offices	£16.60	0%
				705,000

RETAIL - IN TOWN
				Area	Helical		Average Zone A	Vacant
Address	Region	Tenure	Acquired	sq. ft. (NIA)	interest	Description	rent per sq ft	space
The Morgan Quarter, Cardiff	Wales	Freehold	2005	246,000	100%	Refurbished store let as prime retail units + arcades	£45-£155	2%
78-104 Town Square, Basildon	South East	Freehold	2011	54,000	100%	Retail units and offices	£80-£120	24%
The Guineas, Newmarket	South East	Leasehold	2011	111,000	100%	Multi-let shopping centre	£35-£75	10%
Idlewells Shopping Centre, Sutton-In-Ashfield	Midlands	Freehold	2011	185,000	100%	Multi-let shopping centre	£35-£60	6%
Corby Town Centre, Corby*	Midlands	Freehold	2011	700,000	100%	Multi-let regional shopping centre	£25-£85	7%
Clyde Shopping Centre, Clydebank	Scotland	Leasehold	2010	627,000	60%	Multi-let regional shopping centre	£35-£80	4%
				1,923,000
RETAIL - OUT OF TOWN
				Area	Helical		Average passing	Vacant
Address	Region	Tenure	Acquired	sq. ft. (NIA)	interest	Description	rent per sq ft	space
Otford Road Retail Park, Sevenoaks	South East	Freehold	2003	42,000	75%	Retail park let to Wickes, Currys & Carpetright	£17.95	0%
Stanwell Road, Ashford	South East	Leasehold	2004	32,000	75%	Solus unit let to Hitchcock & King	£16.37	0%
				74,000
* Purchased since 30 September 2011

PROVINCIAL OFFICES

Area

Helical

Average passing

Vacant

Address

Region

Tenure

Acquired

sq. ft. (NIA)

interest

Description

rent per sq ft

space

Fordham, Newmarket

South East

Freehold

2007

70,000

53%

R & D space and offices on 32 acres

£15.37

70,000

PROPERTY PORTFOLIO
INCOME PRODUCING ASSETS
INDUSTRIAL
				Area	Helical		Average	Vacant
Address	Region	Tenure	Acquired	sq. ft. (NIA)	interest	Description	passing rent per sq ft	space
Dales Manor Business Park, Sawston, Cambridge	South East	Freehold	2003	62,000	67%	Multi-let industrial estate	£7.71	0%
Winterhill Industrial Estate, Milton Keynes	Midlands	Freehold	2004	25,000	50%	Offices and industrial units	£4.62	0%
Merlin Business Park, Manchester	Greater Manchester	Leasehold	2010	62,000	100%	Single-let industrial unit	£5.50	0%
Crownhill Business Centre, Milton Keynes	Midlands	Leasehold	2010	108,000	100%	Multi-let industrial estate	£5.94	0%
Langlands Place Industrial Estate, East Kilbride	Scotland	Freehold	2011	153,000	100%	Multi-let industrial estate	£4.50	25%
				410,000

PROPERTY PORTFOLIO
DEVELOPMENT PROGRAMME
LONDON OFFICES
		Area	Helical
Address	Region	sq. ft.	interest	Fund/owner	Type of development
200 Aldersgate Street, London EC1	London	370,000	Dev. Man.	Deutsche Pfandbriefbank	Refurbished and in course of letting
Mitre Square, London EC3	London	276,000	100%	Helical	New office building
		646,000

PROVINCIAL OFFICES
		Area	Helical
Address	Region	sq. ft.	interest	Fund/owner	Type of development
The Hub, Pacific Quay, Glasgow	Scotland	60,000	100%	Helical
		60,000

INDUSTRIAL
		Area	Helical
Address	Region	sq. ft.	interest	Description	Type of development
Scotts Road, Southall, West London	London	12,000	100%	Industrial units	New build
Tiviot Way, Stockport	North West	-	100%	Site of industrial	New build
Ropemaker Park, Hailsham	South East	70,000	90%	Industrial and food store/rest	New build
		82,000
RETAIL - IN TOWN
		Area	Helical
Address	Region	sq. ft.	interest	Description
Parkgate, Shirley, West Midlands	Midlands	157,000	50%	85,000 sq ft Asda, 72,000 sq ft retail, 120 residential units
C4.1 Milton Keynes	Midlands	33,000	50%	Remaining retail and office units
Bluebrick, Wolverhampton	Midlands	27,000	50%	Refurbished railway station with permission for casino use
		217,000

RETAIL - POLAND
		Area	Helical
Address	Region	sq. ft.	interest	Fund/owner	Description	Type of development
Park Handlowy Mlyn, Wroclaw	Poland	103,000	100%	Helical	Completed development, fully let	New build
Park Handlowy Turawa, Opole	Poland	440,000	Profit share	Standard Life	Completed	New build
Europa Centralna, Gliwice	Poland	710,000	37.5%	Helical/Standard Life Client	Under construction	New build
		1,253,000

DEVELOPMENT PROGRAMME CHANGE OF USE POTENTIAL
			Helical	Description
Address	Region	Area	Interest	Description
Cawston, Rugby	Midlands	32 acres	100%	32 acre greenfield site with residential potential
Arleston, Telford	Midlands	19 acres	100%	19 acre greenfield site with residential potential
		51 acres

RETAIL - OUT OF TOWN

Area

Helical

Description

Address

Region

sq. ft.

interest

Leisure Plaza, Milton Keynes

Midlands

305,500

50%

Consent for 165,000 sq ft retail store, 65,000 sq ft casino, 75,000 sq ft other leisure

Tyseley, Birmingham

Midlands

141,600

50%

Contracts conditionally exchanged to purchase site with plans to develop 71,600 sq ft Asda supermarket and 70,000 sq ft retail park

447,100

RETIREMENT VILLAGES

Helical

Address

Region

Units

interest

Description

Bramshott Place, Liphook, Hampshire

South East

151

100%

79 units sold, 25 under offer. Phases 1 and 2 completed, phase 3 under construction.

St Loye's College, Exeter

South West

206

100%

Detailed consent for a retirement village. Part of site has consent for 69 open market housing units and is being marketed

Maudsley Park, Great Alne

Midlands

132

100%

320,000 sq ft industrial estate on a 82 acre site with consent for a retirement village

Ely Road, Milton, Cambridge

South East

101

100%

Planning consent granted for 89 open market housing units. Site under offer to be sold

Durrants Village, Faygate, Horsham

South East

154

100%

Consent for a retirement village. Construction able to start early 2012

744

MIXED USE DEVELOPMENTS

Helical

Address

Region

interest

Description

White City, London W12

London

Consortium

Consortium interest in 1.5-2m sq ft commercial and residential scheme

King Street, Hammersmith, London

London

50%

Planning application submitted for new council offices, foodstore, restaurant and 320 residential units

Fulham Wharf, London SW6

London

Dev. Man.

Planning consent granted for 100,000 sq ft foodstore and 463 residential units. Residential site being sold

Independent Review Report to the Members of Helical Bar plc

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement of changes in equity, and the related notes. We have read the other information contained within the half year statement: Chairman's Statement, Chief Executive's Statement, Financial Highlights and Property Portfolio and have considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity." Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusion we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, ''Interim Financial Reporting,'' as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Grant Thornton UK LLP

Chartered accountants

London

24 November 2011

Consolidated Income Statement

For the Half Year to 30 September 2011

	Notes	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000
Revenue	3	31,333	69,339	119,059
Net rental income	4	8,354	6,459	14,187
Development property profit/(loss)		1,845	(9,217)	(16,642)
Trading property loss		-	(420)	(367)
Share of results of joint ventures		1,028	637	2,886
Other operating income/(expense)		111	160	(358)
Gross profit/(loss) before gain on sale and revaluation of investment properties		11,338	(2,381)	(294)
Net gain on sale and revaluation of investment properties	5	486	9,733	7,512
Impairment of available-for-sale assets		-	(1,817)	(1,817)
Gross profit		11,824	5,535	5,401
Administrative expenses		(3,264)	(3,653)	(7,050)
Operating profit/(loss)		8,560	1,882	(1,649)
Finance costs	6	(3,499)	(3,313)	(6,992)
Finance income		227	861	652
Change in fair value of derivative financial instruments	17	(1,434)	(1,078)	1,776
Foreign exchange gain/(loss)		255	(1,509)	(67)
Profit/(loss) before tax		4,109	(3,157)	(6,280)
Tax on profit /(loss) on ordinary activities	7	(126)	(723)	2,391
Profit/(loss) after tax		3,983	(3,880)	(3,889)
- attributable to non-controlling interests		-	-	(2)
- attributable to equity shareholders		3,983	(3,880)	(3,887)
Profit/(loss) for the period		3,983	(3,880)	(3,889)

Earnings/(loss) per 1p share	8

Basic		3.4p	(3.7p)	(3.6p)
Diluted		3.4p	(3.7p)	(3.6p)

Consolidated Statement of Comprehensive Income

For the Half Year to 30 September 2011

	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000

Profit/(loss) for the period	3,983	(3,880)	(3,889)
Fair value movements and impairment of available-for-sale investments	-	(11,508)	(12,169)
Associated deferred tax on impairment	-	3,222	3,222
Exchange difference on retranslation of net investments in foreign operations	(23)	(41)	(14)
Total comprehensive income/(expense) for the period	3,960	(12,207)	(12,850)

- attributable to equity shareholders	3,960	(12,207)	(12,848)
- attributable to non-controlling interests	-	-	(2)
	3,960	(12,207)	(12,850)

Consolidated Balance Sheet

At 30 September 2011

	Notes	At 30 September 2011 £000	At 30 September 2010 £000	At 31 March 2011 £000

Non-current assets
Investment properties held for sale	9	-	-	19,350
		-	-	19,350

Investment properties	9	236,244	254,526	252,526
Owner occupied property, plant and equipment		1,353	1,548	1,497
Investment in joint ventures	10	36,409	25,116	36,064
Derivative financial instruments	17	184	774	793
Goodwill		-	16	14
Deferred tax asset	7	8,904	5,715	8,879
		283,094	287,695	299,773
Total non-current assets		283,094	287,695	319,123
Current assets
Land, developments and trading properties	11	142,864	154,609	147,542
Available-for-sale investments	12	10,778	11,182	10,505
Trade and other receivables	13	26,762	26,271	35,783
Corporation tax receivable		1,046	1,170	1,069
Cash and cash equivalents	14	46,726	30,512	31,327
		228,176	223,744	226,226
Total assets		511,270	511,439	545,349

Current liabilities
Trade and other payables	15	(23,506)	(31,100)	(45,224)
Borrowings	16	(25,866)	(52,742)	(37,500)
		(49,372)	(83,842)	(82,724)
Non-current liabilities
Borrowings	16	(200,220)	(186,763)	(199,917)
Derivative financial instruments	17	(6,313)	(10,450)	(7,311)
		(206,533)	(197,213)	(207,228)
Total liabilities		(255,905)	(281,055)	(289,952)
Net assets		255,365	230,384	255,397

	Notes	At 30 September 2011 £000	At 30 September 2010 £000	At 31 March 2011 £000
Equity

Called-up share capital	18	1,447	1,339	1,447
Share premium account		98,678	70,828	98,678
Revaluation reserve		171	10,331	3,495
Capital redemption reserve		7,478	7,478	7,478
Other reserves		291	291	291
Retained earnings		147,178	139,993	143,886
Equity attributable to equity holders of the parent		255,243	230,260	255,275

Non-controlling interests		122	124	122

Total equity		255,365	230,384	255,397

Consolidated Cash Flow Statement

For the Half Year to 30 September 2011

	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000
Cash flows from operating activities
Profit/(loss) before tax	4,109	(3,157)	(6,280)
Depreciation	164	163	328
Revaluation gain on investment properties	(1,223)	(9,502)	(2,670)
Loss/(gain) on sales of investment properties	737	(231)	(4,842)
Net financing costs	3,272	1,738	6,340
Impairment of available-for-sale assets	-	1,817	1,817
Change in value of derivative financial instruments	1,434	1,078	(1,776)
Share based payment (credit)/charge	(329)	249	(196)
Share of results of joint ventures	(1,028)	(637)	(2,886)
Foreign exchange movement	(260)	1,248	131
Other non-cash items	14	-	2
Cash flows from operations before changes in working capital	6,890	(7,234)	(10,032)

Change in trade and other receivables	11,570	12,420	2,822
Change in land, developments and trading properties	6,312	28,288	38,867
Change in trade and other payables	(21,645)	(12,341)	5,079
Cash inflow generated from operations	3,127	21,133	36,736

Finance costs	(5,994)	(5,213)	(11,264)
Finance income	257	861	465
Tax paid	(128)	(67)	(68)
	(5,865)	(4,419)	(10,867)

Cash flows from operating activities	(2,738)	16,714	25,869

Cash flows from investing activities
Purchase of investment property	(12,532)	(34,349)	(77,864)
Sale of investment property	46,152	9,284	32,810
Proceeds from the sale of derivative financial instruments	-	57	568
Cost of acquiring derivative financial instruments	(932)	-	(744)
Cost of cancelling interest rate swap	(891)	-	(71)
Investment in joint ventures	-	-	(9,520)
Return of investment in joint ventures	683	1,155	1,970
Dividends from joint ventures	-	750	756
Sale of plant and equipment	-	-	2
Purchase of leasehold improvements, plant and equipment	(37)	(84)	(189)
Cash flows from financing activities	32,443	(23,187)	(52,282)
Issue of shares	-	-	27,958
Borrowings drawn down	31,430	27,602	56,536
Borrowings repaid	(42,073)	(30,152)	(61,523)
Equity dividends paid	(3,663)	(265)	(5,031)
	(14,306)	(2,815)	17,940
Net increase/(decrease) in cash and cash equivalents	15,399	(9,288)	(8,473)
Cash and cash equivalents at start of period	31,327	39,800	39,800
Cash and cash equivalents at period end	46,726	30,512	31,327

Consolidated statement of changes in equity

At 30 September 2011

	Share capital £000	Share premium £000	Revaluation reserve £000	Capital redemption reserve £000	Other reserves £000	Retained earnings £000	Non-controlling interests £000	Total £000

At 31 March 2010	1,339	70,828	-	7,478	291	162,547	124	242,607

Total comprehensive expense	-	-	-	-	-	(12,850)	-	(12,850)
Revaluation surplus	-	-	2,670	-	-	(2,670)	-	-
Realised on disposals	-	-	825	-	-	(825)	-	-
Non-controlling interest	-	-	-	-	-	2	(2)	-
Performance share plan	-	-	-	-	-	(196)	-	(196)
Issue of shares	108	27,850	-	-	-	-	-	27,958
Dividends paid	-	-	-	-	-	(2,122)	-	(2,122)
At 31 March 2011	1,447	98,678	3,495	7,478	291	143,886	122	255,397
Total comprehensive income	-	-	-	-	-	3,960	-	3,960
Revaluation surplus	-	-	1,223	-	-	(1,223)	-	-
Realised on disposals	-	-	(4,547)	-	-	4,547	-	-
Non-controlling interests	-	-	-	-	-	-	-	-
Performance share plan	-	-	-	-	-	(329)	-	(329)
Dividends paid	-	-	-	-	-	(3,663)	-	(3,663)
At 30 September 2011	1,447	98,678	171	7,478	291	147,178	122	255,365

The adjustment against retained earnings of £329,000 (31 March 2011: £196,000) adds back the share based payments credit in accordance with IFRS 2 Share Based Payments.

There were net transactions with shareholders of £3,663,000 (31 March 2011: £25,836,000) made up of the issue of shares of £nil (31 March 2011: £27,958,000) and dividends paid of £3,663,000 (31 March 2011: £2,122,000).

	Share capital £000	Share premium £000	Revaluation reserve £000	Capital redemption reserve £000	Other reserves £000	Retained earnings £000	Non-controlling interests £000	Total £000

At 31 March 2010	1,339	70,828	-	7,478	291	162,547	124	242,607
Total comprehensive expense	-	-	-	-	-	(12,207)	-	(12,207)
Revaluation surplus	-	-	9,502	-	-	(9,502)	-	-
Realised on disposals	-	-	829	-	-	(829)	-	-
Performance share plan	-	-	-	-	-	249	-	249
Dividends paid	-	-	-	-	-	(265)	-	(265)
At 30 September 2010	1,339	70,828	10,331	7,478	291	139,993	124	230,384

There were net transactions with shareholders made up of dividends paid of £265,000.

Unaudited notes to the Half Year Statement

1. Financial Information

The financial information contained in this statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The full accounts for the year ended 31 March 2011, which were prepared under International Financial Reporting Standards and which received an unqualified report from the Auditors, and did not contain a statement under Section 498 of the Companies Act 2006, have been filed with the Registrar of Companies.

These interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The principal accounting policies have remained unchanged from the prior financial period to 31 March 2011.

They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year end 31 March 2011.

The Directors have a reasonable expectation that the Company will continue in operational existence for the foreseeable future and have, therefore, used the going concern basis in preparing the financial statements.

Principal risks and uncertainties

The responsibility for the governance of the Group's risk profile lies with the Board of Directors of Helical. The Board is responsible for setting the Group's risk strategy by assessing risks, determining its willingness to accept those risks and ensuring that the risks are monitored and that the Group is aware of and, if appropriate, reacts to, changes in those risks. The Board is also responsible for allocating responsibility for risk within the Group's management structure.

The Group considers its principal risks to be:

- strategic risk

- operational risk

- market risk

- liquidity risk, and

- credit risk.

There have been no significant changes to these risk areas in the period. A further analysis of these risks is included within the consolidated financial statements of the Group for the year ended 31 March 2011.

The half year statement was approved by the Board on 24 November 2011 and is being sent to shareholders and will be available from the Company's registered office at 11‑15 Farm Street, London W1J 5RS and on the Company's website at www.helical.co.uk.

2. Statement of directors' responsibilities

The directors confirm that, to the best of their knowledge, this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

Balances with related parties at 30 September 2011 and 31 March 2011 are disclosed in note 22.

A list of current directors is maintained at 11-15 Farm Street, London W1J 5RS and at www.helical.co.uk.

On behalf of the Board

Nigel McNair Scott

Finance Director

24 November 2011

3. Segmental information

The Group identifies two discrete operating segments whose results are regularly reviewed by the Chief Operating Decision Maker (the Chief Executive) to allocate resources to these segments and to assess their performance. The segments are:

· investment properties, which are owned or leased by the Group for long-term income and for capital appreciation, and trading properties, which are owned or leased with the intention to sell; and,

· development properties, which include sites, developments in the course of construction, completed developments available for sale, and pre-sold developments.

Investment Develop- Investment Develop-

and trading ments Total and trading ments Total

Half year to Half year to Half year to Half year to Half year to Half year to

30.9.11 30.9.11 30.9.11 30.9.10 30.9.10 30.9.10

Revenue £000 £000 £000 £000 £000 £000

Rental income 9,665 787 10,452 8,563 334 8,897

Development income - 10,507 10,507 - 44,348 44,348

Trading property sales 10,263 - 10,263 15,915 - 15,915

19,928 11,294 31,222 24,478 44,682 69,160

Other revenue 111 179

Revenue 31,333 69,339

Investment Develop-

and trading ments Total

Year to Year to Year to

31.3.11 31.3.11 31.3.11

Revenue £000 £000 £000

Rental income 16,988 1,602 18,590

Development income - 84,311 84,311

Trading property sales 15,915 - 15,915

32,903 85,913 118,816

Other revenue 243

Revenue 119,059

Investment Develop- Investment Develop-

and trading ments Total and trading ments Total

Half year to Half year to Half year to Half year to Half year to Half year to

30.9.11 30.9.11 30.9.11 30.9.10 30.9.10 30.9.10

Profit/(loss) before tax £000 £000 £000 £000 £000 £000

Net rental income 7,680 674 8,354 7,001 (542) 6,459

Development property profit/(loss) - 1,845 1,845 - (9,217) (9,217)

Trading property loss - - - (420) - (420)

Share of results of joint venture 1,003 25 1,028 616 21 637

Gain on sale and revaluation 486 - 486 9,733 - 9,733
of investment properties

9,169 2,544 11,713 16,930 (9,738) 7,192

Impairment of available-for-sale investments - (1,817)
Other operating income 111 160

Gross profit 11,824 5,535

Administrative expenses (3,264) (3,653)

Net finance costs (4,706) (3,530)

Foreign exchange gain/(loss) 255 (1,509)

Profit/(loss) before tax 4,109 (3,157)

Investment Develop-

and trading ments Total

Year to Year to Year to

31.3.11 31.3.11 31.3.11

Loss before tax £000 £000 £000

Net rental income 13,776 411 14,187

Development property loss - (16,642) (16,642)

Trading property loss (367) - (367)

Share of results of joint venture 2,905 (19) 2,886

Gain on sale and revaluation 7,512 - 7,512

of investment properties

23,826 (16,250) 7,576 Impairment of available-for-sale investments (1,817)

Other operating expense (358)

Gross profit 5,401

Administrative expenses (7,050)

Finance income 652

Finance expense (5,216)

Foreign exchange losses (67)

Loss before tax (6,280)

Investment Develop- Investment Develop-

and trading ments Total and trading ments Total

At At At At At At

30.9.11 30.9.11 30.9.11 31.3.11 31.3.11 31.3.11

Balance sheet £000 £000 £000 £000 £000 £000

Investment properties - - - 19,350 - 19,350

held for sale

Investment properties 236,244 - 236,244 252,526 - 252,526

Land, development and 158 142,706 142,864 10,289 137,253 147,542
trading properties

Investment in joint ventures 31,745 4,664 36,409 31,401 4,663 36,064

268,147 147,370 415,517 313,566 141,916 455,482

Other assets 95,753 89,867

Total assets 511,270 545,349

Liabilities (255,905) (289,952)

Net assets 255,365 255,397

4. Net rental income

	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000
Gross rental income	10,452	8,897	18,590
Rents payable	(210)	(21)	(24)
Property overheads	(1,490)	(1,982)	(3,662)
Net rental income	8,752	6,894	14,904
Net rental income attributable to profit share partner	(398)	(435)	(717)
Group share of net rental income	8,354	6,459	14,187

5. Net gain on sale and revaluation of investment properties

	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000

Net proceeds from the sale of investment properties	49,166	9,911	32,810
Book value (note 9)	(49,469)	(9,053)	(27,902)
Other costs	(434)	(627)	(66)
(Loss)/gain on sale of investment properties	(737)	231	4,842
Revaluation surplus on investment properties	1,223	9,502	2,670
Net gain on sale and revaluation of investment properties	486	9,733	7,512

6. Finance costs

	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000
Interest payable on bank loans and overdrafts	(4,905)	(4,854)	(9,690)
Other interest payable and similar charges	(135)	60	(675)
Finance arrangement costs	(327)	(340)	(806)
Interest capitalised	1,868	1,821	4,179
Finance costs	(3,499)	(3,313)	(6,992)

7. Taxation on profit/(loss) on ordinary activities

		Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000

The tax (charge)/credit is based on the profit for the period and represents: United Kingdom corporation tax at 26%. - Group corporation tax		(20)	-	-
- Adjustment in respect of prior periods		-	-	-
- Overseas tax		(131)	4	(97)
Current tax (charge)/credit		(151)	4	(97)

Deferred tax - capital allowances - tax losses - other temporary differences		25 35 (35)	(85) (282) (360)	442 1,823 223
Deferred tax		25	(727)	2,488
Total tax (charge)/credit for period		(126)	(723)	2,391
Deferred tax provision	At 30 September 2011 £000		At 31 March 2011 £000
Capital allowances	(2,790)		(2,815)
Tax losses	9,562		9,527
Other temporary differences	2,132		2,167
Deferred tax asset	8,904		8,879

Under IAS 12, deferred tax provisions are made for the tax that would potentially be payable on the realisation of investment properties and other assets at book value.

If upon sale of the investment properties the group retained all the capital allowances, the deferred tax provision in respect of capital allowances of £2.8m would be released and further capital allowances of £8.2m would be available to reduce future tax liabilities.

The deferred tax asset in respect of other temporary differences (income statement) arises from the recognition of tax relief available to the Company on the mark to market valuation of financial instruments and the future vesting of share awards.

8. Earnings per 1p share

The calculation of the basic earnings/(loss) per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. This is a different basis to the net asset per share calculations which are based on the number of shares at the year end. Shares held by the ESOP, which has waived its entitlement to receive dividends, are treated as cancelled for the purpose of this calculation.

The calculation of diluted earnings/(loss) per share is based on the basic earnings/(loss) per share, adjusted to allow for the issue of shares and the post tax effect of dividends on the assumed exercise of all dilutive options.

The earnings/(loss) per share is calculated in accordance with IAS 33 and the best practice recommendations of the European Public Real Estate Association ("EPRA").

Reconciliations of the earnings/(loss) and weighted average number of shares used in the calculations are set out below.

	Half Year to 30 September 2011 000s	Half Year to 30 September 2010 000s
Ordinary shares in issue	118,138	107,408
Weighting adjustment	(1,292)	(1,292)
Weighted average ordinary shares in issue for calculation of basic earnings/(loss) per share	116,846	106,116
Weighting adjustment	6	-
Weighted average ordinary shares in issue for calculation of diluted earnings/(loss) per share	116,852	106,116
	£000s	£000s
Earnings/(loss) used for calculation of basic and diluted earnings per share	3,983	(3,880)
Net gain on sale and revaluation of investment properties	(486)	(9,733)
Share of net gain on revaluation of investment properties in the results of Joint Ventures	(637)	-
Tax on profit on disposal of investments properties	(192)	-
Trading property loss	-	420
Fair value movement on derivative financial instruments	1,434	1,078
Share of fair value movement on derivative financial instruments in the results of Joint Ventures	824	814
Impairment of available-for-sale asset	-	1,817
Deferred tax on adjusting items	(192)	(217)
Earnings/(loss) used for calculation diluted EPRA earnings per share	4,734	(9,701)

Basic earnings/(loss) per share	3.4p	(3.7p)
Diluted earnings/(loss) per share	3.4p	(3.7p)
Diluted EPRA earnings/(loss) per share	4.1p	(9.1p)

In accordance with IAS33 no dilutive weighting adjustments have been made for share awards in existence during the year to 31 March 2011 as a loss was made during that year making the adjustments anti-dilutive. Accordingly, the basic and diluted losses per share are the same.

The earnings/(loss) used for the calculation of diluted EPRA earnings per share includes net rental income and development property profits/losses but excludes trading property losses.

9. Investment properties

	Valuation £000	Cost £000

Fair value at 1 April 2011	271,876	264,947
Additions at cost	12,532	12,532
Disposals	(49,469)	(44,427)
Revaluation	1,223	-
Revaluation deficit attributable to profit share partner	82	-
As at 30 September 2011	236,244	233,052

All properties are stated at market value as at 30 September 2011, and are valued by professionally qualified external valuers (Cushman & Wakefield LLP) except for investment properties valued by directors - representing £4.8m (2.0%) of the portfolio.

Interest capitalised in respect of the refurbishment of investment properties at 30 September 2011 amounted to £5,767,000 (31 March 2011: £5,767,000). Interest capitalised during the period in respect of the refurbishment of investment properties was £nil.

10. Investment in joint ventures


	At 30 September 2011	At 31 March 2011
	£000	£000

Summarised balance sheets

Investment properties	66,726	65,875
Land, development and trading properties	14,545	14,434
Trade and other receivables	3,815	6,141
Cash	3,739	4,138
	88,825	90,588

Trade and other payables	(13,091)	(15,140)
Bank borrowings	(39,325)	(39,384)
	(52,416)	(54,524)

Share of net assets	36,409	36,064

11. Land, developments and trading properties

	At 30 September 2011 £000	At 31 March 2011 £000
Development properties	142,706	137,254
Properties held as trading stock	158	10,288
	142,864	147,542

The directors' valuation of trading and development stock shows a surplus of £33m (31 March 2011: £32m) above book value.

Total interest to date in respect of the development of sites is included in stock to the extent of £7,777,000 (31 March 2011: £6,827,000). Interest capitalised during the period in respect of development sites amounted to £1,868,000.

12. Available-for-sale investments

		Current £000
Fair value at 1 April 2011		10,505
Fair value adjustments		273
As at 30 September 2011		10,778

13. Trade and other receivables

	At 30 September 2011 £000	At 31 March 2011 £000
Trade receivables	11,479	20,891
Other receivables	10,984	10,033
Prepayments and accrued income	4,299	4,859
	26,762	35,783

14. Cash and cash equivalents

	At 30 September 2011 £000	At 31 March 2011 £000
Rent deposits and cash held at managing agents	4,048	3,313
Cash deposits	42,678	28,014
	46,726	31,327

15. Trade and other payables

	At 30 September 2011 £000	At 31 March 2011 £000
Trade payables	4,990	18,358
Other payables	5,738	5,441
Accruals and deferred income	12,778	21,425
	23,506	45,224

16. Borrowings

		At 30 September 2011 £000			At 31 March 2011 £000
Bank overdraft and loans - maturity
Due within one year		25,866			37,500
Due after more than one year		200,220			199,917
		226,086			237,417
Current borrowings:- less than one year			25,866	37,500
Bank loans repayable within:- one to two years two to three years three to four years four to five years			125,337 11,733 30,507 32,643	74,318 88,175 4,199 33,225
Non-current borrowings			200,220	199,917
Net Gearing	At 30 September 2011 £000					At 31 March 2011 £000
Total borrowings	226,086					237,417
Cash	(46,726)					(31,327)
Net borrowings	179,360					206,090
The Group's share of borrowings in joint ventures is £39,325,000 (31 March 2011: £39,384,000).
	£000					£000
Net assets	255,365					255,397
Gearing	70%					81%

17. Derivative financial instruments

		At 30 September 2011 £000	At 31 March 2011 £000
At 1 April		(6,518)	(8,541)
Change in fair value in the period	(1,434)		1,776
Cancelled in the period Sold in the period		891 -	71 (568)
Purchased in the period		932	744
At 30 September / 31 March		(6,129)	(6,518)

Derivative financial instruments asset		184	793
Derivative financial instruments liability	(6,313)		(7,311)
	(6,129)		(6,518)

18. Share capital

	At 30 September 2011 £000	At 31 March 2011 £000
Authorised	39,577	39,577

The authorised share capital of the Company is £39,576,626.60 divided into ordinary shares of 1p each and deferred shares of 1/8p each

Allotted, called up and fully paid - 118,137,522 ordinary shares of 1p each	1,182	1,182
- 212,145,300 deferred shares of 1/8 p each	265	265
	1,447	1,447

As at 1 April 2011 and 30 September 2011, the Company had 118,137,522 ordinary 1p shares in issue.

Share options

At 30 September 2011 there were 34,713 unexercised options over shares held by the ESOP (31 March 2011: nil). During the period 34,713 new options were granted.

19. Dividends	Half Year To 30 September 2011 £000	Half Year To 30 September 2010 £000	Year To 31 March 2011 £000

Attributable to equity share capital

Ordinary - Interim paid 1.75p per share - prior period final paid 3.15p per share (2010: 0.25p)	- 3,663	- 265	1,857 265
	3,663	265	2,122

The interim dividend of 1.75p (30 September 2010: 1.75p per share) was approved by the board on 24 November 2011 and will be paid on 22 December 2011 to shareholders on the register on 2 December 2011. This interim dividend, amounting to £2,045,000 has not been included as a liability as at 30 September 2011.

20. Own shares held

Following approval at the 1997 Annual General Meeting the Company established the Helical Bar Employees' Share Ownership Plan Trust (the "Trust") to be used as part of the remuneration arrangements for employees. The purpose of the Trust is to facilitate and encourage the ownership of shares by or for the benefit of employees by the acquisition and distribution of shares in the Company.

The Trust purchases shares in the Company to satisfy the Company's obligations under its Share Option Schemes and Performance Share Plan.

At 30 September 2011 the Trust held 1,291,844 ordinary shares in Helical Bar plc (31 March 2011: 1,291,844).

At 30 September 2011 options over 34,713 (31 March 2011: nil) ordinary shares in Helical Bar plc had been granted through the Trust. At 30 September 2011 awards over 7,230,850 (31 March 2011: 6,294,364) ordinary shares in Helical Bar plc, made under the terms of the Performance Share Plan, were outstanding.

21. Net assets per share

	30 September 2011 £000	Number of shares 000's	30 September 2011 pence per share
Net asset value Less: own shares held by ESOP	255,365	118,138 (1,292)
deferred shares	(265)
Basic and diluted net asset value	255,100	116,846	218
Adjustments for
fair value of financial instruments	7,150
deferred tax	663
Adjusted diluted net asset value	262,913	116,846	225
Adjustment for
Fair value of trading and development properties	33,534
Diluted EPRA net asset value	296,447	116,846	254
Adjustment for
fair value of financial instruments	(7,150)
deferred tax	(663)
Diluted EPRA triple NAV	288,634	116,846	247

The adjustment for the fair value of trading and development properties represents the surplus as at 30 September 2011.

	31 March 2011 £000	Number of shares 000's	31 March 2011 pence per share
Net asset value Less: own shares held by ESOP	255,397 -	118,138 (1,292)
deferred shares	(265)
Basic and diluted net asset value	255,132	116,846	218
Adjustment for - fair value of financial instruments	7,071
- deferred tax	717
Adjusted diluted net asset value	262,920	116,846	225
Adjustment for - fair value of trading and development properties	32,436
Diluted EPRA net asset value Adjustment for - fair value of financial instruments - deferred tax	295,356 (7,071) (717)	116,846	253
Diluted EPRA triple net asset value	287,568	116,846	246

The net asset values per share have been calculated in accordance with the best practice recommendations of the European Public Real Estate Association ("EPRA").

22. Related party transactions

At 30 September 2011 and 31 March 2011 the following amounts were due from the Group's joint ventures.

	At 30 September 2011 £000	At 31 March 2011 £000
Abbeygate Helical (Leisure Plaza) Ltd	2,200	2,040
Haslucks Green Ltd	132	131
Abbeygate Helical (C4.1) LLP	10	6
King Street Developments (Hammersmith) Ltd	2,019	2,000
Shirley Advance LLP	4,208	4,165
The Asset Factor Ltd	(499)	(499)
PH Properties Limited (BVI)	-	-
Barts Two Investment Property Ltd	502	-

23. Post Balance sheet events

Since 30 September 2011, Helical has completed the purchase of Corby Town Centre for £70m. The impact of this transaction, had it been completed before the half year end, would have been to increase the Group's share of the property portfolio to circa £565m and the Group's share of net borrowings to circa £285m. The ratio of net borrowings to the property portfolio would have been 50% and the ratio of net debt to equity 112%. The Group has also announced the signing of an agreement to develop jointly a 66,000 sq ft retail park and shopping centre at Europa Centralna, Gliwice, Poland. The completion of this transaction will return circa £16m cash to Helical and reduce stock levels by circa £40m.

This information is provided by RNS

The company news service from the London Stock Exchange

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Half Yearly Report

For the Six Months to 30 September 2011

Helical Bar plc 020 7629 0113

FTI Consulting 020 7831 3113

Introduction

Directors' Responsibilities

Our Responsibility

Scope of Review

Conclusion

For the Half Year to 30 September 2011

3

4

5

17

7

8

For the Half Year to 30 September 2011

Notes

Trade and other receivables

Corporation tax receivable

Total assets

Current liabilities

Trade and other payables

Borrowings

Non-current liabilities

Borrowings

Derivative financial instruments

Total liabilities

Net assets

Notes

Equity

Called-up share capital

Share premium account

Revaluation reserve

Capital redemption reserve

Other reserves

Retained earnings

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Non-controlling interests

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3. Segmental information

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