Interim Results

Helical Bar PLC 27 November 2003 27 November 2003 H E L I C A L B A R P L C ('Helical'/'Company') I n t e r i m R e s u l t s For the half year to 30 September 2003 HELICAL SPREADING ITS WINGS â€¢ New retail, industrial and residential projects â€¢ Further profits on office investment sales â€¢ Adjusted profits Â£5.3m (2002: Â£6.1m) â€¢ Adjusted diluted NAV per share up 1% to 779p with no interim revaluation (31.03.2003: 770p) â€¢ Interim dividend increased by 10% to 6.6p (2002: 6.0p) â€¢ 4.1% of share capital bought in for cancellation at an average cost of 712 pence per share John Southwell, the Chairman of Helical Bar commented: 'Helical is building up a portfolio of trading and development schemes which will stand it in good stead over the next five years. By judicious stock selection, I remain confident that Helical will continue to achieve steady growth in its net assets per share over the next two years whilst positioning itself for the next development cycle.' For further information, please contact: Helical Bar plc Michael Slade (Managing Director) Nigel McNair Scott (Finance Director) 020 7629 0113 Address: 11-15 Farm Street, London W1J 5RS Fax: 020 7408 1666 Website: www.helical.co.uk Financial Dynamics Stephanie Highett/Dido Laurimore 020 7831 3113 C H A I R M A N ' S S T A T E M E N T SUMMARY OF INTERIM RESULTS 30.9.03 30.9.02 Â£000 Â£000 Rental income 13,145 15,176 Development (losses)/ profits (686) 2,724 Profit on sale of investment properties 1,169 2,171 Exceptional item - write back of negative goodwill - 6,362 Pre-tax profits 6,448 14,652 Adjusted profits (note 1) 5,335 6,119 Interim dividend 6.6p 6.0p Earnings per share 14.0p 31.1p RESULTS Rental income for the period was Â£13.1m (2002: Â£15.2m) following continued sales of investment properties. A loss on the development programme of Â£0.7m was made (2002: profit Â£2.7m) as a consequence of writing off capitalised interest on development sites. The profit on sale of investment properties was Â£1.2m (2002: Â£2.2m). Profits for the half year to 30 September 2003, excluding exceptional items, decreased by 23% to Â£6.4m (2002: Â£8.3m). Earnings per share fell by 55% to 14.0p (2002: 31.1p) and on a diluted basis by 55% to 13.6p (2002: 30.1p). Adjusted earnings per share, after excluding exceptional items and adding back the FRS19 deferred tax provision, fell by 30% to 9.8p (2002: 14.1p). The investment portfolio was not revalued at 30 September 2003. Despite this, and not taking account of a growing surplus of value in trading stock and the development programme, the Company's net asset value increased by 1.3% to 799p (31.03.2003: 789p) and, on a diluted basis, by 1.2% to 771p (31.03.2003: 762p). Net asset value per share adjusted for the addback of the deferred tax provision increased by 1.2% to 779p (31.03.2003: 770p) and by 2.4% to 719p (31.03.2003: 702p) on a 'triple net' basis. DIVIDENDS AND SHARE BUYBACKS In view of the Board's confidence in the Company's prospects, we have purchased, for cancellation, 1,221,951 ordinary shares at an average cost of 712p per share with a total cost of Â£8.7m, and have increased the Interim Dividend by 10% to 6.6p (2002: 6.0p). DEVELOPMENT PROGRAMME OFFICE DEVELOPMENTS Office letting activity remains slow despite signs of a slight pick up in demand. Take up is well below 10 year averages and there is a significant over supply of space in Helical's traditional locations of Central London and the Thames Valley corridor. Vacancy rates vary between 11% and 14% in these areas with the Thames Valley remaining the bleakest area. Against this background rents remain under considerable pressure as landlords compete for the few available tenants. The principal exception is the West End where lower vacancy rates and a more diverse tenancy base is leading to an earlier recovery. Efforts to let completed developments at Camberley, Fleet and Weybridge continue; space is under offer and due to sign imminently at all three schemes. All of these schemes have been forward funded in a manner which limits the downside to Helical. 40 Berkeley Square London W1 is the only office development under construction and is due for completion at the end of March 2004. Otherwise major new schemes are in place at Ropemaker Place London EC2, Mitre Square London EC3, White City and Amen Corner, Bracknell. The Heights, Brooklands, Weybridge - 337,000 sq ft Approximately 17,000 sq ft is under offer. The Meadows, Camberley - 130,000 sq ft Building 4 (23,000 sq ft) is under offer. 40 Berkeley Square, London W1 - 75,000 sq ft Construction work is continuing in accordance with both programme and budget and will be completed in March 2004. 20,000 sq ft was pre-let to The Blackstone Group last year. This scheme is in a joint venture with Morley Fund Management. Ropemaker Place, London EC2 - 500,000 sq ft The Company has been appointed the development manager for this scheme by D B Real Estate. A planning application was submitted to the London Borough of Islington for a new building of around 500,000 sq ft in July 2003. Mitre Square, London EC3 - 350,000 sq ft A joint planning application with Ansbacher Property Developments Ltd was submitted to the Corporation of London in October 2003. White City - 10 acres Working with Morley Fund Management we are making good progress with the draft planning framework. Amen Corner, Bracknell - 15 acres Good progress is being made in initial planning discussions with Bracknell Forest District Council. RETAIL DEVELOPMENTS We continue to work closely with our two retail partners, Oswin Developments and Overton Developments, on the following schemes: 56-76 Commercial Road, Bournemouth - Phase I 50,000 sq ft This prime block of eleven shop units was acquired from Equitable Life this autumn for Â£19.25m. Two thirds of the shops are held on short term leases which will enable vacant possession to be obtained by next summer and there is serious interest from a number of leading retailers. Towy Retail Park, Camarthen - 35,000 sq ft This scheme is prelet to Currys and PC World at Â£13.50 psf and forward sold at 6.4%. Construction is due to be completed in January 2004. Trinity Square, Nottingham - 255,000 sq ft mixed use A mixed use development situated in the centre of Nottingham adjoining the Victoria Centre of 185,000 sq ft retail, 55,000 sq ft casino, 15,000 sq ft restaurants, plus 450 student flats and 470 car park spaces. The total value of the scheme will be in the order of Â£85m. Recently, Nottingham City Council Planning Committee passed a resolution in favour of the scheme. Good progress is being made with pre-lettings and work is expected to start on site next summer with completion early in 2006. Friary Retail Park, Stafford - 38,500 sq ft An edge of town centre development which has the benefit of an open A1 retail consent, split into three stores and anchored by PC World. The scheme is due to start in February 2004 to be ready for Christmas 2004 trade. Hatters Retail Park, Luton - 115,000 sq ft mixed use This is a new Â£30m development on an 8 acre site where a planning application has been submitted for a mixed use scheme comprising 80,000 sq ft of retail warehousing and 35,000 sq ft of industrial use. Tenant interest is strong for the scheme which is expected to start on site in 2005, subject to planning. Lower Level Station Site, Wolverhampton - 100,000 sq ft This latest acquisition was completed in November and comprises approximately 11 acres with planning consent for a variety of leisure uses. Located adjacent to the city centre, this regeneration site offers potential for a Â£30m mixed use scheme which will include retail, leisure and city living apartments. Marketing has just commenced and a new planning application will be submitted next year. RESIDENTIAL Lime Tree Village, Dunchurch, Rugby Building work continues on the refurbishment and extension of Cawston House, a Victorian country house, which will form the focal point of this retirement village. Construction of 150 bungalows, cottages and apartments is well underway and the marketing campaign for the village will be launched early next year. Bramshott Place, Liphook, Hampshire A planning application has now been submitted for a retirement village development of 144 apartments, cottages and bungalows. INVESTMENT PORTFOLIO OFFICES The six months to 30 September 2003 saw a continuation of the programme of profit taking on the office portfolio, two thirds of which have been sold since the end of 2001. In June 2003 Capital House, London NW1, 90,000 sq ft of multi-let offices with 47,000 sq ft of retail, was sold at its 31 March 2003 value of Â£41m (bought in 1998 for Â£23.5m). In August 2003 a portfolio of three properties at Fleet Hampshire, Camden London NW1 and Kingsway, London WC2 were sold for Â£33.25m, an uplift on 31 March 2003 values (bought 1998-2000 for Â£23m). Since 30 September 2003 the Company has sold 5/10 Bury Street, London EC3 for a minimum price of Â£7.96m, above 31 March 2003 value (bought 1997 for Â£4.25m). Our remaining London offices comprise circa Â£120m at March 2003 values in just under half a million square feet. Our entire office portfolio which includes a further Â£5m of provincial stock has an average unexpired lease term of 10.5 years and a running yield of 8%. This excludes rents contracted but not yet payable of Â£0.5m pa and voids with a rental value of Â£1.5m. INDUSTRIALS The industrial portfolio comprises circa Â£105m (March 2003 values or cost) in 3.5m sq ft yielding over 8% notwithstanding voids arising with the following schemes in progress. Harlow 125,000 sq ft under construction for owner occupier sales with half the space already in solicitors' hands for onward sale. Slough 135,000 sq ft for owner occupier sales with demolition just starting. Woolwich 105,000 sq ft recently reclad. Half the space has been renewed or relet at rents 20% ahead of budget on acquisition last year. Sawston, Cambridge 235,000 sq ft income producing investment acquired during the half year with a further 60,000 sq ft development planned on a vacant 3 acre site. Dunstable 103,000 sq ft vacant shed on 5 acres with residential potential. Fleet 54,000 sq ft of income producing units on 5 acres with residential potential. Two further projects are in the course of acquisition. RETAIL The retail portfolio comprises 450,000 sq ft with a value of circa Â£55m yielding just under 7% on March 2003 values rising to over 8% at rent reviews. This is after the sale of our 50% interest in Sprucefield Retail Park, Lisburn at a price of approximately Â£16m, above 31 March 2003 valuation (bought in 2001 for Â£12.8m). The main ongoing projects are: Garden Shopping Centre, Letchworth Marks & Spencer has replaced Kwik Save as the anchor tenant. Planning consent obtained to extend some retail units. Seeking residential consent for a vacant office. Bus Depot, Milton Keynes New 80,000 sq ft store prelet to Homebase, subject to planning. Otford Road Retail Park, Sevenoaks 15 year lease extension to Wickes in solicitors' hands with guaranteed rental uplift. Weston Retail Park, Weston Super Mare 30,000 sq ft new store prelet to Wickes, subject to planning. Leisure Plaza, Milton Keynes Let short term pending obtaining planning for residential or supermarket use. High Street, Chiswick Planning application made for a new retail store plus ten flats. One further purchase is in lawyers' hands. FINANCING Sales of investment properties contributed to reductions in net debt to Â£115m (31.03.2003: Â£141m) and net gearing to 49% (31.03.2003: 59%). Recent increases in interest rates have reduced the Company's FRS13 liability. Net assets at 30 September 2003 would be reduced by Â£3.7m (31.03.2003: Â£5.1m), net of tax, or 12 pence per share (31.03.2003: 5p), if adjusted to reflect financial instruments on a fair value basis. OUTLOOK Helical is building up a portfolio of trading and development schemes which will stand it in good stead over the next five years. By judicious stock selection, I remain confident that Helical will continue to achieve steady growth in its net assets per share over the next two years whilst positioning itself for the next development cycle. John Southwell Chairman 27 November 2003 Independent Review Report to Helical Bar plc Introduction We have been instructed by the Company to review the financial information for the six months ended 30 September 2003 which comprises the profit and loss account, balance sheet, cash flow statement, statement of total recognised gains and losses, and the related notes 1 to 17. We have read the other information contained in the interim report which comprises only the Chairman's statement and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Our responsibilities do not extend to any other information. This report is made solely to the company, in accordance with guidance contained in APB Bulletin 1999/4 'Review of Interim Financial Information'. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority, which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 'Review of Interim Financial Information' issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 September 2003. Grant Thornton Chartered Accountants London 27 November 2003 Consolidated Profit and Loss Account For the half year to 30 September 2003 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Notes Â£000 Â£000 Â£000 Turnover (including share of joint ventures' turnover) 30,979 67,071 136,758 Less: share of joint ventures' turnover (744) (680) (1,566) _______ _______ _______ Turnover 1 30,235 66,391 135,192 Cost of sales (18,892) (49,937) (103,968) _______ _______ _______ Gross profit 1 11,343 16,454 31,224 Administrative expenses - Administration (2,839) (4,349) (6,391) - Negative goodwill - 6,362 6,362 _______ _______ _______ Operating profit 8,504 18,467 31,195 Share of operating profit of joint ventures 817 680 1,544 Profit on sale of investment properties 2 1,169 2,171 2,126 Loss on sale of subsidiary (56) - - _______ _______ _______ Profit on ordinary activities before interest 10,434 21,318 34,865 Net interest payable and similar charges 3 (3,986) (6,666) (9,638) _______ _______ _______ Profit on ordinary activities before taxation 6,448 14,652 25,227 Taxation 4 (2,384) (5,703) (7,660) _______ _______ _______ Profit on ordinary activities after taxation 4,064 8,949 17,567 Minority interest (117) (100) (160) _______ _______ _______ Profit for the period 3,947 8,849 17,407 Ordinary dividends - 6.6p (6.0p) 5 (1,795) (1,705) (4,275) _______ _______ _______ Retained profit for the period 2,152 7,144 13,132 _______ _______ _______ Earnings per 5p share 6 - basic 14.0p 31.1p 61.2p - fully diluted 13.6p 30.1p 59.2p Summary Consolidated Balance Sheet At 30 September 2003 Notes Unaudited Unaudited Audited At At At 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 Fixed assets 7 297,261 344,699 354,783 Stock 8 60,498 40,522 41,112 Investments 9 13 5,001 13 Debtors 29,626 25,171 25,793 Cash 10 14,563 32,484 16,137 Creditors falling due within one year (52,487) (56,703) (85,643) Creditors falling due after one year 11 (114,297) (140,406) (110,992) Provisions for liabilities and charges 12 (2,566) (4,416) (2,706) _______ _______ _______ Net assets 232,611 246,352 238,497 _______ _______ _______ Capital & reserves Called up share capital 13 1,438 1,496 1,496 Share premium account 35,271 35,271 35,271 Revaluation reserve 69,386 108,474 93,599 Capital redemption and other reserves 7,450 7,392 7,392 Profit and loss account 116,333 91,761 98,123 _______ _______ _______ Shareholders' funds 229,878 244,394 235,881 Minority interests 2,733 1,958 2,616 _______ _______ _______ 232,611 246,352 238,497 _______ _______ _______ _______ _______ _______ Shareholders' funds Attributable to equity interests 229,878 244,394 235,881 _______ _______ _______ Net assets per share basic 14 799p 817p 789p diluted 14 771p 788p 762p adjusted diluted 14 779p 802p 770p triple net 14 719p 708p 702p Summary Cash Flow Statement For the half year to 30 September 2003 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Notes Â£000 Â£000 Â£000 Net cash outflow from operating activities 15 (14,581) (23,802) (27,133) Returns on investment and servicing of finance (3,485) (6,087) (9,910) Taxation (3,036) (1,504) (3,945) Capital expenditure and financial investment 16 20,445 105,518 86,588 Acquisitions and disposals 37,719 (822) (841) Equity dividends paid (2,570) (30,765) (32,470) _______ _______ _______ Cash flow before management of liquid resources and financing 34,492 42,538 12,289 Management of liquid resources 4,271 13,051 28,634 Financing - decrease in debt (27,903) (85,539) (71,594) - refinancing costs (8) (13) (57) - purchase of shares (8,155) - - _______ _______ _______ Increase/(decrease) in cash 2,697 (29,963) (30,728) _______ _______ _______ Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash in the period 2,697 (29,963) (30,728) Cash flow from management of liquid resources (4,271) (13,051) (28,634) Cash flow from change in net debt 27,911 85,552 71,651 Debt arrangement expenses (79) (679) (783) _______ _______ _______ Movement in net debt in the period 26,258 41,859 11,506 Net debt at beginning of the period (140,893) (152,399) (152,399) _______ _______ _______ Net debt at end of the period (114,635) (110,540) (140,893) _______ _______ _______ Gearing 49% 45% 59% Statement of Total Recognised Gains and Losses For the half year to 30 September 2003 Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 Profit for the period after taxation 4,064 8,949 17,567 Minority interest (117) (100) (160) Revaluation of investment properties - subsidiaries - - (13,434) - joint ventures - - (470) Purchase of own shares (8,098) - - Minority interest in revaluation surplus - - (599) _______ _______ _______ Total recognised gains and losses (4,151) 8,849 2,904 _______ _______ _______ Notes to the Interim Statement 1. Turnover and gross profit on ordinary activities before taxation Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 _______ _______ _______ Turnover Trading property sales 2,075 230 2,588 Rental income 13,145 15,176 29,334 Developments 14,951 50,928 91,412 Other income 64 57 11,858 _______ _______ _______ 30,235 66,391 135,192 _______ _______ _______ _______ _______ _______ Gross profit Trading property sales 284 109 349 Net rental income 11,681 13,564 25,619 Developments (686) 2,724 4,630 Other net income 64 57 626 _______ _______ _______ Gross profit 11,343 16,454 31,224 Central overheads (2,839) (4,349) (6,391) Interest payable less receivable (3,986) (6,666) (9,638) Share of profit of joint ventures 817 680 1,544 _______ _______ _______ Profit before taxation, profit on sale of investment properties, loss on sale of subsidiary and negative goodwill 5,335 6,119 16,739 _______ _______ _______ 2. Sale of investment properties Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 _______ _______ _______ Net proceeds from the sale of investment properties 73,699 125,719 133,294 Book value (72,530) (123,548) (131,168) _______ _______ _______ Profit on sale of investment properties 1,169 2,171 2,126 _______ _______ _______ Net proceeds from the sale of investment properties and their associated book value include Â£41,000,000 of properties disposed of at book value on the sale of a subsidiary, Helical Properties (Capital House) Jersey Limited. 3. Net interest payable and similar charges Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 _______ _______ _______ Interest payable on bank loans and overdrafts 4,011 6,906 9,543 Finance arrangement costs 79 679 783 Other interest payable and similar charges 1,097 - 2,351 Interest capitalised (475) - (795) Interest receivable and similar income (726) (919) (2,244) _______ _______ _______ 3,986 6,666 9,638 _______ _______ _______ 4. Taxation on profit on ordinary activities Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 _______ _______ _______ The tax charge is based on the profit for the year and represents: - United Kingdom corporation tax at 30% (2002: 30%) 2,446 2,015 8,337 - Adjustments in respect of prior periods - - (2,847) _______ _______ _______ Current tax charge 2,446 2,015 5,490 Deferred tax - origination of timing differences (62) (1,996) 2,170 - reversal of timing differences - 5,684 - _______ _______ _______ Tax on profit on ordinary activities 2,384 5,703 7,660 _______ _______ _______ 5. Dividends Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 _______ _______ _______ Attributable to equity share capital Ordinary - interim payable 6.60p (2002: 6.00p) per share 1,795 1,705 1,705 - final paid 9.00p per share - - 2,570 _______ _______ _______ 1,795 1,705 4,275 _______ _______ _______ The interim dividend of 6.60p is payable on 31 December 2003 to shareholders on the register on 5 December 2003. 6. Earnings per share The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. Shares held by the ESOP, which has waived its entitlement to receive dividends, are treated as cancelled for the purposes of this calculation. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post tax effect of dividends on the assumed exercise of all dilutive options. Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below. Unaudited Unaudited Half Year To Half Year To 30 September 30 September 2003 2002 Earnings Weighted Per Earnings Weighted average Per Â£ average no of share Â£ no. of share shares amount shares amount pence pence _______ _______ ______ _______ _______ ______ Basic earnings per share 3,947,000 28,159,875 14.0 8,848,557 28,421,537 31.1 Dilutive effect of share options 863,723 1,022,383 _______ _______ ______ _______ _______ ______ Dilutive earnings per share 3,947,000 29,023,598 13.6 8,848,557 29,443,920 30.1 _______ _______ ______ _______ _______ ______ 7. Fixed assets Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Intangible Assets Goodwill 4,087 912 Tangible assets 543 614 Investments 9,973 9,011 Investment property 281,278 342,484 Investment in joint ventures - share of gross assets 18,843 23,244 - share of gross liabilities (17,463) (21,482) _______ _______ 297,261 354,783 _______ _______ 8. Stock Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Development sites 40,715 20,593 Properties held as trading stock 19,783 20,519 _______ _______ 60,498 41,112 _______ _______ Interest capitalised in respect of the development of sites is included in stock to the extent of Â£1,141,000 (31.03.2003: Â£1,141,000). Interest capitalised during the period in respect of development sites amounted to Â£475,000 (2002: Â£nil). 9. Current asset investments Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ UK listed investments at cost 13 13 _______ _______ 13 13 _______ _______ The market value of listed investments at 30.09.2003 was Â£13,000 (31.03.2003: Â£13,000). 10. Cash at bank and in hand Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Rent deposits and cash secured against debt repayable within one year 1,656 2,142 Cash held to fund future development costs 2,996 5,087 Free cash 9,911 8,908 _______ _______ 14,563 16,137 _______ _______ 11. Financing and financial instruments Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Bank overdraft and loans - maturity Due after more than one year 114,297 110,992 Due within one year 14,901 46,038 _______ _______ 129,198 157,030 _______ _______ Gearing Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Total borrowings 129,198 157,030 Cash (14,563) (16,137) _______ _______ Net borrowings 114,635 140,893 _______ _______ Net assets 232,611 238,497 Gearing 49% 59% Fair value of financial assets and financial liabilities Unaudited Unaudited Audited Audited At At At At 30 30 31 31 September September March March 2003 2003 2003 2003 Â£000 Â£000 Â£000 Â£000 _______ _______ _______ _______ Book Value Fair Value Book Value Fair Value Borrowings 129,885 130,927 157,788 159,127 Interest rate swaps - 103 - 555 Other financial instruments (223) 3,874 (223) 5,185 _______ _______ _______ _______ 129,662 134,904 157,565 164,867 _______ _______ _______ _______ The fair value of financial assets and financial liabilities represents the mark to market valuations at 30 September 2003 and 31 March 2003. The adjustment to net assets from a recognition of these values, net of tax relief, would be to reduce diluted net asset value per share by 12p (31.03.03: 15p). 12. Provision for liabilities and charges - deferred taxation Deferred taxation provided for in the financial statements is set out below: Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Accelerated capital allowances 2,979 3,124 Other timing differences 24 42 _______ _______ 3,003 3,166 Less: - discount (437) (460) _______ _______ Discounted provision for deferred tax 2,566 2,706 _______ _______ The Group has applied the provisions of FRS19 Deferred Tax, which requires that deferred tax be recognised as a liability or asset if the transactions or events that give the Group an obligation to pay more or less tax in the future have occurred by the balance sheet date. In accordance with FRS19, the Group makes full provision for timing differences other than revaluation gains and losses, which are primarily in respect of capital allowances on plant and machinery, industrial buildings allowances and tax losses. Amounts unprovided are: Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Unrealised capital gains 15,003 17,144 _______ _______ 15,003 17,144 _______ _______ No provision has been made for taxation which would accrue if the investment properties were sold at their revalued amounts. The adjustment to net assets resulting from a recognition of these amounts would be to reduce diluted net asset value per share by 48p (31.03.03: 53p). 13. Share capital Unaudited At Audited At 30 September 31 March 2003 2003 Â£000 Â£000 _______ _______ Authorised - 688,954,752 ordinary shares of 5p each 34,448 34,448 _______ _______ 34,448 34,448 _______ _______ Allotted, called up and fully paid Attributable to equity interests: - 28,766,525 ordinary shares of 5p each 1,438 1,496 _______ _______ 1,438 1,496 _______ _______ In the period to 30 September 2003 1,146,951 ordinary 5p shares were purchased for cancellation. Since 30 September 2003 a further 75,000 ordinary 5p shares have been purchased for cancellation. Share options At 30 September 2003 and 31 March 2003 options over 2,553,323 new ordinary shares in the Company and 1,361,939 purchased shares held by the ESOP had been granted to directors and employees under the Company's share option schemes. 14. Net assets per share Number of p.p.s. Change Shares since Â£000 000's 31.03.2003 + % _______ _______ _______ _______ Net asset value ('NAV') 229,878 28,767 799 1.3 Add: potential exercise of options 11,524 2,553 (28) _______ _______ _______ _______ Diluted NAV 241,402 31,320 771 1.2 Adjustment for: - capital allowances provided for but unlikely to be clawed back 2,566 8 _______ _______ _______ _______ Adjusted diluted NAV 243,968 31,320 779 1.2 Adjustment for: - potential capital gains unprovided for (15,003) (48) - mark to market value of interest rate hedging agreements (3,669) (12) _______ _______ _______ _______ Triple net NAV 225,296 31,320 719 2.4 _______ _______ _______ _______ 15. Reconciliation of operating profit to net cash flow from operating activities Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 Operating profit 8,504 18,467 31,195 Depreciation of fixed assets 109 117 230 Loss on sale of fixed assets 6 39 38 Amortisation of goodwill 50 18 51 Provision against investments (75) - - Negative goodwill - (6,362) (6,362) Dividend from joint ventures 246 150 150 Increase in debtors (4,633) (3,882) (3,704) Increase/(decrease) in creditors 123 (21,413) (37,999) Increase in stocks (18,911) (10,936) (10,732) _______ _______ _______ Net cash outflow from operating activities (14,581) (23,802) (27,133) _______ _______ _______ 16. Capital expenditure and financial investment Unaudited Unaudited Audited Half Year To Half Year To Year To 30 September 30 September 31 March 2003 2002 2003 Â£000 Â£000 Â£000 Purchase of property (11,323) (15,098) (47,175) Sale of property 32,699 125,719 133,295 Purchase of fixed assets (48) (148) (152) Sale of fixed assets 4 45 44 Sale of investments (887) (5,000) 576 _______ _______ _______ 20,445 105,518 86,588 _______ _______ _______ 17. Notes to the Interim Statement The interim statement was approved by the Board of Directors on 26 November 2003. The foregoing financial information does not represent full accounts within the meaning of S.240 of the Companies Act 1985, and has been reviewed but not audited by the auditors, nor filed with the Registrar of Companies. The results for the 12 months to 31 March 2003 are an abridged version of the full accounts which received an unqualified auditor's report and have been filed with the Registrar of Companies. This statement is being sent to shareholders and will be available from the Company's Registered Office at 11-15 Farm Street, London, W1J 5RS. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Helical (HLCL)

Full Archive

UK 100

Latest directors dealings

2 days ago IntegraFin Holding
2 days ago Spirent Communications
2 days ago CRH (CDI)
2 days ago Bezant Resources
2 days ago EJF Investments Ltd NPV

All directors dealings today