Preliminary Results for the Year to 31 March 2016

RNS Number : 0696Z

Helical Bar PLC

24 May 2016

HELICAL BAR PLC

("Helical" or the "Group" or the "Company")

Unaudited Preliminary Results for the Year to 31 March 2016

HELICAL DELIVERS A RECORD YEAR

Michael Slade, Chief Executive, commented:

"I am extremely proud to announce today's record results which show rental levels, investment gains, pre-tax profits, shareholders' funds and EPRA net asset value per share all at the highest level in Helical's 32 year history as a real estate company. These results clearly demonstrate that our strategy of targeting London for capital growth and development profits and the regions for higher yielding investment assets provides the most appropriate allocation of resources to enable us to meet our long term objectives.

"The greatest proportion of our performance this year has come from London where we have increased our portfolio weighting, primarily with the purchase of The Bower EC1. We also increased our weighting in industrial assets whilst reducing our exposure to retail. We have sold our Polish assets and continue to deliver on our retirement village programme.

"Since 2012, we have targeted an income producing investment portfolio representing at least 75% of our total property assets with our development programme making up the remaining 25% which is capable of producing exceptional profits. We have now exceeded our original targets and, as we complete the current development programme over the next three years, our objectives are clear. We seek to:

· Complete and let our London office schemes at The Bower, One Creechurch Place, One Bartholomew Close and Charterhouse Square;

· Complete the residential scheme at Barts Square and sell the remaining units;

· Capture the reversion in our investment portfolio;

· Maintain and grow a sustainable investment income surplus; and

· Take forward our London schemes in Hammersmith and Drury Lane and at the appropriate time restock the London development pipeline to enable us to continue to create capital growth and development profits.

"We aim to do this against a background of increasing uncertainty, exacerbated by the imminent possibility of the UK voting to leave the European Union. However, with substantially increased contracted rents on our portfolio and having de-risked our two largest London office developments at One Creechurch Place EC3 and One Bartholomew Close EC1, Helical is well placed to deal with any headwinds that may come its way.

"This will be my last Chief Executive's Statement after nearly 32 years with the Company. I joined the Board on the 21 August 1984 when the equivalent share price was around one pence per share giving a market capitalisation of c. £800,000 and with Helical Bar plc a steel company making reinforcement bars for the construction industry. I joined the Company to change things. With a quick sale of the steel business followed by over 30 years as an entrepreneurial property company, Helical has grown to have a current market capitalisation of over £460m having distributed £276m to shareholders during that period. I now look forward to becoming Chairman and leave the Company in the excellent hands of my successor, Gerald Kaye, and the wider executive team who have an average tenure with the Company of a mere 19 years! I look forward to continuing both on the Board and as the Company's largest shareholder and am confident that Helical's outperformance will continue."

Financial Highlights

Record results

· EPRA net asset value per share up 19.7% to 461p (2015: 385p).

· CAGR of EPRA net asset value per share over three years of 20.4% pa (2015: 15.5% pa).

· EPRA earnings per share of 17.1p (2015: 2.4p) - up 613%.

· IFRS Profit before tax of £120.1m (2015: £87.4m) - up 37%.

· Total Property Return of £170.6m (2015: £155.3m) - up 10%.

- Group's share of net rental income of £43.4m (2015: £38.6m) - up 12%.

- Development profits of £27.5m (2015: £17.6m) - up 56%.

- Net gain on sale and revaluation of investment properties of £99.7m (2015: £96.6m).

· Final dividend proposed of 0.72p per share, increasing total dividend per share to 8.17p (2015: 7.25p) - up 12.7%.

Strong capital returns

· Group's share of property portfolio £1,240m (2015: £1,021m) - up 21%.

· Unleveraged return of property portfolio as measured by IPD of 21.7% (2015: 20.4%) compared to 11.4% (2015: 17.5%) for the benchmark index.

· Investment property valuations, on a like-for-like basis, up 14.9% (11.1% including sales and purchases) with London office valuations up 30.8% (18.8% including sales and purchases).

Secure financial position

· See-through loan to value of 40% on a secured basis (2015: 34%) and 55% overall (2015: 52%).

· Average maturity of the Group's share of debt of 4.5 years (2015: 4.3 years) at an average cost of 4.2% (2015: 4.1%).

· Group's share of cash and undrawn bank facilities at 31 March 2016 of £193m (2015: £229m).

Operational Highlights

London portfolio well positioned to provide future development surpluses whilst being highly reversionary - delivering c. 80% of property returns

· 18.8% valuation increase of London investment portfolio (2015: 9.2%), now valued at £593m (56% of total investment portfolio).

· Lettings at The Bower EC1, Shepherds Building W14, C-Space EC1 and One King Street W6 increased contracted gross rents on London portfolio to £23.6m (2015: £8.7m) compared to an ERV of £45.4m (2015: £28.1m).

· Offices at The Bower EC1 acquired for £248m (with Helical reinvesting its existing 1/3^rd ownership), Joint venture partner Crosstree acquired the retail parade for £23m and Empire House sold for £20.65m in November 2015, a 38% premium to 31 March 2015 book value.

- First phase 100% let

- Second phase under construction

· At Barts Square EC1, 102 residential units exchanged at 23 May 2016 (31 March 2015: 56 units) and two reserved on phase 1 of 144 units.

· At One Bartholomew Close EC1, the site was sold for £102.4m and the 213,000 sq ft office development forward funded, releasing £34m cash to Helical.

· Major refurbishment commenced at Charterhouse Square EC1, increasing the office space to 38,500 sq ft with 5,100 sq ft of retail, with delivery in early 2017.

· At Drury Lane & Dryden Street WC2 a resolution to grant planning was issued for a residential led scheme of 62 apartments.

· Power Road Studios W4, a 62,000 sq ft office complex of five buildings acquired for £34m.

Regional portfolio

· Contracted gross rents on regional investment portfolio (44% of total investment portfolio) of £32.4m.

· Regional investment portfolio increased with the purchase of £89m of high yielding industrial/logistics warehouses.

· 3.0% valuation increase on regional offices dominated by performance of Churchgate and Lee House in Manchester.

· Regional investment portfolio now comprises 22% offices, 13% in town retail, 17% retail parks, 46% industrial/logistics and 2% other.

· Sale of 16 regional assets comprising eight industrial units, three regional offices and five retail assets for £67m in total.

Succession strategy delivered

· Michael Slade to step down as Chief Executive at 2016 AGM and remain on the Board as Non-Executive Chairman.

· Gerald Kaye to be appointed Chief Executive at 2016 AGM.

· Nigel McNair Scott, Chairman, and Andrew Gulliford, Non-Executive Director, to retire at the 2016 AGM.

· Susan Clayton and Richard Cotton appointed Non-Executive Directors to provide further independence and balance to the Board.

For further information, please contact:

Helical Bar plc	020 7629 0113
Michael Slade (Chief Executive)
Gerald Kaye (Chief Executive Designate)
Tim Murphy (Finance Director)

Address:	5 Hanover Square, London W1S 1HQ
Website:	www.helical.co.uk

FTI Consulting	020 3727 1000
Dido Laurimore/Tom Gough/Clare Glynn

Full Year Results Presentation

Helical will be holding a presentation for analysts and investors at 9:30am (BST), Tuesday 24 May 2016 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. If you would like to attend, please contact Jenni Nkomo on 020 3727 1000, or jenni.nkomo@fticonsulting.com.

The presentation will be on the Company's website www.helical.co.uk and a conference call facility will be available. The dial-in details are as follows:

Participants, Local - London, United Kingdom:	+44(0)20 3427 1916
Confirmation Code:	7221684

Financial Highlights

See-through Income Statement	Notes 1	Year To 31 March 2016 £m	Year To 31 March 2015 £m	Year To 31 March 2014 £m
Net rental income		43.4	38.6	29.8
Development property profits		27.5	17.6	65.0
Trading property profits		-	2.5	0.3
Gain on revaluation of investment properties		55.8	93.0	36.4
Gain on sale of investment properties		43.9	3.6	8.6
Total property return		170.6	155.3	140.1

Profit before tax		120.1	87.4	101.7
EPRA earnings		19.6	2.8	38.9
Earnings Per Share and Dividends		pence	pence	pence
Basic earnings per share	2	96.1	64.6	75.0
Diluted earnings per share	2	92.6	60.8	73.2
EPRA earnings per share	2	17.1	2.4	33.3
Dividends per share paid in period		12.60	6.85	5.70
Dividends per share declared for period		8.17	7.25	6.75

See-through Balance Sheet	3	At 31 March 2016 £m	At 31 March 2015 £m	At 31 March 2014 £m
See-through property portfolio		1,240.0	1,021.4	801.7
See-through net borrowings		681.8	531.9	365.1
Net assets		486.2	404.4	340.5

Net assets per share, gearing and loan to value
EPRA net asset value per share	2	461p	385p	313p
See-through loan to value	4	55%	52%	46%
See-through net gearing	5	140%	132%	107%
See-through net asset value gearing	6	125%	113%	99%

Notes

1. Includes Group's share of income and gains of its subsidiaries and joint ventures. See Appendix 1.

2. Calculated in accordance with IAS 33 and guidance issued by the European Public Real Estate Association ("EPRA"). EPRA earnings per share exclude the net gain on sale and revaluation of the investment portfolio of £99.7m (2015: £96.6m) but include development profits of £27.5m (2015: £17.6m).

3. Includes the Group's share of assets and liabilities of its subsidiaries and joint ventures. See Appendix 1.

4. See-through loan to value is the ratio of see-through net borrowings to see-through property portfolio. See Appendix 2.

5. See-through net gearing is the ratio of see-through net borrowings to net assets. See Appendix 2.

6. See-through net asset value gearing is the ratio of see-through net borrowing to EPRA net asset value.

See Appendix 2.

Chief Executive's Statement

Overview

I am extremely proud to announce today's record results which show rental levels, investment gains, pre-tax profits, shareholders' funds and EPRA net asset value per share all at the highest level in Helical's 32 year history as a real estate company. These results clearly demonstrate that our strategy of targeting London for capital growth and development profits and the regions for higher yielding investment assets provides the most appropriate allocation of resources to enable us to meet our long term objectives.

The greatest proportion of our performance this year has come from London where we have increased our portfolio weighting, primarily with the purchase of The Bower EC1. We also increased our weighting in industrial assets whilst reducing our exposure to retail. We sold our Polish assets and continue to deliver on our retirement village programme.

Within the investment portfolio we have a strong and diverse tenant profile. We have increased contracted rents by £12.7m (29% increase) from new lettings and by capturing some of the reversionary potential of the portfolio and expect this growth to continue. Our London investment portfolio remains highly reversionary and its inherent value will be unlocked through the completion of our redevelopment and refurbishment programme and the letting of the vacant and remaining reversionary space. London continues to outperform the rest of the UK and our strategy is to increase our London holdings.

We now have an investment portfolio poised for future earnings growth which, if supported by a benign economic background, should lead to substantial capital appreciation.

Performance

We measure our performance at both portfolio and Company level, seeking to outperform in the medium and long term relevant sector indices and our peer group.

EPRA earnings per share increased from 2.4p to 17.1p, reflecting growing net rental income and increased development profits. On a like-for-like basis, the investment portfolio increased by 14.9% (11.1% including sales and purchases) contributing to an overall growth in the portfolio to £1,240m (2015: £1,021m). The unleveraged return of our property portfolio, as measured by IPD, was 21.7% (2015: 20.4%), compared to 11.4% (2015: 17.5%) for the benchmark index. These investment gains contributed to an increase in EPRA net asset value per share, up 19.7% to 461p (2015: 385p). Since the start of 2016, the listed real estate sector has been affected by concerns over global economic issues and the forthcoming referendum on our membership of the European Union. Despite this, we achieved a positive Total Shareholder Return for the year to 31 March 2016 of 1.0% (2015: 7.6%), compared to the sector index which fell by 6.4% (2015: increase of 22.8%).

Results for the Year

The profit before tax for the year to 31 March 2016 was £120.1m (2015: £87.4m), the highest in the Group's history. Total Property Return increased by 10% to £170.6m (2015: £155.3m) and included growing net rents of £43.4m, an increase of 12% on 2015 (£38.6m), and development profits of £27.5m (2015: £17.6m). The gain on sale and revaluation of the investment portfolio contributed £99.7m (2015: £96.6m) and there were no trading profits (2015: £2.5m).

Net finance costs of £22.6m were lower than in 2015 (£24.8m), however the income statement was adversely affected by falls in expected future interest rates which led to a £6.9m (2015: £8.4m) charge arising from the valuation of the Group's derivative financial instruments. The valuation of the Group's Convertible Bond provided a credit of £0.5m (2015: charge of £3.3m). Recurring administration costs were marginally higher at £10.7m (2015: £10.2m). Performance related awards, reflecting the success of the Group's activities in the year were £13.3m (2015: £13.4m). National Insurance costs on remuneration, including performance related awards, were £2.1m (2015: £3.0m).

These results allow the Board to continue its progressive dividend policy and to recommend to shareholders a final dividend of 0.72p which, together with the two interim dividends paid to date of 7.45p takes the total dividend for the year to 8.17p (2015: 7.25p), an overall increase of 12.7%.

The London Portfolio

The London investment and development portfolio continues to contribute the greater proportion of capital growth and development profits. In the year to 31 March 2016, London provided c. 80% of the total property return of £170.6m (2015: £155.3m).

Since 2010 we have steadily acquired property in two "clusters"; the Tech Belt districts of Farringdon, Shoreditch, Aldgate and through to Whitechapel and the West London districts of Hammersmith, Shepherds Bush and Chiswick.

The East

At The Bower EC1, we have acquired the outstanding 2/3^rd interest from our joint venture partner Crosstree Real Estate Partners LLP ("Crosstree"), of the buildings known as The Warehouse (122,858 sq ft of offices, 5,404 sq ft of restaurant use) and The Studio (18,283 sq ft of offices, 4,894 sq ft of restaurant use). Construction work on these two buildings was completed in November 2015 and both are fully let at average office rents of £55.00 psf and £43.85 psf respectively. In addition, we have acquired The Tower at 207 Old Street, a 179,000 sq ft refurbishment and extension of the existing building on which work has commenced and is due for completion Q1 2018. At £248m, this purchase is our largest ever acquisition and strongly reaffirms our belief in the London office market. The remaining buildings at The Bower, being Empire House and the retail parade, were sold by the joint venture to Standard Life and Crosstree respectively.

At Barts Square EC1, our scheme in joint venture with The Baupost Group LLC, we have now exchanged contracts for sale at an average of £1,580 psf on 102 of the 144 residential units with a further two units reserved in phase 1 of the development which is due for completion in summer 2017. The office development of 212,858 sq ft at One Bartholomew Close EC1 has been forward funded with clients of Ashby Capital, is currently under construction and is due for completion in July 2018.

Our 272,426 sq ft office development at One Creechurch Place EC3, equity funded with our joint venture partner HOOPP (Healthcare of Ontario Pension Plan) is expected to complete in September 2016. C-Space EC1 completed its refurbishment in October 2015 and is 75% let at an average rent of £56 psf. At 23-28 Charterhouse Square EC1 we have commenced construction works, due to complete in Q1 2017 on a refurbishment which will comprise 38,500 sq ft of offices and 5,100 sq ft of retail/restaurant use. Our 112,000 sq ft listed building at The Loom, Whitechapel E1 is now undergoing a comprehensive refurbishment and is due for completion in September 2016.

The West

There has been substantial growth in rents at our West London properties. At Shepherd's Building W14 we have completed the lease renewal and increased the space let to our largest tenant Endemol, increasing the rent by £1.25m pa, with average rents for the building now £45.75 psf. At One King Street W6 following the completion of the refurbishment works, we have achieved a benchmark rent for the area of £55.00 psf. We have added to our portfolio with the acquisition of Power Road Studios W4, 62,000 sq ft of offices over five buildings acquired for £34m.

The Regional Portfolio

The regional investment and development portfolio provides a growing stream of net rents from a high yielding investment portfolio while contributing development profits from our retirement village and retail development programmes.

The regional investment portfolio increased to £460m at 31 March 2016 (2015: £420m) with the addition of 13 distribution warehouses and a regional office for an aggregate £94m, offset by the sale of eight distribution warehouses, five retail assets and three regional offices for £67m. Regional assets contributed £31.0m of net rental income during the year (2015: £30.7m) which is expected to continue to grow with contracted rents on the portfolio of £32m and an ERV of £36m. Net gains on the sale and revaluation of the regional portfolio contributed £6.7m (2015: £18.8m).

Our regional development exposure is limited to our retirement village, out-of-town retail development programmes and our Scottish Power project in Glasgow, where balance sheet risk is limited. At our retirement village development programme we continued the construction of units at Durrants Village Horsham, Millbrook Village Exeter and Maudslay Park Great Alne, near Stratford-upon-Avon. During the year we completed the clubhouse at Durrants Village and sold 33 residential units at the three schemes (2015: 25 units). In our retail development programme, we have completed our scheme at Shirley, West Midlands and continue to make progress on our scheme at Truro. Subsequent to the year end we forward funded a 79,750 sq ft out-of-town retail development at Cortonwood with a client of Aberdeen Asset Management. The Scottish Power project is pre-let and pre-sold and due for completion in September 2016. As part of the overall deal Helical takes on three existing Scottish Power sites which are surplus to requirements. One has been sold and good progress is being made on the business plans for the other two.

Finance

The Group has expanded its activities significantly in the last three years, seeking to increase shareholder funds through the generation and retention of increased net rental streams, development profits and valuation surpluses. This growth has been financed through an increase in secured debt borrowed primarily from UK high street banks and, since 2013, through the use of unsecured debt in the form of a retail bond and a convertible bond. In assessing the needs of the business the Company is conscious that it needs to manage any risks inherent in this leveraged approach to growing the business. It seeks to do this through the use of unsecured debt (23% of total debt), by increasing the maturity of its debt profile and by hedging its interest rate exposure. In addition, the Group's debt profile includes borrowings in respect of residential and retirement village developments which are expected to be repaid as sales complete.

In pursuing this strategy, the Group has increased the average debt maturity to 4.5 years (2015: 4.3 years), with no secured loan repayable before November 2019, whilst marginally increasing the average cost of debt at 4.2% (2015: 4.1%). The Group continues to retain a significant level of liquidity with cash and unutilised bank facilities of £193m (2015: £229m) to fund capital works on its portfolio.

Board Changes

As previously announced with our half year results, I will be handing over the reins of the Company to Gerald Kaye, our senior development director for the last 22 years, and I will stand to be re-elected as Non-Executive Chairman, at the 2016 Annual General Meeting. At that AGM, Nigel McNair Scott, our current Chairman, former Finance Director and my close friend and confidant, will retire after 30 years on the Board. Nigel has proved to be a constant source of advice, support and wisdom during his time at Helical and I wish him a long and happy retirement.

The AGM will also see the retirement of Andrew Gulliford, a Non-Executive director for the last ten years. Andrew has also proved to be a tremendous support to the Board and his contribution is greatly appreciated. With these two planned departures we have sought to strengthen the Board with the addition of two new independent Non-Executive Directors and were delighted to be able to announce the appointments of Susan Clayton and Richard Cotton earlier this year.

Outlook

Since 2012, we have targeted an income producing investment portfolio representing at least 75% of our total property assets and a development programme of the remaining 25% which is capable of producing exceptional profits. We have now exceeded our original targets and, as we complete the current development programme over the next three years, our objectives are clear. We seek to:

· Complete and let our London office schemes at The Bower, One Creechurch Place, One Bartholomew Close and 23-28 Charterhouse Square;

· Complete the residential scheme at Barts Square and sell the remaining units;

· Capture the reversion in our investment portfolio; and,

· Maintain and grow a sustainable investment income surplus.

We aim to do this against a background of increasing uncertainty, exacerbated by the imminent possibility of the UK voting to leave the European Union. However, with substantially increased contracted rents on our portfolio and having de-risked our two largest London office developments at One Creechurch Place EC3 and One Bartholomew Close EC1, Helical is well placed to deal with any headwinds that may come its way.

Finally, this will be my last Chief Executive's Statement after nearly 32 years with the Company. I joined the Board on the 21 August 1984 when the equivalent share price was around one pence per share giving a market capitalisation of circa £800,000 and with Helical Bar plc a steel company making reinforcement bars for the construction industry. I joined the Company to change things. A quick sale of the steel business followed by over 30 years as an entrepreneurial property company, Helical has grown to have a current market capitalisation of over £460m having distributed £276m to shareholders during that period. I now look forward to becoming Chairman and leave the Company in the excellent hands of my successor, Gerald Kaye, and the wider executive team who have an average tenure with the Company of a mere 19 years! I look forward to continuing both on the Board and as the Company's largest shareholder and am confident that Helical's outperformance will continue.

Michael Slade

Chief Executive

24 May 2016

Our Strategy

Overview

Helical is a UK focused property company investing in London for capital growth and development profits and the regions for income.

Locate assets with significant potential

We use our knowledge of the market and our extensive network of contacts to seek out assets where we see the potential to add significant value. Our development schemes are focused on delivering innovative and modern space, whilst retaining local character. We target areas where we anticipate strong growth. Our asset management opportunities focus on maximising income through attracting and maintaining a balanced and diverse portfolio of tenants and driving increases in the rental value through refurbishment programmes that make intelligent use of space and deliver high yielding assets.

Structure and funding

When the Group identifies assets that it intends to develop or asset manage and hold for the longer term, it uses its own capital combined with appropriate external debt.

Where we see significant potential to create profit in the short to medium term and are keen to limit our equity commitment and risk exposure, we look to bring in a partner. Our approach to working with our partners includes:

• Co-investing alongside a larger partner where we have a minority equity stake, whilst receiving a "waterfall" payment whereby we obtain a greater profit share than the percentage of our investment, depending upon the profitability of the project. This strategy is used for the developments at Barts Square, London EC1 and One Creechurch Place, London EC3.

• Managing the development process from site acquisition, through construction to letting or sale. In these structures we do not own the asset, committing no or minimum equity. Our return is linked to the profitability of the development, allowing us to potentially benefit from a significant profit that reflects our contribution to the project's success. We are using this strategy in the development of the office at One Bartholomew Close, London EC1.

Develop, let and asset manage

We actively manage our developments from inception to completion. Our close involvement allows us to continue to develop and improve the design whilst being able to rapidly respond to challenges as they arise. Key to this is working closely with trusted contractors who share our values and are focused on quality, health and safety, sustainability and consideration for the local community.

Building strong relationships with our tenants and having a good understanding of their business, combined with a detailed knowledge of the market, is fundamental to our approach to maximising rental value and maintaining a high level of occupancy. We actively look to redevelop space where we can see the opportunity to better meet market demands, allowing us to drive rental value and help secure the future of the asset.

Exit

Determining the most appropriate time to sell an asset is critical in crystallising value. We look to dispose of a property when we believe future market growth is limited, where we have limited opportunity to add further value, or when we see greater value elsewhere. Our view of the market and the availability of other opportunities determines whether we reinvest the equity into new properties, repay debt or return capital to shareholders.

Our risk strategy

Risk is an integral part of any group's business activities and Helical's ability to identify, assess, monitor and manage each risk to which it is exposed is fundamental to its financial stability, current and future financial performance and reputation. As well as seeing changes in our internal and external environment as potential risks, we also see them as being opportunities which can drive performance.

Risk management starts at Board level where the Directors set the overall risk appetite of the Group and the risk management strategies. Helical's management runs the business within these guidelines and part of its role is to act within these strategies and to report to the Board on how they are being operated.

The Group's risk appetite and risk management strategies are continually assessed by the Board to ensure that they are appropriate and consistent with the Group's overall strategy and with external market conditions. The effectiveness of the Group's risk management strategy is reviewed every six months by the Audit Committee and by the full Board.

The Board has ultimate responsibility for risk within the business. However the small size of our team and our flat management structure allows the Executive Directors to have close contact with all aspects of the business and allows us to ensure that the identification and management of risks and opportunities is part of the mindset of all decision makers at Helical.

The principal risks faced by the Group, and the steps taken by the Group to mitigate these risks, can be found in Appendix 5.

Performance

We measure our performance using a number of financial and non-financial key performance indicators ("KPIs").

We incentivise management to outperform the Group's competitors by setting appropriate levels for performance indicators against which rewards are measured. We also design our remuneration packages to align management's interests with shareholders' aspirations. Key to this is the monitoring and reporting against identifiable performance targets and benchmarks.

Investment Property Databank

The Investment Property Databank ("IPD") produces a number of independent benchmarks of property returns which are regarded as the main industry indices.

IPD has compared the ungeared performance of Helical's total property portfolio against that of portfolios within IPD for the last 20 years. The Group's annual performance target is to exceed the top quartile of the IPD database, which it has consistently achieved. Helical's ungeared performance for the year to 31 March 2016 was 21.7% (2015: 20.4%) compared to the IPD median benchmark of 11.4% (2015: 17.5%) and upper quartile benchmark of 13.0% (2015: 19.7%). Helical's portfolio unleveraged returns to 31 March 2016 were as follows:

	1 yr % pa	3 yrs % pa	5 yrs % pa	10 yrs % pa	20 yrs % pa
Helical	21.7	22.0	15.8	10.0	15.0
IPD	11.4	14.1	10.4	5.5	9.2
Helical's Percentile Rank	4	4	5	4	1

Source: Investment Property Databank

Helical's trading and development portfolio (15% of gross assets) is shown in IPD at the lower of book cost or fair value and uplifts are only included on the sale of an asset.

EPRA Net asset value per share

A property company's share price should reflect growth in net assets per share. Our Group's main objective is to maximise growth in assets from increases in investment portfolio values and from retained earnings from other property related activities. Net asset value per share represents the share of net assets attributable to each ordinary share. Whilst the basic and diluted net asset per share calculations provide a guide to performance, the property industry prefers to use an EPRA adjusted net asset per share to represent the fair value of net assets on an ongoing long term basis. The adjustments necessary to arrive at this figure are shown in note 31 to these results.

Management is incentivised to exceed 15% pa growth in net asset value per share.

The diluted net asset value per share, excluding trading stock surplus, at 31 March 2016 increased by 23.5% to 410p (2015: 332p). Including the surplus on valuation of trading and development stock, the EPRA net asset value per share at 31 March 2016 increased by 19.7% to 461p (2015: 385p). EPRA triple net asset value per share increased by 17.6% to 428p (2015: 364p).

Total Shareholder Return

Total Shareholder Return is a measure of the return on investment for shareholders. The table below demonstrates this return compared to various indices. Over one, three, ten, fifteen, twenty and twenty five years, Helical's Total Shareholder Return exceeded that of the Listed Retail Estate Sector Index.

		Performance Measured Over
		1 year Total return pa %	3 years Total return pa %	5 years Total return pa %	10 years Total return pa %	15 years Total return pa %	20 years Total return pa %	25 years Total return pa %
Helical Bar plc	1	1.0	20.5	10.0	1.7	9.4	13.2	14.2
UK Equity Market	2	-3.9	3.7	5.7	4.7	5.0	6.5	8.0
Listed Real Estate Sector Index	3	-6.4	13.6	11.5	-0.1	5.8	7.3	6.6
Direct Property - monthly data	4	11.7	14.6	10.5	5.0	7.9	9.0	8.6

1. Growth over all periods to 31/03/16

2. Growth in FTSE All-Share Return Index over all periods to 31/03/16

3. Growth in FTSE 350 Real Estate Super Sector Return Index over all periods 31/03/16. For data prior to 30

September 1999 FTSE All Share Real Estate Sector Index has been used

4. Growth in Total Return of IPD UK Monthly Index (All Property) over all periods to 31/03/16

Financial Review

Helical Business Model

Helical aims to deliver market leading returns by committing to projects with the potential for substantial capital growth and by deploying limited equity into development situations which have the potential to be highly profitable. Risks associated with our development programme are mitigated through limited equity exposure, options, forward funding, conditional contracts and joint ventures with major UK and global institutions. We have an active asset management programme for the investment portfolio with a clear strategy of increasing net operating income. Our aim is to have a stable platform with all recurring operational and finance costs and dividends fully covered by revenue streams from our investment portfolio. Gearing is used on a tactical basis throughout the property cycle, being raised to accentuate property performance when property returns are judged to materially outperform the cost of debt and lowered when seeking to reduce exposure to the property cycle.

See-through analysis

Since 2010 Helical has held a significant proportion of its property assets in joint ventures with partners that provide the majority of the equity required to purchase the assets, whilst relying on the Group to provide asset management or development expertise. Accounting convention requires Helical to account under IFRS for our share of the net results and net assets of joint ventures in limited detail in the income statement and balance sheet. Net asset value per share, a key performance measure used in the real estate industry, as reported in the financial statements under IFRS, does not provide stakeholders with the most relevant information on the fair value of assets and liabilities within an ongoing real estate company with a long term investment strategy.

In this review and elsewhere in this statement, we have incorporated the separate components into a more detailed "see-through" analysis of our property portfolio and debt profile and the associated income streams and financing costs to assist in providing a more comprehensive overview of the Group's activities. This see-through analysis can be found in Appendix 1.

Results for the year

For the third year running we are delighted to be able to report on excellent results with record pre-tax profits of £120m in the year to 31 March 2016 (2015: £87m). Continued rental growth, good development profits and strong valuation surpluses arose from of the implementation of our London development and asset management strategies.

The Group's real estate portfolio, including its share of assets held in joint venture, increased to £1,240m (2015: £1,021m) largely the result of acquiring the remaining 2/3rd share of The Bower, London EC1, plus substantial gains on sales and revaluation of the investment portfolio.

The continued expansion of the Group's activities has resulted in an increase in its loan to value to 55% (2015: 52%) and an increase in see-through net gearing to 140% (2015: 132%). The Group lengthened its borrowings profile, repaying short term facilities and extending existing secured loans. These actions enabled the Group to extend its overall debt maturity profile to 4.5 years (2015: 4.3 years) with a weighted average cost of debt marginally increasing to 4.2% (2015: 4.1%).

At 31 March 2016, the Group had unutilised bank facilities of £106m and £87m of cash. These facilities are primarily available to fund phase 2 of the Group's redevelopment of The Bower, London EC1, its retirement village development programme and the phase 1 construction works at Barts Square, London EC1.

EPRA Earnings per Share

EPRA earnings per share were 17.1p (2015: 2.4p), reflecting the Group's share of net rental income of £43.4m (2015: £38.6m) and development profits of £27.5m (2015: £17.6m) but excluding gains on sale and revaluation of investment properties of £99.7m (2015: £96.6m) and trading profits of £nil (2015: £2.5m).

EPRA Net Asset Value

EPRA net asset value per share increased by 19.7% to 461p per share (2015: 385p). This increase arose principally from a total comprehensive income (retained profits) of £110.3m (2015: £74.9m) less dividends paid of £14.4m (2015: £7.9m) and reflecting a reduction in the surplus on valuation of the trading and development stock to £19.4m (2015: £36.2m).

Income Statement

Rental income and property overheads

Gross rental income receivable by the Group in respect of wholly owned properties increased by 19% to £45.5m (2015: £38.3m) reflecting the growth in the investment portfolio and the partial capture of its reversionary potential. In the joint ventures, gross rents fell from £6.1m to £1.8m reflecting the sale of Clyde Shopping Centre in March 2015. Property overheads in respect of wholly owned assets and in respect of those assets in joint ventures fell significantly from £5.4m to £3.4m reflecting the rotation out of management intensive secondary shopping centres to high yielding distribution warehouses, regional offices and out-of-town retail parks. After taking account of net rents payable to our profit share partners of £0.5m (2015: £0.3m), see-through net rents increased by 12.4% to £43.4m (2015: £38.6m).

Development profits

Developments profits increased by 56% from £17.6m to £27.5m on a see-through basis. The main contributor was in respect of the development management fees of £23.2m crystallised by the acquisition of The Bower, London EC1. We also received development management fees of £3.7m in respect of the development at the Scottish Power headquarters in Glasgow and at One Creechurch Place, London EC3. Our retirement village programme contributed £0.4m of profits. In our joint ventures we recognised £3.2m of development profit on our schemes at Leisure Plaza and Shirley. Set against these profits was a write-down of £0.9m against a site in Telford and £1.8m against our retail development programme.

Share of Results of Joint Ventures

The results of the joint ventures include our share of The Bower, London EC1 until it was acquired and fully consolidated in January 2016; our development schemes at Barts Square, London EC1; One Creechurch Place, London EC3; Shirley Town Centre, West Midlands; Leisure Plaza and C.4.1, both Milton Keynes; and King Street, London W6. Detailed analysis of our share of these joint ventures is provided in note 16 to this report and in the see-through analysis in Appendix 1. In the year under review, net rents of £1.3m (2015: £4.4m) were received, offset by net finance costs of £3.7m (2015: £3.6m). Gains on the sale or revaluation of the investment assets of £43.9m (2015: £27.2m) arose primarily in respect of The Bower, London EC1 and Barts Square, London EC1. Net of taxes, our joint ventures contributed £50.5m (2015: £27.5m).

Gain on sale and revaluation of investment properties

During the year we sold two London assets, Enterprise House W2, a 45,000 sq ft office building let to Network Rail for 20 years and Artillery Lane E1, a 17,000 sq ft refurbished office building, for total gross proceeds of £57m, a small premium to book value. In the regions we sold eight industrial units, three offices and five retail assets, a total of 16 regional assets, for £67m at a small net premium to book value.

The valuation of our investment portfolio reflected our increased exposure to London offices where we generated an increase of 18.8% overall and 30.8% on a like-for-like basis. The regions contributed 1.1% overall and 1.2% on a like-for-like basis. In total, the investment portfolio showed a valuation increase of 11.1%, or 14.9% on a like-for-like basis.

The total impact on our financial statements of the gain on sale and revaluation of our investment portfolio was a net gain of £99.7m (2015: £96.6m).

Administration Costs

Administration costs, before performance related awards, increased by 5% from £10.2m to £10.7m. This increase arose from employing a greater number of asset managers, development executives and in the finance team as the portfolio increased and we move through the delivery phase of the development programme.

Performance related share awards and bonus payments, before National Insurance costs, were £13.3m (2015: £13.4m). Of this amount, the £6.7m (2015: £6.4m) charge for share awards under the Performance Share Plans is expensed through the Income Statement but added back to Shareholders Funds through the Statement of Changes in Equity. The £6.6m (2015: £6.9m) charge for bonus payments comprises £5.5m (2015: £5.8m) which will be paid in June 2016 and £1.1m (2015: £1.1.m) which will be paid in deferred shares to be held for a minimum of three years. In addition, National Insurance of £2.1m (2015: £3.0m) has been accrued in the year.

	2016	2015
	£000	£000
Administration Costs	10,717	10,156
Share awards	6,666	6,432
Directors and senior executives' bonuses	6,633	6,920
NIC on share awards and bonuses	2,087	3,022
Total	26,103	26,530

Finance Costs, Finance Income and Derivative Financial Instruments

Interest payable on secured bank loans including our share of loans on assets held in joint ventures, but before capitalised interest, increased to £20.2m (2015: £16.7m). Interest payable in respect of the unsecured Retail and Convertible Bonds was £8.8m (2015: £8.0m). The continued fall in medium and long term interest rate projections at 31 March 2016 contributed to a charge of £6.9m (2015: £8.4m) on the derivative financial instruments which have been valued on a mark to market basis. Capitalised interest increased from £3.6m to £4.9m as development schemes progressed. Other interest payable reduced to £3.7m from £6.3m (which includes £2.8m of costs incurred in issuing the Convertible Bond). Total finance costs increased from £27.3m to £27.8m. Finance income earned was £5.1m (2015: £2.5m).

Taxation

Helical pays corporation tax on its net rental income, trading and development profits and realised chargeable gains, after offset of administration and finance costs.

The deferred tax charge for the year is principally derived from the revaluation surpluses recognised in the year offset by the recognition of tax losses which the Group believes will be utilised against profits in the foreseeable future.

Dividends

Helical follows a progressive dividend policy increasing its dividends in line with its results, whilst retaining the majority of funds generated for investment in growing the business. The interim dividend paid on 30 December 2015 of 2.30p was an increase of 9.5% on the previous interim dividend of 2.10p. On 4 April 2016, the Company paid a second interim of 5.15p and together with the final dividend of 0.72p payable on 29 July 2016, this is an increase of 14.0% on the previous year (2015: 5.15p). In total, the dividend paid or payable in respect of the results for the year to 31 March 2016 is 8.17p (2015: 7.25p), an increase of 12.7%. Since 2013 the compound annual growth rate of the Company's dividends has been 13.8%

Balance Sheet

Investment portfolio

Sales of £55m of London assets and £64m of regional assets provided funds, net of loan repayments, for £377m of acquisitions. Included in these acquisitions was the purchase of The Bower EC1, from the joint venture with Crosstree, where the existing cash equity and share of profits to date remained invested in the scheme. The acquisition was funded through new bank finance of £200m, of which £149.5m was drawn down to complete the purchase with the remaining facility available to fund the redevelopment of The Tower at 207 Old Street EC1. Revaluation surpluses of £53.5m (£0.3m attributable to our profit share partners) and £2.3m in our joint ventures contributed to an increase in the overall size of the investment portfolio on a see-through basis to £1,053m (2015: £790m).

		Wholly owned £000	In joint venture £000	See-through £000
Valuation at 31 March 2015		701,521	88,305	789,826
Acquisitions		376,899	-	376,899
Capital Expenditure		28,234	16,260	44,494
Disposals		(119,385)	(96,687)	(216,072)
Transfer from stock		-	1,358	1,358
Revaluation Surplus	- Helical	53,508	2,316	55,824
	- Profit Share Partners	323	-	323
Valuation at 31 March 2016		1,041,100	11,552	1,052,652

Debt and Financial Risk

In seeking to finance Helical's recent expansion, the Group has used a combination of new secured facilities, whose purpose and terms reflect the nature of the assets charged to the lenders, and unsecured bonds which have provided the firepower to acquire many of the assets which have contributed to the recent growth in shareholders' funds. The composition of the Group's debt structure has significantly changed since 31 March 2014 with unsecured debt now representing 23% of debt drawn at 31 March 2016.

In total, Helical's outstanding debt at 31 March 2016 of £778m (2015: £675m) had an average maturity of 4.5 years (2015: 4.3 years) and a weighted interest cost of 4.2% (2015: 4.1%).

Debt profile at 31 March 2016 - excluding the effect of arrangement fees

	Total Facility £000's		Total Utilised £000's	Available Facility £000's	Net LTV %	Weighted Average Interest Rate %	Average Maturity Years
Investment facilities	568,635		509,331	59,304	-	3.8	5.0
Development facilities	65,000		50,501	14,499	-	5.5	4.0
Total wholly owned	633,635		559,832	73,803	-	4.0	4.8
In joint ventures	58,035		35,302	22,733	-	3.4	3.7
Total secured debt	691,670		595,134	96, 536	40.2	3.9	4.7
Retail bond	80,000		80,000	-	-	6.0	4.2
Convertible bond	100,000		100,000	-	-	4.0	3.2
Working capital	10,000		-	10,000	-	-	-
Fair value of convertible bond		2,747	2,747	-	-	-
Total unsecured debt	192,747		182,747	10,000	-	4.9	3.7
Total debt	884,417		777, 881	106,536	55.0	4.2	4.5

Secured debt

The Group arranges its secured investment and development facilities to suit its business needs as follows:

- Investment facilities

We have £190m of revolving credit facilities which enable the group to acquire, refurbish, reposition and hold significant parts of our investment portfolio. We have used these facilities to finance our regional portfolio. Our London investment assets are primarily held in £380m of term loan secured facilities which, where appropriate, allow us to finance refurbishment projects. The value of the Group's properties secured in these facilities at 31 March 2016 was £945m (2015: £639m) with a corresponding loan to value of 54% (2015: 58%). The average maturity of the Group's investment facilities at 31 March 2016 was 5.0 years (2015: 4.6 years) with a weighted average interest rate of 3.8% (2015: 3.7%).

- Development facilities

These facilities finance the redevelopment of The Tower at The Bower, Old Street, London EC1 and the construction of the retirement villages at Durrants Village, Horsham; Maudslay Park, Great Alne; and Milbrook Village, Exeter. The average maturity of the Group's development facilities at 31 March 2016 was 4.0 years (2015: 2.0 years) with a weighted average interest rate of 5. 5% (2015: 3.7%).

- Joint venture facilities

We hold a number of investment and development properties in joint venture with third parties and include in our reported figures our share, in proportion to our economic interest, of the debt associated with each asset. The average maturity of the Group's share of bank facilities in joint ventures at 31 March 2016 was 3.7 years (2015: 3.0 years) with a weighted average interest rate of 3.4% (2015: 4.5%).

Unsecured debt

The Group's unsecured debt, including the convertible bond at its mark to market valuation, is £182.7m (2015: £183.9m) as follows:

- Retail Bond

In June 2013, the Group raised £80m from the issue of an unsecured Retail Bond with a 6.00% coupon. This bond is repayable in June 2020.

- Convertible Bond

In June 2014, the Group raised £100m from the issue of a listed unsecured Convertible Bond with a 4.0% coupon, repayable in June 2019, or, subject to certain conditions, convertible at the option of the bond holders into ordinary shares, unless a cash settlement option is exercised by the Company. The initial conversion price has been set at £4.9694 per share, representing a 35% premium above the price on the day of the issue and a premium of 59% above the Company's EPRA net asset value per share at 31 March 2014. The value of the Bond at 31 March 2016, as determined by the listed market price, was £102.7m (2015: £103.3m).

- Short term working capital facilities

These facilities provide access to additional working capital for the Group.

Cash and cash flow

At 31 March 2016, the Group had £193m (2015: £229m) of cash and agreed, undrawn, committed bank facilities including its share in joint ventures as well as £153m (2015: £131m) of uncharged property on which it could borrow funds.

Net borrowings and gearing

Total gross borrowings of the Group, including in joint ventures, have increased from £674.6m to £777.9m during the year to 31 March 2016. After deducting cash balances of £86.8m (2015: £136.3m) and unamortised refinancing costs of £9.3m (2015: £6.4m), net borrowings increased from £531.9m to £681.8m. The gearing of the Group, including in joint ventures, increased from 132% to 140%. Including EPRA adjustments to IFRS shareholders funds, the see-through net asset value gearing increases from 113% to 125%. This gearing measure, the ratio of see-through net borrowings to EPRA net asset value, represents a longer term view of gearing than the standard measure.

	2016	2015
See-through gross borrowings	£777.9m	£674.6m
See-through cash balances	£86.8m	£136.3m
Unamortised refinancing costs	£9.3m	£6.4m
See-through net borrowings	£681.8m	£531.9m
Shareholders' funds	£486.2m	£404.3m
EPRA shareholders' funds	£546.8m	£469.1m
See-through gearing - IFRS	140%	132%
See-through gearing - EPRA	125%	113%

Hedging

At 31 March 2016, the Group had £635.5m (2015: £500.2m) of fixed rate debt with an average effective interest rate of 4.2% (2015: 4.4%) and £107.1m (2015: £103.4m) of floating rate debt with an average effective interest rate of 3.9% (2015: 2.8%). In addition, the Group has £157m of interest rate caps at an average of 4.0% (2015: £143.2m at 4%), all of which expire within 12 months. In our joint ventures, the Group's share of fixed rate debt was £nil (2015: £23.3m) with an effective rate of nil% (2015: 6.8%) and £35.3m (2015: £47.9m) of floating rate debt with an effective rate of 3.4% (2015: 3.3%).

	2016 £m	%	2015 £m	%
Fixed rate debt
- Secured borrowings	452.8	3.9	316.9	4.1
- Retail Bond	80.0	6.0	80.0	6.0
- Convertible Bond	100.0	4.0	100.0	4.0
- Fair value of Convertible Bond	2.7	-	3.3	-
Total fixed rate debt	635.5	4.2	500.2	4.4
Floating rate debt
- Secured	107.1	3.9	103.4	2.8
Total wholly owned	742.6	4.2	603.6	4.1
In joint ventures
- Fixed rate	-	-	23.3	6.8
- Floating rate	35.3	3.4	47.9	3.3
Total borrowings	777.9	4.2	674.8	4.2

Interest cover

In assessing the results of the Group for each financial year, Helical considers its interest cover as a measure of its performance and its ability to finance its annual interest payments from its net operating income, before revaluation gains or losses on the investment portfolio and net realisable provisions on the trading and development stock. In the year to 31 March 2016, this interest cover was 5.4 times (2015: 2.5 times).

	2016	2015
See-through net operating income	£121.3m	£62.7m
See-through net finance costs	£22.6m	£24.8m
Interest cover	5.4x	2.5x

Tim Murphy
Finance Director

24 May 2016

Helical's Property Portfolio - 31 March 2016

Total Portfolio by Fair Value

	Investment £m	%	Development £m	%	Total £m	%
London Offices	593.2	47.8	18.0	1.5	611.2	49.3
London Residential	-	-	60.0	4.8	60.0	4.8
Total London	593.2	47.8	78.0	6.3	671.2	54.1

Regional Offices	102.5	8.3	1.0	0.1	103.5	8.4
Regional Industrial	210.5	17.0	-	-	210.5	17.0
Regional Retail	134.5	10.8	8.1	0.7	142.6	11.5
Retirement Villages	11.9	1.0	91.6	7.3	103.5	8.3
Land	0.1	-	8.6	0.7	8.7	0.7
Total Regional	459.5	37.1	109.3	8.8	568.8	45.9

Total	1,052.7	84.9	187.3	15.1	1,240.0	100.0

Investment portfolio by asset status

	Income Producing £m	%	Major Projects £m	%	Total £m	%
London Offices	414.6	39.4	178.6	17.0	593.2	56.4
London Residential	-	-	-	-	-	-
Total London	414.6	39.4	178.6	17.0	593.2	56.4

Regional Offices	97.8	9.3	4.7	0.4	102.5	9.7
Regional Industrial	210.5	20.0	-	-	210.5	20.0
Regional Retail	134.5	12.8	-	-	134.5	12.8
Retirement Villages	11.9	1.1	-	-	11.9	1.1
Land	-	-	0.1	-	0.1	-
Total Regional	454.7	43.2	4.8	0.4	459.5	43.6

Total	869.3	82.6	183.4	17.4	1,052.7	100.0

Income producing assets are those assets where the majority of the space is let. Major projects are those assets that are being substantially developed or refurbished.

Trading and development portfolio

	Book Value £m	Fair Value £m	Surplus £m	Fair Value %
London Offices	14.0	18.0	4.0	9.6
London Residential	56.0	60.0	4.0	32.0
Total London	70.0	78.0	8.0	41.6

Regional Offices	0.2	1.0	0.8	0.5
Regional Retail	8.1	8.1	-	4.3
Retirement Villages	83.6	91.6	8.0	48.9
Land	5.9	8.6	2.7	4.7
Total Regional	97.8	109.3	11.5	58.4

Total	167.8	187.3	19.5	100.0

The London Portfolio

London's economy continues to outperform the rest of the UK and the proportion of our assets located in the Capital now represents 56% of our investment portfolio. London's population is expected to grow by one million in the next ten years and 175,000 new office jobs are expected to be created by 2020. London is a leading technology centre and there is a "war for talent" which is driving demand for high quality office space. London continues to attract overseas capital as it has a liquid and transparent property market with a long established rule of law.

Our strategy is to increase our London holdings, focusing on select areas where we see strong tenant demand and growth potential, such as the "Tech Belt" that runs from Kings Cross through Old Street and Shoreditch to Whitechapel and in West London, in particular Hammersmith, Shepherds Bush and Chiswick. Our London portfolio comprises income producing multi-let offices, office refurbishments and developments and residential development schemes.

The East

The Bower, Old Street EC1

This 3.12 acre asset was acquired in November 2012 for £60.8m in joint venture with Crosstree Real Estate Partners LLP. The site is in the heart of an area which has become a "creative halo", a district of London which is a hub for technology, media and telecommunications companies and which is benefitting from substantial investment in infrastructure. A planning consent has been implemented to increase the floor space on the site by 116,000 sq ft, to refurbish existing areas and significantly upgrade the public realm with the creation of a new pedestrian street.

On 20 January 2016, Helical acquired The Warehouse and The Studio (211 Old Street) and The Tower (207 Old Street) from the joint venture for £248m.

- 211 Old Street EC1

Building work started on phase 1 in January 2014 comprising The Warehouse, 128,262 sq ft, and The Studio, 23,177 sq ft, and was completed in November 2015.

Phase 1 is fully let:-

	Total sq ft	Rent £ psf
The Warehouse
Offices	122,858	50.25-67.50 (55.00 average)
Restaurants	5,404
	128,262
The Studio
Offices	18,283	40.00-45.00 (43.85 average)
Restaurants	4,894
	23,177

- 207 Old Street EC1

Comprising The Tower, phase 2 of the redevelopment of The Bower commenced in January 2016 and will deliver 171,000 sq ft of office space and 7,500 sq ft of retail/restaurant. It is due for completion in Q1 2018.

- 183-213 Old Street EC1

This retail parade comprises 55,724 sq ft fully let to tenants including Gymbox, Co-op Food Store, Argos, Peacock and the Post Office generating c. £915,000 rents. The parade was acquired from the joint venture by Crosstree for £23m in January 2016.

- Empire House, City Road EC1

Empire House, fully let to Z Hotels and restaurant Ceviche, was sold during the year to Standard Life Investments for £20.65m, a premium of 38% to the 31 March 2015 value.

Barts Square EC1

In joint venture with The Baupost Group LLC we own the freehold interest in land and buildings at Bartholomew Close, Little Britain and Montague Street, a 3.2 acre site adjacent to the new Barts Hospital and just south of Smithfield Market. Existing buildings are let to the NHS on a number of short term leases that expire in 2016.

Planning consent has been implemented for a comprehensive redevelopment of 19 buildings to provide a total of 236 residential apartments, three office buildings of 213,000 sq ft, 23,000 sq ft and 10,200 sq ft, 20,600 sq ft of retail/A3 at ground floor as well as major public realm improvements, which will be incorporated into the wider Smithfield Area Strategy being worked up by the City of London.

- Phase 1 - Residential/offices/retail

Phase 1 of the redevelopment of Barts Square comprises 144 residential units, 8,800 sq ft of retail space, 23,000 sq ft of new offices behind retained facades and public realm improvements. The demolition of buildings in Bartholomew Close and Little Britain commenced in January 2015, with the retention of various facades behind which the buildings are being demolished. Completion of phase 1 is expected in summer 2017. Contracts have been exchanged for the sale of 102 residential units for a total value of c. £132m at an average £1,580 psf, with a further two units under offer.

- Phase 2 - One Bartholomew Close - Offices

One Bartholomew Close was sold to clients of Ashby Capital LLP ("Ashby") for £102.4m in August 2015, releasing £34m of cash to Helical. The demolition of the existing building and the construction of a new 12 storey office block of 212,858 sq ft, commenced in January 2016. The building is due to be completed in July 2018. Ashby's clients finance the development costs and when the building is completed and successfully let the joint venture will be entitled to receive a profit share payment. Helical Bar is the development manager for delivery of the project.

- Phase 3 - Residential/retail

Phase 3 of the redevelopment of the site, involving the demolition of Queen Elizabeth II Building, 62 Bartholomew Close, 42-44 Little Britain and 45-47 Little Britain, is expected to commence after vacant possession of these buildings is obtained in November 2016. In their place, 92 residential units and 11,800 sq ft of retail space will be constructed, with completion due in early 2019.

C-Space, 37-45 City Road EC1

Helical acquired C-Space in June 2013. Planning consent was obtained for a complete refurbishment of the building which increased the previous existing 50,000 sq ft office building to 62,000 sq ft. The works, which were completed in October 2015, involved an additional floor and extensions to the third floor, a landscaped courtyard and entrance "pavilion" to the rear and full height glazing to the raised ground floor. 75% of the space was pre-let to MullenLowe (formerly DLKW Lowe) the creative agency, and only the top floor and half of the third floor remain available.

One Creechurch Place, City of London EC3

One Creechurch Place, London EC3, is a landmark City office scheme in the heart of the insurance sector in London. In May 2014, Helical signed a joint venture agreement with HOOPP (Healthcare of Ontario Pension Plan) to redevelop the site. Under the terms of the joint venture, HOOPP and Helical will jointly fund the project on a 90:10 split, with Helical acting as development manager for which it will receive a promote payment depending on the successful outcome of the scheme. It is anticipated the completed development will have a capital value of c. £250m. The new building, comprising 272,000 sq ft NIA of offices and 2,227 sq ft of retail, is expected to be completed in September 2016.

23-28 Charterhouse Square, Smithfield EC1

In January 2016, Helical was granted a new 155 year leasehold interest in 23-28 Charterhouse Square, London EC1, from the Governors of Sutton's Hospital in Charterhouse for £16m. Helical has received planning for and commenced a major refurbishment of the existing building, which will increase the current 34,000 sq ft to 38,500 sq ft of offices, with the addition of a new sixth floor, and add 5,100 sq ft of retail/restaurant. The completed building is expected to be delivered in early 2017.

The Loom, Whitechapel E1

This 112,000 sq ft listed building was acquired in 2013 and Helical has secured planning consent for a comprehensive refurbishment/reconfiguration of the common parts to include a new entrance/reception, showers, bike store, refurbishment of c. 25,000 sq ft of offices, including the creation of a single 11,000 sq ft unit and 4,000 sq ft of café and restaurants. The works are underway and are due for completion in July 2016. Tenant demand in the area is extremely strong and we anticipate achieving rents of c. £45 psf compared to an average passing rent in the building of £24.50.

Chart House, Islington N1

Chart House is a 10,500 sq ft office building in Islington. There is currently planning consent for an additional floor of residential on top of the building. This building is 100% let.

In addition to our holdings in East London we have one scheme in Covent Garden WC2.

Drury Lane & Dryden Street, Covent Garden WC2

The existing buildings, which are in office and retail use, sit on an island site of approximately 0.5 acres. Approximately half of the site, adjacent to Dryden Street, sits within the Covent Garden Conservation Area. In July 2015, contracts were exchanged with Diageo Pension Fund (a fund managed by Savills Investment Management) for the conditional acquisition of the Drury Lane site. The contract is conditional on Helical securing planning consent. A planning application for the residential led scheme of 68 apartments was submitted in August 2015 and resolution to grant consent was issued at a planning committee in April 2016.

The West

Shepherds Building, Shepherds Bush W14

This 151,000 sq ft multi-let office building close to the Westfield London shopping centre maintains an occupancy approaching 100%, as it has for eight consecutive years. We have completed a renewal of existing leases to Endemol, who have also taken additional space and are the largest tenant in the building, increasing the total contracted rent roll by £1.27m and securing their occupation of the building until December 2026, with a tenant break option in 2021. The average contracted rent for the building is now £45.75 psf with total contracted net rent of £6.68m compared to a passing net rent of £4.38m.

Power Road Studios, Chiswick W4

Helical acquired this asset in December 2015 for £34.2m at a NIY of 4.4%. The site comprises 62,000 sq ft of offices across five buildings and is multi let to a wide range of predominantly media tenants. Recent lettings have been concluded at a rent of £38 psf compared to an average rental of £24 psf at acquisition. Studies are currently underway to determine how best to add further office space to the site which at two acres has substantial potential.

One King Street, Hammersmith W6

One King Street, Hammersmith W6, is a 39,000 sq ft building acquired in 2012 comprising 26,000 sq ft of offices and 13,000 sq ft of retail. Refurbishment of the fourth floor and the addition of a fifth floor of offices on top of the building has completed, providing 3,500 sq ft of space. The fourth and fifth floors have been let to Orion Healthcare at a headline rent of £52.50 psf and £55.00 psf and the building is now fully let with total contracted rent of £1.8m.

King Street, Hammersmith W6

King Street, Hammersmith W6, is a Council led regeneration project which is being carried out in a 50/50 joint venture with Grainger plc. Planning permission for the scheme has been granted for 196 apartments, a three-screen cinema, new retail and restaurant space and replacement offices for the Council. A minor amendment to the existing planning approval has been submitted and work is expected to commence in 2017.

The Powerhouse, Chiswick W4

Helical acquired this 43,325 sq ft office and recording studios by way of sale and leaseback. The Powerhouse is a listed building on Chiswick High Road and is fully let on a long lease to Metropolis Music Group.

Sales

Enterprise House, Paddington W2

Enterprise House, Paddington W2, is a freehold building adjacent to Paddington Station in London comprising 45,000 sq ft of offices. The building was acquired in 2013 on a sale and lease-back agreement from Network Rail, which holds a 20 year lease without breaks, for c. £31m representing a 5.7% yield generating annual rental income of £1.8m. In October 2015, the asset was sold to a private overseas buyer for £43m, a premium of 10% to the 31 March 2015 valuation, crystallising an IRR in excess of 100%.

Artillery Lane, Bishopsgate E1

Artillery Lane, Bishopsgate, E1, is an office building in the City of London. Acquired for £6.8m in 2013 the property was sold to Standard Life in October 2015 for £15.1m following the completion of works which provided 17,000 sq ft of newly refurbished offices.

The Regional Portfolio

Our regional portfolio contributed 71% of our net rental income from tenants in diverse sectors and geographical locations. The £568.8m regional portfolio comprises £210.5m of industrial/logistics (37% of the portfolio), £103.5m of offices (18%), £142.6m of retail comprising £76.9m of retail warehousing and £65.7m of in-town retail, mainly the Morgan Quarter, Cardiff (in aggregate 25%), £103.5m in our retirement village development programme (18%) and £8.7m of land (2%).

Our approach to regional investment is to acquire assets where occupational demand is robust throughout the property cycle and the barriers to new supply are high. Successfully picking the sectors and assets with these attributes will ensure strong cash flows and rental growth. In general, yields for regional assets are higher than those in London and these assets are acquired to provide significant cash flow for the Group. We anticipate that income will become an increasingly important part of total returns as yield compression slows and, as such, we focus our attention on areas where we believe the occupational market remain robust.

Distribution Warehouses

Helical has 36 distribution and light industrial units located around major UK transport networks, a net increase of five units with 13 acquisitions (£89m) being offset by sales of eight units with (£28m) at a small premium to book value. These units generally have few bespoke features making them straightforward to re-let if vacancies occur with minimal capital expenditure required. The majority of the assets are single let. Significant assets within the portfolio include a 256,000 sq ft distribution warehouse let to Sainsbury's in Yate, Bristol, a 203,000 sq ft facility in Leighton Buzzard, Bedfordshire, a 210,000 sq ft distribution warehouse in Northampton and a 183,000 sq ft distribution warehouse let to the Royal Mail in Chester.

Regional Offices

Our regional office investment portfolio comprises nine assets valued at £102.5m, with over 60% of value in Manchester. Other assets are located in Crawley, Glasgow, Reading, Cobham, Castle Donington and Cheadle. During the year we sold three assets for £11.2m, a 16% premium to book value.

We now have three offices in Manchester having acquired Fountain Court, 31 Booth Street earlier this year. Manchester is a city with a diverse, thriving and growing economy and is widely regarded as England's second city and the centre of the "Northern Powerhouse".

Churchgate and Lee House, Manchester

Helical acquired Churchgate and Lee House, two interlinked office buildings comprising 248,000 sq ft of offices, in March 2014. We have refurbished the reception, café and a number of office floors and continue to reposition the asset as floors become vacant. We have concluded 14,000 sq ft of new lettings in the year, including letting a refurbished second floor Churchgate suite at £16.50 psf, with a further 19,300 sq ft since year end. The building is now 92% occupied.

Dale House, Manchester

Dale House is a 42,000 sq ft office building situated in the Northern Quarter of Manchester. It is 85% let to a number of tenants with an average rent of £12.00 psf and was acquired in March 2015 for £7.4m. The property is a long term hold with plans to refurbish the building over time and move rents upwards as the location improves.

Fountain Court, 31 Booth Street, Manchester

This vacant office located in the prime city core was acquired in January 2016 for £4.7m. Refurbishment of this 25,349 sq ft building is underway and we anticipate having it available to let before the end of 2016.

St Vincent Street, Glasgow

In partnership with local development partner, Dawn Developments Ltd, Helical is the development manager for the construction of the new headquarters building for Scottish Power at St Vincent Street, Glasgow. The completed building will comprise c. 220,000 sq ft of prime office space in the heart of the City's commercial district. Funded by M&G Investments, the scheme is under construction and all works, including Scottish Power's fit out, are due to be completed by Autumn 2016. As part of the overall deal, Helical took on three existing Scottish Power sites which are surplus to requirements. We have received planning permission for a change of use of the grounds of Cathcart House to 158 residential units and are in discussions with a number of parties in relation to a sale. At Yoker, we have exchanged contracts, subject to planning, with a supermarket operator to sell the site, and we sold the site at Falkirk during the year.

Retail

Our retail assets total £142.6m, 11.5% of our portfolio (31 March 2015: £171.7m). This part of the portfolio includes a prime retail asset in Cardiff, eight retail parks (one of which has been sold since year end), one retail unit and a number of pre let and/or prefunded retail developments. During the year we sold five assets for £27.0m, marginally below book value.

The retail market is undergoing major structural changes with high profile companies going into administration. There is a continued migration of customers and retailers to prime centres where the leisure offer and quality of environment are a big driver of footfall.

During the year, five retail properties were sold for a total of £27.0m. At the year end the portfolio consisted of assets in Cardiff, Ellesmere Port, Great Yarmouth, Harrogate, Huddersfield, Leicester, Scarborough, Sevenoaks, Southend and Stockport. Harrogate has been sold since the year end at its book value.

The Morgan Quarter and Royal Arcades, Cardiff

Tenant demand for the property is strong and rents are steadily increasing. The creative quarter office refurbishment is now largely complete generating £116,000 of rent from previously unusable space, with a further c. £80,000 of rent to follow as the remainder of the new space is let.

The Morgan Quarter was originally purchased in 2005 and comprised the David Morgan Department Store and two Victorian Arcades. The main ground floor retail units fronting The Hayes, a prime fashion pitch in Cardiff, have been completely reconfigured and they are now let to tenants such as White Stuff, Urban Outfitters, Molton Brown, Jack Wills and Fred Perry.

Retail Developments

Parkgate, Shirley, West Midlands

The shopping centre at Parkgate, Shirley, where Helical has a 50% interest, was completed in 2014 and the 80,000 sq ft Asda, which had been pre-sold to the food-store, together with a number of other retailers have all opened successfully for trade. The space beyond the food-store is let to occupiers such as B&M, Peacocks, Poundland, Pizza Express, JD Wetherspoon, Prezzo, Shoe Zone and Shirley Library.

A second phase of high density residential is being progressed on a 10 acre site opposite the Parkgate scheme. Terms have been agreed with a care home provider, a residential developer and a supermarket operator for a petrol filling station. Planning consent has been achieved subject to a S106 Agreement.

Truro

Helical has entered into a Conditional Purchase Agreement on the six acre Truro City Football Club site which has planning consent, subject to a s106 Agreement, for a 78,000 sq ft non-food retail park. The scheme proposals provide for the relocation of the football club and we anticipate starting on site in summer 2017.

Cortonwood

This 79,750 sq ft retail park has been 95% pre-let to tenants including Outfit, H&M, New Look, River Island and Marks and Spencer. The scheme has been forward funded with clients of Aberdeen Asset Management and construction on site has started with completion due in June 2017.

Poland

During the year, we completed the sale of our 50% share in the 720,000 sq ft retail development at Europa Centralna, Gliwice, Poland, to our joint venture partners, clients of Standard Life, in accordance with a pre-arranged contractual exit two years post completion of the scheme. The sale, at book value, reduced gross property assets by £41m and reduced net debt by £26m. In July 2015, we also completed the sale of our 103,000 sq ft retail development at Wroclaw, Poland at €17m, a small premium to book value. The sale of these two assets completed the exit of our joint venture in Poland.

Retirement Villages

Our retirement village portfolio consists of four villages. We design each of the villages with an active, independent retirement in mind and the communities that we create are the ideal place to live a social and varied lifestyle. Each private, age-exclusive retirement community is centred around a residents' clubhouse, and feature many amenities including an indoor pool and gym, landscaped gardens, bar, restaurant and library. With an increasing UK population over 65 years old, and a severe under supply in retirement housing, this sector creates significant opportunities for investors and developers. This year has seen us bring the management of this portfolio entirely in house and early results have shown an increase in sales rates.

Bramshott Place, Liphook, Hampshire

This village is situated amongst natural parkland near the village of Liphook on the border of Hampshire, West Sussex and Surrey. The village features a selection of two and three bedroom cottages and one, two and three bedroom apartments arranged around a residents' clubhouse. All construction works to Phases 1-3 are completed. 151 units in total are constructed and sold. Phase 4 will commence in 2016 with the construction of 40 additional cottages. Enabling works have commenced on site with completion due in June 2018.

Durrants Village, Faygate, West Sussex

Durrants Village is set within 30 acres of private parkland in the hamlet of Faygate, near Horsham in West Sussex. The village features a selection of cottages and apartments. Phase 2 of the construction completed in January 2016 with 105 units located around the residents' clubhouse. Phase 3 consists of an additional 50 units towards the front of the site and construction is due to commence in late 2016 with completion in early 2019. Sales are progressing at a good rate with 51 units sold and an additional 24 reserved.

Millbrook Village, Exeter, Devon

Millbrook Village is nestled close to the river in the heart of the historic cathedral city of Exeter. The village will feature a selection of two and three bedroom cottages and one, two and three bedroom apartments. The site will comprise 164 units once completed. The clubhouse will include a restaurant and bar, games room, gym, cinema and a swimming pool. The build programme is well advanced with 43 units currently completed with more stock now coming online at regular three month intervals. We anticipate that the village will be fully constructed by early 2018. Contracts have been exchanged on 14 units with an additional 13 units reserved.

Maudslay Park, Great Alne, Warwickshire

Maudslay Park is set in 90-acres of parkland in the Warwickshire village of Great Alne, near Stratford-upon-Avon. The village will comprise 150 units with a mixture of cottages and apartments built around the central clubhouse facility. Following the administration of our main contractor, progress was delayed last year. We have now appointed a new main contractor and we anticipate the first units will be available for sale at the end of 2017.

Asset management

Asset management is a critical component in driving Helical's performance. Through having intelligent business plans and by maximising the combined skills of our management team, we are able to create value in our assets without relying on market movements.

	Fair Value Weighting %		Passing Rent £m	%	Contracted Rent £m	%	ERV £m	%	ERV Change Since March 2015 %
London Offices	49.3		11.2	26.7	23.6	42.1	45.4	56.0	7.6
London Residential	4.8		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total London	54.1		11.2	26.7	23.6	42.1	45.4	56.0	7.6

Regional Offices	8.4		6.5	15.6	7.0	12.6	8.8	10.9	2.8
Regional Industrial	17.0		15.0	35.7	15.9	28.3	16.7	20.6	1.1
Regional Retail	11.5		9.2	22.0	9.5	17.0	10.1	12.5	3.5
Retirement Villages		8.3	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Land	0.7		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Regional	45.9		30.7	73.3	32.4	57.9	35.6	44.0	2.2

Total	100.0		41.9	100.0	56.0	100.0	81.0	100.0	4.4

During the year contracted income increased by £12.7m as a result of new lettings and rent reviews, net of any losses from breaks and lease expiries (2015: £1.1m). With notable contributions from some regional assets, in particular Churchgate House in Manchester, the majority of these rental increases come from our London assets. The completion and letting of phase 1 at The Bower EC1 and C-Space EC1 contributed £10.5m of new lettings, while the renewal of the Endemol lease in the Shepherds Building added a further £1.3m to the rent roll. The London portfolio remains highly reversionary and this value will continue to be unlocked through refurbishment and leasing activities.

There was significant activity within the investment portfolio with 165 lease events.

	Contacted Rent £m
Rent lost at break/expiry	(2.5)
Rent lost to administrations	(0.2)
Rent reviews	0.1
Uplift at Lease renewals	2.0
New Lettings	13.3
Total increase in the year	12.7

Capital expenditure

We have a planned development and refurbishment programme to drive the rental value and secure the future of our assets.

Property	Capex Budget (Helical Share) £m	Remaining spend (Helical share) £m	Current Total Space Sq ft	Refurbished Space Sq ft	New Space Sq ft	Completion date
207 Old Street EC1	91.0	85.0	114,000	114,000	65,000	Mar 2018
Barts Square EC1	88.7	76.8	-	-	236,000	Mar 2019
One Creechurch Place EC1	9.7	2.6	-	-	273,000	Sept 2016
King Street W6	55.0	55.0	-	-	300,000	Dec 2021
Charterhouse Square EC1	15.0	13.0	34,000	34,000	9,600	Mar 2017
Drury Lane WC2	75.0	74.0	-	-	80,000	Jun 2019
The Loom EC1	10.0	2.0	112,000	37,500	-	July 2016
Booth St, Manchester	2.3	2.0	25,500	25,500	-	Dec 2016

Retirement Villages

Property	Capex Budget (Helical Share) £m	Remaining spend (Helical share) £m	Total number of units	Completed units	Under construction	Completion date
Exeter	40.1	19.2	164	29	88	Mar 2018
Durrants	41.0	12.4	156	105	0	Feb 2019
Maudslay	57.5	49.9	150	5	0	Dec 2020
Bramshott	15.9	15.6	40	0	0	Jun 2018
	154.5	97.1	510	139	88

Portfolio yields

	EPRA Topped Up NIY %	Reversionary %
London Offices	2.50	6.14
Regional Offices	5.92	7.48
Regional Industrial	6.42	7.20
Regional Retail	6.12	6.50
Total	3.97	6.60

Capital values, vacancy rates and unexpired lease terms

	Capital value psf £	Vacancy rate %	WAULT Years
London Offices	656	19.3	7.1
London Residential	n/a	n/a	n/a
Total London	656	19.3	7.1

Regional Offices	197	6.5	5.6
Regional Industrial	56	5.9	5.3
Regional Retail	183	0.2	6.1
Total Regional	93	5.0	5.6

Total	180	7.1	6.3

Valuation movements

	Val Change inc Capex, Sales & Purchases %	Val Change inc Capex, excl Sales & Purchases %	Investment Portfolio Weighting 2016 %	Investment Portfolio Weighting 2015 %
London Offices	18.8	30.8	56.4	46.9
Total London	18.8	30.8	56.4	46.9

Regional Offices	3.0	2.0	9.7	13.1
Regional Industrial	1.1	2.8	20.0	18.5
Regional Retail	(0.3)	0.0	12.8	20.1
Retirement Villages	4.9	4.9	1.1	1.4
Total Regional	1.1	1.2	43.6	53.1

Total	11.1	14.9	100.0	100.0

Lease expiries or tenant break options

	Year to 2017	Year to 2018	Year to 2019	Year to 2020	Year to 2021
% of rent roll	5.4	11.1	11.3	9.3	3.9
Number of leases	88	95	79	32	22
Average rent per lease (£)	31,652	59,707	73,463	149,346	90,768

We have a strong rental income stream and a diverse tenant base, with the largest tenant in the portfolio accounting for only 7.1% of the rent roll. The top 10 tenants account for 30.4% of the total rent roll and the tenants come from a variety of industries.

Rank	Tenant	Tenant Industry	Rent £m	Rent Roll %
1	Endemol UK Ltd	Media	4.0	7.1
2	MullenLowe Ltd	Marketing Communications	2.6	4.6
3	Gopivotal (UK) Limited	Technology	2.0	3.6
4	Farfetch UK Ltd	Online Retail	1.9	3.4
5	DSG Retail Limited	Retail	1.3	2.3
6	Sainsbury's Supermarkets Ltd	Food Retail	1.2	2.2
7	CBS Interactive Limited	Media	1.0	1.9
8	B&M Retail Limited	Retail	1.0	1.8
9	Allegis Group Limited	Recruitment	1.0	1.8
10	Economic Solutions Ltd	Employment and Skills Training	1.0	1.7
Total			17.0	30.4

Consolidated Income Statement

For the year ended 31 March 2016

	Note	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Revenue	2	116,500	106,341
Net rental income	3	42,164	34,233
Development property profit	4	24,252	15,674
Trading property gain	5	-	2,503
Share of results of joint ventures	16	50,469	27,497
Other operating income		20	368
Gross profit before net gain on sale and revaluation of investment properties		116,905	80,275
Net gain on sale and revaluation of investment properties	6	55,893	69,384
Impairment of available for sale assets	19	(1,370)	(773)
Gross profit		171,428	148,886
Administrative expenses	7	(26,103)	(26,530)
Operating profit		145,325	122,356
Finance costs	8	(24,113)	(23,678)
Finance income	8	5,128	2,480
Change in fair value of derivative financial instruments		(6,860)	(8,389)
Change in fair value of convertible bond		516	(3,263)
Foreign exchange gains/(losses)		100	(2,061)
Profit before tax		120,096	87,445
Taxation on profit on ordinary activities	9	(9,745)	(12,669)
Profit after tax		110,351	74,776
- attributable to equity shareholders		110,411	74,489
- attributable to non-controlling interests		(60)	287
Profit for the year		110,351	74,776
Basic earnings per share	12	96.1p	64.6p
Diluted earnings per share	12	92.6p	60.8p

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2016

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Profit for the year	110,351	74,776
Exchange difference on retranslation of net investments in foreign operations	(16)	149
Total comprehensive income for the year	110,335	74,925
- attributable to equity shareholders	110,395	74,638
- attributable to non-controlling interests	(60)	287
Total comprehensive income for the year	110,335	74,925

The exchange differences on retranslation of net investments in foreign operations will be reclassified to the Income Statement in the future.

Consolidated Balance Sheet

As at 31 March 2016

	Note	31.3.16 £000	31.3.15 £000
Non-current assets
Investment properties	13	1,041,100	701,521
Owner occupied property, plant and equipment	15	2,200	2,361
Investment in joint ventures	16	27,990	71,585
Derivative financial instruments		-	1
Trade and other receivables	20	-	1,555
		1,071,290	777,023

Current assets
Land, developments and trading properties	17	92,035	92,578
Property derivative financial asset	18	-	16,388
Available-for-sale investments	19	3,114	4,342
Corporate tax receivable		-	1,418
Trade and other receivables	20	73,057	65,216
Cash and cash equivalents	21	74,670	120,993
		242,876	300,935
Total assets		1,314,166	1,077,958

Current liabilities
Trade and other payables	22	(71,000)	(65,802)
Corporate tax payable		(1,592)	-
Borrowings	23	(885)	(45,428)
		(73,477)	(111,230)
Non-current liabilities
Borrowings	23	(733,178)	(552,813)
Derivative financial instruments		(14,955)	(8,096)
Deferred tax liability	10	(6,367)	(1,456)
		(754,500)	(562,365)
Total liabilities		(827,977)	(673,595)

Net assets	2	486,189	404,363

Equity
Called-up share capital	25	1,447	1,447
Share premium account		98,798	98,798
Revaluation reserve		149,766	108,060
Capital redemption reserve		7,478	7,478
Other reserves		291	291
Retained earnings		228,409	188,229
Equity attributable to equity holders of the parent company		486,189	404,303
Non-controlling interests		-	60
Total equity		486,189	404,363

Consolidated cash flow statement

For the year to 31 March 2016

	31.3.16 £000	31.3.15 £000
Cash flows from operating activities
Profit before tax	120,096	87,445
Depreciation	338	544
Revaluation gain on investment properties	(53,508)	(66,904)
Gain on sales of investment properties	(2,385)	(2,480)
Profit on sale of plant and equipment	-	(23)
Net financing costs	18,985	20,806
Change in value of derivative financial instruments	6,860	8,389
Profit on forward property contract	-	(16,388)
Change in fair value of Convertible Bond	(516)	3,263
Share based payment charge	6,666	6,432
Share of results of joint ventures	(50,469)	(27,497)
Impairment of available for sale assets	1,370	773
Foreign exchange movement	250	2,213
Cash inflow from operations before changes in working capital	47,687	16,573
Change in trade and other receivables	(5,074)	(25,975)
Change in forward property contract	16,388	-
Change in land, developments and trading properties	306	4,125
Change in trade and other payables	5,314	13,162
Cash inflow generated from operations	64,621	7,885
Finance costs	(25,312)	(22,277)
Finance income	3,915	2,480
Tax paid	(4,712)	(7,064)
	(26,109)	(26,861)
Cash flows from operating activities	38,512	(18,976)
Cash flows from investing activities
Purchase of investment property	(405,133)	(271,093)
Sale of investment property	121,770	133,209
Investment in joint ventures	-	(10,141)
Return of investment in joint ventures	11,495	11,778
Dividends from joint ventures	82,569	17,013
Available-for-sale asset additions	(142)	(144)
Sale of plant and equipment	70	23
Purchase of leasehold improvements, plant and equipment	(263)	(1,859)
Net cash used in investing activities	(189,634)	(121,214)
Cash flows from financing activities
Borrowings drawn down	299,754	375,503
Shares issued	-	120
Borrowings repaid	(161,648)	(156,381)
Purchase of own shares	(18,857)	(13,349)
Equity dividends paid	(14,437)	(7,944)
Net cash generated from financing activities	104,812	197,949
Net (decrease)/increase in cash and cash equivalents	(46,310)	57,759
Exchange losses on cash and cash equivalents	(13)	(3)
Cash and cash equivalents at 1 April	120,993	63,237
Cash and cash equivalents at 31 March	74,670	120,993

Consolidated statement of changes in equity

For the year to 31 March 2016

Group	Share capital £000			Share premium £000		Revaluation reserve £000	Capital redemption reserve £000	Other reserves £000	Retained earnings £000	Own shares held £000	Non- controlling interests £000	Total £000
At 31 March 2014	1,447			98,678		33,106	7,478	291	200,455	(950)	22	340,527
Total comprehensive income	-			-		-	-	-	74,638	-	287	74,925
Revaluation surplus	-			-		66,904	-	-	(66,904)	-	-	-
Realised on disposals	-			-		8,050	-	-	(8,050)	-	-	-
Payment to minority interest	-			-		-	-	-	-	-	(249)	(249)
Performance share plan	-			-		-	-	-	6,432	-	-	6,432
Performance share plan deferred tax				-	-	-	-	-	2,477	-	-	2,477
Share settled bonus	-			-		-	-	-	1,424	-	-	1,424
New share capital issued	-			120		-	-	-	-	-	-	120
Dividends paid	-			-		-	-	-	(7,944)	-	-	(7,944)
Purchase of own shares	-			-		-	-	-	-	(13,349)	-	(13,349)
Own shares held reserve transfer		-		-		-	-	-	(14,299)	14,299	-	-
At 31 March 2015	1,447			98,798		108,060	7,478	291	188,229	-	60	404,363
Total comprehensive income	-			-		-	-	-	110,411	-	(60)	110,351
Revaluation surplus	-			-		53,508	-	-	(53,508)	-	-	-
Realised on disposals	-			-		(11,802)	-	-	11,802	-	-	-
Performance share plan	-			-		-	-	-	6,666	-	-	6,666
Performance share plan deferred tax	-			-		-	-	-	(3,002)	-	-	(3,002)
Share settled bonus	-			-		-	-	-	1,121	-	-	1,121
Dividends paid	-			-		-	-	-	(14,437)	-	-	(14,437)
Movement on foreign exchange			-	-		-	-	-	(16)	-	-	(16)
Purchase of own shares	-			-		-	-	-	-	(18,857)	-	(18,857)
Own shares held reserve transfer	-			-		-	-	-	(18,857)	18,857	-	-
At 31 March 2016	1,447			98,798		149,766	7,478	291	228,409	-	-	486,189

For a breakdown of Total Comprehensive Income, see the Consolidated Statement of Comprehensive Income.

Included within changes in equity are net transactions with owners of £28,509,000 (2015: £10,840,000) made up of: the performance share plan charge of £6,666,000 (2015: £6,432,000) and related deferred tax of credit of £3,002,000 (2015: charge of £2,477,000), dividends paid of £14,437,000 (2015: £7,944,000), the purchase of own shares of £18,857,000 (2015: £13,349,000), new share capital issued of £nil (2015: £120,000) and the share settled bonuses of £1,121,000 (2015: £1,424,000).

The adjustment to retained earnings of £6,666,000 adds back the performance share plan charge (2015: £6,432,000), in accordance with IFRS 2 Share-Based Payments.

Notes:

Share capital - represents the nominal value of issued share capital.

Share premium - represents the excess of value of shares issued over their nominal value.
Revaluation reserve - represents the surplus/deficit of fair value of investment properties over their historic cost.

Capital redemption reserve - represents amounts paid to purchase issued shares for cancellation at their nominal value.

Retained earnings - represents the accumulated retained earnings of the Group.

Notes to the financial statements

1. Basis of preparation

These financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards ("IFRS"), including International Financial Reporting Interpretations Committee ("IFRIC") interpretations as adopted by the European Union.

The financial statements have been prepared in Sterling (rounded to the nearest thousand) under the historical cost convention as modified by the revaluation of investment properties, available-for-sale investments, convertible bonds and derivative financial instruments.

The principal accounting policies of the Group are set out in the Group's 2015 annual report and financial statements. There has been no significant change to these since the previous annual report.

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group Annual Report and Financial Statements for 2015 are available at Companies House. The auditor's opinion on the 2015 accounts was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

2. Segmental information

IFRS 8 requires the identification of the Group's operating segments, which are defined as being discrete components of the Group's operations whose results are regularly reviewed by the Chief Operating Decision Maker (being the Chief Executive) to allocate resources to those segments and to assess their performance. The Group divides its business into the following segments:

· 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,

· Developments, which include sites, developments in the course of construction, completed developments available for sale, pre-sold developments and interests in third party developments.

Revenue	Investment and trading Year ended 31.3.16 £000		Developments Year ended 31.3.16 £000	Total Year ended 31.3.16 £000	Investment and trading Year ended 31.3.15 £000	Developments Year ended 31.3.15 £000	Total Year ended 31.3.15 £000
Rental income	45,158		347	45,505	37,246	1,086	38,332
Development property income		-	70,876	70,876	-	30,416	30,416
Trading property sales	-		-	-	37,394	-	37,394
Other revenue	119		-	119	199	-	199
Total revenue	45,277		71,223	116,500	74,839	31,502	106,341

All revenue is from external sales and is attributable to continuing operations. There were no inter-segmental sales.

Revenue for the year comprises revenue from construction contracts of £nil (2015: £nil), revenue from the sale of goods of £42,910,000 (2015: £63,953,000), revenue from services of £28,085,000 (2015: £4,056,000), and rental income of £45,505,000 (2015: £38,332,000).

All revenues are within the UK other than proceeds from the sale of a development property in Poland of £12,351,000 (2015: £nil), rental income from development properties in Poland of £347,000 (2015: £1,086,000) and £225,000 (2015: £630,000) of development income derived from the Group's operations in Poland.

Profit before tax	Investment and trading Year ended 31.3.16 £000		Developments Year ended 31.3.16 £000	Total Year ended 31.3.16 £000	Investment and trading Year ended 31.3.15 £000	Developments Year ended 31.3.15 £000	Total Year ended 31.3.15 £000
Net rental income	42,010		154	42,164	33,270	963	34,233
Development property profit	-		24,252	24,252	-	15,674	15,674
Trading property profit	-		-	-	2,503	-	2,503
Share of results of joint ventures	47,592		2,877	50,469	27,398	99	27,497
Gain on sale and revaluation of investment properties		55,893	-	55,893	69,384	-	69,384
	145,495		27,283	172,778	132,555	16,736	149,291
Impairment of available for sale assets				(1,370)			(773)
Other operating income				20			368
Gross profit				171,428			148,886
Administrative expenses				(26,103)			(26,530)
Finance costs				(24,113)			(23,678)
Finance income				5,128			2,480
Change in fair value of derivative financial instruments				(6,860)			(8,389)
Change in fair value of convertible bond				516			(3,263)
Foreign exchange losses				100			(2,061)
Profit before tax				120,096			87,445

Net assets	Investment and trading At 31.3.16 £000	Developments At 31.3.16 £000	Total At 31.3.16 £000	Investment and trading At 31.3.15 £000	Developments At 31.3.15 £000	Total At 31.3.15 £000
Investment properties	1,041,100	-	1,041,100	701,521	-	701,521
Land, developments and trading properties	28	92,007	92,035	28	92,550	92,578
Investment in joint ventures	14,162	13,828	27,990	57,209	14,376	71,585
Property derivative financial asset	-	-	-	-	16,388	16,388
	1,055,290	105,835	1,161,125	758,758	123,314	882,072
Owner occupied property, plant and equipment			2,200			2,361
Derivative financial instruments			-			1
Available-for-sale investments			3,114			4,342
Trade and other receivables			73,057			66,771
Corporation tax receivable			-			1,418
Cash and cash equivalents			74,670			120,993
Total assets			1,314,166			1,077,958
Liabilities			(827,977)			(673,595)
Net assets			486,189			404,363

All non-current assets are derived from the Group's UK operations except for owner occupied property, plant and equipment with a net book value of £31,600 (2015: £69,000).

3. Net rental income

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Gross rental income	45,505	38,332
Rents payable	(80)	(269)
Property overheads	(2,728)	(3,489)
Net rental income	42,697	34,574
Net rental income attributable to profit share partner	(533)	(341)
Group share of net rental income	42,164	34,233

Property overheads include lettings costs, vacancy costs and bad debt provisions. The amounts above include gross rental income from investment properties of £45,158,000 (2015: £37,246,000) and net rental income from investment properties of £42,010,000 (2015: £33,270,000). No contingent rental income was received in the year (2015: £nil).

4. Development property profit

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Development property income	70,876	30,416
Profit on forward property contract	14	16,388
Cost of sales	(29,519)	(30,136)
Sales expenses	(10,671)	(542)
Provision against book values	(6,448)	(452)
Development property profit	24,252	15,674

5. Trading property gain

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Trading property sales	-	37,394
Cost of sales	-	(33,512)
Sales expenses	-	(1,379)
Trading property gain	-	2,503

6. Net gain on sale and revaluation of investment properties

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Net proceeds from the sale of investment properties	122,201	133,782
Book value (note 13)	(119,385)	(130,729)
Tenants incentives on sold investment properties	(431)	(573)
Gain on sale of investment properties	2,385	2,480
Revaluation surplus on investment properties	53,508	66,904
Gain on sale and revaluation of investment properties	55,893	69,384

7. Administrative expenses

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Administrative expenses	26,103	26,530
Operating profit is stated after the following items that are contained within administrative expenses:
Depreciation
- owner occupied property, plant and equipment	338	544
Share-based payments charge	6,666	6,432
Auditors' remuneration:
Audit fees
- audit of parent company and consolidated financial statements	159	154
- audit of company's subsidiaries	90	62
- audit of interim consolidated financial statements	65	68
- audit of Company's subsidiaries by affiliate of Group Auditor	-	3
Operating lease costs	1,118	730

8. Finance costs and finance income

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Interest payable on bank loans and overdrafts	(25,353)	(21,055)
Other interest payable and similar charges	(3,700)	(6,264)
Interest capitalised	4,940	3,641
Finance costs	(24,113)	(23,678)

Interest receivable and similar income	5,128	2,480
Finance income	5,128	2,480

On projects where specific third party loans have been arranged, interest has been capitalised in accordance with IAS 23 - Borrowing Costs, at the rate for the individual loan. The weighted average capitalised interest rate of such loans was 3.50% (2015: 3.68%). Where general finance has been used to fund the acquisition and construction of properties the rate used was a weighted average of the financing costs for the applicable borrowings of 4.18% (2015: 4.62%).

9. Taxation on profit on ordinary activities

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
The tax charge is based on the profit for the year and represents:
United Kingdom corporation tax at 20% (2015: 21%)
- Group corporation tax	(7,010)	(215)
- adjustment in respect of prior periods	(115)	(22)
- overseas tax	(712)	(39)
Current tax charge	(7,837)	(276)
Deferred tax at 19% (2015: 20%)
- capital allowances	(385)	(297)
- tax losses	500	3,033
- unrealised chargeable gains	(8,046)	(15,096)
- other temporary differences	6,023	(33)
Deferred tax charge	(1,908)	(12,393)
Tax charge on profit on ordinary activities	(9,745)	(12,669)

Factors affecting the tax charge for the year

The tax assessed for the year is lower than the standard rate of corporation tax in the UK.

The differences are explained below:

	Year ended 31.3.16 £000		Year ended 31.3.15 £000
Profit on ordinary activities before tax	120,096		87,445
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2015: 21%)		(24,019)	(18,363)
Effect of
- expenses not deductible for tax purposes	(534)		(1,041)
- income not subject to UK corporation tax	-		285
- adjustment to capital allowances	707		331
- tax movements on share awards	2,807		609
- additional tax losses unavailable	-		(143)
- tax losses not previously recognised in deferred tax	1,930		-
- operating profit of joint ventures	10,094		5,774
- prior year adjustment	(115)		(22)
- movement on sale and revaluation not recognised through deferred tax	1,355		(1,370)
- chargeable gain in excess of the profit or loss on investment property	(2,472)		(278)
- overseas tax	(505)		(39)
- other temporary differences	943		901
- effect of change of rate of corporation tax	64		687
Total tax charge for the period	(9,745)		(12,669)

Note: all deferred tax balances have been calculated at the substantively enacted future rate of corporation tax of 19% for the years from 1 April 2017 to 31 March 2020.

Factors that may affect future tax charges

The tax charge is expected to be less than the full rate in future years, primarily due to the Group continuing to claim allowances in respect of eligible expenditure on investment properties.

10. Deferred tax

Deferred tax provided for in the financial statements is set out below:

	31.3.16 £000	1.3.15 £000
Capital allowances	(1,946)	(1,561)
Tax losses	12,521	12,021
Unrealised chargeable gains	(24,733)	(16,687)
Other temporary differences	7,791	4,771
Deferred tax liability	(6,367)	(1,456)

Other temporary differences include deferred tax assets arising from the recognition of the fair value of derivative financial instruments and future tax relief available to the Group from capital allowances and when share awards vest. A debit of £3,002,000 (2015: credit of £2,477,000) in respect of future tax relief for share awards has been recognised in reserves in accordance with IAS 12.

The Group contains entities with tax losses for which no deferred tax asset is recognised. The total unrecognised losses amount to approximately £9,026,000 (2015: £9,036,000). A deferred tax asset has not been recognised because the entities in which the losses have been generated either do not have forecast taxable profits or the losses have restrictions whereby their utilisation is considered to be unlikely.

If upon sale of the investment properties the Group retained all the capital allowances, the deferred tax provision in respect of capital allowances of £1,946,000 (2015: £1,561,000) would be released and further capital allowances of £20,340,000 (2015: £18,031,000) would be available to reduce future tax liabilities.

11. Dividends paid and payable

	Year ended 31.3.16 £000	Year ended 31.3.15 £000
Attributable to equity share capital
Ordinary
- interim paid of 2.30p (2015: 2.10p) per share	2,652	2,406
- second interim paid of 5.15p (2015: nil) per share	5,886	-
- prior period final paid of 5.15p (2015: 4.75p) per share	5,899	5,538
Total dividends paid and payable in year - 12.60p (2015: 6.85p) per share	14,437	7,944

An interim dividend of 2.30p was paid on 30 December 2015 to shareholders on the register on 4 December 2015 and a second interim dividend of 5.15p was paid on 4 April 2016 to shareholders on the register on 11 March 2016. The final dividend of 0.72p, if approved at the AGM on 25 July 2016, will be paid on 29 July 2016 to shareholders on the register on 1 July 2016. This final dividend, amounting to £823,000, has not been included as a liability as at 31 March 2016, in accordance with IFRS.

12. 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. 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 purposes of this calculation.

The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the effect of all dilutive options and awards.

The earnings per share are calculated in accordance with IAS 33, Earnings per Share 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.

Earnings per share	Year ended 31.3.16 000	Year ended 31.3.15 000
Ordinary shares in issue	118,184	118,184
Weighting adjustment	(3,296)	(2,897)
Weighted average ordinary shares in issue for calculation of basic earnings per share	114,888	115,287
Weighted average ordinary shares to be issued on share settled bonuses	1,197	1,016
Weighted average ordinary shares to be issued under performance share plan	3,212	6,182
Weighted average ordinary shares in issue for calculation of diluted earnings per share	119,297	122,485

	£000	£000
Earnings used for calculation of basic and diluted earnings per share	110,411	74,489

Basic earnings per share	96.1p	64.6p
Diluted earnings per share	92.6p	60.8p

	£000	£000
Earnings used for calculation of basic and diluted earnings per share	110,411	74,489
Net gain on sale and revaluation of investment properties	(55,893)	(69,384)
Share of net gain on sale and revaluation of investment properties in joint ventures	(50,210)	(27,225)
Tax on profit on disposal of investment properties	998	-
Trading property gain	-	(2,503)
Fair value movement on derivative financial instruments	6,860	8,389
Fair value movement on Convertible Bond	(516)	3,263
Share of fair value movements on derivative financial instruments in joint ventures	(211)	578
Impairment of available-for-sale investment	1,370	773
Deferred tax	6,811	14,425
Earnings used for calculation of EPRA earnings per share	19,620	2,805

EPRA earnings per share	17.1p	2.4p

The earnings used for calculation of EPRA earnings per share includes net rental income and development property profits but excludes trading property gains/losses.

13. Investment properties

	Freehold 31.3.16 £000	Leasehold 31.3.16 £000	Total 31.3.16 £000	Freehold 31.3.15 £000	Leasehold 31.3.15 £000	Total 31.3.15 £000
Fair value at 1 April	591,870	109,651	701,521	450,276	42,925	493,201
Property acquisitions	377,890	27,243	405,133	191,280	79,813	271,093
Disposals	(96,237)	(23,148)	(119,385)	(112,089)	(18,640)	(130,729)
Revaluation surplus	51,779	1,729	53,508	61,376	5,528	66,904
Revaluation surplus attributable to profit share partner	323	-	323	1,027	25	1,052
Fair value at 31 March	925,625	115,475	1,041,100	591,870	109,651	701,521

Interest capitalised during the year in respect of the refurbishment of investment properties amounted to £1,200,000 (2015: £667,000).

Interest capitalised in respect of the refurbishment of investment properties is included in investment properties at 31 March 2016 to the extent of £6,571,000 (2015: £5,449,000).

Investment properties with a total fair value of £945,400,000 (2015: £628,621,000) were held as security against borrowings.

All of the Group's properties are level 3, as defined by IFRS 13 Fair Value Measurement, in the fair value hierarchy as at 31 March 2016 and there were no transfers between levels during the year. Level 3 inputs used in valuing the properties, are those which are unobservable, as opposed to level 1 (inputs from quoted prices) and level 2 (observable inputs either directly, i.e. as prices, or indirectly, i.e. derived from prices).

Transfers into and transfers out of the fair value hierarchy levels are recognised on the date of the event or change in circumstances that caused the transfer. There were no transfers in or out of level 3 for investment properties during the year.

Valuation methodology

The fair value of the Group's investment property as at 31 March 2016 was determined by independent external valuers at that date, except for investment properties valued by the Directors. The valuations are in accordance with the Royal Institution of Chartered Surveyors ('RICS') Valuation - Professional Standards ("The Red Book") and the International Valuation Standards and were arrived at by reference to market transactions for similar properties. Fair values for investment properties are calculated using the present value income approach. The main assumptions underlying the valuations are in relation to rent profile and yields as discussed below. A key driver of the property valuations is the terms of the leases in place at the valuation date. These determine the cash flow profile of the property for a number of years. The valuation assumes adjustments from these rental values to current market rent at the time of the next rent review (where a typical lease allows only for upward adjustment) and as leases expire and are replaced by new leases. The current market level of rent is assessed based on evidence provided by the most recent relevant leasing transactions and negotiations. The nominal equivalent yield is applied as a discount rate to the rental cash flows which, after taking into account of other input assumptions such as vacancies and costs, generates the market value of the property. The equivalent yield applied is assessed by reference to market transactions for similar properties and takes into account, amongst other things, any risks associated with the rent uplift assumptions.

The net initial yield is calculated as the current net income over the gross market value of the asset and is used as a sense check and to compare against market transactions for similar properties. The valuation output, along with inputs and assumptions, are reviewed to ensure these are in line with what a market participant would use when pricing each asset.

The investment properties have been valued at 31 March 2016 as follows:

	31.3.16 £000	31.3.15 £000
Cushman & Wakefield LLP	801,800	697,521
Colliers International UK plc	239,200	-
Directors' valuation	100	4,000
	1,041,100	701,521

The historical cost of investment property is £889,493,000 (2015: £590,965,000).

14. Operating lease arrangements

The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases. At the balance sheet date, the Group had contracted with tenants to receive the following future minimum lease payments:

	31.3.16 £000	31.3.15 £000
Not later than one year	43,266	39,393
Later than one year but not more than five years	157,948	104,268
More than five years	115,382	159,001
	316,596	302,662

At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

	31.3.16 £000	31.3.15 £000
Not later than one year	818	281
Later than one year but not more than five years	3,273	3,273
More than five years	5,319	7,773
	9,410	11,327

15. Owner occupied property, plant and equipment

	Short leasehold improvements 31.3.16 £000		Plant and equipment 31.3.16 £000	Total 31.3.16 £000	Short leasehold improvements 31.3.15 £000	Plant and equipment 31.3.15 £000	Total 31.3.15 £000
Cost at 1 April	2,007		1,008	3,015	2,373	935	3,308
Additions at cost	99		164	263	1,695	164	1,859
Disposals	-		(160)	(160)	(2,061)	(91)	(2,152)
Cost at 31 March	2,106		1,012	3,118	2,007	1,008	3,015
Depreciation at 1 April	111		543	654	1,811	447	2,258
Provision for the year	146		192	338	361	183	544
Eliminated on disposals	-		(74)	(74)	(2,061)	(87)	(2,148)
Depreciation at 31 March	257		661	918	111	543	654
Net book amount at 31 March		1,849	351	2,200	1,896	465	2,361

Plant and equipment include vehicles, fixtures and fittings and other office equipment.

16. Investment in joint ventures

	Investment & trading 31.3.16 £000				Development 31.3.16 £000	Total 31.3.16 £000	Investment & trading 31.3.15 £000	Development 31.3.15 £000	Total 31.3.15 £000
Summarised statements of consolidated income
Revenue	917				911	1,828	5,523	575	6,098
Gross rental income	917				911	1,828	5,523	575	6,098
Rents payable	-				-	-	(809)	-	(809)
Property overheads	(483)				(75)	(558)	(683)	(194)	(877)
Net rental income	434				836	1,270	4,031	381	4,412
Development profit	-				3,223	3,223	-	1,902	1,902
Profit on sale of property	41,553				-	41,553	1,087	4	1,091
Gain on revaluation of investment properties		995			1,321	2,316	26,134	-	26,134
Other operating income/(expense)	196				22	218	(1)	294	293
Administrative expenses	(705)				(435)	(1,140)	(291)	(660)	(951)
Finance costs	(1,902)				(1,771)	(3,673)	(2,254)	(1,390)	(3,644)
Finance income	12				9	21	4	39	43
Change in fair value movement of derivative financial instruments	211				-	211	(578)	-	(578)
Profit before tax	40,794				3,205	43,999	28,132	570	28,702
Tax	458				(329)	129	(734)	(471)	(1,205)
Profit after tax	41,252				2,876	44,128	27,398	99	27,497
Economic interest adjustment*	6,341				-	6,341	-	-	-
Share of results in joint ventures	47,593				2,876	50,469	27,398	99	27,497
Summarised balance sheets
Non-current assets
Investment properties	10,107				1,445	11,552	88,205	100	88,305
Owner occupied property, plant and equipment				50	46	96	-	42	42
Deferred tax	50				362	412	256	278	534
	10,207				1,853	12,060	88,461	420	88,881
Current assets
Land, development and trading properties			-		75,904	75,904	-	61,782	61,782
Trade and other receivables	769				2,728	3,497	1,468	1,258	2,726
Cash and cash equivalents	6,433				5,744	12,177	7,030	6,423	13,453
	7,202				84,376	91,578	8,498	69,463	77,961
Current liabilities
Trade and other payables	(836)				(13,600)	(14,436)	(3,947)	(20,749)	(24,696)
	(836)				(13,600)	(14,436)	(3,947)	(20,749)	(24,696)
Non-current liabilities
Trade and other payables	-				(26,586)	(26,586)	(5,590)	(19,842)	(25,432)
Borrowings	(2,413)				(32,213)	(34,626)	(29,503)	(14,916)	(44,419)
Derivative financial instruments	-				-	-	(473)	-	(473)
Deferred Tax	-				-	-	(237)	-	(237)
	(2,413)				(58,799)	(61,212)	(35,803)	(34,758)	(70,561)
Net assets	14,160				13,830	27,990	57,209	14,376	71,585

*Under the Barts Square joint venture agreement the Company is entitled to varying returns dependent upon the performance of the development. Whilst the Group holds a 33.35% equity share in the Barts Square group, it has accounted for its share at 43.8% to reflect its expected economic interest in the joint venture. This has changed from the 33.35% interest shown at 31 March 2015, and resulted in a gain of £6,341,000 being recognised in the Consolidated Income Statement to reflect the Groups increased share in the opening net assets of the joint venture.

The Directors' valuation of the trading and development stock shows a surplus of £7,000,000 above book value (2015: £11,013,000).

Dividends of £82,569,000 were received from joint venture companies during the year (2015: £17,013,000). The joint venture companies are private companies, therefore no quoted market prices are available for their shares.

At 31 March 2015, the Group had an investment in Helical Sosnica Sp. Zoo, which had been accounted for as an investment held for sale due to a commitment to sell the Group's share. At 31 March 2015 Helical Sosnica Sp. zoo held a development property, the fair value of which the Directors believed to be £81,866,000 (of which Helical's share was £40,933,000), and a bank loan of £51,156,000 (of which Helical's share was £25,578,000) repayable in September 2017. During the year, the Group sold its investment in Helical Sosnica Sp. Zoo.

During the year, Old Street Holdings LP sold its investments in 207 Old Street Unit Trust, 211 Old Street Unit Trust, Old Street Retail Unit Trust and City Road Jersey Limited. Helical purchased the trust capital of 207 Old Street Unit Trust and 211 Old Street Unit Trust from Old Street Holdings LP.

17. Land, developments and trading properties

	Development properties 31.3.16 £000		Trading stock 31.3.16 £000	Total 31.3.16 £000	Development properties 31.3.15 £000	Trading stock 31.3.15 £000	Total 31.3.15 £000
At 1 April	92,550		28	92,578	95,632	2,528	98,160
Acquisitions and construction costs		31,465	-	31,465	21,131	31,012	52,143
Interest capitalised	3,740		-	3,740	3,381	-	3,381
Disposals	(29,063)		-	(29,063)	(25,685)	(33,512)	(59,197)
Foreign exchange movements	(237)		-	(237)	(1,457)	-	(1,457)
Provision	(6,448)		-	(6,448)	(452)	-	(452)
At 31 March	92,007		28	92,035	92,550	28	92,578

The Directors' valuation of trading and development stock shows a surplus of £12,412,000 above book value (2015: £25,230,000).

Interest capitalised in respect of the development of sites is included in stock to the extent of £11,626,000 (2015: £9,788,000).

Land, developments and trading properties with carrying values totalling £81,870,000 (2015: £83,948,000) were held as security against borrowings.

18. Property derivative financial asset

31.3.16

£000

31.3.15

£000

Property derivative financial asset

16,388

In the year to 31 March 2015, the Group assigned its forward purchase contract on Clifton Street, London EC2 to a third party. The agreement to assign the forward purchase contract was considered to be a derivative financial instrument. As such, under IAS 39, it was carried at its fair value with gains and losses taken to the Income Statement. Cash of £17.3m was received during the year to 31 March 2016.

19. Available-for-sale investments

	31.3.16 £000	31.3.15 £000
At 1 April	4,342	4,973
Additions	142	144
Disposals	-	(2)
Impairment in the year	(1,370)	(773)
At 31 March	3,114	4,342

The fair values of the Group's available-for-sale investments have been determined by assessing the expected future consideration receivable from these investments, representing Level 3 fair value measurements as defined by IFRS 13 Fair Value Measurement as the value cannot be derived from observable market data. The fair value of the asset is sensitive only to potential sales proceeds.

The decline in value of £1,370,000 (2015: £773,000) has been recognised in the Income Statement.

20. Trade and other receivables

Due after 1 year	31.3.16 £000	31.3.15 £000
Trade receivables	-	1,555
	-	1,555

Due within 1 year
Trade receivables	20,869	12,432
Other receivables	32,382	43,099
Prepayments and accrued income	19,806	9,685
	73,057	65,216

21. Cash and cash equivalents

	31.3.16 £000	31.3.15 £000
Rent deposits and cash held at managing agents	4,906	3,049
Restricted cash	17,063	91,955
Cash deposits	52,701	25,989
	74,670	120,993

Restricted cash is made up of amounts held by solicitors and amounts in blocked accounts. Included in this amount at 31 March 2015 was £70,166,000 held in a blocked account due to a bank refinancing which was subsequently released during the year.

22. Trade and other payables

	31.3.16 £000	31.3.15 £000
Trade payables	14,463	9,868
Social security costs and other taxation	5,774	5,156
Other payables	2,444	3,420
Accruals	39,425	37,834
Deferred income	8,894	9,524
	71,000	65,802

23. Borrowings

	31.3.16 £000	31.3.15 £000
Current borrowings	885	45,428
Borrowings repayable within:
- one to two years	3,617	136,091
- two to three years	3,650	3,617
- three to four years	337,098	83,608
- four to five years	219,523	175,177
- five to six years	95,981	80,060
- six to ten years	73,309	74,260
Non-current borrowings	733,178	552,813

Bank overdrafts and term loans in creditors falling due within one year and after one year are secured against properties held in the normal course of business by subsidiary undertakings to the book value of £1,027,270,000 (2015: £712,569,000). These will be repayable when the underlying properties are sold. Bank overdrafts and term loans exclude the Group's share of borrowings in joint venture companies of £34,626,000 (2015: £44,419,000).

Convertible Bond

On 17 June 2014 the Group issued £100m convertible bonds at par with a 4% coupon rate which are due for settlement on 17 June 2019 (the "Bonds"). The Bonds can be converted from 28 July 2014 up to and including 7 July 2017, if the share price has traded at a level exceeding 130% of the conversion price for a specified period, and from 8 July 2017 to (but excluding) the seventh dealing day before 17 June 2019 at any time. On conversion, the Group can elect to settle the Bonds by any combination of ordinary shares and cash. The Convertible Bond is included at its fair value of £102,747,000 (2015: £103,263,000) in borrowings repayable within three to four years.

Retail Bond

On 24 June 2013 the Group issued an £80m fixed rate retail bond at 6% per annum and with a maturity date of 24 June 2020. Under certain circumstances, the bonds can be repaid early. The Retail Bond is included at its amortised cost of £79,225,000 (2015: £79,042,000) in borrowings repayable within four to five years.

24. Financing and derivative financial instruments

The policies for dealing with liquidity and interest rate risk are noted in the Principle Risks Review in Appendix 5 - Risk Register.

	31.3.16 £000	31.3.15 £000
Borrowings maturity
Due after more than one year	733,178	552,813
Due within one year	885	45,428
	734,063	598,241

The Group has various undrawn committed borrowing facilities. The facilities available at 31 March 2016 in respect of which all conditions precedent had been met were as follows:

						31.3.16 £000	31.3.15 £000
Expiring in one year or less						10,000	14,147
Expiring in more than one year but not more than two years						-	3,982
Expiring in more than two years but not more than three years						-	-
Expiring in more than three years but not more than four years						55,697	33,161
Expiring in more than four years but not more than five years						14,499	2,840
Expiring in more than five years						3,445	-
						83,641	54,130

Interest rates	%		Expiry	31.3.16 £000	%	Expiry	31.3.15 £000
Fixed rate borrowings:
- swap rate plus bank margin	3.650		Nov 2019	105,000	-	-	-
- swap rate plus bank margin	5.650		Nov 2019	44,500	-	-	-
- fixed rate plus margin	3.480		Dec 2024	80,005	3.480	Dec 2024	80,862
- fixed rate Retail Bond	6.000		Jun 2020	80,000	6.000	Jun 2020	80,000
- swap rate plus bank margin	3.850		Jan 2020	75,000	4.500	Jan 2020	75,000
- swap rate plus bank margin	4.070		Jul 2019	30,000	4.070	Jul 2019	30,000
- fixed rate Convertible Bond	4.000		Jun 2019	100,000	4.000	Jun 2019	100,000
- swap rate plus bank margin	4.025		Aug 2020	74,280	4.525	Feb 2019	75,630
- swap rate plus bank margin	3.770		May 2018	10,800	4.020	May 2018	10,800
- swap rate plus bank margin	-		-	-	3.365	Jan 2016	9,172
- swap rate plus bank margin	4.070		Oct 2017	20,300	4.070	Jan 2016	11,100
- swap rate plus bank margin	-		-	-	3.510	May 2015	21,375
- swap rate plus bank margin	3.715		Aug 2020	13,000	-	-	-
Weighted average	4.226		Jul 2020	632,885	4.366	Mar 2019	493,939
Floating rate borrowings	3.924		Sep 2018	107,109	2.438	Nov 2016	106,291
Unamortised finance costs	-		-	(8,678)	-	-	(5,252)
Fair value adjustment of Convertible Bond		-	-	2,747	-	-	3,263
Total borrowings	4.182		Sep 2020	734,063	4.026	Aug 2019	598,241

The year on year changes in fixed borrowing rates are the result of stepped increases/decreases in interest rate swaps rates. Floating rate borrowings bear interest at rates based on LIBOR.

In addition to the above, the Group has a £50,000,000 interest rate swap at 1.865% starting in June 2020 and expiring in June 2026.

Economic hedging

In addition to the fixed rates, borrowings are also hedged by the following financial instruments:

Instrument	Value £000	Rate %	Start	Expiry
Current:
- cap	25,000	4.000	Apr 2011	Apr 2016
- cap	25,000	4.000	Jul 2013	Jul 2016
- cap	25,000 - 75,000	4.000	Apr 2015	Jan 2017
- cap	7,200	4.000	Jan 2012	Oct 2016
- cap	25,000	4.000	Jul 2013	Jul 2016

Where a range in capped values is shown, these reflect stepped increases/decreases over the life of the cap.

Gearing	31.3.16 £000	31.3.15 £000
Total debt	734,063	598,241
Cash	(74,670)	(120,993)
Net debt	659,393	477,248

Net debt excludes the Group's share of debt in joint ventures of £34,626,000 (2015: £44,419,000), and cash of £12,177,000 (2015: £13,453,000).

31.3.16

£000

31.3.15

£000

Net assets

486,189

404,363

Gearing

136%

118%

25. Share capital

31.3.16

£000

31.3.15

£000

Authorised

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.

	31.3.16 £000	31.3.15 £000
Allotted, called up and fully paid
- 118,183,806 (2015: 118,183,806) ordinary shares of 1p each	1,182	1,182
- 212,145,300 (2015: 212,145,300) deferred shares of 1⁄8p each	265	265
	1,447	1,447

	Shares in issue 31.3.16 Number	Share capital 31.3.16 £000	Shares in issue 31.3.15 Number	Share capital 31.3.15 £000
Ordinary shares
At 1 April and 31 March	118,183,806	1,182	118,183,806	1,182
Deferred shares
At 1 April and 31 March	212,145,300	265	212,145,300	265

Capital Management

The Group's capital management objectives are:

- to ensure the Group's ability to continue as a going concern; and,
- to provide an adequate return to shareholders.

The Group sets the amount of capital in proportion to its overall financing structure. It manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt. Capital is defined as being issued share capital, share premium, retained earnings, revaluation reserve and other reserves (2016: £478,711,000; 2015: £396,825,000). The Group continually monitors its gearing level to ensure that it is appropriate. Gearing increased from 118% to 136% in the year as the Group expanded its activities and took advantage of favourable debt market conditions.

The deferred shares were issued on 23 December 2004 to those shareholders electing to receive a dividend, rather than a capital repayment or further shares in the Company, as part of the Return of Cash approved by shareholders on 20 December 2004. The deferred shares carry no voting rights and have no right to a dividend or capital payment in the event of a winding up of the Company.

The Company's Articles of Association give the Company irrevocable authority to purchase all or any of the deferred shares for a maximum aggregate total of 1 penny for all deferred shares in issue on the date of such purchase.

26. Share options

At 31 March 2016 and 31 March 2015 there were no unexercised options over new ordinary 1p shares in the Company. No options over purchased ordinary 1p shares held by the ESOP had been granted to directors and employees under the Company's share option schemes (31 March 2015: none).

The Company uses a stochastic valuation model to value the share options.

Summary of share options	Number 31.3.16	Weighted average exercise Price 31.3.16	Number 31.3.15	Weighted average exercise price 31.3.15
At 1 April	-	-	46,284	259.25p
Options exercised	-	-	(46,284)	(259.25)p
At 31 March	-	-	-	-

27. Share-based payments

The Group provides share-based payments to employees in the form of performance share plan awards and a share incentive plan. The Company uses a stochastic valuation model and the resulting value is amortised through the Income Statement over the vesting period of the share-based payments.

Performance share plan awards	Awards	2016 Weighted average award value	Awards	2015 Weighted average award value
Outstanding at beginning of year	9,127,153	221p	9,721,375	215p
Awards vested during year	(4,212,534)	153p	(1,707,216)	246p
Awards lapsed during the year	-	153p	(1,021,711)	246p
Awards made during the year	1,642,997	353p	2,134,705	295p
Outstanding at end of year	6,557,616	284p	9,127,153	221p

The performance share plan awards outstanding at 31 March 2016 had a weighted average remaining contractual life of one year and one month.

The fair value of the awards made in the year to 31 March 2016 was £5,802,000 (2015: £6,305,000).

The inputs into the stochastic model of valuation of the awards made in the year to 31 March 2016 were as follows:

	2016	2015	2014
Weighted average share price	413.5p	355.0p	303.2p
Weighted average exercise price	-	-	-
Expected volatility	25.7%	28.4%	n/a
Expected life	3 years	3 years	3 years
Risk free rate	0.79%	1.24%	n/a
Expected dividends	0.00%	0.00%	2.20%

The Group recognised a charge of £6,666,000 (2015: £6,432,000) during the year in relation to share-based payments.

At the balance sheet date there were no exercisable awards.

28. 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. For this purpose, 4,488,000 shares (2015: 3,790,000) in the Company were purchased during the year at a cost of £18,857,000 (2015: £13,349,000).

At 31 March 2016, outstanding awards over 6,558,000 (2015: 9,127,000) ordinary 1p shares in Helical Bar plc had been made under the terms of the Performance Share Plan over shares held by the Trust.

At 31 March 2016, the Trust held 3,901,000 shares (2015: 3,625,000).

29. Contingent liabilities

The Company has entered into cross guarantees in respect of the banking facilities of its subsidiaries. These are not considered to have a material value.

There were no other contingent liabilities at 31 March 2016 for the Group (2015: £nil).

30. Capital commitments

The Group has a commitment of £34,054,000 (2015: £86,800,000) in relation to construction contracts, which are due to be completed in the period to September 2018.

31. Net assets per share

	31.3.16 £000	Number of shares 000s	31.3.16 pence per share	31.3.15 £000	Number of shares 000s	31.3.15 pence per share
Net asset value	486,189	118,184		404,363	118,184
Less: own shares held by ESOP		(3,901)			(3,625)
deferred shares	(265)			(265)
Basic net asset value	485,924	114,283	425	404,098	114,559	353
Add: share settled bonuses		1,197			1,016
Add: dilutive effect of the Performance Share Plan		3,177			6,256
Diluted net asset value	485,924	118,657	410	404,098	121,831	332
Adjustment for:
- fair value of financial instruments	14,955			8,568
- fair value movement on Convertible Bond	2,747			3,263
- deferred tax	23,759			16,956
Adjusted diluted net asset value	527,385	118,657	444	432,885	121,831	355
Adjustment for:
- fair value of trading and development properties	19,412			36,243
EPRA net asset value	546,797	118,657	461	469,128	121,831	385
Adjustment for:
- fair value of financial instruments	(14,955)			(8,568)
- deferred tax	(23,759)			(16,956)
EPRA triple net asset value	508,083	118,657	428	443,604	121,831	364

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

The adjustments to the net asset value comprise the amounts relating to the Group and its share in Joint Ventures.

32. Related party transactions

At 31 March 2016 and 31 March 2015 the following amounts were due from the Group's joint ventures:

	At 31.3.16 £000	At 31.3.15 £000
King Street Developments (Hammersmith) Ltd	6,231	5,280
Shirley Advance LLP	11,347	12,501
Barts Square First Ltd	77	42
Helical Sosnica Sp. Zoo	1,099	6,000
207 Old Street Unit Trust	-	2,325
211 Old Street Unit Trust	-	1,801
Old St Retail Unit Trust	-	725
City Road (Jersey) Ltd	-	738
Old Street Holdings LP Ltd	-	100
Creechurch Place Ltd	13,345	12,132

All movements in joint venture balances related to loans repaid and loans advanced.

Appendix 1 - See-through analysis

This analysis incorporates the separate components of the results of the consolidated subsidiaries and Helical's share of its joint ventures results into a 'See-through' analysis of our property portfolio, debt profile and the associated income streams and financing costs, to assist in providing a comprehensive overview of the Group's activities.

See-through net rental income and property overheads

Helical's share of the gross rental income, head rents payable and property overheads from property assets held in subsidiaries and in joint ventures are shown in the table below.

		2012 £000	2013 £000	2014 £000	2015 £000	2016 £000
Gross rental income	-subsidiaries	23,058	25,816	29,994	38,332	45,505
	- joint ventures	6,645	6,193	6,601	6,098	1,828
Total gross rental income		29,703	32,009	36,595	44,430	47,333
Rents payable	-subsidiaries	(418)	(342)	(476)	(269)	(80)
	-joint ventures	(848)	(802)	(625)	(809)	-
Property overheads	-subsidiaries	(3,938)	(5,186)	(4,328)	(3,489)	(2,728)
	-joint ventures	(737)	(510)	(539)	(877)	(558)
Net rental income attributable to profit share partner		(826)	(710)	(788)	(341)	(533)
Total property costs		(6,767)	(7,550)	(6,756)	(5,785)	(3,899)
See-through net rental income		22,936	24,459	29,839	38,645	43,434

See-through net development profits
Helical's share of development profits from property assets held in subsidiaries and in joint ventures are shown in the table below.

	2012 £000	2013 £000	2014 £000	2015 £000	2016 £000
In parent and subsidiaries	5,166	7,616	62,273	16,126	30,700
In joint ventures	-	-	2,199	1,902	3,223
Total gross development profit	5,166	7,616	64,472	18,028	33,923
Provision against stock	(4,511)	(660)	552	(452)	(6,448)
See-through development profits	655	6,956	65,024	17,576	27,475

See-through net gain on sale and revaluation of investment properties

		2012 £000		2013 £000	2014 £000	2015 £000	2016 £000
Revaluation surplus on investment properties -subsidiaries		3,664		3,723	20,714	66,904	53,508
	-joint ventures	581		3,109	15,710	26,134	2,316
Total revaluation surplus		4,245		6,832	36,424	93,038	55,824
Net gain/(loss) on sale of investment properties -subsidiaries		(376)		(2,388)	8,611	2,480	2,385
	-joint ventures	-		-	(31)	1,091	41,553
Total net gain/(loss) on sale of investment properties		(376)		(2,388)	8,580	3,571	43,938
See-through net gain on sale and revaluation of investment properties			3,869	4,444	45,004	96,609	99,762

See-through net finance costs

Helical's share of the interest payable, finance charges, capitalised interest and interest receivable on bank borrowings and cash deposits in subsidiaries and in joint ventures are shown in the table below.

		2012 £000	2013 £000	2014 £000	2015 £000	2016 £000
Interest payable on bank loans and overdrafts	-subsidiaries	10,808	10,445	14,298	21,055	25,353
	-joint ventures	2,223	2,269	3,051	3,644	3,673
Total interest payable on bank loans and overdrafts		13,031	12,714	17,349	24,699	29,026
Other interest payable and similar charges	-subsidiaries	901	1,658	2,520	6,264	3,700
Interest capitalised	-subsidiaries	(3,300)	(2,526)	(2,835)	(3,641)	(4,940)
Total finance costs		10,632	11,846	17,034	27,322	27,786
Interest receivable and similar income	-subsidiaries	(583)	(887)	(4,135)	(2,480)	(5,128)
	-joint ventures	(12)	(66)	(539)	(43)	(21)
See-through net finance costs		10,037	10,893	12,360	24,799	22,637

See-through property portfolio

Helical's share of the investment, trading and development property portfolio in subsidiaries and joint ventures are shown in the table below.

		2012 £000	2013 £000		2014 £000		2015 £000		2016 £000
Investment property	-subsidiaries	326,876	312,026		493,201		701,521		1,041,100
	-joint ventures	67,187	94,962		107,504		88,305		11,552
Total investment property		394,063	406,988		600,705		789,826		1,052,652
Trading and development stock -subsidiaries		99,741	92,874		98,160		92,578		92,035
-joint ventures		*44,324	*76,698		*75,368		*102,715		75,904
Total trading and development stock		144,065	169,572		173,528		195,293		167,939
Trading and development stock surplus	-subsidiaries	33,107	48,837		25,719		25,230		12,412
	-joint ventures	1,435	1,028		1,760		11,013		7,000
Total trading and development stock surpluses		34,542	49,865		27,479		36,243		19,412
Total trading and development stock at fair value		178,607	219,437		201,007		231,536		187,351
See-through property portfolio		572,670		626,425		801,712		1,021,362		1,240,003

*Trading and development stock of joint ventures includes the Group's share of development stock of Helical Sosnica Sp. Zoo (see note 16).

See-through net borrowings

Helical's share of borrowings and cash deposits in its parent and subsidiaries and joint ventures are shown in the table below.

		2012 £000	2013 £000	2014 £000	2015 £000	2016 £000
In parent and subsidiaries -gross borrowings less than one year		59,203	39,295	1,275	45,428	885
	-gross borrowings more than one year	203,992	220,446	374,811	552,813	733,178
	Total	263,195	259,741	376,086	598,241	734,063
In joint ventures	-gross borrowings less than one year	1,500	720	12,453	-	-
	-gross borrowings more than one year	*54,342	*72,509	*60,134	*69,997	34,626
	Total	55,842	73,229	72,587	69,997	34,626
In parent and subsidiaries -cash and cash equivalents		(35,411)	(36,863)	(63,237)	(120,993)	(74,670)
In joint ventures	-cash and cash equivalents	*(4,024)	*(12,757)	*(20,377)	*(15,348)	(12,177)
See-through net borrowings		279,602	283,350	365,059	531,897	681,842

*Gross borrowings in joint ventures include the Group's share of borrowings of Helical Sosnica Sp. Zoo (see note 16).

Appendix 2 - See-through Analysis Ratios

Interest cover	31.03.12 £000	31.03.13 £000	31.03.14 £000	31.03.15 £000	31.03.16 £000
Net rental income	22,936	24,459	29,839	38,645	43,434
Trading profits/(losses)	-	(1)	252	2,503	-
Development profits (before provisions)	5,166	7,616	64,472	18,028	33,923
Gain/(loss) on sale of investment properties	(376)	(2,388)	8,580	3,571	43,938
Net operating income	27,726	29,686	103,143	62,747	121,295

Finance costs	10,037	10,893	12,360	24,799	22,637

Interest cover	2.8x	2.7x	8.3x	2.5x	5.4x

Balance sheet
Property portfolio	572,670	626,425	801,712	1,021,362	1,240,003
Net borrowings	279,602	283,350	365,059	531,897	681,842
Shareholders' funds	253,730	253,768	340,527	404,363	486,189
EPRA net asset value	294,398	313,733	370,062	469,128	546,797

Loan to value	49%	45%	46%	52%	55%
Gearing	110%	112%	107%	132%	140%
Gearing based on EPRA net asset value	95%	90%	99%	113%	125%

Appendix 3 - Five Year Review

Income Statements

	31.3.12 £000	31.3.13 £000	31.3.14 £000	31.3.15 £000	31.3.16 £000
Revenue	52,968	65,439	123,637	106,341	116,500
Net rental income	17,876	19,578	24,402	34,233	42,164
Development profit	5,166	7,616	62,273	16,126	30,700
Provisions against stock	(4,511)	(660)	552	(452)	(6,448)
Trading profit/(loss)	-	(1)	252	2,503	-
Share of results of joint ventures	2,472	3,854	16,448	27,497	50,469
Other income/(expense)	113	(547)	230	368	20
Gross profit before gain/(loss) on investment properties	21,116	29,840	104,157	80,275	116,905
Gain/(loss) on sale of investment properties	(376)	(2,388)	8,611	2,480	2,385
Revaluation surplus on investment properties	3,664	3,723	20,714	66,904	53,508
Impairment of available-for-sale investments	-	-	(88)	(773)	(1,370)
Administrative expenses excluding performance related awards	(7,385)	(8,092)	(8,816)	(10,156)	(10,716)
Performance related awards	(415)	(6,828)	(17,860)	(16,374)	(15,387)
Finance costs	(8,409)	(9,577)	(13,983)	(23,678)	(24,113)
Finance income	583	887	4,135	2,480	5,128
Movement in fair value of derivative financial instruments	(306)	(2,573)	5,312	(8,389)	(6,860)
Convertible Bond adjustment	-	-	-	(3,263)	516
Foreign exchange gains/(losses)	(1,064)	17	(501)	(2,061)	100
Profit before tax	7,408	5,009	101,681	87,445	120,096
Tax	158	815	(14,126)	(12,669)	(9,745)
Profit after tax	7,566	5,824	87,555	74,776	110,351

Balance Sheets

	31.3.12 £000	31.3.13 £000	31.3.14 £000	31.3.15 £000	31.3.16 £000
Investment portfolio	326,876	312,026	493,201	701,521	1,041,100
Land, developments and trading properties	99,741	92,874	98,160	92,578	92,035
Group's share of investment properties held by joint ventures	67,187	94,962	107,504	88,305	11,552
Group's share of land, trading and development properties held by joint ventures	15,709	23,797	27,165	61,782	75,904
Group's share of land, trading and development stock surpluses	34,542	49,685	27,479	36,243	19,412
Group's share of total properties at fair value	572,670	626,425	801,712	1,021,362	1,240,003

Net debt	227,784	222,878	312,849	477,248	659,393
Group's share of net debt of joint ventures	36,409	38,521	27,050	30,966	22,449
Group's share of net debt	279,602	283,350	365,059	531,897	681,842

Shareholders' funds	253,730	253,768	340,527	404,363	486,189
EPRA shareholders' fund	294,398	313,733	370,062	469,128	546,797

Dividend per ordinary share paid/payable	4.90p	5.25p	5.70p	6.85p	12.6p
Dividend per ordinary share declared	5.15p	5.55p	6.75p	7.25p	8.17p

EPRA earnings per ordinary share	3.4p	2.4p	33.3p	2.4p	17.1p
EPRA net assets per share	250p	264p	313p	385p	461p

Appendix 4 - Property Portfolio

London Portfolio

Address	Held As	Major Projects or Income Producing	Description	Area sq ft (NIA)	Vacancy rate
Shepherds Building, London W14	Investment	IP	Multi let office building. Let to media companies	150,389	3%
The Bower (Ph 1), London EC1	Investment	IP	Office and retail buildings	151,439	-
The Bower (Ph 2), London EC1	Investment	MP	Office and retail buildings undergoing refurbishment and extension	179,000	n/a
The Loom, London E1	Investment	MP	Multi let office building with refurbishment underway	112,229	25%
C-Space, London EC1	Investment	IP	Office refurbishment scheme completed in October 2015	61,880	25%
One King Street, London W6	Investment	IP	Recently refurbished office and retail building adjacent to Hammersmith Broadway	39,222	-
The Powerhouse, London W4	Investment	IP	Single let recording studios/office building	43,325	-
Power Road Studios, London W4	Investment	IP	Multi let office building with redevelopment potential	61,990	2%
Charterhouse Square, London EC1	Investment		Office building with scope for extension and refurbishment	43,600	n/a
Chart House, London N1	Investment	IP	Single let office building with refurbishment and extension potential	10,505	-
Barts Square, London EC1	Investment/ Development	MP	236,000 sq ft offices, 236 residential apartments and 21,000 sq ft retail/leisure development under construction	459,000	n/a
Creechurch Place, London EC3	Development		New building due for completion September 2016	273,000	n/a
Drury Lane, London WC1	Development		Planning consent for comprehensive refurbishment scheme comprising 68 apartments and retail	16,000	n/a
King Street, London W6	Development		Planning permission received for residential, office, retail and leisure scheme. Due to start on site early 2017	300,000	n/a
				1,901,579

Regional Portfolio

Address	Held As	Major Works or Income Producing	Description	Area sq ft (NIA)	Vacancy rate
In Town Retail
Cardiff, The Hayes	Investment	IP	Prime retail parade and listed retail arcades	290,394	6.6%
Leicester	Investment	IP	Town centre shop	6,060	-
				296,454
Out-of-town Retail
Ellesmere Port	Investment	IP	Single let retail park	36,258	-
Great Yarmouth	Investment	IP	Single let retail park	38,771	-
Harrogate	Investment	IP	Single let retail park	25,290	-
Huddersfield	Investment	IP	Retail park	101,491	-
Scarborough	Investment	IP	Retail park	28,970	-
Sevenoaks, Kent	Investment	IP	Retail park	42,490	-
Southend on Sea	Investment	IP	Retail park	74,954	-
Stockport	Investment	IP	Single let retail park	31,803	-
				380,027	0%
Industrial/Logistics
Alfreton	Investment	IP	Single let distribution centre	167,954	-
Bedford	Investment	IP	Single let distribution centre	36,023	-
Bolton	Investment	IP	Single let cash and carry	73,433	-
Bristol, Portbury	Investment	IP	Single let industrial centre	64,003	-
Brownhills, Birmingham	Investment	IP	Single let distribution centre	52,368	-
Burton-on-Trent	Investment	IP	Single let distribution centre	92,715	100%
Cannock	Investment	IP	Single let distribution centre	153,665	-
Cannock	Investment	IP	Single let distribution centre	103,050	-
Cardiff, Heol Billingsley	Investment	IP	Single let distribution centre	50,684	-
Chester	Investment	IP	Single let distribution centre	183,119	-
Daventry	Investment	IP	Single let distribution centre	44,658	-
Doncaster, Aspect Way	Investment	IP	Single let distribution centre	122,591	100%
Doncaster, Kirk Sandalls	Investment	IP	Single let distribution centre	153,547	-
Gloucester Quedgley	Investment	IP	Multi let industrial estate	43,239	-
Halesowen	Investment	IP	Single let industrial centre	73,088	-
Havant	Investment	IP	Single let distribution centre	38,914	-
Hinckley	Investment	IP	Single let distribution centre	188,242	-
Jarrow	Investment	IP	Single let industrial centre	101,476
Leighton Buzzard	Investment	IP	Multi let industrial estate	202,674	-
Milton Keynes, Mailcom	Investment	IP	Multi let industrial estate	25,282	-
Northampton	Investment	IP	Multi let industrial estate	210,383	-
Northampton	Investment	IP	Single let distribution centre	45,356	-
Peterborough	Investment	IP	Single let industrial centre	158,000	-
Rugby	Investment	IP	Single let distribution centre	45,045	-
Salford	Investment	IP	Single let industrial centre	52,726	-
Stevenage	Investment	IP	Single let distribution centre	74,373	-
Stone, Bibby	Investment	IP	Single let industrial centre	122,301	-
Stone, Opal Way	Investment	IP	Single let industrial centre	130,537	-
Sunderland, Doxford	Investment	IP	Single let industrial centre	139,130	-
Telford	Investment	IP	Single let distribution centre	65,225	-
Thetford	Investment	IP	Single let distribution centre	127,256	-
Warrington, Calver Quay	Investment	IP	Multi let industrial estate	70,594	-
Warrington, Raglan Court	Investment	IP	Single let distribution centre	81,342	-
Wellingborough	Investment	IP	Single let industrial centre	67,570	-
Wolverhampton	Investment	IP	Single let distribution centre	119,600	-
Yate	Investment	IP	Single let distribution centre	255,714	-
				3,735,877	5.85%

Address	Held As	Major Works or Income Producing	Description	Area sq ft (NIA)	Vacancy rate
Regional Offices
Castle Donington	Investment	IP	Offices let to National Grid	25,471	-
Cheadle	Investment	IP	Single let office building	16,470	-
Cobham	Investment	IP	Single let office building	21,837	-
Crawley	Investment	IP	Single let office building	48,131	-
Glasgow	Investment	IP	Multi let office building	57,388	2%
Manchester, 31 Booth St	Investment	MP	Multi let office building to be refurbished	25,349	n/a
Manchester, Churchgate & Lee House	Investment	IP	Multi let city centre office building with refurbishment and asset management potential	248,342	15%
Manchester, Dale House	Investment	IP	Multi let city centre office building with refurbishment and asset management potential	42,282	8%
Reading	Investment	IP	Office building let to Thames Water	35,847	-
				521,117	6.47%
Regional Office Development
Glasgow	Development		Pre-let to Scottish Power plc. Pre-sold to M&G	220,000	n/a
				220,000
Land
Bracknell	Development		Residential land	n/a	n/a
Hailsham	Development		Commercial development site	n/a	n/a
Telford, Dawley Road	Development		Residential land	n/a	n/a
Crawley, Tilgate	Development		Commercial development site	n/a	n/a

Retail Development
Cortonwood Retail Park	Development		Pre-let retail park	79,750	n/a
Shirley, Birmingham	Development		Shopping centre	195,000	n/a
				274,750

Address	Held As	Major Works or Income Producing	Description	Units	Vacancy rate
Retirement Villages
Millbrook, Exeter	Development		Retirement village development	164	n/a
Durrants Village, Faygate	Development		Retirement village development	156	n/a
Maudslay Park, Great Alne	Development		Retirement village development	150	n/a
Bramshott Place, Liphook	Development		Retirement village development	151	n/a
Penally Farm, Liphook	Development		Retirement village development	40	n/a
Bramshott Place Clubhouse	Investment	IP	Clubhouse at retirement village	n/a	n/a
Durrants Village, Clubhouse	Investment	IP	Clubhouse at retirement village	n/a	n/a
				661

Appendix 5 - Risk Register

Risk	Risk Description	Mitigation/Action
STRATEGIC RISKS
Strategic risks are external risks that could prevent the Group delivering its strategy. These risks principally impact our decision to purchase or exit from a property asset.
The Group's strategy is inconsistent with the market.	Changing market conditions could hinder the Group's ability to buy and sell properties envisioned in its strategy. The location, size or mix of properties in Helical's portfolio determine the impact of the risk. If the Group's chosen markets underperform, the impact on the Group's liquidity, investment property revaluations and rental income is greater. The Group carries out significant development projects over several years and is therefore exposed to fluctuations in the market over time.	Management constantly monitors the market and makes changes to the Group's strategy in the light of market shifts. The Group's management is highly experienced and has a good track record of calling the property market. Due to the Group's small management team, changes in strategy can be implemented quickly. Management carefully reviews the risk profile of individual developments and builds properties in several phases to minimise the exposure to reduced demand for particular asset classes or geographical locations over time. The Group limits the number of speculative developments it does on its own balance sheet.
Property values decline/reduced tenant demand for space.	The property portfolio is at risk of revaluation falls through changes in market conditions, including under-performing sectors or locations and lack of tenant demand.	The Group's property portfolio is diverse in asset type, location and tenant industries, reducing over-exposure to one sector. Management reviews external data, seeks the advice of industry experts and monitors the performance of individual assets and sectors in order to dispose of non-performing assets and rebalance the portfolio for the changing market.
Political risk	There is a risk that regulatory and tax changes could adversely affect the market in which the Group operates and changes in legislation could lead to delays in receiving planning permission.	Management seeks advice from experts to ensure continued monitoring of upcoming regulatory and tax changes and to understand the potential impact on the Group. It maintains good relationships with planning consultants and local authorities.

Risk	Risk Description	Mitigation/Action
FINANCIAL RISKS
Financial risks are those that could prevent the Group from funding its chosen strategy, both in the long and short term.
Availability of bank borrowing and cash resources	The inability to roll over existing facilities or take out new borrowing would impact on the Group's ability to maintain its current portfolio and purchase new properties. The Group may forego opportunities if it does not maintain sufficient cash to take advantage of opportunities as they arise.	The Group maintains a good relationship with many well established lending institutions and borrowings are spread across a number of these. Funding requirements are regularly reviewed by management, who ensure that the maturity dates of borrowings are spread over several years. Management monitors the cash levels of the Group on a daily basis and maintains sufficient levels of cash resources and undrawn committed bank facilities to fund opportunities as they arise.
Breach of loan and bond covenants	If the Group breaches debt covenants, lending institutions may require the early repayment of borrowings.	Covenants are closely monitored throughout the year. Management carries out sensitivity analysis to assess the likelihood of future breaches based on significant changes in property values or rental income.
Increase in cost of borrowing	The Group is at risk of increased interest rates on unhedged borrowings.	The Group hedges the interest rates on the majority of its borrowings, effectively fixing the rates over several years.

Risk	Risk Description	Mitigation/Action
OPERATIONAL RISKS
Operational risks are internal risks that could prevent the Group from delivering its strategy.
Employment and retention of key personnel	The Group's continued success is reliant on its management and staff and successful relationships with its joint venture partners.	The senior management team is very experienced and the average length of service is high. The Nominations Committee and Board regularly review succession planning issues and remuneration is set to attract and retain high calibre staff. The Group has well established relationships with joint venture partners.
Inability to asset manage, develop and let property assets	The Group relies on external parties when asset managing, developing and letting its properties, including planning consultants, contractors, architects, project managers, marketing agencies, lawyers and managing agents.	The Group has a highly experienced team managing its properties. It seeks to maintain excellent relationships with its specialist professional advisors. Management actively monitors these parties to ensure they are delivering the required level of quality on time.
Health and safety/Bribery and corruption risk	The nature of the Group's operations and markets expose it to potential health and safety and bribery and corruption risks.	The Group updates its Health and Safety policy annually, which is approved by the Board. The Group engages an external health and safety consultant to review contractor agreements prior to appointment to ensure they have appropriate policies and procedures in place, then monitors the adherence to policies throughout the project. The Executive Committee reviews the report by the external consultant every month and the Board reviews them at every meeting. The internal asset managers carry out regular site visits. The Group's Anti-bribery policy is updated annually and projects with greater exposure to bribery and corruption are monitored closely. The Group avoids doing business in high risk territories.

Risk	Risk Description	Mitigation/Action
REPUTATIONAL RISKS
Reputational risks are those that could affect the Group in all aspects of its strategy
Poor management of stakeholder relations	The Group risks suffering from reputational damage resulting in a loss of credibility with key stakeholders including shareholders, analysts, banking institutions, contractors, managing agents, tenants, property purchasers/sellers and employees.	The Group believes that by successfully delivery its strategy and mitigating its strategic, financial and operational risks its strong reputation will be protected. The Group regularly reviews its strategy and risks to ensure it is acting in the interests of its stakeholders. The Group maintains a strong relationship with investors and analysts through regular meetings.

This information is provided by RNS

The company news service from the London Stock Exchange

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