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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Helical Plc | LSE:HLCL | London | Ordinary Share | GB00B0FYMT95 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -7.40 | -3.98% | 178.40 | 185.00 | 186.80 | 178.40 | 178.40 | 178.40 | 3,825 | 08:09:30 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Lessors Of Real Property,nec | 39.91M | -189.81M | -1.5388 | -1.16 | 229.19M |
TIDMHLCL
RNS Number : 0895E
Helical Bar PLC
25 May 2012
25 May 2012
Hot Features
Premium
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
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