TIDMHLCL
RNS Number : 0895E
Helical Bar PLC
25 May 2012
25 May 2012
H E L I C A L B A R P L C
("Helical"/"Company"/"Group")
Unaudited
P r e l i m i n a r y R e s u l t s
For the year to 31 March 2012
Financial Highlights
-- Profit before tax of GBP7.4m (2011: loss of GBP6.3m).
-- Group's share of net rental income up 29% to GBP22.9m (2011: GBP17.8m).
-- Development profits of GBP0.7m (2011: loss of GBP16.6m).
-- Net gain on sale and revaluation of investment properties of GBP3.3m (2011: GBP7.5m).
-- Diluted EPRA earnings per share of 3.4p (2011: loss of 6.4p).
-- Diluted EPRA net asset value per share down 1% to 250p (2011: 253p).
-- GBP130m of new bank facilities agreed during the year,
including a GBP100m revolving credit facility with RBS. A further
GBP32m has been agreed since the year end. As a result, the average
maturity of the Group's debt is 2.7 years (2011: 2.1 years) at an
average cost of debt of 4.10% (2011: 4.35%).
-- Group's share of property portfolio GBP573m (2011: GBP532m).
-- Ratio of net borrowings to value of property portfolio of 46% (2011: 45%).
-- Current cash and undrawn bank facilities of over GBP65m.
-- Final dividend proposed of 3.40p per share taking total
dividends for the year to 5.15p (2011: 4.90p), up 5%.
Operational Highlights
-- Acquisition of GBP100m of investment assets, including Corby
Town Centre, Hammersmith, Basildon and Chiswick, increasing the
balance of income producing assets to development stock to 69:31
demonstrating on-going progress towards our 75:25 target.
-- Sales of GBP76m achieved during the period (GBP15m of which
was non-income producing) plus the recovery of GBP16m of cash
through the sale of 50% of Europa Centralna, Gliwice, Poland.
-- Further sales agreed of GBP34m, all of which are non-income producing.
-- Planning consents achieved at:
o Mitre Square, London EC3
o Fulham Wharf, London SW6
o Parkgate Shirley, West Midlands
o Milton, Cambridgeshire
o Exeter, Devon
o Tyseley, Birmingham
o Stockport, Greater Manchester
o Great Alne, Warwickshire
-- Planning application made at Barts Square, London EC1.
-- Planning application to be made in respect of White City in summer 2012.
Increased London activities
-- 112,000 sq ft of office space now let at 200 Aldersgate, EC1,
with additional 35,000 sq ft of basement space let to Virgin
Active.
-- Planning consent achieved at Mitre Square, EC3 for 273,000 sq
ft NIA of offices and 3,000 sq ft of retail/restaurant use.
-- Good progress at Barts Square, EC1, with planning submitted
for a new urban mixed use scheme comprising circa 226,000 sq ft NIA
of offices, 202,000 sq ft of residential and 24,000 sq ft of
retail/restaurant space.
-- At Fulham Wharf, SW6 planning has been received for a 100,000
sq ft foodstore, together with 463 residential units (590,000 sq
ft), on behalf of landowner Sainsbury's
-- At White City, W12 plans have been drawn up for a residential
led mixed use scheme, comprising c.1.25 million sq ft of
residential, 210,000 sq ft of commercial and 70,000 sq ft of
retail/leisure uses with planning intended for submission in July
2012.
Retail Developments
-- At Parkgate, Shirley, West Midlands construction is due to
commence on an 85,000 sq ft Asda, 72,000 sq ft of retail and circa
135 apartments and townhouses.
-- Helical Retail is actively pursuing a large number of
potential foodstore sites around the UK, working closely with the
major food retailers.
Poland
-- 50% of the 710,000 sq ft Europa Centralna development, in
Gliwice, Poland, sold to an institutional client of Standard Life,
returning GBP16m cash to Helical.
-- Scheme is currently 70% pre-let to tenants such as Tesco,
H&M and Castorama and is anticipated to complete in October
2012.
Commenting on the results, Michael Slade, Chief Executive,
said:
"We have performed strongly over the year and the continued
efforts to address the imbalance in our business by increasing the
Company's weighting towards income producing properties has been
vindicated by Helical's return to profitability. Our ability to
outperform our peers in the future will depend upon the strength of
our development pipeline and it is that part of the business that
offers the greatest opportunity for growth. We are increasingly
redirecting our hard earned equity to London and the South-East,
markets which currently represent 47% of our portfolio. The next
few years are all about Central London and happily that is where we
hold our most exciting assets. The prospects for substantial
profits in respect of our London and retail developments provide
cause for optimism for the future performance of the Company."
For further information, please contact:
Helical Bar plc 020 7629 0113
Michael Slade (Chief Executive)
Nigel McNair Scott (Finance Director)
Address: 11-15 Farm Street, London W1J 5RS
Website: www.helical.co.uk
FTI Consulting 020 7831 3113
Stephanie Highett/Dido Laurimore/Daniel O'Donnell
Financial Highlights
Year To Year To
31 March 31 March
Notes 2012 2011
Adjusted Income Statement GBPm GBPm
Group's share of net rental income 1 22.9 17.8
Development profit/(loss) 0.7 (16.6)
Trading property loss - (0.4)
Profit before property writedowns, investments
gains and tax 8.6 2.9
Provisions against trading and development
stock (4.5) (14.9)
Gains on sale and revaluation of investment
properties 3.3 7.5
Impairment of available-for-sale assets - (1.8)
------------------------------------------------ ------- ------------ ----------
Profit/(loss) before tax 7.4 (6.3)
------------------------------------------------ ------- ------------ ----------
Earnings and Dividends pence pence
Basic earnings/(loss) per share 6.5 (3.6)
Diluted earnings/(loss) 6.5 (3.6)
Diluted EPRA earnings/(loss) per share 2 3.4 (6.4)
Dividends per share paid in year 3 4.9 2.0
At 31 March At 31
2012 March
2011
GBPm
Adjusted Balance Sheet GBPm
Value of investment portfolio 326.9 271.9
Trading and development stock at directors' 132.8 180.0
value
Group's share of property portfolio held 112.9 80.3
in joint ventures
------------ ----------
4 572.6 532.2
------------ ----------
Net debt 227.8 206.1
Group's share of net debt of joint ventures 36.4 35.2
------------ ----------
Group's share of total net debt 264.2 241.3
Net assets 253.7 255.4
Diluted EPRA net assets per share 4 250p 253p
Ratio of net debt to property portfolio 46% 45%
Net gearing 5 104% 94%
Notes:
1. Includes Group's share of net rental income of joint ventures
of GBP5.1m (2011: GBP3.6m).
2. Calculated in accordance with IAS 33 and the best practice
recommendations of the European Public Real Estate Association
("EPRA") (see note 8 of the Preliminary Announcement).
3. Excludes the final dividend of 3.4p per share payable, if approved, in July 2012.
4. Includes the trading and development stock surplus of GBP34.5m (2011: GBP32.4m).
5. Net gearing is the ratio of net debt, including the Group's
share of net borrowings of joint ventures, to net assets.
Chief Executive's Statement
In the year to 31 March 2012 we continued the process of
rebalancing our portfolio between income producing investment
assets and non-income producing development sites. In the economic
environment we find ourselves in today, we believe this will help
deliver long term shareholder value through combining the twin
drivers of an investment portfolio generating significant cash
surpluses and a London centric development programme. Applied
together, these portfolios offer defensive qualities much needed in
this uncertain world, whilst providing the potential to deliver
outperformance in the future.
Strategy
Our prime objective is to maximise returns for shareholders
through income returns, development and trading profits and capital
growth. Our strategy for achieving this is to:
- maintain and expand our investment portfolio, providing a
blend of high yielding retail, office and industrial property which
offers considerable opportunity to increase income and enhance
capital values through proactive asset management and skilful stock
selection;
- have circa 75% of our gross property assets in the investment
portfolio creating positive net cash flow for the business which
exceeds our net financing costs, administration costs and
dividends;
- carry out London based redevelopments, whether new build or
refurbishments, creating value through land assembly, planning and
implementation in the office, residential, mixed use and retail
sectors;
- carry out pre-let regional foodstore and retail developments;
- maximise returns by minimising the use of equity in development situations; and,
- reduce exposure to non-core assets i.e. non-UK assets and retirement villages.
Progress
During the year we made significant progress in each of these
key strategic areas. We have sold GBP50m of investment assets and
GBP26m of development sites, recovered GBP16m of cash through the
sale of 50 per cent of our retail development at Gliwice in Poland
and re-cycled these proceeds in over GBP100m of investment assets,
increasing our annualised net rental income from GBP23m to circa
GBP26m. We have also obtained over 850,000 sq ft of planning
permissions at our office development at Mitre Square, our
foodstore scheme at Fulham Wharf, our retail schemes at Shirley and
Tyseley and our industrial scheme at Stockport and for over 850
residential units at Fulham Wharf, Shirley and our retirement
villages at Great Alne, Milton and Exeter. More recently, we have
submitted a planning application for our major mixed use scheme at
Barts Square and intend to submit a planning application in respect
of our scheme at White City later this summer.
The impact of this activity is clearly illustrated in the annual
results for the year to 31 March 2012, with a 29% increase in the
Group's share of net rental income to GBP22.9m (2011: GBP17.8m), a
development profit of GBP0.7m (2011: loss of GBP16.6m), a net gain
on the sale and revaluation of the investment portfolio of GBP3.3m
(2011: GBP7.5m) and a pre-tax profit of GBP7.4m (2011: loss of
GBP6.3m). EPRA earnings per share were 3.4p (2011: loss of 6.4p).
This return to profitability encourages us to propose an increased
final dividend of 3.40p (2011: 3.15p) per share, up 8% on 2011,
taking the total dividend to 5.15p (2011: 4.90p). Our property
portfolio delivered an ungeared total return of 5.6% (2011: 2.7%).
EPRA net asset value per share fell marginally to 250p (2011:
253p).
Future
We live in a world where the news from Europe is dominating the
headlines with daily warnings of the potential consequences of the
impact of a collapsing Eurozone economy. Whatever the end result,
there will be repercussions on the UK economy and our focus is on
ensuring that the Company is well placed to ride out the storm that
seems to be gathering.
We have performed strongly over the year and the continued
effort to address the imbalance in our business by increasing the
Company's weighting towards income producing properties has been
vindicated by Helical's return to profitability. Our ability to
outperform our peers in the future will depend upon the strength of
our development pipeline and it is that part of the business that
offers the greatest opportunity for growth. We are increasingly
redirecting our hard earned equity to London and the South-East,
markets which currently represent 47% of our portfolio. The next
few years are all about Central London and happily that is where we
hold our most exciting assets. The prospects for substantial
profits in respect of our London and retail developments provide
cause for optimism for the future performance of the Company.
Michael Slade
Chief Executive
25 May 2012
Financial Review
Review of the Year
In the year to 31 March 2012 we made good progress towards the
Company's stated target balance between the income producing
investment portfolio and development stock of 75:25. Sales of over
GBP50m of investment assets, where our asset management initiatives
were completed, added to the sale of over GBP26m of trading
properties and development sites. These, together with the recovery
of GBP16m of cash through the sale of a 50% interest in our largest
Polish retail development, provided funds for the acquisition of
over GBP100m of new investment assets. This net new investment of
over GBP52m, including capital expenditure, and the uplift in
values at the year-end of GBP4m, took Helical's interest in its
investment portfolio to GBP394m, including its share of assets held
in joint venture, up from GBP338m. The impact of this increase in
investment assets is seen in the Income Statement where net rents,
including assets held in joint venture, increased from GBP17.8m to
GBP22.9m, a 29% increase.
Deepening economic concerns over the Eurozone and its potential
impact on the UK led to decreased valuations for a number of
development sites held by the Company and this has been reflected
in a write-down of GBP4.5m (2011: GBP14.9m). However, this was more
than offset by profits made on the remainder of our development
portfolio and the Company posted its first net development profit
since 2008 of GBP0.7m (2011: loss GBP16.6m).
Administration costs, before performance related awards,
increased by 6%. Net finance costs rose from GBP6.3m to GBP7.8m,
reflecting the increase in the size of the investment portfolio.
The downward trend in interest rates between April 2011 and March
2012 gave rise to a small loss when comparing the fair value of the
Company's derivative financial instruments to their book value, but
as a result of the cancellation of a number of these instruments
during the year, the remaining fair value liability on the
Company's balance sheet is now just GBP3m. During the year the
Company was exposed to exchange rate movements on its share of the
assets and liabilities relating to Poland and fluctuating rates
generated a loss of GBP1.1m.
The net result for the year was a pre-tax profit of GBP7.4m
compared to a GBP6.3m loss in the previous year. This profit
resulted in a diluted EPRA earnings per share of 3.4p (2011: loss
of 6.4p) which allows the Company to fund a total dividend of 5.15p
(2011: 4.90p), of which 3.40p is recommended to shareholders as a
final dividend, payable on 26 July 2012.
The total comprehensive income of GBP4m added 3.43p to the
diluted EPRA net assets per share. However, the dividend paid in
the year of 4.90p reduced this to 250p.
During the year, the Company entered into a number of new bank
facilities totalling GBP130m, which were used to refinance existing
assets and fund its purchase of new investment properties. The
principal new facility was a five year GBP100m revolving credit
facility with The Royal Bank of Scotland plc which was used to
refinance its recent acquisition of Corby Town Centre, consolidate
a number of other facilities with the bank and provide capacity for
future acquisitions. The Company also entered into new investment
facilities with Barclays enabling it to acquire properties in
Newmarket and Hammersmith and, since the year end, refinanced its
investment at Shepherd's Building, Shepherd's Bush in a new three
year facility. HSBC provided a development facility enabling our
retirement village at Durrants Village to be built out. In
addition, new investment facilities were agreed with Nationwide and
Clydesdale Bank during the year. Despite the perception that bank
finance is difficult to obtain, we continue to receive strong
support from our banks. As at 25 May 2012, Helical's average
interest rate was 4.10%.
The Company faces the future with a sound financial base, having
increased its income stream by replacing low growth assets with
higher yielding retail properties, refinanced maturing debt with
longer term bank facilities and reduced its exposure to any future
interest rate rises by entering into new hedging instruments,
taking advantage of current low interest rates. In addition, and
with the backing of the major property lending banks, the Company
has access to a number of new bank facilities which, when added to
its cash balances, provides a level of liquidity and resources to
enable it to deal with the current economic uncertainties and to
continue to rebalance its portfolio.
Net rental income
The Group's share of net rental income increased to GBP22.9m
(2011:GBP17.8m) including its share of net rental income of joint
ventures. Head rents payable to freeholders increased following the
acquisition of Newmarket on a long leasehold interest. Property
overheads increased to GBP5.5m (2011: GBP5.3m). Tenant bad debts
remain low at 2% of gross rental income.
2012 2011 2010
------------------------------------------------------- -------- -------- --------
Net rental income GBP000 GBP000 GBP000
------------------------------------------------------- -------- -------- --------
Gross rental income -Company 23,058 18,590 18,881
------------------------------------------------------- -------- -------- --------
-in joint ventures 6,645 5,531 1,103
------------------------------------------------------- -------- -------- --------
Total gross rental income 29,703 24,121 19,984
------------------------------------------------------- -------- -------- --------
Head rents payable (1,266) (1,024) (143)
------------------------------------------------------- -------- -------- --------
Property overheads (5,501) (5,320) (4,978)
------------------------------------------------------- -------- -------- --------
Net rental income 22,936 17,777 14,863
------------------------------------------------------- -------- -------- --------
Development profits
Total net development profits of GBP0.7m (2011: loss of
GBP16.6m) were generated after deducting write-offs and provisions
of GBP4.5m (2011: GBP14.9m). Development profits were generated at
the retirement village scheme at Bramshott Place, Liphook, at our
mixed use scheme at Fulham Wharf, London SW6, at our office
development at Tilgate, Crawley and in Poland. In addition, we
recognised the remaining profit in respect of our development
management role at Riverbank House, London EC4 and fees for our
development management roles at 200 Aldersgate Street, London EC1
and Barts Square, EC1. However, during the year we wrote down our
sites at Southall, Stockport and Wolverhampton, all of which have
subsequently been sold at their written down value. We have also
written down to net realisable value our retirement village site at
Exeter and our partially let office development at The Hub,
Glasgow.
Share of results of joint ventures
These joint ventures include our share of the investment
properties at Clyde Shopping Centre, Barts Square and our
development schemes at Europa Centralna Gliwice, Poland; Shirley
Town Centre, West Midlands; Leisure Plaza, Milton Keynes and King
Street Hammersmith. During the year, the Group's share of results
from joint ventures was GBP2.5m (2011: GBP2.9m) mainly due to its
share of net rental income and the net revaluation surplus from its
investment in the Clyde Shopping Centre and Barts Square.
Gain on sale and revaluation of investment properties
During the year the Group sold investment properties with book
values of GBP50.8m (2011: GBP27.9m) on which it made a loss of
GBP0.4m (2011: gain of GBP4.8m). The properties sold included 61
Southwark Street, Aldridge, Hawtin Park, East Grinstead, Fleet,
Hailsham, Motherwell and Woolwich. The revaluation surplus for the
year was GBP3.7m (2011: GBP2.7m).
Finance costs, finance income and derivative financial
instruments
Interest payable on bank loans including our share of loans on
assets held in joint ventures but before capitalised interest,
increased from GBP12.9m to GBP13.9m due to a higher level of
average debt during the year. Capitalised interest reduced from
GBP4.2m to GBP3.3m reflecting the lower level of development stock
held during the year. As a consequence of these two movements,
total finance costs increased by GBP1.9m. Finance income earned on
cash deposits reduced marginally to GBP0.6m (2011: GBP0.7m).
2012 2011 2010
------------------------------------------------------------------- -------- -------- --------
Net finance costs (Group's share) GBP000 GBP000 GBP000
------------------------------------------------------------------- -------- -------- --------
Interest payable on bank loans -
Company 10,808 9,690 10,956
------------------------------------------------------------------- -------- -------- --------
- in joint ventures 2,223 1,693 490
------------------------------------------------------------------- -------- -------- --------
Other interest payable and finance
arrangement costs 901 1,481 1,568
------------------------------------------------------------------- -------- -------- --------
Interest capitalised (3,300) (4,179) (3,196)
------------------------------------------------------------------- -------- -------- --------
Finance costs 10,632 8,685 9,818
------------------------------------------------------------------- -------- -------- --------
Interest receivable (583) (652) (1,039)
--------------------- ------ ------ --------
Derivative financial instruments have been fair valued on a mark
to market basis and a charge of GBP0.3m (2011: credit of GBP1.8m)
has been recognised in the Income Statement.
Taxation
The deferred tax asset is principally derived from tax losses
which the Group believe will be utilised against profits in the
foreseeable future.
Dividends
The Board is recommending to shareholders at the Annual General
Meeting on 24 July 2012 a final dividend of 3.40p per share to be
paid on 26 July 2012 to shareholders on the register on 29 June
2012. This final dividend, amounting to GBP3,972,753 has not been
included as a liability at 31 March 2012, in accordance with
IFRS.
During the year the Group paid the 2011 final dividend of 3.15p
per share and an interim dividend for 2012 of 1.75p per share.
2012 2011 2010
-------------------- ------ ------ ------
Dividends pence pence pence
-------------------- ------ ------ ------
1(st) interim 1.75 1.75 1.75
-------------------- ------ ------ ------
2(nd) interim - - 2.75
-------------------- ------ ------ ------
Prior period final 3.15 0.25 2.75
-------------------- ------ ------ ------
Total 4.90 2.00 7.25
-------------------- ------ ------ ------
Earnings per share
Earnings and diluted earnings per share in the year to 31 March
2012 were both 6.5p (2011: loss per share of 3.6p) per share.
Diluted EPRA earnings per share increased to 3.4p (2011: loss of
6.4p).
2012 2011 2010
------------------------------ ------ ------ ------
Earnings per share pence pence pence
------------------------------ ------ ------ ------
Earnings/(loss) per share 6.5 (3.6) 9.1
------------------------------ ------ ------ ------
Diluted earnings/(loss) per
share 6.5 (3.6) 9.1
------------------------------ ------ ------ ------
Diluted EPRA earnings/(loss)
per share 3.4 (6.4) (0.1)
------------------------------ ------ ------ ------
Earnings per share calculations are based on the weighted
average number of shares held in the year. This is a different
basis to the net asset value per share calculations which are based
on the number of shares at 31 March 2012.
Consolidated balance sheet
Investment portfolio
During the year investment properties with a book value of
GBP51m were sold. New properties of GBP100m were acquired
(including offices in Hammersmith and Chiswick and retail assets in
Corby and Basildon). In addition, around GBP2m of capital
expenditure was spent on refurbishing various office, industrial
and retail buildings. At 31 March 2012 there was a revaluation
surplus, net of joint venture share, of GBP3.7m (2011: GBP2.7m) on
the investment portfolio.
2012 2011 2010
--------------------------------------------- --------- --------- ---------
Investment portfolio GBP000 GBP000 GBP000
--------------------------------------------- --------- --------- ---------
Valuation at 1 April 271,876 219,901 241,287
--------------------------------------------- --------- --------- ---------
Additions at cost 102,750 77,864 4,192
--------------------------------------------- --------- --------- ---------
Disposals (50,768) (27,902) (40,438)
--------------------------------------------- --------- --------- ---------
Joint venture partners share of revaluation (646) (657) 1,756
--------------------------------------------- --------- --------- ---------
Revaluation 3,664 2,670 13,104
--------------------------------------------- --------- --------- ---------
Valuation at 31 March 326,876 271,876 219,901
--------------------------------------------- --------- --------- ---------
Net asset values
Net assets have decreased by GBP1.7m. This has led to a small
decrease in diluted net assets per share to 217p (2011: 218p).
Taking into account the directors' valuation of trading and
development stock of GBP34.5m (2011: GBP32.4m), the diluted EPRA
net assets per share decreased by 1% to 250p (2011: 253p).
2012 2011 2010
------------------------------------- ------ ------ ------
Net asset values per ordinary share pence pence pence
------------------------------------- ------ ------ ------
Diluted 217 218 228
------------------------------------- ------ ------ ------
Adjusted diluted 221 225 241
------------------------------------- ------ ------ ------
Diluted EPRA 250 253 272
------------------------------------- ------ ------ ------
Diluted EPRA triple NAV 246 246 259
------------------------------------- ------ ------ ------
The net asset value per share calculations are included in Note
21 of this statement.
Net debt and financial risk
Net debt held by the Company has increased during the year from
GBP206.1m to GBP227.8m. Including the Group's share of net debt of
its joint ventures the Group's share of total net debt has
increased from GBP241.3m to GBP264.2m.
2012 2011 2010
---------------------------- ---------- ---------- ----------
Net debt and gearing
---------------------------- ---------- ---------- ----------
Net debt - Company GBP227.8m GBP206.1m GBP203.0m
---------------------------- ---------- ---------- ----------
Net debt - Including joint GBP264.2m GBP241.3m GBP228.8m
ventures
---------------------------- ---------- ---------- ----------
Gearing - Company 90% 81% 84%
---------------------------- ---------- ---------- ----------
Gearing - Including joint
ventures 104% 94% 94%
The fair value of the Group's investment, trading and
development portfolio at 31 March 2012 was GBP459.7m (2011:
GBP451.9m). Including the Group's share of the property portfolio
held in joint ventures the fair value of the total portfolio was
GBP572.6m (2011: GBP532.2m). With the Group's share of total net
debt of GBP264.2m (2011: GBP241.3m) the ratio of net debt to the
value of the Group's share of the property portfolio was 46% (2011:
45%).
The Group seeks to manage financial risk by ensuring that there
is sufficient financial liquidity to meet foreseeable needs and to
invest surplus cash safely and profitably. The Group has over
GBP65m (2011: GBP95m) of cash and agreed, undrawn, committed bank
facilities as well as GBP16m (2011: GBP59m) of uncharged property
on which it could borrow funds.
At 31 March 2012 the Group had GBP120.3m (2011: GBP75.3m) of
fixed rate debt with an average effective interest rate of 4.80%
(2011: 5.77%) and an average length of 1.9 years (2011: 2.3 years),
and GBP142.9m of floating rate debt with an average effective
interest rate of 3.47% (2011: 2.97%). In addition, the Group had
GBP125m of interest rate caps at an average of 4.7% (2011: GBP91m
at 4.9%). The average maturity of the Group's debt is 2.7 years
(2011: 2.1 years).
As at 25 May 2012, Helical's average interest rate was
4.10%.
Nigel McNair Scott
Finance Director
25 May 2012
Our Business
Helical Bar is a property development and investment company;
our aim is to make excellent returns for our shareholders (which
include the management team who own 16% of the Company) through a
wide variety of high margin activities. While our core areas
include London office and mixed use development, we are able to
deploy capital to whichever part of the property market we believe
offers the best returns at different points in the cycle.
The tables below describes how we allocate our resources and the
split between investment and development. The property portfolio
schedules at the end of this business review explain which
properties sit in each category and give more detail on these
properties.
Our Portfolio - how we invest our capital
Out
In of
London Provincial Town Town Change Mixed Retirement
Offices Offices Retail Retail Poland Industrial of Use Use Village Total
% % % % % % % % % %
Investment 22.0 1.5 41.5 3.0 - 4.0 - - 1.0 73.0
Trading
and
development 0.5 2.0 2.0 0.5 7.0 1.0 1.0 1.0 12.0 27.0
------------- ----------- ----------- ---------- ------- ------- ------- ---------------- ------ ------------- ------
Total 22.5 3.5 43.5 3.5 7.0 5.0 1.0 1.0 13.0 100.0
------------- ----------- ----------- ---------- ------- ------- ------- ---------------- ------ ------------- ------
Note: excludes the surplus arising from the directors' valuation
of trading and development stock.
Investment (Helical's share)
------------------------------ ------------------------
Value Equity Equity
GBPm GBPm %
------------------------------ ------ ------- -------
London office 113.6 44.4 29.7
------------------------------ ------ ------- -------
Provincial office 7.8 2.7 1.8
------------------------------ ------ ------- -------
Industrial 20.3 6.5 4.3
------------------------------ ------ ------- -------
In town retail 213.6 84.7 56.6
------------------------------ ------ ------- -------
Out of town retail 14.1 6.4 4.3
------------------------------ ------ ------- -------
Retirement village 5.0 5.0 3.3
------------------------------ ------ ------- -------
Total 374.4 149.7 100.0
------------------------------ ------ ------- -------
Note: Barts Square is held as an investment.
Trading and Development Portfolio (Helical's Share)
Book Value Fair Value Surplus Equity (from Equity
Over Book Fair Value)
GBPm GBPm Value GBPm %
GBPm
-------------------- ----------- ----------- ----------- ------------- -------
London office 2.6 8.6 6.0 8.6 9.3
-------------------- ----------- ----------- ----------- ------------- -------
Provincial office 10.3 10.4 0.1 -1.6 -1.7
-------------------- ----------- ----------- ----------- ------------- -------
Industrial 6.2 6.2 . 3.1 3.4
-------------------- ----------- ----------- ----------- ------------- -------
In town retail 10.0 11.3 1.3 9.2 9.9
-------------------- ----------- ----------- ----------- ------------- -------
Out of town retail 3.6 3.6 . 3.6 3.9
-------------------- ----------- ----------- ----------- ------------- -------
Retirement village 60.1 73.9 13.8 34.1 36.7
-------------------- ----------- ----------- ----------- ------------- -------
Change of use 4.4 6.4 2.0 4.4 4.7
-------------------- ----------- ----------- ----------- ------------- -------
Mixed use 4.6 15.1 10.5 12.1 13.0
-------------------- ----------- ----------- ----------- ------------- -------
Poland 42.0 42.8 0.8 19.3 20.8
-------------------- ----------- ----------- ----------- ------------- -------
Total 143.8 178.3 34.5 92.8 100.0
-------------------- ----------- ----------- ----------- ------------- -------
Investment Strategy
The investment portfolio, which is mainly let and income
producing, has two main purposes:
1. To provide a steady income stream to cover overheads, dividends and interest;
2. To produce above average capital growth over the cycle to
contribute to growth in the Company's net asset value.
We seek to achieve these aims through careful, disciplined stock
picking, generally of multi-let London offices, shopping centres,
industrial estates and mixed portfolios. Our key aim is to be
confident that there is sustainable demand from occupiers for all
of our assets.
We frequently reposition our properties through significant
refurbishment or extensions. We work closely with our tenants to
maintain maximum occupancy and these relationships often lead to
opportunities to increase value through re-gearing leases or moving
tenants within a building as they expand or contract. Finally, at
certain points in the cycle we may buy entirely vacant buildings
(such as the Morgans, Cardiff or Shepherds Building, London W14)
with a view to carrying out a major refurbishment, where we are
confident that the occupational market is strong enough to allow
the whole building to be let quickly.
Development Strategy
We employ a wide variety of approaches in our development
activities. The principal aim is to be 'equity lean' to maximise
our share of profits by leveraging our capital employed and
managing the risks inherent in the development process given the
size of our balance sheet. A summary of the alternative ways of
participating in development schemes is as follows:
o Participate in profit share situations where no equity is
required. We will minimise our ongoing fee to maximise our profit
share so that our interests are completely aligned with our
partners e.g. Fulham Wharf and 200 Aldersgate.
o Reduce up front equity required by entering into conditional
contracts or options e.g. Mitre Square, where we have entered into
conditional contracts, and Helical Retail.
o Co-investment alongside a larger partner where we have a
minority stake e.g. Barts Square, where we will receive a
"waterfall" above a hurdle which skews super profit towards Helical
and White City, where our equity contribution entitles us to an
enhanced profit share.
o Traditional forward funding. This requires the institution to
want the cost overrun risk to be covered by the developer in return
for a commensurate profit participation.
Year to 31 March 2012
Trading and Development Portfolio
Profits from the Group's development programme of GBP5.2m (2011:
losses of GBP1.7m) were offset by provisions of GBP4.5m (2011:
GBP14.9m) made against the carrying value of development stock.
Profits of GBP2.1m were generated at our retirement village scheme
at Bramshott Place, Liphook, and our office development in Crawley
(GBP0.5m) and development management fees received in respect of
Fulham Wharf, 200 Aldersgate and Barts Square, totalling GBP2.1m.
However, we wrote down a number of sites to their net realisable
values and these provisions, totalling GBP4.5m, reduced the net
development profits to GBP0.7m.
Central London Offices
The focus of the Group over the last year has been on those
schemes recently completed or under construction, letting up vacant
space, and progressing a small number of major schemes for the
future.
200 Aldersgate Street, London EC1
Originally developed in the late 1980's, this 370,000 sq ft
office building had remained vacant since Clifford Chance left for
Canary Wharf in 2005. In 2010, we were appointed under an asset and
development management agreement by the owners of the building to
advise on a refurbishment and re-letting programme. We have
refreshed and re-clad parts of the building, creating a "vertical
village" for office users. Having completed the works in November
2010 the building was launched in January 2011 and since then we
have completed twelve office lettings totalling 112,000 sq ft In
addition we have let 35,000 sq ft of basement to Virgin Active who
are opening a new flagship Classic Club gym in June. The remaining
space continues to attract interest from potential tenants and we
are optimistic that there will be further letting success in 2012.
Upon the completion of a successful letting programme and
subsequent sale of the building by the current owners, we will
receive a development management profit share to supplement the
annual fee that we currently receive.
Mitre Square, London EC3
At Mitre Square, London EC3 we have signed agreements to
purchase two adjoining sites from the City of London and SFL2
Limited (previously Ansbacher). The S.106 agreement which enabled
the planning permission to be issued was signed last June. In
addition we have been working with the City to obtain a Section 237
TCPA 1990 to overcome any injunctable rights to light. We now
intend to proceed with the demolition of the existing buildings to
facilitate the construction of a new building comprising offices of
273,000 sq ft NIA and 3,000 sq ft of retail/restaurant use. This
construction will not commence until a substantial pre-let is
agreed or a forward funding is obtained.
Barts Square, London EC1
In joint venture with The Baupost Group LLC (Baupost 66.6%,
Helical 33.3%) 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. The current buildings comprise 420,000 sq ft let
to the NHS for circa GBP3.5m per annum on a number of short term
leases that expire between 2014 and 2016. In February 2012 we
submitted a planning application for a new urban mixed use quarter
integrating this historic location into a high quality office,
residential and retail scheme. The proposed scheme seeks to retain
some of the existing buildings and complement them with a
sympathetic redevelopment of the site which will comprise circa
226,000 sq ft NIA of offices, 202,000 NIA sq ft of residential
comprising 216 apartments and 24,000 sq ft of retail/restaurant
use. We are hopeful that planning permission will be obtained by
the end of 2012. We estimate a total development value of circa
GBP460m.
West London Mixed Use
White City, London W12
At White City we intend submitting an outline planning
application in July 2012 for a residential led mixed use scheme
immediately adjacent to White City underground station. The Eric
Parry design master plan comprises c. 1.25 million sq ft of
residential, 200,000 sq ft of commercial and 70,000 sq ft of
retail/leisure/community uses. The landscaping proposals include
the creation of a new bridge link from Wood Lane opening out into
an urban square surrounded by local retailers and cafes. A large
publically accessible garden square will also be created together
with private communal courtyard gardens for the residents. Assuming
planning consent is granted by the end of 2012, we hope to be in a
position to make a start on site at the end of 2013.
Fulham Wharf, London SW6
At Fulham Wharf we secured, on behalf of landowner Sainsbury's,
planning permission for a new 100,000 sq ft foodstore, together
with 463 residential units (590,000 sq ft) and 11,000 sq ft of
restaurant/retail/community use at Sands End in Fulham. Helical has
received a fee of GBP1.5m for obtaining planning permission and
will receive a profit share on the sale of the site, which is
expected to be completed in June 2012. This profit share will be
paid when Sainsbury's receive their monies from the sale of the
site.
King Street, Hammersmith, London W6
We have a development agreement with the London Borough of
Hammersmith & Fulham, in partnership with residential
specialist Grainger plc, for the regeneration of the west end of
King Street, Hammersmith. We submitted a planning application in
November 2010 for new council offices, a foodstore and restaurants
around a new public square, 300 new homes and a new public
footbridge across the Great West Road, re-connecting Hammersmith
Town Centre to the River Thames and Furnival Gardens. A resolution
to grant planning consent was obtained in November 2011, but its
referral to the Mayor was withdrawn pending further discussions
with the GLA.
Retirement Villages
A retirement village is a private residential community in which
active over-55s are able to live independently in retirement.
Residents have typically down-sized from a larger family home into
a cottage or apartment with no maintenance or security issues. With
access to a central clubhouse containing a bar, restaurant
facilities, health and fitness rooms and surrounded by maintained
grounds, this retirement option is proving increasingly
popular.
Bramshott Place, Liphook, Hampshire
The original Bramshott Place Village was an Elizabethan mansion
built in 1580, although now only the original Grade II listed Tudor
Gatehouse remains, which we have fully restored. The land and
buildings were derelict when Helical acquired them in 2001.
Changing planning from its previously designated employment use to
a retirement village took several years but was eventually achieved
in 2006.
The development of 151 cottages and apartments, and the new
clubhouse, started in late 2007 and has proceeded in phases as
units are sold. To date, we have sold 90 units with reservations on
a further 18 units. Construction of the final phase of 55 units
will complete in September 2012.
Durrants Village, Faygate, Horsham, West Sussex
Durrants Village, a 30 acre site, had operated as a sawmill with
outside storage for many years. We were granted planning
permission, at appeal, in May 2009 following a public inquiry where
the Inspector allowed a development comprising a retirement village
of 148 units, eight affordable housing units, a 50 bed residential
care home and a central facilities clubhouse building. Demolition
has been completed and the first phase started in May 2012 for the
construction of a retirement village and clubhouse. Following
changes to the scheme the development will be for 171 units and we
have reservations on five units in Phase One with reservations on a
further eight units in future phases.
Maudsley Park, Great Alne, Warwickshire
This is a Green Belt site which has 320,000 sq ft of built
footprint and benefits from Major Development Site planning policy.
Measuring 82 acres this site received outline planning permission
in April 2011 for a retirement village of 132 units plus 47 extra
care units. Demolition and enabling works will commence in late
2012 with construction to follow in 2013.
St Loye's College, Exeter
This 19 acre site was acquired in 2007 from the St Loye's
Foundation, a long established rehabilitation college in the city
of Exeter. Resolution to grant planning permission was obtained in
October 2009 for a retirement village of 206 units, a 50 bed
residential care home, an affordable extra-care block of 50 units
and a central facilities clubhouse building. Demolition, site
clearance and archaeological survey work have been completed. In
2011 we received planning consent for 63 open market housing units
on part of the site and expect to complete the sale of this part in
Summer 2012. Construction of a retirement village and clubhouse in
phases on the remainder of the site is expected to commence in late
2012/early 2013.
Ely Road, Milton, Cambridge
This 21 acre site was acquired from EDF in 2006 and was
previously used as a training centre and depot. Located within the
Green Belt, planning permission had been obtained for a retirement
village of 101 units and a central facilities clubhouse building.
In 2011 we received consent for 89 open market housing units and
have agreed to sell the whole site with completion due in Summer
2012.
Retail
In the UK we have four retail development schemes:
Parkgate, Shirley, West Midlands
At Parkgate, Shirley we are due to commence the construction of
an 85,000 sq ft Asda supermarket, 72,000 sq ft of retail and circa
135 apartments and townhouses. The GBP70m project is expected to
complete in spring 2014.
Tyseley, Birmingham
Outline planning consent has recently been granted for a 70,000
sq ft foodstore and 78,000 sq ft of open A1 retail units as part of
the regeneration of Tyseley. Discussions are in hand with a number
of potential tenants and we are working towards a start on site in
early 2013.
Cortonwood
A planning application is to be submitted in summer 2012 for a
96,000 sq ft A1 retail park. If successful, construction could
commence in autumn 2013.
Leisure Plaza, Milton Keynes
At Leisure Plaza, Milton Keynes, we have planning consent for
113,000 sq ft of retail together with the existing 65,000 sq ft ice
rink. We are working with the various interested parties in this
development to bring it forward with a view to starting
construction later this year.
Other Projects
Helical Retail, our joint venture with Oswin Developments, is
actively pursuing a large number of potential foodstore sites
around the UK and is working closely with the major food retailers
to satisfy their location specific requirements.
Poland
In Poland we have two schemes totalling 76,600 sq m (0.8m sq
ft):
Europa Centralna, Gliwice
During the year we sold 50% of this scheme to clients of
Standard Life and recovered over GBP16m of capital through the
payment of loans. The agreement for sale provides that we will sell
the remaining ownership two years after completion of the
development to the same clients of Standard Life. The scheme is
being developed on land to the south of Gliwice at the intersection
of the A4 and A1 motorways. This highly visible site has
unparalleled accessibility and will be a major regional shopping
destination. The retail park and shopping centre, comprising
approximately 66,000 sq m (720,000 sq ft) of retail space, will
incorporate three distinct parts, being a foodstore, DIY and
household goods and fashion. The scheme is now over 70% pre-let to
Tesco, Castorama, H & M, Media Saturn, Jula and others.
Construction commenced in October 2011 and is expected to complete
by October 2012.
Park Handlowy Mlyn, Wroclaw
Wroclaw is a large city in West Poland, some 100km from the
German border and 470km south of Warsaw. This 9,600 sq m (103,000
sq ft) out of town retail development was completed in December
2008 and is fully let to a number of domestic and international
retailers including T K Maxx, Media Expert, Makro, Deichmann, Smyk,
Komfort and others.
Other
The Hub, Pacific Quay, Glasgow
The Hub, Pacific Quay, Glasgow was completed in 2009. This
60,000 sq ft building offers flexible office space with an onsite
cafe and events area. Located in the midst of a media hotbed with
BBC Scotland and STV as neighbours, this scheme has been partly let
to The Digital Design Studio, the commercial arm of Glasgow School
of Art, Shed Media and other high-tech, media-orientated tenants.
We continue to make progress, albeit slowly, in letting the
building.
Industrial development
We have now sold virtually all of our industrial developments.
Sales of GBP3.3m have been achieved for the remaining units at
Southall during the year. Since the year end we have conditionally
exchanged to sell all the land at Stockport for GBP4.5m with
completion due over the course of this financial year. This sale
follows completion of all infrastructure works and a revised
planning consent for a car dealership. Following the sale of
Stockport, our only remaining industrial development is at Hailsham
where we hope to sell the remaining units by the end of the
year.
Sales
We have continued to make good progress in selling non-income
producing assets or assets where we perceive there to be limited
further asset management upside.
Since March 2011 we have completed on sales of GBP83.2m of
property, of which GBP14.2m was non-income producing. Wood Lane
(GBP10.1m) was sold to Aviva, our Joint Venture partner in our
White City development, and will contribute to our development
site. 61 Southwark Street was sold for GBP19.4m, the Union
portfolio was sold for GBP18.4m and Woking (part of the F3
portfolio) was sold for GBP8.25m, together with a number of other
smaller sales.
Of the non-income producing sales, GBP10.3m consists of units at
our retirement village at Bramshott Place, Liphook and GBP3.3m of
units at Southall (the entirety of our remaining interest).
Since year end, we have exchanged or completed on GBP20.8m of
sales (GBP13.8m non-income producing). A further GBP12.9m is under
offer (all non-income producing).
Acquisitions
We have continued to acquire income producing properties
throughout the year, some with longer term redevelopment or
refurbishment potential.
The acquisition of Barts Square, EC1, was completed in joint
venture with Baupost (Helical 33.3% interest) for GBP55m. A
planning application for a major mixed use development has been
submitted.
Vacant possession will be attained between 2014 and 2016. In the
meantime we are receiving a net yield of circa 5.5%.
Office investments were acquired in Chiswick (GBP3.7m, 10% NIY)
on a 25 year RPI linked sale and leaseback transaction, Botleigh
Grange for GBP2.4m from the Administrators and King Street,
Hammersmith. In Hammersmith, we acquired a part vacant office
building with retail on the ground floor from the receivers for
GBP14.1m. This is currently being refurbished and we hope to
achieve a running yield in excess of 8% upon letting.
We also acquired a retail parade in Basildon and Corby Town
Centre for a total of GBP81.3m, both yielding 8% where we intend to
continue letting vacant space and implement minor refurbishments
where necessary.
Total gross annual rental income (before joint venture shares)
arising from these acquisitions is circa GBP12m.
There was a valuation increase of 0.7% in the year to 31 March
2012 including capex, sales and purchases which compares to the IPD
monthly index of 0.7% over the same period.
Investment Portfolio
Asset Management
During the year GBP2.0m of rent was lost at lease end (7.6% of
rent roll). A further GBP0.6m (2.1% rent roll) was lost through
administrations (net of rent from regearing leases as tenants in
administration were acquired). GBP1.8m of leases were renewed (6.5%
rent roll) with a further GBP2.3m (8.6% rent roll) added through
new letting and fixed uplifts. The net rental reduction was
GBP0.2m. Of the rent lost, GBP0.4m was attributable to St Barts and
GBP0.7m to 200 Great Dover Street, both of which were anticipated
and facilitate refurbishments / redevelopments. Excluding these
anticipated losses, net rental gain was GBP0.9m.
Our material exposures to tenant administrations have been
Peacocks / Bon Marche, Priceless Shoes, Shoon, Game and
Clintons.
Including units which have been let or are under offer since
March 2012, but excluding Clintons, we have lost GBP0.4m of rent
from administrations. Total rent at risk from administration
(excluding Clintons) was GBP1.2m. Of this total we have
retained/re-let or have under offer 63% of rent at risk from
administration.
The Morgans, Cardiff
A prime retail asset on the Hayes opposite St David's 2, let to
Urban Outfitters, Joules, Fred Perry, Molton Brown and TK Maxx.
With current contracted rent of GBP3.1m versus ERV of GBP4.23m, we
see many opportunities for asset management initiatives and further
rental growth over the medium term, following capital growth of 30%
for the asset since the opening of St Davids 2 in September 2009.
Since the year end, we have completed a new letting to Jack Wills
and set a new rental level of GBP172 Zone A.
Clydebank Shopping Centre, Clyde
Since acquiring this property in January 2010, net income has
increased from GBP5.85m to GBP6.02m with a further GBP374,000 of
income contracted through expiry of rent free periods. There is
GBP206,000 of rent in solicitors' hands.
Despite some tenant insolvencies, letting has remained strong.
We lost four tenants through administrations but have subsequently
re-let or put under offer all four units at a total rent of
GBP273,000 compared with rents prior to administration of
GBP261,000.
There were no tenant breaks or lease expiries exercised by
tenants in the year 2011 to 2012 and the void rate now stands at
only 3% of floor area.
Corby Town Centre
We acquired this centre in October 2011. It comprises in excess
of 700,000 sq ft of retail space including Oasis Retail Park,
Willow Place (2007 new build shopping centre) and Corporation
Street. This asset was acquired for 8.0% NIY (triple net). Since
acquisition we have sold Deene House for GBP1.5m (4.98% NIY).
Despite administrations, upon conclusion of leases in solicitors'
hands, net rental income will be in excess of that at acquisition.
This is due to a combination of new lettings (8 in solicitors'
hands), service charge and rates mitigation and by taking operation
of the car park in-house, eliminating substantial costs. Further,
circa GBP400,000 of works has been instructed which will increase
NOI by circa GBP100,000, by reducing costs and enabling
lettings.
Shepherds Building, London W14
This is a 151,000 sq ft refurbished office just south of
Shepherds Bush Green and Westfield shopping centre. The building is
let on 64 leases, mainly to media related tenants, at an average
rent of GBP23.50 psf. Ongoing tenant demand is strong with recent
lettings at GBP25 to GBP30 psf depending on size, giving good
prospects for rental growth over the next three to five years.
There is only one unit of 860 sq ft vacant at present.
Silverthorne Road, Battersea, London SW8
Acquired with vacant possession in 2005 we subsequently fully
refurbished this office and TV studio complex to create a multi let
TV production and media office hub of approximately 56,000 sq
ft.
In 2007 we secured planning consent for a further 50,000 sq ft
of raised floor, air conditioned office accommodation over five
floors which was developed out during 2008 and concluded in early
2009. The site is currently 70% let by floor area.
Levels of interest and the lettings currently in negotiation
suggest that the low total occupational cost of circa GBP40psf
including rent, rates and service charge is making the building
increasingly attractive to those occupiers no longer able to afford
more central locations.
Future Investment Acquisitions
Following our recent acquisitions in the retail sector,
especially Corby for circa GBP70m last October, we are now
concentrating on London for future purchases. We are targeting
multi-let offices with low rents (GBP20/GBP30 psf) in the
'villages' such as Southwark, Clerkenwell and Hammersmith. Our
preference is for buildings in need of refurbishment and active
management, often with some vacancies.
An example of the sort of assets we are keen to purchase is
illustrated by our acquisition in January of Broadway House, King
Street in Hammersmith, which we acquired from receivers for
GBP14.1m, 5.7% IY. This building is partly retail, let at low rents
(GBP105-125 psf Zone A) to Cafe Nero, Thomas Cook, Dolland &
Aitchison and others. There is also 23,270 sq ft of offices, 50%
let at GBP24.50 psf and 50% vacant and being refurbished. Once the
vacant offices are let at circa GBP30 psf, the building will be 52%
retail income and 48% office income and the yield on cost will be
circa 8% (including capex).
Investment Portfolio Statistics
The following statistics all refer to Helical's share of the
investment portfolio.
Helical Bar Portfolio vs IPD to March 2012
1 yr 2 yrs 3 yrs 5 yrs 10 yrs 20 yrs
Helical 5.6 4.1 5.5 1.6 10.5 14.6
IPD 6.4 9.0 11.7 -1.1 6.7 8.7
Helical's Percentile
Rank 53 88 91 8 4 1
---------------------- ----- ------ ------ ------ ------- -------
Helical's trading & development portfolio (25% of gross
assets as measured by IPD) is shown in IPD at the lower of book
cost or fair value and uplifts are only included on the sale of an
asset
Portfolio Yields
Yield Equivalent
Portfolio Initial Reversionary on letting Yield
weighting Yield Yield voids (AiA)
% % % % %
Industrial 5.4 8.3 9.5 9.3 8.9
London Offices 30.3 5.6 8.1 7.5 7.6
South East offices 2.0 8.3 8.5 8.3 8.6
Retail 60.8 7.5 8.3 7.3 7.7
Other 1.5 - - - -
-------------------- ----------- -------- ------------- ------------ -----------
Total 100.0 7.1 8.0 7.9 7.8
-------------------- ----------- -------- ------------- ------------ -----------
Valuation Movements, Portfolio Weightings and Changes to Rental
Values
Valuation ERV Change ERV Change
Increase/ Mar 11 to Mar 10 to
Mar 12 % Mar 11 %
(Decrease)
Sector % Weighting
%
London Offices 3.2 30.3 2.8 1.6
South East Offices 2.5 2.0 0.8 0.0
Total Offices 3.2 32.3 2.5 1.4
In town retail 0.0 57.0 1.0 2.7
Out of town retail -2.4 3.8 -2.0 2.4
Total retail -0.2 60.8 0.8 2.6
Industrial -3.3 5.4 -0.9 -5.4
Other 12.6 1.5
-------------------- ------------ ---------- ----------- -----------
Total 0.7 100.0 1.2 1.3
-------------------- ------------ ---------- ----------- -----------
Note: Including sales, purchases and capex
Capital Values, Vacancy Rates and Unexpired Lease Terms
Capital Value Vacancy Rate Average Unexpired
psf % Lease Term
GBP
-------------------- -------------- ------------- ------------------
South East offices 208 0.0 17.7
London offices 200 16.4 4.8
Retail 134 5.6 8.2
Industrial 55 14.0 5.3
-------------------- -------------- ------------- ------------------
Total 142 8.8 7.3
-------------------- -------------- ------------- ------------------
Lease expiries and tenant break options:
2012 2013 2014 2015 2016
Percentage of rent
roll 7.7% 8.1% 13.9% 5.3% 12.0%
Number of leases 79 65 100 48 62
Average rent per GBP26,200 GBP33,800 GBP37,500 GBP29,900 GBP52,500
lease (GBP)
-------------------- ---------- ---------- ---------- ---------- ----------
53% of Helical's net rent roll has greater than 5 years to
expiry
Top Tenants (Helical's share of rent)
Rank Tenant Rent Leases % of Rent
Roll
------ ------------------------- ------------- ------- ----------
1 Endemol GBP1,526,923 23 5.65
------ ------------------------- ------------- ------- ----------
2 TK Maxx GBP1,160,000 2 4.29
------ ------------------------- ------------- ------- ----------
Barts and The London NHS
3 Trust GBP1,138,980 7 4.21
------ ------------------------- ------------- ------- ----------
4 Quotient Bioresearch GBP664,792 7 2.46
------ ------------------------- ------------- ------- ----------
5 Asda GBP637,438 2 2.36
------ ------------------------- ------------- ------- ----------
6 Argos GBP453,750 4 1.68
------ ------------------------- ------------- ------- ----------
7 Metropolis Group GBP400,000 1 1.48
------ ------------------------- ------------- ------- ----------
8 Urban Outfitters GBP400,000 1 1.48
------ ------------------------- ------------- ------- ----------
9 Hitchcock & King GBP397,500 1 1.47
------ ------------------------- ------------- ------- ----------
10 Fox International GBP374,031 3 1.38
------ ------------------------- ------------- ------- ----------
Total GBP7,153,414 26.46
------ ------------------------- ------------- ------- ----------
Top 10 tenants account for 26.5% of the rent roll
Portfolio Geography by Helical Equity
47% of Helical's equity is deployed in London and the South
East
PLEASE FOLLOW LINK BELOW TO VIEW PIE CHART ON PORTFOLIO
GEOGRAPHY;
http://www.rns-pdf.londonstockexchange.com/rns/0895E_-2012-5-25.pdf
INCOME PRODUCING ASSETS
LONDON OFFICES
Area
sq. Average Passing
ft. Helical Rent per sq.
Address (NIA) interest ft. Vacancy Rate
---------------------------------- ---------- ---------- ---------------- -------------
Shepherds Building, Shepherds
Bush, London W14 151,000 100% GBP23.50 1%
200 Great Dover Street,
London SE1 36,000 100% - 100%
80 Silverthorne Road, Battersea,
London SW8 56,000 75% GBP17.63 2%
82 Silverthorne Road, Battersea,
London SW8 51,000 75% GBP22.83 66%
Barts Square, London EC1 420,000 33% GBP8.62 4%
GBP24.50 /
Broadway House, London GBP105-GBP125
W6 40,000 100% Zone A 29%
The Powerhouse, Chiswick,
London W4 43,000 100% GBP9.33 0%
797,000
---------------------------------- ---------- ---------- ---------------- -------------
PROVINCIAL OFFICES
Area
sq. Average Passing
ft. Helical Rent per sq.
Address (NIA) interest ft. Vacancy Rate
---------------------------------- ---------- ---------- ---------------- -------------
Fordham, Newmarket 70,000 53% GBP17.70 0%
Botleigh Grange, Hedge
End, Southampton 23,000 100% - 100%
93,000
---------------------------------- ---------- ---------- ---------------- -------------
INDUSTRIAL
Area
sq. Average Passing
ft. Helical Rent per sq.
Address (NIA) interest ft. Vacancy Rate
---------------------------------- ---------- ---------- ---------------- -------------
Dales Manor Business Park,
Sawston, Cambridge 62,000 67% GBP7.71 0%
Winterhill Industrial Estate,
Milton Keynes 25,000 50% GBP7.72 0%
Merlin Business Park, Manchester 62,000 100% GBP5.25 0%
Crownhill Business Centre,
Milton Keynes 108,000 100% GBP6.64 10%
Langlands Place Industrial
Estate, East Kilbride 153,000 100% GBP4.89 27%
410,000
---------------------------------- ---------- ---------- ---------------- -------------
RETAIL - IN TOWN
Area
sq.
ft. Helical
Address (NIA) interest Zone A Rent Vacancy Rate
---------------------------------- ---------- ---------- ---------------- -------------
The Morgan Quarter, Cardiff 220,000 100% GBP75-GBP125 4%
78-104 Town Square, Basildon 54,000 100% GBP75-GBP100 26%
The Guineas, Newmarket 142,000 100% GBP30-GBP50 9%
Idlewells Shopping Centre,
Sutton-In-Ashfield 185,000 100% GBP25-GBP50 1%
Corby Town Centre, Corby 700,000 100% GBP20-GBP80 7%
Clyde Shopping Centre Clydebank 627,000 60% GBP20-GBP65 3%
1,928,000
---------------------------------- ---------- ---------- ---------------- -------------
RETAIL - OUT OF TOWN
Area
sq. Average Passing
ft. Helical Rent per sq.
Address (NIA) interest ft. Vacancy Rate
---------------------------------- ---------- ---------- ---------------- -------------
Otford Road Retail Park,
Sevenoaks 42,000 75% GBP17.96 0%
Stanwell Road, Ashford 32,000 75% GBP16.37 0%
74,000
---------------------------------- ---------- ---------- ---------------- -------------
DEVELOPMENT PROGRAMME
LONDON OFFICES
Area
sq.
ft. Helical
Address (NIA) Fund/ Owner interest Type of Development
---------------------- -------- -------------------- ---------- --------------------
200 Aldersgate
Street, Deutsche Dev. Refurbished and in
London EC1 370,000 Pfandbriefbank Man course of letting
Site for new
Mitre Square, London consented
EC3 273,000 Helical 100% office building
643,000
---------------------- -------- -------------------- ---------- --------------------
PROVINCIAL OFFICES
Area
sq.
ft. Helical
Address (NIA) Fund/ Owner interest Type of Development
---------------------- -------- -------------------- ---------- --------------------
Media focused
multi-let
The Hub, Pacific office (i.e. 60%
Quay, Glasgow 60,000 Helical 100% let)
60,000
---------------------- -------- -------------------- ---------- --------------------
INDUSTRIAL
Area
sq.
ft. Helical
Address (NIA) Fund/ Owner interest Type of Development
---------------------- -------- -------------------- ---------- --------------------
New build - sold
since
Tiviot Way, Stockport - Helical 100% year end
Ropemaker Park, New build -
Hailsham 70,000 Helical 90% completed
70,000
---------------------- -------- -------------------- ---------- --------------------
RETAIL - IN TOWN
Area sq.
Address ft. (NIA) Helical interest Type of development
-------------------- ----------- ----------------- -----------------------------
Parkgate, Shirley, Consented food store, retail
West Midlands 157,000 50% and residential
Remaining retail and office
C4.1 Milton Keynes 33,000 50% units, part let
190,000
-------------------- ----------- ----------------- -----------------------------
RETAIL - OUT OF TOWN
Area sq.
Address ft. (NIA) Helical interest Type of development
----------------------- ----------- ----------------- ----------------------------
Consent for 113,000 sq ft
Leisure Plaza, Milton retail store, 65,000 sq ft
Keynes 305,500 50% ice rink
305,500
----------------------- ----------- ----------------- ----------------------------
RETIREMENT VILLAGES
Helical
Address Units interest Type of development
------------------------ ----------- ------------- ---------------------------------
90 units sold, 18 under offer.
Bramshott Place, Phases 1 and 2 completed, phase
Liphook, Hampshire 151 100% 3 under construction
Part of site has consent for
St Loye's College, 63 housing units and is under
Exeter 206 100% offer for sale
Maudsley Park, Great 82 acre site with consent for
Alne 132 100% a retirement village
Planning consent granted for
Ely Road, Milton, 89 open market housing units.
Cambridge 101 100% Site under offer to be sold
Durrants Village, Construction of a first phase
Faygate, Horsham 154 100% commenced
744
------------------------ ----------- ------------- ---------------------------------
CHANGE OF USE POTENTIAL
Helical
Address Area interest Type of development
------------------------ ----------- ------------- ---------------------------------
32 acre greenfield site with
Cawston, Rugby 32 acres 100% residential potential
19 acre greenfield site with
Arleston, Telford 19 acres 100% residential potential
51 acres
------------------------ ----------- ------------- ---------------------------------
MIXED USE DEVELOPMENTS
Helical
Address interest Type of development
------------------------ ----------- ------------- ---------------------------------
White City, London Joint Planning application for 1.5m
W12 venture sq ft mainly residential scheme
to be submitted summer 2012
King Street, 50% Planning application submitted
Hammersmith,
London
Fulham Wharf, London Dev. Man. Planning consent granted for
SW6 100,000 sq ft foodstore and 463
residential units.
RETAIL - POLAND
Area sq
Address ft Helical interest Fund/ owner Description
------------------- --------- ----------------- --------------- -----------------------
Park Handlowy Completed development,
Mlyn, Wroclaw 103,000 100% Helical fully let
Europa Centralna, Helical /
Gliwice 720,000 37.5% Standard Life Under construction
823,000
------------------- --------- ----------------- --------------- -----------------------
Helical Bar plc
Unaudited Consolidated Income Statement
For the year to 31 March 2012
Year To Year To
31 March 31 March
2012 2011
Notes GBP000 GBP000
Revenue 2 52,968 119,059
--------------------------------------- ------ ---------- ----------
Net rental income 3 17,876 14,187
Development property profit/(loss) 655 (16,642)
Trading property loss - (367)
Share of results of joint ventures 12 2,472 2,886
Other operating income/(expense) 113 (358)
Gross profit/(loss) before net
gain on sale and revaluation of
investment properties 21,116 (294)
Net gain on sale and revaluation
of investment properties 4 3,288 7,512
Impairment of available-for-sale
investments - (1,817)
--------------------------------------- ------ ---------- ----------
Gross profit 24,404 5,401
Administrative expenses 5 (7,800) (7,050)
Operating profit/(loss) 16,604 (1,649)
Finance costs 6 (8,409) (6,992)
Finance income 583 652
Change in fair value of derivative
financial instruments (306) 1,776
Foreign exchange loss (1,064) (67)
--------------------------------------- ------ ---------- ----------
Profit/(loss) before tax 7,408 (6,280)
Taxation 7 158 2,391
--------------------------------------- ------ ---------- ----------
Profit/(loss) after tax 7,566 (3,889)
--------------------------------------- ------ ---------- ----------
- attributable to non-controlling
interests (9) (2)
- attributable to equity shareholders 7,575 (3,887)
--------------------------------------- ------ ---------- ----------
Profit/(loss) for the year 7,566 (3,889)
--------------------------------------- ------ ---------- ----------
Earnings per share
Basic earnings/(loss) per share 8 6.5p (3.6p)
Diluted earnings/(loss) per share 8 6.5p (3.6p)
Helical Bar plc
Unaudited Consolidated Statement of Comprehensive Income
For the year to 31 March 2012
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
Profit/(loss) for the year 7,566 (3,889)
Other comprehensive income and expense:
Impairment of available-for-sale investments (3,521) (12,169)
Associated deferred tax on the impairment - 3,222
Retranslation of net investments in
foreign operations (39) (14)
---------------------------------------------- ---------- ----------
Total comprehensive income/(expense)
for the year 4,006 (12,850)
---------------------------------------------- ---------- ----------
Helical Bar plc
Unaudited Consolidated Balance Sheet
At 31 March 2012
Notes At At
31 March 31 March
2012 2011
GBP000 GBP000
Non-current assets
Investment properties held
for sale 9 - 19,350
-------------------------------------- --------- ---------- ----------
- 19,350
Investment properties 9 326,876 252,526
Owner occupied property,
plant and equipment 10 1,251 1,497
Investment in joint ventures 12 40,592 36,064
Derivative financial instruments 629 793
Goodwill - 14
Deferred tax asset 7 9,050 8,879
-------------------------------------- --------- ---------- ----------
378,398 299,773
-------------------------------------- --------- ---------- ----------
Total non-current assets 378,398 319,123
Current assets
Land, developments and trading
properties 13 99,741 147,542
Available-for-sale investments 11 7,003 10,505
Trade and other receivables 14 23,076 35,783
Corporation tax receivable 1,178 1,069
Cash and cash equivalents 15 35,411 31,327
-------------------------------------- --------- ---------- ----------
Total current assets 166,409 226,226
-------------------------------------- --------- ---------- ----------
Total assets 544,807 545,349
Current liabilities
Trade payables and other
payables 16 (24,807) (45,224)
Borrowings 17 (59,203) (37,500)
-------------------------------------- --------- ---------- ----------
(84,010) (82,724)
Non-current liabilities
Borrowings 17 (203,992) (199,917)
Derivative financial instruments (3,075) (7,311)
(207,067) (207,228)
-------------------------------------- --------- ---------- ----------
Total liabilities (291,077) (289,952)
-------------------------------------- --------- ---------- ----------
Net assets 253,730 255,397
-------------------------------------- --------- ---------- ----------
Helical Bar plc
Unaudited Consolidated Balance Sheet
At 31 March 2012
Notes At At
31 March 31 March
2012 2011
GBP000 GBP000
Equity
Called-up share capital 18 1,447 1,447
Share premium account 98,678 98,678
Revaluation reserve 2,612 3,495
Capital redemption reserve 7,478 7,478
Other reserves 291 291
Retained earnings 143,111 143,886
Equity attributable to equity holders
of the parent 253,617 255,275
Non-controlling interests 113 122
--------------------------------------- --------- ---------- ----------
Total equity 253,730 255,397
--------------------------------------- --------- ---------- ----------
Net assets per share
Basic 21 217p 218p
Diluted 21 217p 218p
Adjusted Diluted 21 221p 225p
Diluted EPRA 21 250p 253p
Helical Bar plc
Unaudited Consolidated Cash Flow Statement
For the year to 31 March 2012
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
Cash flows from operating activities
Profit/(loss) before tax 7,408 (6,280)
Depreciation 309 328
Revaluation gain on investment properties (3,664) (2,670)
Net financing costs 7,826 6,340
Impairment of available-for-sale investments - 1,817
Loss/(gain) on sale of investment properties 376 (4,842)
Loss/(gain) on valuation of derivative financial
instruments 306 (1,776)
Share based payment charge/(credit) 35 (196)
Share of results of joint ventures (2,472) (2,886)
Fair value adjustments for disposal of interest (4,278) -
in subsidiary
Foreign exchange movement 896 228
Other non-cash items 7 2
------------------------------------------------------ ---------- ----------
Cash flows from operations before changes in
working capital 6,749 (9,935)
Change in trade and other receivables 12,503 2,822
Change in land, developments & trading properties 19,691 38,867
Change in trade and other payables (19,617) 5,079
------------------------------------------------------ ---------- ----------
Cash inflow from operations 19,326 36,833
Finance costs (13,119) (11,264)
Finance income 623 465
Tax paid - (68)
------------------------------------------------------ ---------- ----------
(12,496) (10,867)
------------------------------------------------------ ---------- ----------
Net cash flows from operating activities 6,830 25,966
------------------------------------------------------ ---------- ----------
Cash flows from investing activities
Purchase of investment property (102,750) (77,864)
Sale of investment property 50,434 32,810
Investment in joint venture - (9,520)
Return on investment in joint ventures 2,098 1,970
Dividends from joint ventures 500 756
Cost of acquiring derivative financial instruments (1,276) (744)
Cost of cancelling interest rate swap (3,102) (71)
Proceeds from the sale of derivative financial
instruments - 568
Sale of plant and equipment 7 2
Purchase of leasehold improvements, plant &
equipment (63) (189)
------------------------------------------------------ ---------- ----------
Net cash used in investing activities (54,152) (52,282)
------------------------------------------------------ ---------- ----------
Cash flows from financing activities
Issue of shares - 27,958
Borrowings drawn down 206,637 56,536
Borrowings repaid (149,502) (61,523)
Equity dividends paid (5,707) (5,031)
Net cash generated from financing activities 51,428 17,940
------------------------------------------------------ ---------- ----------
Net increase/(decrease) in cash and cash equivalents 4,106 (8,376)
Exchange losses on cash and cash equivalents (22) (97)
Cash and cash equivalents at 1 April 31,327 39,800
------------------------------------------------------ ---------- ----------
Cash and cash equivalents at 31 March 35,411 31,327
------------------------------------------------------ ---------- ----------
Helical Bar plc
Unaudited Statement of Changes in Equity
For the year to 31 March 2012
Capital
Revalua- redemp-tion Non-controlling
Share Share tion reserve Other Retained interest
Capital premium reserve reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 March
2010 1,339 70,828 - 7,478 291 162,547 124 242,607
Revaluation
surplus - - 2,670 - - (2,670) - -
Realised on
disposals - - 825 - - (825) - -
Total
comprehensive
expense - - - - - (12,848) (2) (12,850)
Dividends paid - - - - - (2,122) - (2,122)
Performance
share plan - - - - - (196) - (196)
Issue of
shares 108 27,850 - - - - - 27,958
--------------- -------- -------- --------- -------------- ----------- ----------- ------------------ -----------
As at 31 March
2011 1,447 98,678 3,495 7,478 291 143,886 122 255,397
Revaluation
surplus - - 3,664 - - (3,664) - -
Realised on
disposals - - (4,547) - - 4,547 - -
Total
comprehensive
income - - - - - 4,015 (9) 4,006
Dividends paid - - - - - (5,708) - (5,708)
Performance
share plan - - - - - 35 - 35
At 31 March
2012 1,447 98,678 2,612 7,478 291 143,111 113 253,730
--------------- -------- -------- --------- -------------- ----------- ----------- ------------------ -----------
Total comprehensive expense/income includes profit for year of
GBP7,566,000 (2011: loss of GBP3,889,000), loss on fair value
movements on available-for-sale investments of GBP3,521,000 (2011:
loss of GBP12,169,000), deferred tax credit on these fair value
movements of GBPnil (2011: GBP3,222,000) and loss on retranslation
of net investments in foreign operations of GBP39,000 (2011:
GBP14,000).
The adjustment to retained earnings of GBP35,000 adds back the
share-based payments charge (2011: credit of GBP196,000) 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 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 Unaudited Preliminary Announcement
1. Basis of preparation
The unaudited financial information is abridged and does not
constitute the Group's full financial statements for the years
ended 31 March 2012 and 31 March 2011 from where the information
has been derived. The Group's accounting policies are consistent
with those applied in the year to 31 March 2011, amended to reflect
any new Standards. There have been no significant effect of the
adoption of any Standards and interpretations which are mandatory
for the year ended 31 March 2012.
The financial statements for the year ended 31 March 2011 were
prepared in accordance with International Financial Reporting
Standards (IFRS) and have received an unqualified auditors' report
which did not draw attention to any matters of emphasis and did not
contain statements under s498(2) or (3) of the Companies Act
2006.
The audited financial statements for the year to 31 March 2012
will be presented to the Members at the forthcoming Annual General
Meeting.
2. Revenue
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
------------------------ ---------- ----------
Rental income 23,058 18,590
Development income 19,666 84,311
Trading property sales 10,131 15,915
Other income 113 243
------------------------ ---------- ----------
52,968 119,059
------------------------ ---------- ----------
3. Net rental income
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
--------------------------------- ---------- ----------
Gross rental income 23,058 18,590
Rents payable (418) (24)
Property overheads (3,938) (3,662)
Third party share of net rental
income (826) (717)
Net rental income 17,876 14,187
--------------------------------- ---------- ----------
4. Net gain on sale and revaluation of investment properties
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
--------------------------------------------------- ---------- ----------
Net proceeds from the sale of investment
properties 50,427 32,810
Book value (note 9) (50,768) (27,902)
Tenants incentives on sold investment properties (35) (66)
(Loss)/gain on sale of investment properties (376) 4,842
Gain on revaluation on investment properties 3,664 2,670
--------------------------------------------------- ---------- ----------
Net gain on sale and revaluation of investment
properties 3,288 7,512
--------------------------------------------------- ---------- ----------
5. Administrative expenses
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
-------------------------------------- ---------- ----------
Administrative expenses 7,800 7,050
Operating profit/(loss) is stated
after:
Staff costs 4,391 4,203
Share-based payments charge/(credit) 35 (196)
Depreciation 309 328
Administrative expenses includes salaries in respect of the
directors of GBP2,094,000 (2011: GBP1,905,000) and cash bonuses
payable to directors of GBP220,000 (2011: GBPnil).
6. Finance costs
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
------------------------------------ ---------- ----------
Interest payable on bank loans and
overdrafts 10,808 9,690
Other interest payable and finance
arrangement costs 901 1,481
Interest capitalised (3,300) (4,179)
Finance costs 8,409 6,992
------------------------------------ ---------- ----------
7. Taxation
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
---------------------------------------------- ---------- ----------
The tax credit is based on the profit/(loss)
for the period and represents:
United Kingdom corporation tax at 26%
- adjustments in respect of prior periods
Overseas tax (153) -
163 97
---------------------------------------------- ---------- ----------
Current tax charge 10 97
Deferred tax - capital allowances (348) (442)
- other temporary differences 180 (2,046)
---------------------------------------------- ---------- ----------
Deferred tax (168) (2,488)
---------------------------------------------- ---------- ----------
Tax on profit/(loss) (158) (2,391)
---------------------------------------------- ---------- ----------
Deferred tax
Capital allowances (2,467) (2,815)
Other temporary differences 945 2,167
Tax losses 10,572 9,527
----------------------------- -------- --------
Deferred tax asset 9,050 8,879
----------------------------- -------- --------
8. Earnings per share
The calculation of the basic earnings/(loss) per share is based
on the earnings/(loss) 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/(loss) per share is based on
the basic earnings/(loss) per share, adjusted to allow for the
issue of shares and the post-tax effect of dividends on the assumed
exercise of all dilutive options.
The earnings/(loss) per share are calculated in accordance with
IAS 33 and the best practice recommendations of the European Public
Real Estate Association ("EPRA").
Reconciliations of the earnings/(loss) and weighted average
number of shares used in the calculations are set out below.
Year To Year To
31 March 31 March
2012 2011
000's 000's
----------------------------------------------------------- ---------- ----------
Ordinary shares in issue 118,138 118,138
Weighting adjustment (1,292) (8,700)
----------------------------------------------------------- ---------- ----------
Weighted average ordinary shares in issue for calculation
of basic earnings per share 116,846 109,438
Weighting adjustments - for diluted earnings per 97 -
share
Weighted average ordinary shares in issue for calculation
of diluted earnings and diluted EPRA earnings per
share 116,943 109,438
----------------------------------------------------------- ---------- ----------
Profit/(loss) used for calculation of basic and diluted
earnings per share 7,575 (3,887)
----------------------------------------------------------- ---------- ----------
Basic earnings/(loss) per share 6.5p (3.6p)
Diluted earnings/(loss) per share 6.5p (3.6p)
Profit/(loss) used for calculation of basic and diluted
earnings per share 7,575 (3,887)
Net gain on sale and revaluation of investment properties (3,288) (7,512)
Tax on profit on disposal of investment properties (90) 1,162
Trading property loss - 367
Fair value movement on derivative financial instruments 306 (1,776)
Share of movement in fair value of derivative financial
instruments of joint ventures 409 162
Share of revaluation gain of investment properties
of joint ventures (581) (583)
Impairment of available-for-sale investments - 1,817
Deferred tax on the above (323) 3,241
----------------------------------------------------------- ---------- ----------
Earnings/(loss) used for calculation of diluted EPRA
loss per share 4,008 (7,009)
----------------------------------------------------------- ---------- ----------
Diluted EPRA earnings/(loss) per share 3.4p (6.4p)
The earnings/(loss) used for calculation of diluted EPRA
earnings per share includes net rental income and development
property profits/(losses) but excludes trading property losses.
9. Investment properties
Freehold Leasehold Total Freehold Leasehold Total
31.03.12 31.03.12 31.03.12 31.03.11 31.03.11 31.03.11
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Fair value at 1 April 232,326 39,550 271,876 212,651 7,250 219,901
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Additions at cost 102,238 512 102,750 44,877 32,987 77,864
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Disposals (47,158) (3,610) (50,768) (27,902) - (27,902)
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Revaluation surplus/(deficit) 5,516 (1,852) 3,664 3,357 (687) 2,670
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Profit share partners
share of revaluation
deficit (646) - (646) (657) (25) (657)
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Fair value at 31 March 292,276 34,600 326,876 232,326 39,550 271,876
------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
A disposal of the investment property portfolio at its stated
fair value would crystallise a payment due to the Group's profit
share partners in respect of their share of the revaluation surplus
of GBP0.8m (2011: GBP1.1m). Investment properties exclude the
Group's share of investment properties disclosed in investment in
joint ventures of GBP67,187,000 (2011: GBP65,875,000).
Interest capitalised in respect of the refurbishment of
investment properties is GBP5,767,000 (2011: GBP5,767,000).
10. Owner occupied property, plant and equipment
Short Vehicles Short Vehicles
leasehold and office leasehold and office
improvement equipment Total improvements equipment Total
31.03.12 31.03.12 31.03.12 31.03.11 31.03.11 31.03.11
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
Cost at 1 April 2,071 727 2,798 2,071 670 2,741
Additions at cost - 63 63 - 189 189
Disposals - (104) (104) - (132) (132)
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
Cost at 31 March 2,071 686 2,757 2,071 727 2,798
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
Depreciation at
1 April 897 404 1,301 708 395 1,103
Provision for the
year 199 110 309 189 139 328
Eliminated on disposals - (104) (104) - (130) (130)
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
Depreciation at
31 March 1,096 410 1,506 897 404 1,301
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
Net book amount
at 31 March 975 276 1,251 1,174 323 1,497
------------------------- ------------- ------------ ---------- -------------- ------------ ----------
11. Available-for-sale investments
Current
GBP000
------------------------- --- ---------
At 1 April 2011 10,505
Impairment in the year (3,521)
Fair value adjustments 19
------------------------------ ---------
At 31 March 2012 7,003
------------------------------ ---------
12. Investment in Joint Ventures
At At
31 March 31 March
2012 2011
Summarised statements of consolidated GBP000 GBP000
income
---------------------------------------- ---------- ----------
Net rental income 5,060 3,590
Gain on revaluation of investment
properties 581 798
Other operating (expense)/income (282) 72
Net finance costs (2,902) (1,693)
Taxation 15 119
---------------------------------------- ---------- ----------
Profit after tax 2,472 2,886
---------------------------------------- ---------- ----------
Summarised balance sheet
---------------------------------------- ---------- ----------
Investment properties 67,187 65,875
Development properties 15,709 14,434
Held-for-sale investments 4,792 -
Other assets 6,295 10,279
Current liabilities (14,849) (15,140)
Non-current liabilities (38,542) (39,384)
---------------------------------------- ---------- ----------
Net assets 40,592 36,064
---------------------------------------- ---------- ----------
The directors' valuation of trading and development stock held
in joint ventures shows a surplus of GBP1.5m above book value at 31
March 2012 (2011: GBPnil).
13. Land, developments and trading properties
At At
31 March 31 March
2012 2011
Cost GBP000 GBP000
---------------------------- ---------- ----------
Development properties 97,111 137,254
Properties held as trading
stock 2,630 10,288
---------------------------- ---------- ----------
99,741 147,542
---------------------------- ---------- ----------
The directors' valuation of trading and development stock showed
a surplus of GBP33m above book value at 31 March 2012 (2011:
GBP32m).
Interest capitalised in respect of the development of sites is
included in stock to the extent of GBP6,379,000 (2011:
GBP6,827,000). Interest capitalised during the period in respect of
development sites amounted to GBP3,300,000 (2011:
GBP4,179,000).
14. Trade and other receivables
At At
31 March 31 March
2012 2011
GBP000 GBP000
-------------------------------- ---------- ----------
Trade receivables 8,025 20,891
Other receivables 13,467 10,033
Prepayments and accrued income 1,584 4,859
-------------------------------- ---------- ----------
23,076 35,783
-------------------------------- ---------- ----------
15. Cash and cash equivalents
At At
31 March 31 March
2012 2011
GBP000 GBP000
----------------------------------------- ---------- ----------
Rent deposits and cash held at managing
agents 2,438 3,313
Cash deposits 32,973 28,014
----------------------------------------- ---------- ----------
35,411 31,327
----------------------------------------- ---------- ----------
Included within cash deposits is GBP3,578,000 (2011: GBP773,000)
of restricted cash.
16. Trade payables and other payables
At At
31 March 31 March
2012 2011
GBP000 GBP000
------------------------------ ---------- ----------
Trade payables 5,274 18,358
Other payables 5,689 5,441
Accruals and deferred income 13,844 21,425
------------------------------ ---------- ----------
24,807 45,224
------------------------------ ---------- ----------
17. Debt
At At
31 March 31 March
2012 2011
Bank overdraft and loans - maturity GBP000 GBP000
-------------------------------------- ----------------------- ----------
Due within one year 59,203 37,500
Due after more than one year 203,992 199,917
-------------------------------------- ----------------------- ----------
263,195 237,417
-------------------------------------- ----------------------- ----------
At At
31 March 31 March
2012 2011
Undrawn committed bank facilities GBP000 GBP000
------------------------------------------------ ------------- ----------
Expiring in one year or less 16,441 6,299
Expiring in more than one year but not
more than two years 777 1,672
Expiring in more than four years not more
than five years 21,091 -
------------------------------------------------ ------------- ----------
38,309 7,971
------------------------------------------------ ------------- ----------
At
31 March
2012
Interest Rates % Expiry GBP000
-------------------------------------- --------- ------------ ----------
Fixed rate borrowings
- swap rate plus bank margin 3.950 Jan '15 50,000
- swap rate plus bank margin 3.400 Jan '15 12,250
- swap rate plus bank margin 6.401 Oct '12 28,500
- swap rate plus bank margin 5.645 Oct '14 6,690
- swap rate plus bank margin 6.240 Dec '13 10,120
- swap rate plus bank margin 3.965 Jan '16 9,172
- swap rate plus bank margin 5.300 Apr '12 3,570
Weighted average 4.804 Mar '14 120,302
Floating rate borrowings 3.467 Oct '14 142,893
-------------------------------------- --------- ------------ ----------
Total borrowings 263,195
-------------------------------------- --------- ------------ ----------
Floating rate borrowings bear interest at rates based on
LIBOR.
Hedging
In addition to the fixed rates, borrowings are also hedged by
the following financial instruments:
Instrument Value Rate Start Expiry
GBP000 %
Interest rate cap 40,950 6.000 May '08 May '13
Interest rate cap 50,000 4.000 Apr '11 Apr '15
Interest rate cap 25,000 4.000 Apr '11 Apr '16
Interest rate cap 50,000 4.000 Jul '13 Jul '16
Interest rate cap 25,000-75,000 4.000 Apr '15 Jan '17
Interest rate cap 7,200 4.000 Jan '12 Oct '16
Interest rate cap 10,613-11,037 4.000 Jan '15 Jan '16
Interest rate cap 1,656-1,851 4.000 May '11 May '15
Gearing
At At
31 March 31 March
2012 2011
GBP000 GBP000
------------ ---------- ----------
Total debt 263,195 237,417
Cash (35,411) (31,327)
------------ ---------- ----------
Net debt 227,784 206,090
------------ ---------- ----------
Net assets 253,730 255,397
Gearing 90% 81%
Net debt excludes the Group's share of debt in joint ventures of
GBP40,036,000 (2011: GBP39,384,000).
18. Share capital
At At
31 March 31 March
2012 2011
GBP000 GBP000
---------------------------------------- -------------------- ------------
Authorised 39,577 39,577
39,577 39,577
---------------------------------------- -------------------- ------------
The authorised share capital of the Company is GBP39,576,627 divided
into ordinary shares of 1p each, and deferred shares of 1/8p each
----------------------------------------------------------------------------
Allotted, called up and fully paid
- 118,137,522 ordinary shares of 1p each 1,182 1,182
- 212,145,300 deferred shares of 1/8 p each 265 265
1,447 1,447
------------------------------------------------- ----------- ------------
Share options
At 31 March 2012 there were 34,713 (31 March 2011: nil)
unexercised options over new ordinary 1p shares in the Company.
During the year, 34,713 new options were granted.
19. Dividends
Year To Year To
31 March 31 March
2012 2011
GBP000 GBP000
------------------------------------------------ ---------- ----------
Attributable to equity share capital
Ordinary - Interim paid of 1.75p (2011: 1.75p)
per share 2,044 1,857
- prior period final paid of 3.15p (2010:
0.25p) per share 3,663 265
Total dividends paid 4.90p (2011: 2.00p) 5,707 2,122
------------------------------------------------ ---------- ----------
An interim dividend of 1.75p was paid on 22 December 2011 to
shareholders on the register on 2 December 2011. The final
dividend, if approved at the AGM on 24 July 2012, will be paid on
26 July 2012 to shareholders on the register on 29 June 2012. This
final dividend, amounting to GBP3,973,000 has not been included as
a liability at 31 March 2012, in accordance with IFRS.
20. Own shares held
Following approval at the 1997 Annual General Meeting the
Company established the Helical Bar Employees' Share Ownership Plan
Trust (the "Trust") to be used as part of the remuneration
arrangements for employees. The purpose of the Trust is to
facilitate and encourage the ownership of shares by or for the
benefit of employees by the acquisition and distribution of shares
in the Company.
The Trust purchases shares in the Company to satisfy the
Company's obligations under its Share Option Scheme and Performance
Share Plan. At 31 March 2012 the Trust held 1,291,844 (2011:
1,291,844) ordinary shares in Helical Bar plc. At 31 March 2012 and
31 March 2011 no unexercised options over ordinary 1p shares in
Helical Bar plc had been granted over shares held by the trust.
At 31 March 2012 outstanding awards over 7,230,850 (2011:
6,249,364) ordinary 1p shares in Helical Bar plc had been made
under the terms of the Performance Share Plan over shares held by
the Trust.
21. Net assets per share
At At
31 March 31 March
At 2012 At 2011
31 March Number 31 March Number
2012 of Pence 2011 of Pence
GBP000 Shares per GBP000 Shares per
000's share 000's share
Net asset value 253,730 118,138 255,397 118,138
Own shares held by ESOP - (1,292) (1,292)
Less deferred shares (265) (265)
Basic net asset value 253,465 116,846 217 255,132 116,846 218
Unexercised share options 90 34 - -
--------------------------------------------------- --------- --------- --------- ---------- --------- ---------
Diluted net asset value 253,555 116,880 217 255,132 116,846 218
3,494 7,071
* Fair value of financial instruments 1,050 717
* Deferred tax
--------------------------------------------------- --------- --------- --------- ---------- --------- ---------
Adjusted diluted net
asset value 258,099 116,880 221 262,920 116,846 225
* Surplus on fair value of developments 34,542 32,436
--------------------------------------------------- --------- --------- --------- ---------- --------- ---------
Diluted EPRA net asset
value 292,641 116,880 250 295,356 116,846 253
* Fair value of financial instruments (3,494) (7,071)
* Deferred tax (1,050) (717)
Diluted Triple Net Asset
Value 288,097 116,880 246 287,568 116,846 246
--------------------------------------------------- --------- --------- --------- ---------- --------- ---------
Note: Surplus on fair value of developments includes share of
surplus on fair value of developments held in joint ventures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUBAAUPPUUA
Helical (LSE:HLCL)
Historical Stock Chart
From Jan 2025 to Feb 2025
Helical (LSE:HLCL)
Historical Stock Chart
From Feb 2024 to Feb 2025
