Interim Results

Helical Bar PLC 29 November 2007 29 November 2007 H E L I C A L B A R P L C ('Helical'/'Company') I n t e r i m R e s u l t s For the Half Year to 30 September 2007 THE PROPERTY CYCLE TURNS â€¢ Profit after tax for the half year of Â£13.0m (2006: Â£10.2m) â€¢ Interim dividend up 9% to 1.75p per share (2006: 1.60p) â€¢ Diluted earnings per share of 13.4p (2006: 10.5p) â€¢ Cash and unused bank facilities of Â£100m ensuring the Company is well positioned to capitalise on market opportunities â€¢ Portfolio well diversified with strong asset management opportunities Commenting on the results, Giles Weaver, Chairman, said: 'Helical has done many of its best deals in challenging markets and we are certainly more confident of being able to source interesting deals at sensible prices over the next couple of years than over the last two. We remain a relatively small, nimble company where future purchases will continue to have a marked impact on our performance.' 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 FINANCIAL HIGHLIGHTS Half Year To Half Year To Year To 30 September 2007 30 September 2006 31 March 2007 Notes Â£m Â£m Â£m Net rental income 7.9 6.7 14.8 Development profits 4.3 1.7 13.6 Trading profits - 4.6 2.1 Share of results of joint ventures 1 0.4 3.3 6.2 Profits before gains on investment properties and taxation 7.3 10.8 19.5 Gains on investment properties 2 - 0.6 40. 6 Profits before tax 7.3 11.4 60. 1 pence pence pence Basic earnings per share 14.3 11.1 58.0 Diluted earnings per share 13.4 10.5 53.7 Diluted EPRA earnings per share 3 9.7 7.5 16.6 Dividends per share - ordinary dividend 1.75 1.60 4.05 Adjusted diluted net assets per share 2 342 283 334 Diluted EPRA net assets per share 4 382 314 374 Â£m Â£m Â£m Value of investment portfolio 2 323.2 290.4 316.0 Net borrowings 179.0 132.1 134.0 Net assets 293.0 236.5 282.2 Net gearing 61% 56% 47% Notes 1. The Group's share of the results of entities controlled equally by the Group and its joint venture partners. 2. There has been no interim revaluation of the investment portfolio as at 30 September 2007 and 30 September 2006. 3. Calculated in accordance with IAS33 and the best practice recommendations of the European Public Real Estate Association ('EPRA'). See note 8 of Interim Statement. 4. Calculated in accordance with the best practice recommendations of EPRA. See note 20 of Interim Statement. C h a i r m a n ' s S t a t e m e n t Introduction In commercial property's bull run yields were pushed down to unsustainable levels and we are now witnessing what we consider to be a well overdue correction. Helical thrives in cyclical markets and our worst fear was that yields would stay low, offering pedestrian prospective returns for mainstream property assets. Naturally a market correction is painful and we are by no means immune but we have sought to mitigate the adverse effect of rising yields on our business by reducing, over time, the size of our investment portfolio as a proportion of our overall business. Over the last decade the investment portfolio has typically been twice our net asset value whereas it is currently about one times net asset value with the investment assets we have retained either offering asset management opportunities or rental growth potential. Whilst our gearing has risen from 47% to 61% in the half year we still have modest gearing by historical standards compared to a typical range of 100-150%. This gives us a considerable war chest for future deals. Most importantly we have built up our exposure to a variety of projects where future profits will not be undermined by adverse yield shift. For instance, amongst other activities we are adept in unlocking value by obtaining planning consents for more valuable uses - frequently non-commercial uses such as residential, retirement or nursing homes and student accommodation. Such activity remains profitable at any point of the property cycle and provides us with a stream of future development opportunities. Where we subsequently choose to undertake developments we usually de-risk our exposure through pre-lets or pre-sales. This approach allows us to reduce the impact of cyclical market falls. It does not, however, necessarily generate a steady stream of growing half yearly profits. We are confident about the size of profit margins we can make but the precise timing of these profits is harder to predict and in no way does this detract from the robustness of our business model or our potential to maintain our exemplary long term track record. Indeed, challenging markets throw up much better purchasing opportunities than those we have seen in recent years. We are hopeful that as our existing pipeline of deals bears fruit we will also be able to lay the foundations for future outperformance with opportunistic purchases in 2008 and 2009 as we increase our investment stock at reduced prices. Results Profits before tax, including investment gains, were Â£7.3m (2006: Â£11.4m). Net rental income for the period was Â£7.9m (2006: Â£6.7m). Trading profits at Â£0m (2006: Â£4.6m) and development profits of Â£4.3m (2006: Â£1.7m) added to the share of results of joint ventures of Â£0.4m (2006: Â£3.3m). Administration costs were steady at Â£6.1m (2006: Â£6.0m) and net financing income was Â£0.6m (a cost of Â£0.3m in 2006). The corporation tax charge of Â£1.3m (2006: Â£3.6m) has been offset by a deferred tax credit of Â£7.0m (2006: Â£2.4m). This deferred tax credit arises from a reduction in the tax rate applied to deferred tax assets and liabilities, from 30% to 28%, which will be effective from 1 April 2008, and the recognition of deferred tax assets arising from tax relief available to the company on the future vesting of share awards (calculated at 30 September 2007 share price of 456.75p). Diluted earnings per share were 13.4p (2006: 10.5p) and adjusted earnings per share were 9.7p (2006: 7.5p). Basic net assets per share rose to 323p per share (31 March 2007: 311p) and the fully diluted net assets per share adjusted for the adding back of the deferred tax provision rose to 342p per share (31 March 2007: 334p). In line with Helical's long held policy, there has been no interim revaluation of the investment portfolio as at 30 September 2007. Financing Purchases of trading and development stock of Â£48m have contributed to an increase in net debt to Â£179m at 30 September 2007 (31 March Â£134m). Gearing has increased to 61% from 47% at 31 March 2007. As at yesterday's date the company had Â£25m of cash on deposit, over Â£75m of undrawn facilities and Â£154m of uncharged property. Share price The FTSE 350 Real Estate Sector is down 38% in the year to date and Helical shares have not been immune, falling 23% to 363p over the same period. For only the third time in our 22 years as a property company we now trade at a discount to our net asset value including stock surplus. It is clear to us that the market is undergoing its biggest correction since the early 90s and a consensus is building that a 10-15% fall in capital values caused by a 75-100bp rise in yields is playing out. The latent potential within our portfolio that we expect to unlock over the next few years should comfortably exceed the potential diminution in value that would be caused by such a rise in yields. Outlook Rising yields create a poor short-term outlook for commercial property values. However, it is when the market is at its most heated that mistakes are most easily made. We had felt that risk premiums were far too low in our market throughout 2006 and 2007 and are relieved to have maintained our discipline during this time. Helical has done many of its best deals in challenging markets and we are certainly more confident of being able to source interesting deals at sensible prices over the next couple of years than over the last two. We remain a relatively small, nimble company where future purchases will continue to have a marked impact on our performance. Giles Weaver Chairman 28 November 2007 HELICAL PROPERTY PORTFOLIO A complete list of the Group's ongoing projects is noted below. Highlights during the half year to 30 September 2007 are as follows: Planning pipeline We acquired sites for an aggregate of circa Â£35 million at Exeter, Fieldgate Street, London E1, and Telford where we intend to submit planning applications respectively for retirement villages, student accommodation and open market housing. â€¢ Our planning appeal was heard regarding our retirement village scheme in Great Alne, Warwickshire and we anticipate a decision in December. â€¢ A planning application was made for 236 residential units at Whitstable on a former employment site. â€¢ In addition, good progress was made across our change of use portfolio and we hope to be able to make some positive announcements during the second half. Developments Planning consent has been gained for our largest industrial development, a 250,000 sq ft scheme for unit freehold sales in Southall, West London. Phase 1, comprising 165,000 sq ft, has commenced construction with a very good level of interest from purchasers. We have started construction of a 50,000 sq ft second phase of our business centre in Battersea, London SW8 having gained consent to double the size of our existing facility on part of the car park. Enabling works are ongoing at Riverbank House, London EC4 where we are development managers for Pace Investments of a 320,000 sq ft office scheme pre-let to Man Group. We have started the refurbishment of 35,000 sq ft of offices and 23,000 sq ft of leisure and retail at Clareville House, London SW1 where we are development managers for National Grid Pension Scheme. We are shortly to commence the first 45 units of our retirement village scheme at Liphook, Hampshire. We have signed a joint venture agreement with National Grid Pension Scheme at High Wycombe to pursue high density 100,000 sq ft retail and leisure plus 125 residential units adjoining the new Eden Shopping Centre. Refurbishment of a 22,000 sq ft listed station building in Wolverhampton has commenced following the pre-letting to a major casino operator. Finally, in Poland we have acquired a 21 hectare site at Opole where 41,000 sq m of out of town retail is proposed. This complements existing retail projects in Gliwice (64,000 sq m) and Wroclaw (10,000 sq m). Investments Just under half our investment portfolio by value is held in London offices where we continue to experience strong occupational demand. With the final letting in our first phase of Battersea Studios in solicitors' hands and due to sign shortly, we will have full occupancy in our London holdings. These comprise 104 lettable units in 350,000 sq ft occupied by 77 tenants generating a reversionary rent roll of over Â£9.5 million per annum, an average of just over Â£27 per sq ft. In our industrial portfolio we have let the last three of our vacant units in North Woolwich achieving a Â£10 psf benchmark against previous rentals of Â£8.75 psf. At Aldridge we also have full occupancy having let 135,000 sq ft on a ten year lease without break. Our largest single investment is the former Morgan Department store in Cardiff where TK Maxx, Borders, Moss Bros and Rossiters are now all open and trading. The 56 residential units, all forward sold, will be completed in early 2008. Helical Property Portfolio Ongoing Projects I - Investment D - Development T - Trading Mixed use Developments Description Helical share Morgan Department Store, Cardiff O 160,000 sq ft retail - Borders, TK 100% Maxx, Moss Bros. I O 56 flats, all sold. O Completion early 2008 Trinity Square, Nottingham O 180,000 sq ft retail - Borders, TK 65% Maxx, Dixons D O 700 student units O Forward sold to Morley for over Â£100m O Completion 2008 C4.1, Milton Keynes O 110,000 sq ft Sainsbury's (forward 50% sold) D O 440 residential units (forward sold) O 35,000 sq ft of retail and offices O Completion 2008 White City, London W12 O Planning consent to be sought for 4.5 Consortium landowner million sq ft of commercial and residential & development manager on 33 acres D Amen Corner, Bracknell O Land and options held for a gateway 100% office/mixed use development off the A329M D Bluebrick, Wolverhampton O 11 acre site. Individual land sales 75% completed for 208 flats, 20,000 sq ft showroom, 88 bed hotel, 7,000 sq ft pub D O A casino use is proposed for the remaining listed building Ropemaker Park, Hailsham O 70,000 sq ft light industrial, 27,000 50% sq ft trade counter, 12,000 sq ft car showroom, 4,000 sq ft convenience store and D 4,000 sq ft creche O Construction started 2006 Leisure Plaza, Milton Keynes O Planning consent gained for 165,000 sq 50% ft retail store, 65,000 sq ft casino, 50,000 sq ft ice rink, plus a further 25,000 sq ft D of leisure Tiviot Way, Stockport O A planning application will be 80% submitted in 2008 for 100,000 sq ft industrial, 49,000 sq ft trade counter, D 20,000 sq ft self storage, 20,000 sq ft builders merchant and car showroom Parkgate, Shirley, Birmingham O 200,000 sq ft retail - Asda (80,000 50% sq ft supermarket) D O 200 residential units O Construction to commence 2008 Hagley Road West, Quinton, O 16,000 sq ft retail plus 15 75% Birmingham residential units D O Construction to commence 2008 O 100,000 sq ft of retail/leisure Lily's Walk, High Wycombe O 125 residential units 80% O JV signed D O Planning application to be submitted 2008 Office Developments Description Helical share Riverbank House, London EC4 O 320,000 sq ft pre-let to Man Group Development management role O Under construction D Clareville House, London SW1 O Refurbishment of 35,000 sq ft offices Development plus 23,000 sq ft of restaurant, nightclub management role and retail. D O Construction started Battersea Studios, London SW8 O 50,000 sq ft of new office 75% (Phase 2) development D O Completion late 2008 Mitre Square, London EC3 O 350,000 sq ft 50% O Site assembly ongoing D Forestgate, Crawley O Refurbishment of 24,000 sq ft 75% completed D O Scheme for two new buildings of 21,000 sq ft and 18,000 sq ft Industrial developments Description Helical share Watlington Road, Cowley, Oxford O 71,000 sq ft of industrials and 80% offices of which 49,000 sq ft sold D Langford Lane, Kidlington O 140,000 sq ft of industrial units for 80% freehold sites D O Phase 1 of 72,000 sq ft completed O Phase 2 of 12,000 sq ft pre-sold Scotts Road, Southall, West London O 250,000 sq ft of industrial units for 80% freehold sales D O Construction of Phase 1 of 165,000 sq ft commenced 2007 Millbrook Trading Estate, O Construction of 50,000 sq ft of 80% Southampton industrial units, 65,000 sq ft of trade D counters to commence in January 2008 O 1 acre sold for self-storage O Phase 2 of 4 acres of industrial land Retail developments Description Helical share Macon Way, Crewe O 25,000 sq ft bulky goods scheme 50% subject to planning consent D Gliwice, Poland O 64,000 sq m out of town retail 50% O construction to commence 2008 D Wroclaw, Poland O 10,000 sq m out of town retail 50% O construction due to commence 2008 D O 21 hectare site acquired in Opole, Southern Poland 50% O 41,000 sq m out of town retail D Opole, Poland Retirement Village Developments Description Helical share Lime Tree Village, Rugby O 154 bungalows, cottages and 33% apartments being constructed in phases D O 122 sold to date Bramshott Place, Liphook O Construction to commence in 2008 of 90% 144 units D Projects with change of use Description Helical share potential Maudslay Park, Great Alne O 314,000 sq ft industrial estate on a 90% 20 acre site with an outstanding planning appeal for 175 retirement home units D Waterside, Fleet O 54,000 sq ft of industrial property 75% on 5 acres with planning application for 207 residential units D Vauxhall, O In partnership with National Grid UK Profit Share London SW8 Pension Fund we are seeking to gain an allocation for a large residential led D mixed-use development on a Thames-side industrial estate Ely Road, Milton, Cambridge O 32,000 sq ft of industrial on 20 90% acres D O Planning application to be submitted in 2007 for 120 unit retirement village Thanet Way, Whitstable O 80,000 sq ft of industrial on 6 acres 90% O Planning application submitted for D 236 residential units O Former saw mill on 15 acres Cherry Tree Yard, Faygate, Horsham O Planning application to be submitted 90% in 2007 for 175 retirement home units D Winterhill, Milton Keynes O 28,000 sq ft of warehouses and 50% offices with retail warehouse or trade counter potential I Arleston, Telford O 19 acre greenfield site with 90% residential potential D St Loye's College, Exeter O 18 acre site currently used 90% as a college D O Potential for retirement village use, planning application to be submitted for 195 units in 2008 Fieldgate Street, London E1 O Planning consent sought for 14,000sq ft of retail and 350 student residential 67% units D Cardiff Royal Infirmary O Vacant hospital on a peppercorn lease 75% with residential potential I Income producing assets Offices Description Helical share Rex House, Lower Regent Street, O 80,000 sq ft office building 100% London SW1 refurbished in 2001 I O Short leasehold expiring 2035 O Acquired vacant in 2000 Shepherds Building, Shepherds O 150,000 sq ft of studio offices 90% Bush, London W14 refurbished in 2001 and let to over 50 I tenants O Acquired vacant in 2000 61 Southwark Street, London SE1 O 66,000 sq ft of offices that have been 100% subject to a rolling refurbishment and a new penthouse floor I O Acquired 1998 Battersea Studios, O 55,000 sq ft of media style offices 75% London SW8 refurbished in 2006 I O Acquired vacant in 2005 Amberley Court, O Partial refurbishment of 31,000 sq ft 90% Crawley office campus I Retail - in town Description Helical share Morgan & Royal Arcades, Cardiff O 56 units to be subject to intensive 100% management on completion of the adjoining development at the David Morgan Department I Store O Acquired 2005 1-5 Queens Walk, East Grinstead O 37,000 sq ft of retail opposite a 87% proposed new retail scheme I O Acquired 2005 Glasgow Portfolio O Three unit shop investments and part 100% of a multi-let office block, all in Glasgow City Centre I/T O acquired 2005 Retail - out of town Description Helical share Otford Road Retail Park, Sevenoaks O 43,000 sq ft with open A1 consent let 75% to Wickes, Currys and Carpetright I O Acquired 2003 Stanwell Road, Ashford O 32,000 sq ft Focus DIY store 75% O Acquired 2004 I 215 Brixham Road, Paignton O 24,000 sq ft Focus store with open A1 67% consent I O Acquired 2005 Industrial Description Helical share Hawtin Park, Blackwood O 251,000 sq ft estate, part vacant 100% O Acquired 2003 I Fordham, O 70,000 sq ft of R&D space and offices 53% Newmarket on a 32 acre landscaped site let on a long I lease O Acquired 2007 Westgate, Aldridge O 208,000 sq ft 80% O Acquired 2006 I Dales Manor, Sawston, Cambridge O 70,000 sq ft multi-let estate 67% O Acquired 2003 I/D Golden Cross, Hailsham O 102,000 sq ft unit let on a long RPI 100% lease I O Acquired 2001 Standard Industrial Estate, North O 50,000 sq ft estate 60% Woolwich O Acquired 2002 I Bushey Mill Lane, Watford O 24,000 sq ft income producing with 80% development potential D O acquired 2006 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 2007 which comprises Group income statement, Statement of recognised income and expenses, Group balance sheet, Group cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report and 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 APB Statements of Standards for Reporting Accountants 'International Standard on Review Engagements (UK and Ireland) 2410'. 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 2007 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 28 November 2007 Unaudited Condensed Consolidated Income Statement For the Half Year to 30 September 2007 Half Year To 30 Half Year To 30 Year To September September 31 March 2007 2006 2007 Â£000 Â£000 Â£000 Notes Revenue 3 32,326 51,644 123,176 Net rental income 4 7,917 6,748 14,771 Trading profits 3 4,634 2,094 Development profits 4,339 1,681 13,587 Share of results of joint ventures 388 3,280 6,196 Other operating income 164 737 766 Gross profit before (loss)/gain on investment 12,811 17,080 37,414 properties (Loss)/gain on sale and revaluation of investment 5 (28) 644 40,637 properties Gross profit 12,783 17,724 78,051 Administrative expenses (6,067) (6,010) (17,544) Operating profit 6,716 11,714 60,507 Finance costs 6 (1,141) (1,784) (2,710) Finance income 1,814 1,124 1,335 Change in fair value of derivative financial (78) 395 956 instruments Profit before tax 7,311 11,449 60,088 Tax 7 5,692 (1,227) (8,000) Profit after tax 13,003 10,222 52,088 - attributable to minority interests - 342 300 - attributable to equity shareholders 13,003 9,880 51,788 Profit for the period 13,003 10,222 52,088 Earnings per 1p share 8 Basic 14.3p 11.1p 58.0p Diluted 13.4p 10.5p 53.7p Unaudited Condensed Consolidated Balance Sheet At 30 September 2007 At At At 30 September 30 September 31 March 2007 2006 2007 Notes Â£000 Â£000 Â£000 Non-current assets Investment properties 9 323,175 290,401 316,025 Owner occupied property, plant and equipment 1,546 438 351 Investment in joint ventures 6,577 3,575 6,188 Goodwill 30 68 30 331,328 294,482 322,594 Current assets Land, developments and trading properties 10 163,857 115,489 110,815 Available-for-sale investments 11 6,816 72 912 Derivative financial instruments 267 - 345 Trade and other receivables 12 40,485 38,893 70,526 Cash and cash equivalents 13 6,019 4,535 3,389 217,444 158,989 185,987 Total assets 548,772 453,471 508,581 Current liabilities Trade payables and other payables 14 (50,570) (57,008) (64,203) Current tax liabilities (5,811) (6,255) (3,909) Borrowings 15 (47,497) (23,273) (31,560) (103,878) (86,536) (99,672) Non-current liabilities Borrowings 15 (137,507) (113,370) (105,847) Derivative financial instruments - (216) - Deferred tax provision 7 (14,212) (16,644) (20,697) Obligations under finance leases (178) (180) (179) (151,897) (130,410) (126,723) Total liabilities (255,775) (216,946) (226,395) Net assets 292,997 236,525 282,186 Unaudited Condensed Consolidated Balance Sheet (continued) At 30 September 2007 At At At 30 September 30 September 31 March 2007 2006 2007 Notes Â£000 Â£000 Â£000 Equity Called-up share capital 16/19 1,223 1,216 1,222 Share premium account 19 42,520 42,520 42,520 Revaluation reserve 19 82,089 63,326 79,664 Capital redemption reserve 19 7,478 7,478 7,478 Other reserves 19 291 291 291 Retained earnings 19 163,389 130,154 157,006 Own shares held 19 (3,993) (8,802) (5,995) Equity attributable to equity holders of the 292,997 236,183 282,186 parent Minority interests - 342 - Total equity 292,997 236,525 282,186 Net assets per share Basic 20 323p 265p 311p Diluted 20 318p 260p 307p Adjusted diluted 20 342p 283p 334p Unaudited Condensed Consolidated Cash Flow Statement For the Half Year to 30 September 2007 Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 Â£000 Â£000 Â£000 Cash flows from operating activities Profit before tax 7,311 11,449 60,088 Depreciation 100 88 180 Loss/(gain) on investment properties 28 (644) (40,637) Other non-cash items (186) (3,413) (6,294) Cash flows from operations before changes in working capital 7,253 7,480 13,337 Change in trade and other receivables 31,477 (4,670) (36,317) Change in land, developments and trading properties (50,453) (27,521) (19,705) Change in trade and other payables (11,348) 6,537 14,828 Cash used in operations (23,071) (18,174) (27,857) Finance costs (4,708) (3,492) (8,035) Finance income 503 730 574 Minority interest dividends paid - - (300) Dividends from joint ventures - - 303 Tax paid (85) (199) (2,602) (4,290) (2,961) (10,060) Cash flows from operating activities (27,361) (21,135) (37,917) Cash flows from investing activities Purchase of investment property (9,262) (10,062) (27,772) Sale of investment property 2,972 15,124 53,446 Purchase of shares by ESOP (3,424) (1,663) (5,084) Purchase of investments (8,064) (3,264) (4,164) Sale of investments 3,986 3,828 3,909 Sale of plant and equipment 40 13 7 Purchase of plant and equipment (1,336) (45) (48) Cash flows from financing activities (15,088) 3,931 20,294 Issue of shares - 37 43 Borrowings drawn down 52,541 29,448 46,206 Borrowings repaid (4,926) (15,564) (31,616) Equity dividends paid (2,468) (2,174) (3,615) Refinancing costs (68) (143) (141) 45,079 11,604 10,877 Net increase/(decrease) in cash and cash equivalents 2,630 (5,600) (6,746) Cash and cash equivalents at start of period 3,389 10,135 10,135 Cash and cash equivalents at period end 6,019 4,535 3,389 Unaudited Condensed Consolidated Statement of Recognised Income and Expense For the Half Year to 30 September 2007 Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 Â£000 Â£000 Â£000 Profit for the period 13,003 10,222 52,088 Fair value movements - available-for-sale investments 1,772 6 (24) - associated deferred tax (557) - - Total recognised income and expense for the period 14,218 10,228 52,064 - attributable to equity shareholders 14,218 9,886 51,764 - attributable to minority interest - 342 300 14,218 10,228 52,064 Unaudited Notes to the Interim Statement 1. Financial Information The financial information contained in this statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The full accounts for the year ended 31 March 2007, which were prepared under International Financial Reporting Standards and which received an unqualified report from the Auditors, and did not contain a statement under s237(2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies. The interim statement has been prepared in accordance with IAS 34 Interim Financial Reporting. The principal accounting policies have remained unchanged from the prior financial period to 31 March 2007. The interim statement was approved by the Board on 28 November 2007 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 director's responsibilities The directors confirm that, to the best of their knowledge, this condensed set of financial statements has been prepared in accordance with IAS34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8. The directors of Helical Bar plc are listed in the Group's 2007 Annual Report and Financial Statements, with the exception of the following changes in the period: â€¢ Matthew Bonning-Snook - appointed 1 August 2007 â€¢ Jack Pitman - appointed 1 August 2007 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 28 November 2007 3. Revenue Half Year To Half Year To Year To 30 September 2007 30 September 2006 31 March 2007 Â£000 Â£000 Â£000 Rental income 9,434 8,102 18,044 Trading property sales - 20,378 12,355 Developments 18,793 19,164 88,685 Other income 4,099 4,000 4,092 32,326 51,644 123,176 4. Net rental income Half Year To Half Year To Year To 30 September 2007 30 September 2006 31 March 2007 Â£000 Â£000 Â£000 Gross rental income 9,434 8,102 18,044 Rents payable (21) (54) (137) Other property outgoings (1,496) (1,300) (3,136) Net rental income 7,917 6,748 14,771 5. (Loss)/gain on sale and revaluation of investment properties Half Year To Half Year To Year To 30 September 2007 30 September 31 March Â£000 2006 2007 Â£000 Â£000 Net proceeds from the sale of investment properties 3,302 15,124 53,446 Book value (note 9) (3,330) (14,475) (45,638) Lease incentive and letting costs adjustment - (5) (351) (Loss)/gain on sale of investment properties (28) 644 7,457 Revaluation gains on investment properties - - 33,180 (Loss)/gain on sale and revaluation of investment (28) 644 40,637 properties 6. Finance costs Half Year To Half Year To Year To 30 September 2007 30 September 31 March Â£000 2006 2007 Â£000 Â£000 Interest payable on bank loans and overdrafts 4,953 3,730 8,437 Other interest payable and similar charges (55) 120 228 Finance arrangement costs 51 59 114 Interest capitalised (3,808) (2,125) (6,069) Finance costs 1,141 1,784 2,710 7. Taxation on profit on ordinary activities Half Year To Half Year To Year To 30 September 2007 30 September 31 March Â£000 2006 2007 Â£000 Â£000 The tax charge is based on the profit for the period and represents: 1,985 3,588 6,449 United Kingdom corporation tax at 30% (2006: 30%) - group corporation tax - adjustment in respect of prior periods (635) - (141) Current tax charge 1,350 3,588 6,308 Deferred tax - revaluation surpluses (2,947) (2,306) 2,628 - capital allowances (89) 66 (7) - other temporary differences (4,006) (121) (929) Deferred tax (7,042) (2,361) 1,692 Tax on profit on ordinary activities (5,692) 1,227 8,000 At At Deferred tax provision 30 September 31 March 2007 2007 Â£000 Â£000 Capital gains 20,608 23,555 Capital allowances 2,079 2,168 Other temporary differences - income statement (9,032) (5,026) - equity reserves 557 - Deferred tax provision 14,212 20,697 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 Â£2.1m would be released and further capital allowances of Â£11.4m would be available to reduce future tax liabilities. The provision in respect of capital gains has been reduced by indexation. 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 future vesting of share awards, calculated at the 30 September 2007 share price of 456.75p (31 March 2007: 429.25p) per share. 8. Earnings per 1p share The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. 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 per share is based on the basic earnings 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 per share are calculated in accordance with IAS 33 and the best practice recommendations of the European Public Real Estate Association ('EPRA') Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below. Half Year Half Year to 30 to 30 September September 2006 2007 000s 000s Ordinary shares in issue 95,719 94,372 Weighting adjustment (5,094) (5,075) Weighted average ordinary shares in issue for calculation of basic earnings 90,625 89,297 per share Dilutive effect of share options 6,608 4,368 Weighted average ordinary shares in issue for calculation of diluted earnings 97,233 93,665 per share Earnings used for calculation of basic and diluted earnings per share 13,003 9,880 Basic earnings per share 14.3p 11.1p Diluted earnings per share 13.4p 10.5p Earnings used for calculation of basic and diluted earnings per share 13,003 9,880 Loss/(gain) on sale and revaluation of investment properties 28 (644) Fair value movement on derivative financial instruments 78 - Deferred tax in respect of investment properties (3,037) (2,240) Tax on profit on disposal of investment properties (635) - Earnings used for calculation diluted EPRA earnings per share 9,437 6,996 Diluted EPRA earnings per share 9.7p 7.5p 9. Investment properties Valuation Cost Â£000 Â£000 Fair value at 1 April 2007 316,025 213,501 Additions at cost 10,482 10,482 Disposals (3,330) (2,809) Amortisation of finance lease (2) - As at 30 September 2007 323,175 221,174 All properties are stated at market value as at 31 March 2007, as adjusted for additions and disposals in the half year to 30 September 2007. Interest capitalised in respect of investment properties at 30 September 2007 amounted to Â£3,724,445 (31 March 2007: Â£2,505,000). Interest capitalised during the period in respect of investment properties was Â£1,218,996. 10. Land, developments and trading properties At At 30 September 31 March 2007 2007 Â£000 Â£000 Development sites 162,203 109,165 Properties held as trading stock 1,654 1,650 163,857 110,815 The directors' valuation of trading and development stock showed a surplus of Â£36m above book value at 31 March 2007. Interest capitalised in respect of the development of sites is included in stock to the extent of Â£8,302,375 (31 March 2007 Â£4,523,000). Interest capitalised during the period in respect of development sites amounted to Â£2,589,032. 11. Available-for-sale investments At At 30 September 31 March 2007 2007 Â£000 Â£000 UK listed investments at fair value 2,804 - UK unlisted investments at fair value 4,000 900 UK treasury stock at fair value 12 12 6,816 912 12. Trade and other receivables At At 30 September 31 March 2007 2007 Â£000 Â£000 Trade receivables 13,105 50,850 Other receivables 12,112 6,575 Prepayments and accrued income 15,268 13,101 40,485 70,526 13. Cash and cash equivalents At At 30 September 31 March 2007 2007 Â£000 Â£000 Rent deposits and cash held at managing agents 3,068 1,852 Cash secured against debt and cash held at solicitors 162 1,045 Cash deposits 2,789 492 6,019 3,389 14. Trade payables and other payables At At 30 September 31 March 2007 2007 Â£000 Â£000 Trade creditors 8,990 9,841 Other payables 9,045 8,552 Accruals and deferred income 32,535 45,810 50,570 64,203 15. Borrowings At At 30 September 31 March 2007 2007 Â£000 Â£000 Bank overdraft and loans - maturity Due within one year 47,497 31,560 Due after more than one year 137,507 105,847 185,004 137,407 At At 30 September 31 March 2007 2007 Gearing Â£000 Â£000 Total borrowings 185,004 137,407 Cash (6,019) (3,389) Net borrowings 178,985 134,018 Net borrowings exclude the Group's share of borrowings in joint ventures of Â£18,785,000 (31 March 2007: Â£12,583,000). Net assets 292,997 282,186 Gearing 61% 47% 16. Share capital At At 30 September 31 March 2007 2007 Â£000 Â£000 Authorised 39,577 39,577 39,577 39,577 The authorised share capital of the Company is Â£39,576,626.60 divided into ordinary shares of 1p each and deferred shares of 1/8p each Allotted, called up and fully paid - 95,732,457 ordinary shares of 1p each 958 957 - 212,145,300 deferred shares of 1/8 p each 265 265 1,223 1,222 As at 1 April 2007 the Company had 95,719,432 ordinary 1p shares in issue. On 28 September 2007 options over 13,025 new ordinary 1p shares were exercised increasing the issued share capital of the Company to 95,732,457 ordinary 1p shares. Share options At 30 September 2007 unexercised options over 1,939,965 (31 March 2007: 1,956,070) new ordinary 1p shares in the Company and 2,629,695 (31 March 2007: 3,964,695) purchased ordinary 1p shares held by the ESOP had been granted to directors and employees under the Company's share option schemes. During the period no new options were granted. 17. Dividends Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 Â£000 Â£000 Â£000 Attributable to equity share capital Ordinary - interim paid 1.60p per share - - 1,441 - prior period final paid 2.75p (2006: 2.45p) 2,468 2,174 2,174 per share 2,468 2,174 3,615 The interim dividend of 1.75p (30 September 2006: 1.60 pence per share) was approved by the board on 28 November 2007 and will be paid on 21 December 2007 to shareholders on the register on 7 December 2007. This interim dividend, amounting to Â£1,586,502, has not been included as a liability as at 30 September 2007. 18. 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 2007 the Trust held 5,075,226 (31 March 2007: 5,174,701) ordinary shares in Helical Bar plc. At 30 September 2007 options over 2,629,695 (31 March 2007: 3,964,695) ordinary shares in Helical Bar plc had been granted through the Trust. At 30 September 2007 awards over 7,085,825 (31 March 2007: 5,960,575) ordinary shares in Helical Bar plc had been made under the terms of the Performance Share Plan. 19. Statement of changes in equity Capital Share Share Revaluation redemption Other Retained Own shares capital premium reserve reserve reserves earnings held Total Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 Â£000 At 31 March 2006 1,209 42,490 64,820 7,478 291 120,948 (7,139) 230,097 Total recognised - - - - - - - - income 52,064 52,064 Dividends paid - - - - - (3,615) - (3,615) Revaluation - - 30,552 - - (30,552) - - surplus Realised on - - (15,708) - - 15,708 - - disposals Minority interest - - - - - (300) - (300) Issue of shares 13 30 43 Purchase of - - - - - - (5,155) (5,155) shares Share options - - - - - - 71 71 exercised Performance - - - - - 8,981 - 8,981 share plan Own shares - - - - - (6,228) 6,228 - held At 1 April 2007 1,222 42,520 79,664 7,478 291 157,006 (5,995) 282,186 Total recognised - - - - - 14,218 - 14,218 income Dividends paid - - - - - (2,468) - (2,468) Revaluation - - 2,947 - - (2,947) - - surplus Realised on - - (522) - - 522 - - disposals Issue of shares 1 - - - - - - 1 Purchase of - - - - - - (3,424) (3,424) shares Performance - - - - - 2,484 - 2,484 share plan Own shares - - - - - (5,426) 5,426 - held At 30 September 1,223 42,520 82,089 7,478 291 163,389 (3,993) 292,997 2007 The adjustment to retained earnings of Â£2,484,000 adds back the share based payments charge, in accordance with IFRS 2 Share Based Payments. 20. Net assets per share 30 September Number of 30 September 2007 2007 shares pence Â£000 000's per share Net asset value 292,997 95,732 Less: own shares held by ESOP - (5,075) deferred shares (265) Basic net asset value 292,732 90,657 323 Add: unexercised share options 1,988 1,940 Diluted net asset value 294,720 92,597 318 Adjustment for - fair value of financial instruments (267) - deferred tax on capital allowances 2,079 - deferred tax on capital gains 20,607 Adjusted diluted net asset value 317,139 92,597 342 Adjustment for - fair value of trading and development properties 36,480 Diluted EPRA net asset value 353,619 92,597 382 Adjustment for - fair value of financial instruments 267 - deferred tax on capital allowances (2,079) - deferred tax on capital gains (20,607) Diluted EPRA NNNAV 331,200 92,597 358 The adjustment for the fair value of trading and development properties represents the surplus as at 31 March 2007. 31 March Number of 31 March 2007 2007 shares pence Â£000 000's per share Net asset value 282,186 95,719 Less: own shares held by ESOP - (5,174) deferred shares (265) Basic net asset value 281,921 90,545 311 Add: unexercised share options 2,002 1,956 Diluted net asset value 283,923 92,501 307 Adjustment for - fair value of financial instruments (345) - deferred tax on capital allowances 2,168 - deferred tax on capital gains 23,555 Adjusted diluted net asset value 309,301 92,501 334 Adjustment for - fair value of trading and development properties 36,480 Diluted EPRA net asset value 345,781 92,501 374 Adjustment for - fair value of financial instruments 345 - deferred tax on capital allowances (2,168) - deferred tax on capital gains (23,555) Diluted EPRA NNNAV 320,403 92,501 346 The net asset values per share have been calculated in accordance with the best practice recommendations of the European Public Real Estate Association ('EPRA '). 21. Related party transactions At 30 September 2007 and 31 March 2007 the following amounts were due from the Group's joint ventures. At At 31 September 31 March 2007 2007 Â£000's Â£000's Abbeygate Helical (Leisure Plaza) Ltd 1,081 889 Abbeygate Helical (Winterhill) Ltd (590) (864) Abbeygate Helical (C4.1) LLP (636) (636) Grosvenor Hill (Sprucefield) Ltd (17) (17) Shirley Advance LLP 5,219 4,112 The Asset Factor Ltd 733 551 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Helical (HLCL)

Monday, 22nd July 2024

COMPANIES COVERED:

EZJ OCDO HMSO

Airlines lose altitude after profit update from Ryanair, Hammerson jumps as the company plans capital return to investors and Ocado finds favour off new technology order for US partner.

Full Archive

UK 100

Latest directors dealings

5 hours ago Regional REIT Limited
5 hours ago Regional REIT Limited
5 hours ago Polar Capital Holdings
6 hours ago Norcros
6 hours ago London Stock Exchange Group

All directors dealings today