Interim Results

Helical Bar PLC 18 November 2004 18 November 2004 HELICAL BAR PLC ('Helical'/'Company') Interim Results For the half year to 30 September 2004 HELICAL TO RETURN Â£4 A SHARE â€¢ Shareholders to receive Â£4 a share by way of a capital reconstruction following the sale of Aycliffe & Peterlee Industrial Estates for Â£67.6m â€¢ Adjusted diluted net asset value of 966p per share (31.3.04: 874p) - up 11% after interim valuation â€¢ 'Triple net' asset value of 886p per share (31.3.04: 797p) - up 11% â€¢ Investment portfolio valuation increase of 9.3% since 31 March 2004 â€¢ Profit before tax of Â£9.5m (2003: Â£6.4m) - up 47% â€¢ Interim dividend held at 6.60p per share (2003: 6.60p) â€¢ A further 2.0% of share capital bought in for cancellation at an average cost of 843p per share. John Southwell, Chairman, commented: 'With over 30 active projects spread across the different property sectors your directors view the financial and trading prospects of the Group for the current financial year and thereafter with confidence.' Further information, please contact: Helical Bar plc 020 7629 0113 Michael Slade (Managing Director) 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 Notes Unaudited Unaudited Audited Half Year Half Year Year To To To 30 September 30 September 31 March 2004 2003 2004 Â£m Â£m Â£m Net rental income 10.9 11.7 23.0 Development profits 0.2 (0.7) - Trading profits 1.3 0.3 1.0 Other gross profits - - 0.6 Profits before tax 9.5 6.4 13.7 Adjusted profits before tax 1 6.9 5.3 11.7 pence pence pence Diluted earnings per share 27.6 13.6 39.6 Dividends per share 6.60 6.60 16.60 Adjusted diluted net assets per share 2 966 779 874 Adjusted diluted 'triple net' assets per share 3 886 719 797 Â£m Â£m Â£m Value of investment portfolio 303.9 281.3 334.9 Net borrowings 77.6 114.6 129.8 Adjusted net assets 4 275.0 232.6 248.7 Net gearing 4 28% 49% 52% Notes 1. Excludes profit on sale of investment properties and loss on sale of subsidiary. 2. After adding back deferred taxation arising from the clawback of capital allowances on sale of investment properties and the cost of the investment in own shares held by the Company's Employee Share Ownership Plan Trust. 3. Adjusted for contingent liabilities of deferred taxation on chargeable gains on investment properties and the market value of financial instruments but after adding back the deferred taxation referred to in Note 2 above and the cost of the investment in own shares held by the Company's Employee Share Ownership Plan Trust. 4. After adding back the cost of the investment in own shares held by the Company's Employee Share Ownership Plan Trust. Chairman's Statement Since the start of the financial year Helical has continued to take advantage of a buoyant investment market, selling over Â£150m of investment properties including its two industrial estates at Aycliffe & Peterlee, due to complete on 23 November 2004. The effect on the balance sheet of Helical of these, and previous investment sales, will be to reduce the Company's net gearing to below 15%. This is an inappropriate level for a Company such as Helical which traditionally has enhanced returns on shareholders' equity by the judicious use of gearing. The Company is therefore considering a tax efficient return of cash to shareholders of Â£4 a share following the completion of the sale of Aycliffe & Peterlee. It is expected that the return of cash will be structured to give shareholders a choice between receiving the payment either in the form of income or of capital. In addition, shareholders will have a limited opportunity to receive further ordinary shares in lieu of their entitlement to a cash payment albeit at an effective premium to the market price. As part of the return of cash scheme it is proposed there be a share reorganisation so that, subject to normal market movements, the Helical Bar share price following the return is approximately equal to the share price prior to the return of cash with shareholders accordingly holding a proportionately smaller number of shares. Further details on the return of cash and subsequent share reorganisation will be included in the circular which is expected to be posted to shareholders shortly. Such a return of cash will be in addition to the Â£4.5m spent buying back shares in the half year. It should be noted that since July 2003 the Company has spent Â£26.0m buying in shares for cancellation at an average share price of 756p per share, enhancing future returns to shareholders. Results Pre-tax profits for the half year to 30 September 2004 increased by 47% to Â£9.5m (2003: Â£6.4m). Adjusted profits, after excluding the profit on sale of investment properties, rose by 30% to Â£6.9m (2003: Â£5.3m). Rental income for the period fell to Â£12.3m (2003: Â£13.1m) following continued sales of investment properties. A development profit of Â£0.2m was made (2003: loss Â£0.7m). The profit on sale of investment properties was Â£2.6m (2003: Â£1.2m). Earnings per share increased by 105% to 28.7p (2003: 14.0p) and on a diluted basis by 103% to 27.6p (2003: 13.6p). Adjusted earnings per share, after excluding exceptional items and adding back the FRS19 deferred tax provision, increased by 40% to 13.7p (2003: 9.8p). As part of the preparation for the return of cash to shareholders, the investment portfolio was revalued at 30 September 2004. As a consequence of this the Company's basic net asset value per share increased by 10.5% to 1012p (31.03.2004: 916p) and, on a diluted basis, by 11.2% to 974p (31.03.2004: 876p). Net asset value per share adjusted for the addback of the deferred tax provision and the cost of the investment in own shares held by the Company's Employee Share Ownership Plan Trust increased by 10.5% to 966p (31.03.2004: 874p) and by 11.2% to 886p (31.03.2004: 797p) on a 'triple net' basis. DEVELOPMENT PROGRAMME OFFICE DEVELOPMENTS COMPLETED DEVELOPMENTS 40 Berkeley Square, London W1 40 Berkeley Square is an office development of 72,500 sq ft situated in a prime area of London's West End and carried out in joint venture with Morley Fund Management. The building, completed in March 2004, comprises eight floors of high specification offices. During the period the fourth floor was let to The Blackstone Group for 20 years at a rent of Â£80 psf and a rent free period of 18 months. With the top three floors already let to The Blackstone Group and the third floor let to Caxton Europe Asset Management, the building now has tenants for 37,900 sq ft (52%). The Heights, Weybridge The Heights, Weybridge is a 337,000 sq ft office campus development of five distinct buildings funded with Prudential. During the period 23,600 sq ft was let to Alliance Unichem on a 15 year lease at Â£27 psf. The Waterfront Business Park, Fleet This scheme, funded with Barclays, comprises three self contained office buildings overlooking the Fleet Pond Nature Reserve adjacent to Fleet railway station. The second floor of Building 1 was let to Hydra Plc and, of the two remaining floors, one is currently under offer. Building 2, which is the largest building at 26,700 sq ft, has recently been let to Dimension Data Network Services Limited and Building 3 was sold to the Conair Group for its own occupation. FUTURE DEVELOPMENTS Ropemaker Place, London EC2 Ropemaker Place comprises a 500,000 sq ft redevelopment of a site in partnership with owners DB Real Estate. Detailed planning consent has been granted. A pre-let is being sought. Mitre Square, London EC3 Mitre Square is an office scheme of 350,000 sq ft planned in partnership with Ansbacher Property Development Limited. The planning application has been submitted and we continue to await its approval. Wood Lane, White City Helical, who jointly with Morley Fund Management acquired a 10 acre site at White City, have been working with a number of adjoining landowners to promote the regeneration of 43 acres of land for a major mixed use development. Following the sites' designation as an Opportunity Area in the London Plan, Hammersmith & Fulham Borough Council have adopted their 'White City Opportunity Area - A Framework for Development' as Supplementary Planning Guidance to the Unitary Development Plan. The landowners are now looking to jointly instruct a masterplanner to promote their combined vision that the area be transformed into a thriving new mixed use urban quarter. Amen Corner, Bracknell Having acquired a number of residential properties and options over land at Amen Corner, Bracknell, Helical is continuing to promote the site for commercial/ residential developments. This is now likely to happen through the new Local Development Framework process. RETAIL DEVELOPMENTS We continue to work closely with our retail partners, Oswin Developments and Overton Developments, on retail schemes throughout the country. In Milton Keynes, our joint venture partner Abbeygate is working on a number of schemes. Friary Retail Park, Stafford The 38,500 sq ft scheme is pre-let to T K Maxx (20,000 sq ft), PC World (15,000 sq ft) and Choices Video (3,500 sq ft) and funded with Arlington Property Investors at a yield of 5.5%. Construction work is well advanced and completion is due early in December. A further 4,000 sq ft unit is to be created adjacent to the main park as a second phase with construction envisaged to start in Spring 2005. 56-76 Commercial Road, Bournemouth Development work is shortly to commence on this Â£40m project. The property, which was acquired from Equitable Life last year for Â£20m, is located in a prime position in Bournemouth, and comprises a number of income producing shops, most of which are about to be demolished to make way for a new three storey building. The development will comprise four shops of varying sizes, with two stores already pre-let (Hennes taking 22,000 sq ft and Zara taking 18,000 sq ft) and one of the remaining smaller units under offer to a national fashion retailer. The total size of the new building is 47,000 sq ft. In addition, three existing shops let to blue chip covenants will remain. We are currently in talks with a number of institutions who are interested in forward funding the scheme. Trinity Square, Nottingham Helical secured a contract on this prime 2.5 acre city centre site, which adjoins the Victoria Centre, two years ago and has since obtained detailed planning consent for a mixed use scheme comprising 250,000 sq ft of retail and leisure accommodation, a multi storey car park containing 480 spaces plus 460 student accommodation units. Major pre-lettings have been secured on three large retail stores, Borders taking 26,000 sq ft, T K Maxx 58,000 sq ft and Dixons 25,000 sq ft. The scheme will have a completed value of Â£100m. It is anticipated demolition of the site will commence in the Spring of next year, with the completed scheme opening for trading in the Summer of 2007. We are currently in discussions to forward fund the development. Bluebrick, Wolverhampton The 10 acre site was purchased last year and terms have now been agreed with Reg Vardy for a sale of two acres for a Land Rover dealership, Travelodge for a 80 bed hotel and a national housebuilder for a city living scheme comprising 175 apartments. The deals are conditional on planning and an application is to be submitted shortly. Hatters Retail Park, Luton Planning has recently been granted subject to a S.106 Agreement for a 80,000 sq ft retail warehouse park and 25,000 sq ft of industrial units. Once the planning documents have been finalised, marketing will be commenced with a view to starting construction in Summer 2005. Town Centre, Shirley The scheme, which comprises 160,000 sq ft of retail anchored by a 75,000 sq ft food store and some 200 apartments, is being progressed through a 50:50 joint venture with Coltham Developments and a development agreement has been exchanged with Solihull Metropolitan Borough Council who own the majority of the site. Site assembly is underway and it is envisaged that a planning application will be submitted early Summer 2005 with a view to start on site early in 2006. SH3 Retail Park, Worcester A purchase contract has been entered into with First Bus subject to their relocation to a new site. The scheme has planning consent for 35,000 sq ft of retail warehousing and 45 canalside apartments. Milton Keynes Planning consent has been obtained for an 80,000 sq ft retail warehouse in Milton Keynes pre-let to Homebase. The Â£24.5m scheme has now been funded with Arlington Property Investors to reflect a yield of 5.7% and construction starts shortly. We have also been appointed by English Partnerships as developers of a 110,000 sq ft Sainsbury's supermarket and 400 residential units in central Milton Keynes. All our Milton Keynes projects are carried out in joint venture with local developer Abbeygate. RESIDENTIAL DEVELOPMENTS Lime Tree Village, Dunchurch, Rugby At Lime Tree Village we have completed the first phase of 50 homes and the refurbishment of the Victorian country house. Work on phase two has started. Of the 150 bungalows, cottages and apartments to be built a total of 44 have been sold or reserved. Bramshott Place, Liphook Planning negotiations continue for a retirement village development. INVESTMENT AND TRADING PORTFOLIO The interim valuation of the investment portfolio showed an uplift of 9.3% since 31 March 2004. Industrial property showed an increase in value of 12.6%, retail warehousing 12.4%, town centre retail 8.0% and London offices 4.1%. Sales During the first half of the year offices were sold at 5-10 Paris Gardens, London SE1 for Â£18.25m, a half share of 66 Prescot Street, London E1 for Â£14.35m, Westfields in High Wycombe for Â£5.5m and Southfields Road, Dunstable for Â£3.3m. We also contracted to sell the Interchange in Camden for Â£21.5m with completion deferred up to September 2005. The total of Â£62.9m of office sales was marginally above March 2004 valuation and 37% over historic cost, all having been acquired over the previous five years. A Sainsbury's supermarket in Wednesfield was sold for Â£18.36m reflecting a net initial yield of 4.1%, in line with valuation but 58% over the purchase cost incurred in December 2001. An industrial estate in Avonmouth was sold for Â£8.025m, 25% above valuation and 87% above historic cost. Since the half year end we have contracted to sell our industrial assets in Aycliffe & Peterlee for Â£67.6m with completion scheduled for 23 November 2004. The transaction reflects a net initial yield of 7.4%. Out of Town Retail Planning consent has been obtained for a 26,000 sq ft Wickes retail warehouse as an extension to our retail park in Weston-Super-Mare. Retail warehouses in Ashford, Middlesex and Crowborough, East Sussex have been acquired, the latter just after the half year end. In-Town Retail Our shopping centre in Letchworth continues to progress well with new lettings at Â£55 psf Zone A against Â£35 psf Zone A at the time of acquisition in 2003. The purchase of the 235,000 sq ft Morgan Department Stores and Royal and Morgan Arcades in Cardiff is due to complete in March 2005. Vacant possession is being given of the department store which will be reconfigured to create large shop units and upper floor residential. The Arcades which are fully let are the two finest in Cardiff but have considerable scope for physical enhancement and improvement of the tenant mix. Industrial We have a number of industrial refurbishment and redevelopment projects designed for owner occupier sales at premium prices. Schemes in progress are 127,000 sq ft in Harlow (84% sold, 6% under offer), 135,000 sq ft in Slough (19% sold), 46,000 sq ft in Sawston, Cambridge (10% sold, 38% under offer) and 36,000 sq ft in Edenbridge (10% sold, 15% under offer). We have also recently acquired a 73,000 sq ft scheme at Watlington Road, Oxford. The projects are carried out in joint venture with either Dencora or Chancerygate. We hold industrial assets in Fleet (5 acres), Dunstable (5 acres) and Great Alne, Warwickshire (20 acres) where we are hopeful of crystallising value by obtaining residential or retirement home consents. Offices Our 150,000 sq ft office scheme at Shepherds Building, London W11 is now progressing well with 70% of the accommodation let and 25% under offer. Over thirty tenants, primarily from the media sector, are in occupation and we believe there is significant scope for rental growth with the majority of the space let at rentals below Â£20 psf. Our remaining offices, all in Central London, are fully let with uplifts expected at reviews this year at 61 Southwark Street, SE1. Valuation Uplifts Since 31 March 2004 Industrial 12.6% Office 4.1% Out of Town Retail 12.4% In-Town Retail 8.0% Total portfolio 9.3% Portfolio split (by value) Current Offices Retail Retail Industrial Other Total In-Town Out of Town Investment 26.5% 7.4% 13.4% 31.7% 0.2% 79.2% Trading 0.5% 0% 0% 6.7% 1.0% 8.2% Development 3.8% 6.3% 1.0% 0% 1.5% 12.6% Total 30.8% 13.7% 14.4% 38.4% 2.7% 100.0% Portfolio split (by value) On Legal Completion of Contracted Purchases and Sales Offices Retail Retail Industrial Other Total In-Town Out of Town Investment 25.8% 17.9% 15.1% 15.2% 0.1% 74.1% Trading 0.6% 0% 2.5% 7.5% 1.2% 11.8% Development 4.3% 7.0% 1.1% 0% 1.7% 14.1% Total 30.7% 24.9% 18.7% 22.7% 3.0% 100.0% Financing Sales of investment properties have contributed to reductions in net debt to Â£78m (31.03.2004: Â£130m) and net gearing to 28% (31.03.2004: 52%). On legal completion of contracted purchases and sales, gearing will fall to below 15% with net debt below Â£40m. The Interim Statement includes, exceptionally, a revaluation of the investment portfolio to assist in the preparation of the return of cash to shareholders. This revaluation shows a surplus of Â£22.6m or 9.3%. Recent sales of investment properties have reduced the Company's deferred tax provision to Â£1.65m or 6p per share (31.03.2004: 8p). Unprovided deferred tax on revaluation surpluses amounts to Â£22.0m or 76p per share (31.03.2004: 70p). The Interim Statement adopts the provisions of UITF38 on the Accounting for Employee Trusts. The effect of the adoption of this standard is a reduction in the Company's net assets and shareholders' funds of Â£14.1m (31.03.2004: Â£10.1m). Corresponding balance sheet amounts have been restated. In calculating the adjusted net asset value per share the Company has increased net assets by this amount as it believes that it will be recoverable in full as share options are exercised. Outlook With over 30 active projects spread across all the different property sectors your directors view the financial and trading prospects of the Group for the current financial year and thereafter with confidence. John Southwell Chairman 18 November 2004 Independent Review Report to Helical Bar plc Introduction We have been instructed by the Company to review the financial information for the six months ended 30 September 2004 which comprises the consolidated profit and loss account, summary consolidated balance sheet, summary cash flow statement, statement of total recognised gains and losses, and the related notes 1 to 18. We have read the other information contained in the interim report which comprises only the Chairman's statement and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Our responsibilities do not extend to any other information. This report is made solely to the company, in accordance with guidance contained in APB Bulletin 1999/4 'Review of Interim Financial Information'. Our review work has been undertaken so that we might state to the company those matters we are required to state to it 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 interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority, which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 'Review of Interim Financial Information' issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 September 2004. Grant Thornton UK LLP Chartered Accountants London 18 November 2004 Consolidated Profit and Loss Account For the half year to 30 September 2004 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Notes Â£000 Â£000 Â£000 Turnover (including share of joint ventures' turnover) 31,143 30,979 55,984 Less: share of joint ventures' turnover (350) (744) (1,418) _______ _______ _______ Turnover 1 30,793 30,235 54,566 Cost of sales (18,318) (18,892) (29,916) _______ _______ _______ Gross profit 1 12,475 11,343 24,650 Administrative expenses - Administration (4,055) (2,839) (8,037) _______ _______ _______ Operating profit 8,420 8,504 16,613 Share of operating profit of joint ventures 2,007 817 1,636 Profit on sale of investment properties 2 2,561 1,169 2,035 Loss on sale of subsidiary - (56) (59) _______ _______ _______ Profit on ordinary activities before 12,988 10,434 20,225 interest Net interest payable and similar charges 3 (3,514) (3,986) (6,572) _______ _______ _______ Profit on ordinary activities before taxation 9,474 6,448 13,653 Taxation 4 (2,045) (2,384) (2,199) _______ _______ _______ Profit on ordinary activities after taxation 7,429 4,064 11,454 Minority interest (116) (117) (232) _______ _______ _______ Profit for the period 7,313 3,947 11,222 Ordinary dividends - 6.6p (6.6p) 5 (1,702) (1,795) (4,263) _______ _______ _______ Retained profit for the period 5,611 2,152 6,959 _______ _______ _______ Earnings per 5p share 6 - basic 28.7p 14.0p 40.9p - fully diluted 27.6p 13.6p 39.6p Summary Consolidated Balance Sheet At 30 September 2004 Notes Restated Restated Unaudited Unaudited Audited At At At 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Fixed assets 7 306,789 287,288 337,027 Stock 9 67,994 60,498 70,254 Investments 10 263 13 263 Debtors 32,757 29,626 25,573 Cash 11 63,851 14,563 18,284 Creditors falling due within one year (93,912) (52,487) (78,662) Creditors falling due after one year 12 (115,115) (114,297) (131,779) Provisions for liabilities and charges 13 (1,650) (2,566) (2,345) _______ _______ _______ Net assets 260,977 222,638 238,615 _______ _______ _______ Capital & reserves Called up share capital 14 1,358 1,438 1,357 Share premium account 38,196 35,271 35,900 Revaluation reserve 89,897 69,386 89,323 Capital redemption and other reserves 7,564 7,450 7,537 Profit and loss account 133,112 116,333 110,906 _______ _______ _______ 270,127 229,878 245,023 Less: Investment in own shares (14,051) (9,973) (10,106) _______ _______ _______ Shareholders' funds 256,076 219,905 234,917 Minority interests 4,901 2,733 3,698 _______ _______ _______ 260,977 222,638 238,615 _______ _______ _______ _______ _______ _______ Shareholders' funds Attributable to equity interests 256,076 219,905 234,917 _______ _______ _______ Net assets per share basic 15 1,012p 806p 916p diluted 15 974p 776p 876p adjusted diluted 15 966p 779p 874p triple net 15 886p 719p 797p Summary Cash Flow Statement For the half year to 30 September 2004 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Notes Â£000 Â£000 Â£000 Net cash inflow/(outflow) from operating activities 16 13,862 (14,827) (11,082) Dividends from joint ventures 1,078 246 1,415 Returns on investment and servicing of finance (4,188) (3,485) (6,828) Taxation (464) (3,036) (6,469) Capital expenditure and financial investment 17 47,362 20,445 19,002 Acquisitions/(disposals) (350) 37,719 40,415 Equity dividends paid (2,532) (2,570) (4,309) _______ _______ _______ Cash flow before management of liquid resources and financing 54,768 34,492 32,144 Management of liquid resources (29,053) 4,271 132 Financing - issue of shares 2,323 - 635 - decrease in debt (7,009) (27,903) (9,060) - refinancing costs (48) (8) (57) - purchase of shares (4,467) (8,155) (21,515) _______ _______ _______ Increase in cash 16,514 2,697 2,279 _______ _______ _______ Reconciliation of net cash flow to movement in net debt Increase in cash in the period 16,514 2,697 2,279 Cash flow from management of liquid resources 29,053 (4,271) (132) Cash flow from change in net debt 7,057 27,911 9,117 Debt arrangement expenses (381) (79) (170) _______ _______ _______ Movement in net debt in the period 52,243 26,258 11,094 Net debt at beginning of the period (129,799) (140,893) (140,893) _______ _______ _______ Net debt at end of the period (77,556) (114,635) (129,799) _______ _______ _______ Gearing 12 28% 49% 52% Statement of Total Recognised Gains and Losses For the half year to 30 September 2004 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Profit for the period after taxation 7,429 4,064 11,454 Minority interest (116) (117) (232) Revaluation of investment properties - subsidiaries 22,646 - 23,912 - joint ventures 192 - - Minority interest in revaluation surplus (1,203) - (849) _______ _______ _______ Total recognised gains and losses 28,948 3,947 34,285 _______ _______ _______ Notes to the Interim Statement 1. Turnover and gross profit on ordinary activities before taxation Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Turnover Trading property sales 9,608 2,075 5,264 Rental income 12,286 13,145 25,283 Developments 8,850 14,951 23,418 Other income 49 64 601 _______ _______ _______ 30,793 30,235 54,566 _______ _______ _______ Gross profit Trading property sales 1,264 284 1,031 Net rental income 10,924 11,681 22,980 Developments 239 (686) 38 Other net income 48 64 601 _______ _______ _______ Gross profit 12,475 11,343 24,650 Central overheads (4,055) (2,839) (8,037) Interest payable less receivable (3,514) (3,986) (6,572) Share of profit of joint ventures 2,007 817 1,636 _______ _______ _______ Profit before taxation, profit on sale of investment properties, loss on sale of subsidiary 6,913 5,335 11,677 _______ _______ _______ 2. Sale of investment properties Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Net proceeds from the sale of investment properties 71,140 73,699 84,213 Book value (68,579) (72,530) (82,178) _______ _______ _______ Profit on sale of investment properties 2,561 1,169 2,035 _______ _______ _______ 3. Net interest payable and similar charges Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Interest payable on bank loans and overdrafts 4,260 4,011 7,548 Finance arrangement costs 381 79 170 Other interest payable and similar charges 1,119 1,097 1,741 Interest capitalised (1,283) (475) (1,817) Interest receivable and similar income (963) (726) (1,070) _______ _______ _______ 3,514 3,986 6,572 _______ _______ _______ 4. Taxation on profit on ordinary activities Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 The tax charge is based on the profit for the year and represents: United Kingdom corporation tax at 30% (2003: 30%) - group corporation tax 2,667 2,446 2,084 - share of joint ventures 496 - 372 - adjustments in respect of prior periods - - (67) _______ _______ _______ Current tax charge 3,163 2,446 2,389 Deferred tax - origination of timing differences (695) (62) (361) - share of joint ventures (423) - 171 _______ _______ _______ Tax on profit on ordinary activities 2,045 2,384 2,199 _______ _______ _______ 5. Dividends Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Attributable to equity share capital Ordinary - interim payable 6.60p (2003: 6.60p) per share 1,702 1,795 1,739 - final paid 10.00p per share - - 2,524 _______ _______ _______ 1,702 1,795 4,263 _______ _______ _______ The interim dividend of 6.60p is payable on 17 December 2004 to shareholders on the register on 26 November 2004. 6. Earnings per 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 year. Shares held by the ESOP, which has waived its entitlement to receive dividends, are treated as cancelled for the purposes 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. Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below. Unaudited Unaudited Half Year To Half Year To 30 30 September September 2004 2003 Per Weighted Per share Weighted share Earnings average no of amount Earnings average no amount Â£ shares pence Â£ of shares pence Basic earnings per share 7,313,000 25,523,166 28.7 3,947,000 28,159,875 14.0 Dilutive effect of share options 1,005,021 863,723 _______ _______ _______ _______ _______ _______ Dilutive earnings per share 7,313,000 26,528,187 27.6 3,947,000 29,023,598 13.6 _______ _______ _______ _______ _______ _______ 7. Fixed assets Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Intangible assets - goodwill 1,191 873 Tangible assets 509 503 Investment property 303,867 334,932 Investment in joint ventures - share of gross assets 5,032 17,684 - share of gross liabilities (3,810) (16,965) ________ ________ 306,789 337,027 ________ ________ 8. Investment property Unaudited Audited At At 30 September 31 March 2004 2004 Â£000 Â£000 Cost or valuation at 1 April 334,932 342,484 Additions at cost 14,868 50,464 Disposals (68,579) (82,178) Revaluation 22,646 24,162 ________ ________ Cost or valuation at 30 September/31 March 303,867 334,932 ________ ________ 9. Stock Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Development sites 43,293 46,236 Properties held as trading stock 24,701 24,018 ________ ________ 67,994 70,254 ________ ________ Interest capitalised in respect of the development of sites is included in stock to the extent of Â£2,251,000 (31.03.2004: Â£1,666,000). Interest capitalised during the period in respect of development sites amounted to Â£1,283,000 (2003: Â£475,000). 10. Current asset investments Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 UK listed investments at cost 263 263 ________ ________ 263 263 ________ ________ The market value of listed investments at 30 September 2004 was Â£315,000 (31.03.2004: Â£265,000). 11. Cash at bank and in hand Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Rent deposits and cash held at managing agents 6,211 2,575 Cash secured against debt and cash held at solicitors 8,784 1,121 Cash held to fund future development costs 360 1,517 Free cash 48,496 13,071 ________ ________ 63,851 18,284 ________ ________ 12. Financing and financial instruments Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Bank overdraft and loans - maturity Due after more than one year 115,115 131,779 Due within one year 26,291 16,304 ________ ________ 141,406 148,083 ________ ________ Gearing Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Total borrowings 141,406 148,083 Cash (63,851) (18,284) ________ ________ Net borrowings 77,555 129,799 ________ ________ Adjusted net assets 275,028 248,721 Gearing 28% 52% Fair value of financial assets and financial liabilities: Unaudited Unaudited Audited Audited At 30 At 30 At At September September 31 March 31 March 2004 2004 2004 2004 Â£000 Â£000 Â£000 Â£000 Book Value Fair Value Book Value Fair Value Borrowings 141,719 142,474 148,728 149,639 Interest rate swaps - 57 - 123 Other financial instruments - 961 - 1,848 ________ ________ ________ ________ 141,719 143,492 148,728 151,610 ________ ________ ________ ________ The fair value of financial assets and financial liabilities represents the mark to market valuations at 30 September 2004 and 31 March 2004. The adjustment to net assets from a recognition of these values, net of tax relief, would be to reduce diluted net asset value per share by 4p (31.03.2004: 7p). 13. Provision for liabilities and charges - deferred taxation Deferred taxation provided for in the financial statements is set out below: Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Accelerated capital allowances 1,931 2,744 Less: - discount (281) (399) ________ ________ Discounted provision for deferred tax 1,650 2,345 ________ ________ The Group has applied the provisions of FRS19 Deferred Tax, which requires that deferred tax be recognised as a liability or asset if the transactions or events that give the Group an obligation to pay more or less tax in the future have occurred by the balance sheet date. In accordance with FRS19, the Group makes full provision for timing differences other than revaluation gains and losses, which are primarily in respect of capital allowances on plant and machinery, industrial buildings' allowances and tax losses. Amounts unprovided are: Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Unrealised capital gains 22,024 20,509 ________ ________ 22,024 20,509 ________ ________ No provision has been made for taxation which would accrue if the investment properties were sold at their revalued amounts. The adjustment to net assets resulting from a recognition of these amounts would be to reduce diluted net asset value per share by 76p (31.03.2004: 70p). 14. Share capital Unaudited At Audited At 30 September 31 March 2004 2004 Â£000 Â£000 Authorised - 688,954,752 ordinary shares of 5p each 34,448 34,448 ________ ________ 34,448 34,448 ________ ________ Allotted, called up and fully paid Attributable to equity interests: - 27,156,525 ordinary shares of 5p each 1,358 1,357 ________ ________ 1,358 1,357 ________ ________ In the period to 30 September 2004 530,000 ordinary 5p shares were purchased for cancellation at an average cost of 843p per share. Share options At 30 September 2004 options over 1,874,323 (31 March 2004: 2,412,945) new ordinary shares in the Company and 1,361,939 (31 March 2004: 1,361,939) purchased 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. Options over 538,622 shares were exercised. 15. Net assets per share Number of p.p.s. Change since Shares 31.03.2004 Â£000 000's + % Net asset value ('NAV') 256,076 25,302 1,012 10.5 Add: potential exercise of options 8,566 1,874 (38) ________ ________ ______ ________ Diluted NAV 264,642 27,176 974 11.2 Adjustment for: - capital allowances provided for but unlikely to be clawed back 1,650 6 - ESOP investment in shares 14,051 1,855 (14) ________ ________ ______ ________ Adjusted diluted NAV 280,343 29,031 966 10.5 Adjustment for: - potential capital gains unprovided for (22,024) (76) - mark to market value of interest rate hedging agreements (1,241) (4) ________ ________ ______ ________ Triple net NAV 257,078 29,031 886 11.2 ________ ________ ______ ________ 16. Reconciliation of operating profit to net cash flow from operating activities Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Operating profit 8,420 8,504 16,613 Depreciation of fixed assets 98 109 213 Release of provision against investments (442) (75) (133) Profit on sale of fixed assets (19) 6 (9) Amortisation of goodwill 32 50 65 Decrease/(increase) in debtors 4,166 (4,633) (580) (Decrease)/increase in creditors (1,936) 123 74 Decrease/(increase) in stocks 3,543 (18,911) (27,325) ________ ________ ______ Net cash inflow/(outflow) from operating activities 13,862 (14,827) (11,082) ________ ________ ______ 17. Capital expenditure and financial investment Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2004 2003 2004 Â£000 Â£000 Â£000 Purchase of property (8,857) (11,323) (22,906) Sale of property 59,807 32,699 43,213 Purchase of fixed assets (109) (48) (141) Sale of fixed assets 24 4 48 Sale of investments - (887) - Purchase of investments (3,503) - (1,212) ________ ________ ______ 47,362 20,445 19,002 ________ ________ ______ 18. Notes to the Interim Statement The interim statement was approved by the Board of Directors on 17 November 2004. The foregoing financial information does not represent full accounts within the meaning of S.240 of the Companies Act 1985, and has been reviewed but not audited by the auditors, nor filed with the Registrar of Companies. The results for the 12 months to 31 March 2004 are an abridged version of the full accounts which received an unqualified auditor's report and have been filed with the Registrar of Companies. This statement is being sent to shareholders and will be available from the Company's Registered Office at 11-15 Farm Street, London, W1J 5RS. This information is provided by RNS The company news service from the London Stock Exchange

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Helical (HLCL)

Thursday, 21st November 2024

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HLMA JD. ITH

JD Sports tanks after management tighten profit guidance towards the lower end of expectations, Halma finds support from strong earnings and capital return commitment cheers shareholders in Ithica Energy.

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