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The share price of Helical Bar (LSE:HLCL) rose modestly today, following posting of the company’s final results. Price per share for the property development and investment firm was 169.00p by early afternoon, up 1.00p from yesterday’s close.
Report Overview
The most significant news in the report was that the company not only finished in the black, but that it did so beyond market expectations with the company turning in a pre-tax profit of £7.4 million, a full £1.0 million over expectations. Last year the company reported a loss of £6.3 million. The company generated sales of £76.0 million, but £15.0 million of that was non-income producing. The company generated an additional £16.0 million in cash by selling off its 50% share in Europa Centralna in Poland. Net rental income increased during the year by £5.1 million to £22.9 million. The board has proposed a full-year dividend of 5.15 pence per share, which exceeds both last year’s payout and market expectations for this year. Other key year-end numbers included: group development profits were £0.7 million, up from £16.6 million last year; net gain on the sale and revaluation of properties was £3.3 million; and cash on hand at year end was in excess of £65 million.
Other Highlights
Decreased valuations for multiple development sights stemming from the Eurozone crisis caused a £4.5 million writedown. Despite this news, it was a significant improvement from the £14.9 million writedown in the previous year. The bank obtained an additional £130 million in new bank loan facilities and another £32 million post 31 March. £100 million is a revolving credit facility with RBS. The company is continuing to increase its focus on investment in projects in and around London. Helical has gained planning consent for 273,000 square feet of office space, 3,000 square feet of retail space at Mitre Square in London, and at Fulham Wharf in West London for a large Sainsbury’s store and 463 residences. Plans have been drawn, but not yet submitted for approval, for 1.25 million square feet of residential and 280,000 square feet of commercial, retail, and leisure use in White City in West London. These are expected to be submitted for approval in the second quarter of this year. Plans submitted, but not yet approved, include 452,000 square feet of space at Barts Square for office, retail, and residential use.
Corporate Perspective
CEO Michael Slade described how Helical’s refocusing of its overall business is contributing to its return to profitability and boding well for its future, saying, “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.”
Company Spotlight
Helical Bar is a property development and investment company with a portfolio of real estate assets in England.
References
↑ Company History
↑ Official Company Report
↑ Construction News
↑ Company Overview
↑ Property Portfolio
