Final Results

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 £7.4m (2011: loss of £6.3m).

·    Group's share of net rental income up 29% to £22.9m (2011: £17.8m).

·    Development profits of £0.7m (2011: loss of £16.6m).

·    Net gain on sale and revaluation of investment properties of £3.3m (2011: £7.5m).

·    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).

·    £130m of new bank facilities agreed during the year, including a £100m revolving credit facility with RBS. A further £32m 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 £573m (2011: £532m).

·    Ratio of net borrowings to value of property portfolio of 46% (2011: 45%).

·    Current cash and undrawn bank facilities of over £65m.

·    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 £100m 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 £76m achieved during the period (£15m of which was non-income producing) plus the recovery of £16m of cash through the sale of 50% of Europa Centralna, Gliwice, Poland.

·    Further sales agreed of £34m, 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 £16m 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


 

 

Notes

Year To

31 March

2012

 

Year To

31 March

2011

 

Adjusted Income Statement

 


£m

£m

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

Dividends per share paid in year

2

3

3.4

4.9

(6.4)

2.0





 

 

 

 

Adjusted Balance Sheet


At 31 March 2012

 

£m

At 31

March

2011

 

£m





Value of investment portfolio


326.9

271.9

Trading and development stock at directors' value

Group's share of property portfolio held in joint ventures


132.8

112.9

180.0

80.3


4

572.6

532.2





Net debt

Group's share of net debt of joint ventures


227.8

36.4

206.1

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 £5.1m (2011: £3.6m).

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 £34.5m (2011: £32.4m).

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 £50m of investment assets and £26m of development sites, recovered £16m of cash through the sale of 50 per cent of our retail development at Gliwice in Poland and re-cycled these proceeds in over £100m of investment assets, increasing our annualised net rental income from £23m to circa £26m. 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 £22.9m (2011: £17.8m), a development profit of £0.7m (2011: loss of £16.6m), a net gain on the sale and revaluation of the investment portfolio of £3.3m (2011: £7.5m) and a pre-tax profit of £7.4m (2011: loss of £6.3m). 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 £50m of investment assets, where our asset management initiatives were completed, added to the sale of over £26m of trading properties and development sites. These, together with the recovery of £16m of cash through the sale of a 50% interest in our largest Polish retail development, provided funds for the acquisition of over £100m of new investment assets. This net new investment of over £52m, including capital expenditure, and the uplift in values at the year-end of £4m, took Helical's interest in its investment portfolio to £394m, including its share of assets held in joint venture, up from £338m. 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 £17.8m to £22.9m, 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 £4.5m (2011: £14.9m). 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 £0.7m (2011: loss £16.6m).

 

Administration costs, before performance related awards, increased by 6%. Net finance costs rose from £6.3m to £7.8m, 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 £3m. 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 £1.1m.

 

The net result for the year was a pre-tax profit of £7.4m compared to a £6.3m 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 £4m 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 £130m, which were used to refinance existing assets and fund its purchase of new investment properties. The principal new facility was a five year £100m 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 £22.9m (2011:£17.8m) 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 £5.5m (2011: £5.3m).  Tenant bad debts remain low at 2% of gross rental income.

 

 


2012

2011

2010

Net rental income

£000

£000

£000





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 £0.7m (2011: loss of £16.6m) were generated after deducting write-offs and provisions of £4.5m (2011: £14.9m). 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 £2.5m (2011: £2.9m) 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 £50.8m (2011: £27.9m) on which it made a loss of £0.4m (2011: gain of £4.8m).  The properties sold included 61 Southwark Street, Aldridge, Hawtin Park, East Grinstead, Fleet, Hailsham, Motherwell and Woolwich. The revaluation surplus for the year was £3.7m (2011: £2.7m).

 

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 £12.9m to £13.9m due to a higher level of average debt during the year. Capitalised interest reduced from £4.2m to £3.3m reflecting the lower level of development stock held during the year.  As a consequence of these two movements, total finance costs increased by £1.9m. Finance income earned on cash deposits reduced marginally to £0.6m (2011: £0.7m).

 

 


2012

2011

2010

Net finance costs (Group's share)

£000

£000

£000





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 £0.3m (2011: credit of £1.8m) 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 £3,972,753 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





1st interim

1.75

1.75

1.75

2nd 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 £51m were sold.  New properties of £100m were acquired (including offices in Hammersmith and Chiswick and retail assets in Corby and Basildon). In addition, around £2m 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 £3.7m (2011: £2.7m) on the investment portfolio.

 


2012

2011

2010

Investment portfolio

£000

£000

£000

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 £1.7m. 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 £34.5m (2011: £32.4m), 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 £206.1m to £227.8m. Including the Group's share of net debt of its joint ventures the Group's share of total net debt has increased from £241.3m to £264.2m. 

 


2012

2011

2010

Net debt and gearing




Net debt - Company

£227.8m

£206.1m

£203.0m

Net debt - Including joint ventures

£264.2m

£241.3m

£228.8m

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 £459.7m (2011: £451.9m).  Including the Group's share of the property portfolio held in joint ventures the fair value of the total portfolio was £572.6m (2011: £532.2m). With the Group's share of total net debt of £264.2m (2011: £241.3m) 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 £65m (2011: £95m) of cash and agreed, undrawn, committed bank facilities as well as £16m (2011: £59m) of uncharged property on which it could borrow funds.

 

At 31 March 2012 the Group had £120.3m (2011: £75.3m) 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 £142.9m  of floating rate debt with an average effective interest rate of 3.47% (2011: 2.97%). In addition, the Group had £125m of interest rate caps at an average of 4.7% (2011: £91m 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

 


    London Offices

Provincial Offices

    In Town Retail    

Out of Town Retail   

Poland

                  

Industrial

    Change of  Use 

Mixed Use

   Retirement 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

£m

Equity

£m

Equity

%

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

 

£m

Fair Value

 

£m

Surplus Over Book Value

£m

Equity (from Fair Value)

£m

Equity

 

%

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 £5.2m (2011: losses of £1.7m) were offset by provisions of £4.5m (2011: £14.9m) made against the carrying value of development stock.  Profits of £2.1m were generated at our  retirement village scheme at Bramshott Place, Liphook, and our office development in Crawley (£0.5m) and development management fees received in respect of Fulham Wharf, 200 Aldersgate and Barts Square, totalling £2.1m. However, we wrote down a number of sites to their net realisable values and these provisions, totalling £4.5m, reduced the net development profits to £0.7m.

 

 

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 £3.5m 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 £460m.

 

 

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 £1.5m 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 £70m 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 £16m 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 £3.3m 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 £4.5m 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 £83.2m of property, of which £14.2m was non-income producing. Wood Lane (£10.1m) 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 £19.4m, the Union portfolio was sold for £18.4m and Woking (part of the F3 portfolio) was sold for £8.25m, together with a number of other smaller sales.

 

Of the non-income producing sales, £10.3m consists of units at our retirement village at Bramshott Place, Liphook and £3.3m of units at Southall (the entirety of our remaining interest).

 

Since year end, we have exchanged or completed on  £20.8m of sales (£13.8m non-income producing). A further £12.9m 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 £55m. 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 (£3.7m, 10% NIY) on a 25 year RPI linked sale and leaseback transaction, Botleigh Grange for £2.4m 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 £14.1m. 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 £81.3m, 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 £12m.  

 

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 £2.0m of rent was lost at lease end (7.6% of rent roll). A further £0.6m (2.1% rent roll) was lost through administrations (net of rent from regearing leases as tenants in administration were acquired). £1.8m of leases were renewed (6.5% rent roll) with a further £2.3m (8.6% rent roll) added through new letting and fixed uplifts. The net rental reduction was £0.2m. Of the rent lost, £0.4m was attributable to St Barts and £0.7m to 200 Great Dover Street, both of which were anticipated and facilitate refurbishments / redevelopments. Excluding these anticipated losses, net rental gain was £0.9m.

 

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 £0.4m of rent from administrations. Total rent at risk from administration (excluding Clintons) was £1.2m. 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 £3.1m versus ERV of £4.23m, 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 £172 Zone A.

 

  

Clydebank Shopping Centre, Clyde

 

Since acquiring this property in January 2010, net income has increased from £5.85m to £6.02m with a further £374,000 of income contracted through expiry of rent free periods. There is £206,000 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 £273,000 compared with rents prior to administration of £261,000. 

 

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 £1.5m (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 £400,000 of works has been instructed which will increase NOI by circa £100,000, 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 £23.50 psf.  Ongoing tenant demand is strong with recent lettings at £25 to £30 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 £40psf 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 £70m last October, we are now concentrating on London for future purchases. We are targeting multi-let offices with low rents (£20/£30 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 £14.1m, 5.7% IY. This building is partly retail, let at low rents (£105-125 psf Zone A) to Café Nero, Thomas Cook, Dolland & Aitchison and others. There is also 23,270 sq ft of offices, 50% let at £24.50 psf and 50% vacant and being refurbished. Once the vacant offices are let at circa £30 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

 


Portfolio weighting

Initial Yield

Reversionary Yield

Yield on letting voids

Equivalent Yield (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

 

 

 

Sector

Valuation Increase/

(Decrease)

%

 

 

Weighting

%

ERV Change Mar 11 to Mar 12 %

ERV Change Mar 10 to Mar 11 %






London Offices

3.2

30.3

2.8

1.6

South East Offices

2.5

2.0

0.8

0.0






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 psf

£

Vacancy Rate

%

Average Unexpired

Lease Term

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 lease (£)

£26,200

£33,800

£37,500

£29,900

£52,500

 

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

£1,526,923

23

5.65

2

TK Maxx

£1,160,000

2

4.29

3

Barts and The London NHS Trust

£1,138,980

7

4.21

4

Quotient Bioresearch

£664,792

7

2.46

5

Asda

£637,438

2

2.36

6

Argos

£453,750

4

1.68

7

Metropolis Group

£400,000

1

1.48

8

Urban Outfitters

£400,000

1

1.48

9

Hitchcock & King

£397,500

1

1.47

10

Fox International

£374,031

3

1.38

Total


£7,153,414


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





Address

Area sq. ft. (NIA)

Helical interest

Average Passing Rent per sq. ft.

Vacancy Rate

Shepherds Building, Shepherds Bush, London W14

151,000

100%

£23.50

1%

200 Great Dover Street, London SE1

36,000

100%

-

100%

80 Silverthorne Road, Battersea, London SW8

56,000

75%

£17.63

2%

82 Silverthorne Road, Battersea, London SW8

51,000

75%

£22.83

66%

Barts Square, London EC1

420,000

33%

£8.62

4%

Broadway House, London W6

40,000

100%

£24.50 /

£105-£125 Zone A

29%

The Powerhouse, Chiswick, London W4

43,000

100%

£9.33

0%


797,000









PROVINCIAL OFFICES





Address

Area sq. ft. (NIA)

Helical interest

Average Passing Rent per sq. ft.

Vacancy Rate

Fordham, Newmarket

70,000

53%

£17.70

0%

Botleigh Grange, Hedge End, Southampton

23,000

100%

-

100%


93,000









INDUSTRIAL





Address

Area sq. ft. (NIA)

Helical interest

Average Passing Rent per sq. ft.

Vacancy Rate

Dales Manor Business Park, Sawston, Cambridge

62,000

67%

£7.71

0%

Winterhill Industrial Estate, Milton Keynes

25,000

50%

£7.72

0%

Merlin Business Park, Manchester

62,000

100%

£5.25

0%

Crownhill Business Centre, Milton Keynes

108,000

100%

£6.64

10%

Langlands Place Industrial Estate, East Kilbride

153,000

100%

£4.89

27%


410,000









RETAIL - IN TOWN





Address

Area sq. ft. (NIA)

Helical interest

Zone A Rent

Vacancy Rate

The Morgan Quarter, Cardiff

220,000

100%

£75-£125

4%

78-104 Town Square, Basildon

54,000

100%

£75-£100

26%

The Guineas, Newmarket

142,000

100%

£30-£50

9%

Idlewells Shopping Centre, Sutton-In-Ashfield

185,000

100%

£25-£50

1%

Corby Town Centre, Corby

700,000

100%

£20-£80

7%

Clyde Shopping Centre Clydebank

627,000

60%

£20-£65

3%


1,928,000









RETAIL - OUT OF TOWN





Address

Area sq. ft. (NIA)

Helical interest

Average Passing Rent per sq. ft.

Vacancy Rate

Otford Road Retail Park, Sevenoaks

42,000

75%

£17.96

0%

Stanwell Road, Ashford

32,000

75%

£16.37

0%


74,000




  

 

 

DEVELOPMENT PROGRAMME





LONDON OFFICES





Address

Area sq. ft. (NIA)

Fund/ Owner

Helical interest

Type of Development

200 Aldersgate Street, London EC1

370,000

Deutsche Pfandbriefbank

Dev. Man

Refurbished and in course of letting

Mitre Square, London EC3

273,000

Helical

100%

Site for new consented office building


643,000









PROVINCIAL OFFICES





Address

Area sq. ft. (NIA)

Fund/ Owner

Helical interest

Type of Development

The Hub, Pacific Quay, Glasgow

60,000

Helical

100%

Media focused multi-let office (i.e. 60% let)


60,000









INDUSTRIAL





Address

Area sq. ft. (NIA)

Fund/ Owner

Helical interest

Type of Development

Tiviot Way, Stockport

-

Helical

100%

New build - sold since year end

Ropemaker Park, Hailsham

70,000

Helical

90%

New build - completed


70,000




 

 

RETAIL - IN TOWN




Address

Area sq. ft. (NIA)

Helical interest

Type of development

Parkgate, Shirley, West Midlands

157,000

50%

Consented food store, retail and residential

C4.1 Milton Keynes

33,000

50%

Remaining retail and office units, part let


190,000



 

 

RETAIL - OUT OF TOWN




Address

Area sq. ft. (NIA)

Helical interest

Type of development

Leisure Plaza, Milton Keynes

305,500

50%

Consent for 113,000 sq ft retail store, 65,000 sq ft ice rink


305,500



 

 




 

RETIREMENT VILLAGES




 

 

Address

Units

Helical interest

Type of development

 

 

Bramshott Place, Liphook, Hampshire

151

100%

90 units sold, 18 under offer. Phases 1 and 2 completed, phase 3 under construction

 

 

St Loye's College, Exeter

206

100%

Part of site has consent for 63 housing units and is under offer for sale

 

 

Maudsley Park, Great Alne

132

100%

82 acre site with consent for a retirement village

 

 

Ely Road, Milton, Cambridge

101

100%

Planning consent granted for 89 open market housing units. Site under offer to be sold

 

 

Durrants Village, Faygate, Horsham

154

100%

Construction of a first phase commenced

 

 


744



 

 





 

 

CHANGE OF USE POTENTIAL




 

 

Address

Area

Helical interest

Type of development

 

 

Cawston, Rugby

32 acres

100%

32 acre greenfield site with residential potential

 

 

Arleston, Telford

19 acres

100%

19 acre greenfield site with residential potential

 

 


51 acres



 

 





 

 

MIXED USE DEVELOPMENTS




 

 

Address


Helical interest

Type of development

 

 

White City, London W12


Joint venture

Planning application for 1.5m sq ft mainly residential scheme to be submitted summer 2012

 

 

King Street, Hammersmith, London


50%

Planning application submitted

 

 

Fulham Wharf, London SW6


Dev. Man.

Planning consent granted for 100,000 sq ft foodstore and 463 residential units.

 

 

  

RETAIL - POLAND





Address

Area sq ft

Helical interest

Fund/ owner

Description

Park Handlowy Mlyn, Wroclaw

103,000

100%

Helical

Completed development, fully let

Europa Centralna, Gliwice

720,000

37.5%

Helical / Standard Life

Under construction


 823,000




  

 

Helical Bar plc

Unaudited Consolidated Income Statement

For the year to 31 March 2012

 



Year To

31 March

2012

Year To

31 March

2011


Notes

£000

£000


 



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

31 March

2012

£000

 

Year To

31 March

2011

£000




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

31 March

2012

£000

At

31 March

2011

£000





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

Corporation tax receivable

14

23,076

1,178

35,783

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

31 March

2012

£000

At

31 March

2011

£000

 




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

31 March

2012

Year To

31 March

2011


£000

£000

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 in subsidiary

(4,278)

-

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

 










 

 

 

 

 

 

Share

Capital

 

 

Share

premium

 

Revalua-

tion

reserve

Capital

redemp-tion

reserve

 

 

Other

reserves

     

 

Retained earnings

 

Non-controlling interest

 

 

 

Total

 


£000

£000

£000

£000

£000

£000

£000

£000

 










 

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 £7,566,000 (2011: loss of £3,889,000), loss on fair value movements on available-for-sale investments of £3,521,000 (2011: loss of £12,169,000), deferred tax credit on these fair value movements of £nil (2011: £3,222,000) and loss on retranslation of net investments in foreign operations of £39,000 (2011: £14,000).

 

The adjustment to retained earnings of £35,000 adds back the share-based payments charge (2011: credit of £196,000) 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

31 March

2012

£000

Year To

31 March

2011

£000

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

31 March

2012

£000

Year To

31 March

2011

£000

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

 31 March

2012

£000

Year To

31 March

2011

£000

Net proceeds from the sale of investment properties

Book value (note 9)

Tenants incentives on sold investment properties

50,427

(50,768)

(35)

32,810

(27,902)

(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

 31 March

2012

£000

Year To

 31 March

2011

£000

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 £2,094,000 (2011: £1,905,000) and cash bonuses payable to directors of £220,000 (2011: £nil).

 

 

6.         Finance costs


Year To

31 March

2012

£000

Year To

31 March

2011

£000




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

31 March

2012

£000

Year To

31 March

2011

£000

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

                       -  other temporary differences

(348)

180

(442)

(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

31 March

2012

Year To

31 March

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 share

97

-

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

31.03.12

£000

Leasehold

31.03.12

£000

Total

31.03.12

£000

Freehold

31.03.11

£000

Leasehold

31.03.11

£000

Total

31.03.11

£000








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 £0.8m (2011: £1.1m).  Investment properties exclude the Group's share of investment properties disclosed in investment in joint ventures of £67,187,000 (2011: £65,875,000).

 

Interest capitalised in respect of the refurbishment of investment properties is £5,767,000 (2011: £5,767,000).

 

 

10.        Owner occupied property, plant and equipment

 


Short

leasehold

improvement

31.03.12

£000

Vehicles

and office

equipment

31.03.12

£000

 

 

Total

31.03.12

£000

Short

leasehold

improvements

31.03.11

£000

Vehicles

and office

equipment

31.03.11

£000

 

 

Total

31.03.11

£000

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

£000

At 1 April 2011

Impairment in the year

Fair value adjustments


10,505

(3,521)

19

At 31 March 2012


7,003

  

12.        Investment in Joint Ventures

 

 

 

Summarised statements of consolidated income


At

31 March

2012

£000

At

31 March

2011

£000


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





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 £1.5m above book value at 31 March 2012 (2011: £nil).

 

13.        Land, developments and trading properties

 

 

 

Cost


At

31 March

2012

£000

At

31 March

2011

£000

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 £33m above book value at 31 March 2012 (2011: £32m).

 

Interest capitalised in respect of the development of sites is included in stock to the extent of £6,379,000 (2011: £6,827,000).  Interest capitalised during the period in respect of development sites amounted to £3,300,000 (2011: £4,179,000). 

 

 

14.        Trade and other receivables


At

31 March

2012

£000

At

31 March

2011

£000

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

31 March

2012

£000

At

31 March

2011

£000

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 £3,578,000 (2011: £773,000) of restricted cash.

 

16.        Trade payables and other payables


At

31 March

2012

£000

At

31 March

2011

£000




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

 

 

 

Bank overdraft and loans - maturity

At

31 March

2012

£000

At

31 March

2011

£000




Due within one year

59,203

37,500

Due after more than one year

203,992

199,917


263,195

237,417

 

 

 

Undrawn committed bank facilities

At

31 March

2012

£000

At

31 March

2011

£000

Expiring in one year or less

Expiring in more than one year but not more than two years

Expiring in more than four years not more than five years

16,441

777

21,091

6,299

1,672

-


38,309

7,971

 

 

 

Interest Rates

 

 

 

%

 

 

 

Expiry

At

31 March

2012

£000

Fixed rate borrowings

-   swap rate plus bank margin

-   swap rate plus bank margin

-   swap rate plus bank margin

-   swap rate plus bank margin

-   swap rate plus bank margin

-   swap rate plus bank margin

-   swap rate plus bank margin

 

3.950

3.400

6.401

5.645

6.240

3.965

5.300

 

Jan '15

Jan '15

Oct '12

Oct '14

Dec '13

Jan '16

Apr '12

 

50,000

12,250

28,500

6,690

10,120

9,172

3,570

Weighted average

Floating rate borrowings

4.804

3.467

Mar '14

Oct '14

120,302

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

£000

Rate

%

Start

Expiry






Interest rate cap

40,950

6.000

May '08

May '13

Interest rate cap

Interest rate cap

Interest rate cap

50,000

25,000

50,000

4.000

4.000

4.000

Apr '11

Apr '11

Jul '13

Apr '15

Apr '16

Jul '16

Interest rate cap

Interest rate cap

Interest rate cap

Interest rate cap

25,000-75,000

7,200

10,613-11,037

1,656-1,851

4.000

4.000

4.000

4.000

Apr '15

Jan '12

Jan '15

May '11

Jan '17

Oct '16

Jan '16

May '15






 

Gearing

 

 

At

31 March

2012

£000

 

At

31 March

2011

£000

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 £40,036,000 (2011: £39,384,000).

 

18.        Share capital


At

31 March

2012

£000

At

31 March

2011

£000

Authorised

39,577

39,577


39,577

39,577

The authorised share capital of the Company is £39,576,627 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

31 March

2012

£000

Year To

31 March

2011

£000




Attributable to equity share capital






Ordinary - Interim paid of 1.75p (2011: 1.75p) per share  

                - prior period final paid of 3.15p (2010: 0.25p) per share

2,044

3,663

1,857

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 £3,973,000 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

31 March

2012

£000

At

31 March

2012

Number of Shares

000's

 

 

 

 

Pence per share

 

 

At

31 March

2011

£000

At

31 March

2011

Number of Shares

000's

 

 

 

 

Pence per 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

-       Fair value of financial instruments

-       Deferred tax

3,494

1,050



7,071

717



Adjusted diluted net asset value

-       Surplus on fair value of   developments

258,099

34,542

116,880

221

262,920

32,436

116,846

225

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
 
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