(Alliance News) - Helical PLC on Thursday said it appointed a new chief executive officer as it reported its annual loss widened significantly, amid a sharp increase in the loss on the revaluation of investment properties.
The London-focused property developer said its pretax loss widened to GBP189.6 million in the financial year ended March 31, from GBP64.5 million a year prior.
Helical pointed out higher interest rates and economic volatility.
Revenue fell 20% to GBP39.9 million from GBP49.8 million. Cost of sales increased 6.5% to GBP14.5 million from GBP13.6 million.
"The year has been defined by a dislocation between the occupational and investment markets, with the letting market for the new, best quality space proving resilient as we continue to see high levels of active requirements, leasing momentum and strong rental growth in the core sub-markets. In contrast, the investment market remains muted, with activity far below the long-term average," the company said.
Pertinently, Helical's loss on the revaluation of investment properties increased 85% to GBP181.2 million from GBP97.9 million.
Helical announced a final dividend of 1.78 pence per share, down from 8.70p. This brings the total payout for financial 2024 to 4.83p, cut from 11.75p.
Looking ahead, the company said there was ground for some optimism as inflation in the UK was coming down, which could see the Bank of England cutting its interest rate. The lower inflation "offers some relief and a sense of optimism that interest rates have peaked and will begin to fall in the coming year. The Bank of England policy rate has been flat at 5.25% since August 2023, however the effects of a higher interest rate environment, combined with the residual effects of elevated inflation levels, are still present and continue to weigh on sentiment in the investment market," the firm said.
As Helical released its results, alongside it announced Property Director Matthew Bonning-Snook as new chief executive officer after the company's annual general meeting in July. He replaces outgoing CEO Gerald Kaye who will hand over his executive duties after 30 years with Helical, but Kaye will remain as an external consultant.
Incoming CEO Bonning-Snook said he looked forward "to leading Helical during the next phase in its growth and to working with Tim Murphy, chief financial officer, and the rest of the exceptional Helical team."
Helical shares fell 9.8% to 221.00 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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Helical Bar (HLCL)