Last checked at 3 Jun 2010 07:00
3 June 2010
H E L I C A L B A R P L C
("Helical"/"Company"/"Group")
P r e l i m i n a r y R e s u l t s
For the year to 31 March 2010
HELICAL POISED FOR NEW PHASE OF GROWTH
Financial Highlights
§ Profit before tax of £7.9m (2009: loss of £71.9m).
§ Valuation of investment properties up 7.9%, like for like, or £13.1m (2009: down 25.7% or £68.0m).
§ Diluted EPRA net asset value, including trading and development stock surplus, down 5% to 272p per share (2009: 286p), after dividends paid and payable in the year of 7.25p (2009: 4.50p).
§ Final dividend payable of 0.25p per share taking total dividends for the year to 4.75p (2009: 4.50p), up 5.6%.
Operational Highlights
§ £73m of sales of assets which have reached their full potential during the year and a further £26m since the year end. Sales include £54m of non-income producing assets.
§ Capital recycled into the acquisition, with Joint Venture partners, of £120m of investment assets, of which £50m since the year end.
§ Acquisitions show income return of 21.5% p.a. (income net of interest and all unrecoverable costs divided by equity invested) and offer significant asset management opportunities including letting voids (7% vacant by floor area).
§ Legal agreements have been exchanged to acquire the site at Mitre Square, London EC3. A planning application for a new, high quality office development of 270,000 sq ft NIA has been submitted.
§ Appointed as asset and development manager at 200 Aldersgate Street, 360,000 sq ft of refurbished offices in the City.
§ Appointed development manager at Fulham Wharf, London SW6 for a major foodstore and residential application.
§ Turawa Retail Park, in Poland comprising 41,000 sq m, forward sold to Standard Life and construction commenced on site. Value circa €75m.
Giles Weaver, Chairman, commented:
"Since we last reported to shareholders, the Group has successfully re-entered the investment market by acquiring, with joint venture partners, properties valued at more than £120m at yields that offer substantial potential for capital growth, whilst providing excellent cash returns.
"This move back into investment properties marks the start of a re-alignment of the Group's activities as we realise cash from the sale of our industrial and change of use development portfolio and re-invest these funds into high yielding investment assets with good growth prospects as well as Central London office and other development opportunities.
"The Helical brand is ideally placed to take advantage of any opportunities as a result of its strong balance sheet, well-established industry, banking and investor partnerships coupled with the experience and skills of its management team."
Michael Slade, Chief Executive, added:
"In every market cycle, Helical has experienced a period during which it repositions its business to prepare for opportunities in forthcoming years. It is no accident that half of our portfolio is made up of development and trading property rather than mainstream investment stock. Now is the time to be working up major projects, both in Central London offices and in large residential plays in West London, as well as keeping an eye open for attractive investment opportunities as and when they arise.
"Interestingly, we made our first major investment acquisition in four and a half years when buying the Clyde Shopping Centre in Glasgow with joint venture partners last autumn. This was followed by the purchase of nine industrial and office investments last month. More recently we have been appointed 'asset and development manager' at the 360,000 sq ft City office property, 200 Aldersgate, reflecting our long experience of City development. Legal agreements have been exchanged to acquire the site at Mitre Square, London EC3 from the City of London and Ansbacher and a planning application for a new, high quality office development of 270,000 sq ft NIA has been submitted. A start on site could be as early as the first quarter of 2011. With responsibility for some 3,500 residential units to be built in West London at Fulham Wharf, Hammersmith Town Hall and White City, in addition to our growing Retirement Villages portfolio, we look also to benefit from an improving residential market.
"Having successfully navigated our way through the crisis period and in doing so outperformed our peers, we now look to monetising our portfolio of opportunity, sharing risk with partners, and maintaining a strong balance sheet."
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
Fax: 020 7408 1666
Website: www.helical.co.uk
Financial Dynamics 020 7831 3113
Stephanie Highett/Dido Laurimore/Laurence Jones
Financial Highlights
|
|
Notes | Year To 31 March 2010 £m | Year To 31 March 2009 £m |
|
|
|
|
|
| Net rental income |
| 14.2 | 17.7 |
| Development property loss |
| (1.3) | (7.7) |
| Trading property loss |
| - | (0.5) |
| Share of results of joint ventures | 1 | 3.7 | 1.8 |
|
|
|
|
|
| Profit before property writedowns, investments gains and tax |
| 9.7 | 16.2 |
| Provisions against trading and development stock |
| (10.0) | (23.3) |
| Gains/(losses) on investment properties |
| 8.2 | (66.7) |
| Gain on sale of investments |
| - | 1.9 |
| Profit/(loss) before tax |
| 7.9 | (71.9) |
|
|
|
|
|
|
|
| Pence | Pence
|
| Basic earnings/(loss) per share
|
| 9.1 | (56.6) |
| Diluted earnings/(loss) per share
|
| 9.1 | (56.6) |
| Diluted EPRA earnings per share
| 2 | 2.9 | 9.0 |
| Dividends per share
| 3 | 7.25 | 4.50 |
| Diluted EPRA net assets per share
| 4 | 272 | 286 |
| Adjusted diluted net assets per share
| 5 | 241 | 242 |
|
|
| £m | £m |
| Value of investment portfolio
|
| 219.9 | 241.3 |
| Trading and development stock at directors' value
| 6 | 215.6 | 255.9 |
| Net borrowings
|
| 203.0 | 224.7 |
| Ratio of net borrowings to value of property portfolio
|
| 46.6% | 45.2% |
| Net assets
|
| 242.6 | 237.1 |
| Net gearing
|
| 84% | 95% |
1. The Group's share of the results of entities controlled equally by the Group and its joint venture partners.
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. Includes a second interim dividend of 2.75p per share paid 1 April 2010 but excludes the final dividend of 0.25p per share payable, if approved, in July 2010.
4. Calculated in accordance with the best practice recommendations of EPRA (see note 21).
5. As per 4, but excluding the adjustment for the fair value of development stock.
6. Includes the trading and development stock surplus of £33m (2009: £45m).
Chairman's Statement
Since we last reported to shareholders, the Group has successfully re-entered the investment market by acquiring, with joint venture partners, properties valued at more than £120m at yields that offer substantial potential for capital growth, whilst providing excellent cash returns.
This move back into investment properties marks the start of a re-alignment of the Group's activities as we realise cash from the sale of our industrial and change of use development portfolio and re-invest these funds into high yielding investment assets with good growth prospects as well as Central London office and other development opportunities.
We have protected our balance sheet by not having a dilutive and deeply discounted rights issue, preferring to rely on the successful placing in January 2009, which raised £26m at a small premium to net asset value per share. The result is that our net asset value performance over the last two years shows a decline of 21.2% in adjusted diluted net asset value per share which comfortably outperforms our peer group. In addition, over this two year period, our property portfolio provided an unleveraged return of 0.8% p.a. compared to a decline in the IPD benchmark of 7.7% p.a.
Results
The profit before tax, property write-downs and investment gains reduced to £9.7m (2009: £16.2m). Development profits, before stock write downs, reduced to £8.7m (2009: £15.6m). There were no trading property profits (2009: loss of £0.5m) and an increased contribution from the Group's share in the results of joint ventures of £3.7m (2009: £1.8m). However, write-downs of trading and development stock of £10.0m, mainly resulting from a reduction in the carrying value of land held for industrial and change of use potential, are set against these profits. Net rental income fell to £14.2m (2009: £17.7m), mainly the result of the sale of Rex House, London SW1. Profit before tax was £7.9m (2009: £71.9m).
Administration costs increased from £8.1m to £8.7m with the costs of share awards higher at £1.2m (2009: credit £0.4m). Net finance costs before capitalised interest reduced from £14.5m to £11.5m due to a lower average level of borrowings during the year and lower average interest rates. Capitalised interest reduced to £3.2m from £6.9m. There was a profit on mark to market valuation of the Company's financial instruments of £1.2m (2009: loss of £13.4m). The Company made a loss on currency movements of £1.1m (2009: gain of £4.0m) on its Polish operations.
Valuation yields on our investment portfolio fell by 70 basis points (2009: rise of 180). This created a like for like rise in values of 7.9% (2009: fall of 25.7%), reflected as a gain on revaluation of £13.1m (2009: loss of £68.0m). A loss on sale of investment properties of £4.9m compares with a gain of £1.3m in the previous year.
Diluted earnings per share were 9.1p (2009: loss 56.6p) and diluted EPRA earnings per share were 2.9p (2009: 9.0p).
The Group's diluted EPRA net asset value per share fell by 5% to 272p (2009: 286p). The directors' valuation of trading and development stock showed a surplus of £33m (2009: £45m) and excluding this surplus the adjusted diluted net asset value per share reduced to 241p (2009: 242p).
A second interim dividend of 2.75p was paid to shareholders on 1 April 2010, originally in lieu of the final dividend. However, the Board is recommending to shareholders an additional final dividend of 0.25p per share, payable, if approved, after the Annual General Meeting in July. IFRS dividends are accounted for once approved and, as a consequence, these accounts include the final dividend from 2009 and both of the interim dividends from 2010, thereby reducing diluted EPRA net asset value per share by 2.75p more than if the second interim had been paid as a final dividend in July. However, taken with the interim dividend paid in December 2009 of 1.75p (2009: 1.75p) and the final dividend of 0.25p it represents a total dividend of 4.75p (2009: 4.50p), an increase of 5.6% for the year.
Financing
In the year to 31 March 2010, Helical strengthened its financial position by re-negotiating the terms on £183m of secured loans, repaying £29m and removing loan covenants for between two and three years. Whilst property values have recovered from their low point in August 2009, the Group will continue to monitor loan to value covenants, where applicable, and all income covenants to ensure that any potential breaches are avoided. Helical has repaid £68m of debt during the period, partly as a result of its renegotiation of loans and partly arising from the sale of Rex House and industrial units at Southampton, Southall and Kidlington. Since the year end, the Group has repaid £9m of loans from the sale of Watford, Paignton and Whitstable and will repay a further £10m on the sale of Fieldgate Street, London E1 in June 2010.
At 31 March 2010 the Group had net borrowings of £203.0m (2009: £224.7m) and gross property values of £435.5m (2009: £497.2m). The ratio of net borrowings to the value of the property portfolio (including directors' valuation of stock) was 46.6% (2009: 45.2%). Net debt to equity gearing at 31 March 2010 was 84% (2009: 95%).
At 31 March 2010, the Group had £92.6m (2009: £147.9m) of fixed rate borrowings with an average effective interest rate of 6.43% (2009: 6.31%) and an average length of 2.3 years (2009: 3.2 years) and £34m of interest rate caps at an average of 6.00% (2009: 6.73%). In addition, the Group had a £34m floor at 4.50% until 2013.
Outlook
Despite the recovery in commercial property values since August 2009 there remain significant uncertainties over the current strength and future direction of the UK economy. Continued volatility in Europe and its impact on the Euro, and uncertainty surrounding the new UK Government's plans to stabilise the domestic economy, threaten to slow the recent rise in property values. However, the next 18 months should see an increase in activity as the domestic banks seek to sell assets following recent rises in values. The Helical brand is ideally placed to take advantage of any opportunities as a result of its strong balance sheet, well-established industry, banking and investor partnerships coupled with the experience and skills of its management team.
Giles Weaver
Chairman
3 June 2010
Chief Executive's Statement
In the year to 31 March 2010, commercial property started to recover from the 44% decline in capital values between their peak in June 2007 and their trough in July 2009. Since then, capital values have improved by approximately 14%. This recovery is now stalling as buyers digest the potential clouds on the horizon. The derivative market points to negligible capital growth for the foreseeable future and IPF forecasts are no more optimistic. The overwhelming concern centres on the banking crisis spilling over into a sovereign wealth problem whilst on a domestic level, the market remains worried over tenant demand/failure, forced sales as the banks slowly unload and a constipated new planning regime.
Set against good gains by the majors with a strong London weighting, Helical's efforts this year at first may seem pedestrian. This is a function of how we have managed our way through the last three years of crisis. I draw your attention to the Chairman's Statement on our adjusted net asset value per share outperformance over the last two difficult years which demonstrates the virtues of avoiding hugely dilutive rights issues. That path never was and never will be Helical's way. Shareholders can be grateful that your management team maintains a sizeable shareholding in the company.
In every market cycle, Helical has experienced a period during which it repositions its business to prepare for opportunities in forthcoming years. It is no accident that half of our portfolio is made up of development and trading property rather than mainstream investment stock. Now is the time to be working up major projects, both in Central London offices and in large residential plays in West London, as well as keeping an eye open for attractive investment opportunities as and when they arise.
Interestingly, we made our first major investment acquisition in four and a half years when buying the Clyde Shopping Centre in Glasgow with joint venture partners last autumn. This was followed by the purchase of nine industrial and office investments last month. More recently we have been appointed 'asset and development manager' at the 360,000 sq ft City office property, 200 Aldersgate, reflecting our long experience of City development. Legal agreements have been exchanged to acquire the site at Mitre Square, London EC3 from the City of London and Ansbacher and a planning application for a new, high quality office development of 270,000 sq ft NIA has been submitted. A start on site could be as early as the first quarter of 2011. With responsibility for some 3,500 residential units to be built in West London at Fulham Wharf, Hammersmith Town Hall and White City, in addition to our growing Retirement Villages portfolio, we look also to benefit from an improving residential market.
Having successfully navigated our way through the crisis period and in doing so outperformed our peers, we now look to monetising our portfolio of opportunity, sharing risk with partners, and maintaining a strong balance sheet.
Michael Slade
Chief Executive
3 June 2010
Business Review
Total portfolio - unleveraged returns
|
| 1 year % | 2 years % | 3 years % | 5 years % | 10 years % | 20 years % |
| Helical | 8.5 | 0.8 | 0.0 | 9.9 | 13.5 | 15.7 |
| IPD Benchmark | 17.4 | (7.7) | (7.4) | 2.2 | 6.5 | 6.9 |
| Helical's percentile rank | 90 | 5 | 3 | 2 | 2 | 0 |
0 = top ranked fund
Note: excludes the surplus but includes writedowns arising from the directors' valuation of trading and development stock.
Our Portfolio - how we commit our capital
|
| London Offices % | Provincial Offices % | In Town Retail % | Out of Town Retail % |
Industrial % | Change of Use % | Retirement Village % |
Total % |
| Investment | 19.6 | 2.4 | 22.5 | 4.2 | 6.1 | - | 0.9 | 55.7 |
| Trading and development | 0.4 | 4.3 | 2.1 | 11.2 | 7.5 | 5.0 | 13.8 | 44.3 |
| Total | 20.0 | 6.7 | 24.6 | 15.4 | 13.6 | 5.0 | 14.7 | 100.0 |
Note: excludes the surplus arising from the directors' valuation of trading and development stock.
Development and Trading Portfolio
| Project Type |
| Book cost £m | Write down £m | Written down book cost £m | Directors' Valuation £m | Surplus Over Book Cost £m |
| Change of Use |
| 23 | (1) | 22 | 32 | 10 |
|
Industrial Development for Freehold Sales |
| 38 | (6) | 32 | 32 | - |
| Retirement Village development |
| 61 | (2) | 59 | 72 | 13 |
| Office Development |
| 20 | (1) | 19 | 19 | - |
| Retail Development (Helical Poland) |
| 45 | - | 45 | 55 | 10 |
| Others - Mainly Mixed Development |
| 6 | - | 6 | 6 | - |
| Total |
| 193 | (10) | 183 | 216 | 33 |
Basis of valuation - the Directors' valuation of the properties is based on current site values.
Our business
Helical Bar is a property development and investment company. We create shareholder value through a wide variety of high margin activities with property investment at our core. The intention is that property investment should provide a stable income stream to cover overheads and interest costs. Our spread of activities gives us the flexibility to deploy capital rapidly across our business and focus on whatever opportunities offer the best returns at different points of the property cycle.
Our goals
Our overriding long term strategy is to make excellent returns for our shareholders through a broadly based, diversified property business, which has access to a very wide range of opportunities.
We do this with a small, long serving management team who have a significant proportion of their own wealth invested in a 17% stake in the Company and have no competing interests. We try to keep execution risk to a minimum, working with first rate joint venture partners when we move into new areas of property business.
Development Programme
Helical seeks to provide a continuing flow of development profits. It has good experience across the different sectors of offices, retail, industrial, mixed use and residential/retirement village schemes. These developments are either pre let or speculative and financed either by Helical or by third party funding partners. Helical tends to develop smaller schemes on its own and works on larger schemes either as development manager, typically being paid a small fee in return for a greater share of profit to incentivise a successful outcome, or with equity invested alongside our partner.
Year to 31 March 2010
Profits from the Group's development programme of £8.7m (2009: £15.6m) were again turned into net losses by provisions of £10.0m (2009: £23.3m) made against the carrying value of development stock. The profits generated during the year came from a range of developments including the retail schemes at Opole, Poland and Trinity Square, Nottingham; industrial schemes at Kidlington and Southall and at Aycliffe industrial estate; our office scheme at Riverbank House, London EC1 and at Bramshott Place Retirement Village. Provisions were made against the carrying value of land held for industrial and change of use potential. In addition to these schemes the Group's efforts were directed towards progressing our position in a range of schemes across the portfolio, details of which are outlined below:
Offices
The focus of the Group over the last year has been on those schemes recently completed or under construction, looking for tenants for the space, where vacant, and progressing a small number of major schemes for the future.
Riverbank House, London EC4
Riverbank House, EC4 is a 320,000 sq ft new office building built for the City of London / Pace Investments and pre-let in its entirely to Man Group. Building work started in late 2006 and recently completed with the building handed over to the tenant for its fit-out. Helical has a development management agreement with the owners under which it will receive a profit related fee, due this month.
200 Aldersgate Street, London EC1
Originally developed in the late 1980's, this 360,000 sq ft office building has remained vacant since Clifford Chance left for Canary Wharf in 2005. We have been appointed as asset and development managers with a view to refreshing and re-cladding parts of the building and creating a "vertical village" for office users. It is anticipated that the works will be completed in late 2010, following which the building will be re-launched on the market.
Mitre Square, London EC3
Legal agreements have been signed to acquire the site at Mitre Square, London EC3 from the City of London and Ansbacher. A planning application for a new high quality office development of 270,000 sq ft NIA has been submitted. A start on site could be as early as the first quarter of 2011.
The Hub, Pacific Quay, Glasgow
The Hub, Pacific Quay, Glasgow was completed in 2009. This new 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.
Clareville House, Panton Street, London SW1
This 75,000 sq ft office refurbishment for the National Grid UK Pension Fund was completed in February 2008. During the year, we have achieved lettings to restaurant Busaba Eathai and office tenants Novus Leisure Ltd and good progress is being made on the remainder of the vacant space. Due to movements in rental and yield pricing it is very unlikely a further profit payment will be forthcoming.
Retail
In Poland we have three schemes totalling over 117,600 sq m (1.2m sq ft):
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 Halfords, Media Expert, Deichmann, Komfort and others. The scheme is currently under offer for sale to a private property investment fund.
Park Handlowy Turawa, Opole
Opole is located approximately 40km to the west of Wroclaw along the A4 motorway and is the administrative centre of the Opole province. This shopping centre and retail park is anchored by a Carrefour Hypermarket and a Praktiker DIY store and comprises approximately 41,000 sq m (440,000 sq ft) of retail space. The scheme has been forward funded and sold to Standard Life and is due for completion in the first quarter of 2011.
Europa Centralna, Gliwice
This 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 of 67,000 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 has been part pre-let to Castorama, Media Expert and others. We are currently in detailed discussions with potential joint venture partners. Construction is due to commence by the end of 2010 with completion in the first quarter of 2012.
Change of use and mixed use
White City, London W12
We continue to work with the London Borough of Hammersmith and Fulham and the GLA in the production of an Opportunity Area Planning Framework for White City which will set out a blueprint for the area's potential. The aspiration for us and our landowning consortium ( Aviva , M&S, BBC and Land Securities) is a major mixed use scheme east of Wood Lane , London W12 incorporating some 3.5m sq ft of residential and commercial floorspace with a creative industries bias. The ownership interests of our consortium lie immediately opposite BBC Television Centre and just north of Westfield's new shopping centre.
Fulham Wharf, London SW6
At Fulham Wharf we are finalising, with landowner Sainsbury's, a planning application for a 100,000 sq ft new foodstore together with circa 475 residential units. The proposal is to demolish the adjacent dilapidated buildings, construct a new store with housing above and turn the existing store into new housing, creating new public spaces and enhancing access to a Thames riverside walkway within the development.
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 will submit a planning application in Summer 2010 for new council offices, a foodstore and restaurants around a new public square, over 320 new homes and a new public footbridge across the Great West Road, which will re-connect Hammersmith to the River Thames and Furnival Gardens.
Parkgate, Shirley, West Midlands
At Parkgate, Shirley we have revised our plans for the redevelopment of this site and will be submitting a new planning application to Solihull Metropolitan Borough Council later this Summer. The development will, however, continue to include an 85,000 sq ft Asda supermarket, 64,000 sq ft of retail and circa 120 residential apartments and townhouses.
Bluebrick, Wolverhampton
At Bluebrick, Wolverhampton, we currently own a refurbished disused railway station with planning permission for casino use and are looking for a tenant and/or purchaser for this building. In previous years, we have sold off parcels of land for student housing, residential, hotel, car showroom and public house use.
Leisure Plaza, Milton Keynes
At Leisure Plaza, Milton Keynes, we have planning consent for a 165,000 sq ft retail store, 65,000 sq ft casino, 50,000 sq ft ice rink and 25,000 sq ft of other leisure.
Student Accommodation
Completion of the sale of our site at Fieldgate Street, London, E1, which has planning consent for 340 student rooms, is due in June 2010. At 200 Great Dover Street, London, SE1, currently an investment property, let to Conoco Phillips until June 2011, we are appealing against a planning refusal for a new development of 35,000 sq ft of offices and 245 student rooms.
Industrial development
We have built 120 units totalling over 570,000 sq ft for onward sale to owner occupiers at two sites in Oxford as well as at Southampton, Southall (West London) and Hailsham. We have sold 43 of these units (220,000 sq ft), and have let a further seven units (29,000 sq ft). These schemes include sales of parcels of land for car showrooms, builders merchants and self-storage uses and the development of trade counter schemes. In addition, we own a vacant site in Stockport with planning permission for trade counters, industrial units and a builders merchant, self storage and car showroom. Infrastructure works have recently commenced at this site.
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 and restaurant facilities and 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 by a local merchant. Whilst this was demolished in the mid 19th Century and replaced by Bramshott Grange, the original Grade II listed Tudor Gatehouse remains and has been fully restored. Bramshott Grange operated most recently as a hospital for the elderly but closed in 1987. The land and buildings remained derelict until 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. Currently, we have sold 33 units in phases 1 & 2 with reservations on a further 28 units out of a total of 96 units built or under construction. The remaining 55 units are expected to be built in 2010/11.
Cherry Tree Yard, Faygate, Horsham, West Sussex
Cherry Tree Yard, a 30 acre site, had operated as a sawmill with outside storage for many years. Now vacant, 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 and enabling works will commence shortly with construction of the retirement village and clubhouse, to be built in phases, expected to commence in late 2010.
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. Construction of the retirement village and clubhouse in phases is expected to commence during 2011.
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 has been obtained for a retirement village of 101 units and a central facilities clubhouse building.
Governetz
Helical Governetz was formed in 2007 in anticipation of demand for the wholesale reform of the government estate which is inefficient, outdated and poorly located. The intention is to provide office campus accommodation where civil service, local government, wider public sector bodies, and private sector servicing organisations can share facilities, accommodation and services. The buildings will meet all the requirements of SOGE - Sustainability on the Government Estate.
Whilst these initiatives will take time to come to fruition we have been encouraged by our preliminary discussions with government bodies. At Keele, Staffordshire we are planning a sustainable business park within Keele University Science and Business Park. At Waverley, Rotherham, South Yorkshire in partnership with Harworth Estates, a division of UK Coal plc, we are planning a sustainable mixed use development of up to 600,000 sq ft of offices. Other projects are under discussion at Newport, Preston and Porton Down.
Quotient
In January 2007 we acquired a research facility near Newmarket in a joint venture with the majority shareholder of Quotient who occupy the buildings. As part of the transaction we acquired a minority stake in Quotient, a fast growing biosciences company.
Investment Portfolio
In recent years we have retained those assets identified as having potential for future growth, or which provided a strong cash flow to the business, having disposed of assets which had reached their maximum potential. The remaining portfolio provided a source of income to cover overheads and finance costs but this, as with the rest of the property sector, suffered from valuation falls in 2007 and 2008.
By July 2009, the cycle appeared to be turning with capital values increasing despite continuing falls in rental values. This is reflected in a like-for-like increase in values of 7.9% on the investment portfolio over the year.
During this financial year we sold our short leasehold interest in Rex House, London SW1 to the freeholders, The Crown Estate, for £34m. The sale price, reflecting an initial yield of 12% on a head lease with just 26 years remaining, was at 8% below the 31 March 2009 valuation.
We made our first significant investment property acquisition for four and a half years at the end of 2009, acquiring Clyde Shopping Centre in Glasgow with joint venture partners, and, following the year end, bought a portfolio of nine industrial and office assets located predominantly in London and the South East.
Valuation Movements
| Sector | Valuation Increase/ (Decrease) % | Weighting % |
|
|
|
|
| London Offices | 7.9 | 44 |
| Provincial Offices | (5.9) | 6 |
| Total Offices | 6.2 |
|
|
|
|
|
| In town retail | 10.7 | 27 |
| Out of town retail | 19.9 | 9 |
| Total retail | 13.0 |
|
|
|
|
|
| Industrial | 1.7 | 14 |
| Total | 7.9 | 100 |
|
|
|
|
Valuation Yields
| Sector | Initial | On Letting Voids | On Rack Rental Value | Equivalent | True Equivalent | ||||
|
| % | % | % | % | % | ||||
| Offices | 6.6 | 8.2 | 8.2 | 7.9 | 8.3 | ||||
| Retail | 6.6 | 7.9 | 7.9 | 7.6 | 7.9 | ||||
| Industrial | 6.3 | 9.4 | 10.1 | 9.2 | 9.7 | ||||
|
|
|
|
|
|
| ||||
| All | 6.6 | 8.2 | 8.3 | 7.9 | 8.3 | ||||
|
|
|
|
|
| |||||
|
| Capital Value psf £ | Vacancy Rate % | Average Unexpired Lease Term |
| |||||
| All offices | 232 | 14 | 4.2 |
| |||||
| London offices | 249 | 17 | 2.6 |
| |||||
| Retail | 151 | 8 | 13.9 |
| |||||
| Industrial | 44 | 18 | 4.6 |
| |||||
| Total | 132 | 13 | 10.1 |
| |||||
Lease expiries and tenant break options in:
|
| 2010 | 2011 | 2012 | 2013 | 2014 |
|
|
|
| Percentage of rent roll | 8.9% | 15.0% | 5.1% | 9.5% | 5.6% |
|
|
|
| Number of leases | 70 | 58 | 31 | 26 | 20 |
|
|
|
| Average rent per lease | £26,300 | £53,900 | £34,400 | £76,300 | £58,300 |
|
|
|
Lease expiries and tenant breaks in year
|
| 2010 £
|
% |
| Leases renewed | 2,235,900 |
|
| Break options not exercised | 763,400 |
|
| Tenants holding over | 182,700 |
|
|
| 3,182,000 | 87 |
| Rents lost at break/expiry | 498,500 | 13 |
|
| 3,680,500 | 100 |
Passing rent changes in the year
|
| Rent £ | Change £ |
| Rent lost at break/expiry | (498,485) | (498,485) |
| Rent lost through administration | (638,105) | (638,105) |
| Leases renewed | 2,235,916 | 157,508 |
| Tenants holding over | 182,730 | - |
| Fixed uplifts | 1,918,904 | 184,737 |
| New lettings | 1,014,137 | 1,014,137 |
|
|
| 219,791 |
|
|
|
|
Investment Portfolio - changes in rental value
|
| March 2009 - March 2010 % |
|
| Industrial | 8.1 |
|
|
|
|
|
| Out of town retail | 0.3 |
|
| In town retail | 7.5 |
|
| Total retail | 5.4 |
|
|
|
|
|
| Provincial offices | -5.6 |
|
| London offices | -3.7 | (+2.3% since September 2009) |
| Total offices | -4.1 |
|
|
|
|
|
| Total | 0.8 |
|
| PROPERTY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
| |
| INCOME PRODUCING ASSETS |
|
|
|
|
|
|
|
|
|
| ||
| OFFICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Area | Helical |
|
|
| Average | Vacancy |
| Address |
|
| Region | Tenure | Acquired | Sq. Ft. (NIA) | Interest | Description |
|
| Passing Rent | Rate |
| Shepherds Building, Shepherds Bush, London W14 | London | Freehold | 2000 | 151,000 | 100% | Media style offices refurbished in 2001 | £22.50 | 2% | ||||
| 61 Southwark Street, London SE1 | London | Freehold | 1998 | 67,000 | 100% | Refurbished with added penthouse suite | £18.65 | 0% | ||||
| 200 Great Dover Street, London SE1 | London | Leasehold | 2008 | 36,000 | 100% | Fully let, re-development potential |
| £19.95 | 0% | |||
| 80 Silverthorne Road, Battersea, London SW8 | London | Freehold | 2005 | 56,000 | 75% | Media style offices refurbished in 2006 | £18.37 | 13% | ||||
| 82 Silverthorne Road, Battersea, London SW8 | London | Freehold | 2008 | 52,000 | 75% | Media style offices built in 2008 | 0 | 100% | ||||
| Fordham, Newmarket |
| South East | Freehold | 2007 | 70,000 | 53% | R & D space and offices on 32 acres | £15.37 | 0% | |||
| Amberley Court, Crawley |
| South East | Freehold | 2006 | 31,000 | 95% | Partial refurbishment of office campus | £13.88 | 12% | |||
|
|
|
|
|
|
| 463,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RETAIL - SHOPPING CENTRE |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| Area | Helical |
|
|
| Average | Vacant |
| Address |
|
| Region | Tenure | Acquired | Sq. Ft. (NIA) | Interest | Description |
|
| Passing Rent | Space |
| Clyde Shopping Centre, Clydebank | Scotland | Leasehold | 2010 | 627,000 | 60% | Multi-let regional shopping centre | £13.74 | 7% | ||||
|
|
|
|
|
|
| 627,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RETAIL - IN TOWN |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Area | Helical |
|
|
| Average | Vacant |
| Address |
|
| Region | Tenure | Acquired | Sq. Ft. (NIA) | Interest | Description |
|
| Passing Rent | Space |
| Morgan Department Store, Cardiff | Wales | Freehold | 2005 | 246,000 | 100% | Refurbished store let as prime retail units + arcades | £12.84 | 15% | ||||
| 1 - 5 Queens Walk, East Grinstead | South East | Freehold | 2005 | 37,000 | 89% | Retail units 95% let to Sainsbury's | £8.37 | 0% | ||||
|
|
|
|
|
|
| 283,000 |
|
|
|
|
|
|
|
RETAIL - OUT OF TOWN |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Area | Helical |
|
|
| Average | Vacant |
| Address |
|
| Region | Tenure | Acquired | Sq. Ft. (NIA) | Interest | Description |
|
| Passing Rent | Space |
| Otford Road Retail Park, Sevenoaks | South East | Freehold | 2003 | 42,000 | 75% | Retail park let to Wickes, Currys & Carpetright | £17.37 | 0% | ||||
| Stanwell Road, Ashford |
| South East | Leasehold | 2004 | 32,000 | 75% | Solus unit let to Focus DIY store | £17.76 | 0% | |||
| Brixham Road, Paignton |
| South West | Freehold | 2005 | 24,000 | 77% | Solus unit let to Focus DIY store, sold In May 2010 | £8.75 | 0% | |||
|
|
|
|
|
|
| 98,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PROPERTY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
| |||
| INCOME PRODUCING ASSETS |
|
|
|
|
|
|
|
|
|
|
| ||||
| INDUSTRIAL |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| Area | Helical |
|
|
| Average | Vacant | |||
| Address |
|
| Region | Tenure | Acquired | Sq. Ft. (NIA) | Interest | Description |
|
| Passing Rent | Space | |||
| Standard Industrial Estate, North Woolwich E16 | London | Leasehold | 2002 | 50,000 | 60% | Multi-let industrial estate |
| £8.95 | 10% | ||||||
| Westgate, Aldridge |
| Midlands | Freehold | 2006 | 184,000 | 90% | Single-let refurbished industrial unit |
|
| £2.93 | 0% | ||||
| Waterfront Business Park, Fleet, Hampshire | South East | Freehold | 2000 | 54,000 | 100% | Multi-let industrial estate |
| £5.93 | 47% | ||||||
| Dales Manor Business Park, Sawston, Cambridge | South East | Freehold | 2003 | 62,000 | 67% | Multi-let industrial estate |
| £7.28 | 0% | ||||||
| Hawtin Park, Blackwood |
| Wales | Freehold | 2003 | 249,000 | 100% | Offices and industrial units | £2.04 | 0% |
| |||||
| Winterhill Industrial Estate, Milton Keynes | Midlands | Freehold | 2004 | 24,000 | 50% | Offices and industrial units |
|
| £0.00 | 51% | |||||
| Golden Cross, Hailsham |
| South East | Freehold | 2001 | 102,000 | 100% | Industrial units |
|
| £4.36 | 89% | ||||
|
|
|
|
|
|
| 725,000 |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| PROPERTY PORTFOLIO |
|
|
|
|
|
|
|
| ||||||||
| DEVELOPMENT PROGRAMME |
|
|
|
|
|
|
| |||||||||
| OFFICES |
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
| Area | Helical |
|
|
|
| |||||||
| Address |
|
| Region | Sq. Ft. | Interest | Fund/Owner | Type of development |
|
| |||||||
| Riverbank House, London EC4 | London | 320,000 | Dev. Man. | City of London /Pace Investments | New office building completed May 2010 |
|
| |||||||||
| 200 Aldersgate Street, London EC1 | London | 360,000 | Dev. Man. | Deutsche Pfandbriefbank | Refurbishment to be completed in Oct 2010 |
|
| |||||||||
| Mitre Square, London EC3 |
| London | 275,000 | 100% |
| New office building |
|
| ||||||||
| Clareville House, London SW1 | London | 75,000 | Dev. Man. | National Grid UK Pension Fund | Refurbishment completed 2009 |
|
| |||||||||
| The Hub, Pacific Quay, Glasgow | Scotland | 60,000 | 100% | Helical | New office building completed 2009 |
|
| |||||||||
| Forest Gate, Crawley |
| South East | 63,000 | 100% | Helical | Refurbished and new offices |
|
| ||||||||
|
|
|
|
| 1,153,000 |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |||||||
| INDUSTRIAL |
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
| Area | Helical |
|
|
|
| |||||||
| Address |
|
| Region | Sq. Ft. | Interest | Description | Type of development |
|
| |||||||
| Scotts Road, Southall, West London | London | 167,000 | 100% | Industrial units | New build |
|
| |||||||||
| Millbrook Trading Estate, Southampton | South East | 110,000 | 100% | Industrial and trade counter | New build |
|
| |||||||||
| Langford Lane, Kidlington, Oxford | South East | 72,000 | 100% | Industrial units | New build |
|
| |||||||||
| Tiviot Way, Stockport |
| North West | 189,000 | 100% | Industrial, trade counter etc | New build |
|
| ||||||||
| Watlington Road, Cowley, Oxford | South East | 71,000 | 100% | Industrial and offices | New build |
|
| |||||||||
| Ropemaker Park, Hailsham | South East | 70,000 | 90% | Industrial and food store/rest | New build |
|
| |||||||||
|
|
|
|
| 679,000 |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |||||||
| RETAIL - OUT OF TOWN |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
| Area | Helical |
|
|
|
| |||||||
| Address |
|
| Region | Sq. Ft. | Interest | Fund/Owner | Description | Type of development |
| |||||||
| Wroclaw |
|
| Poland | 103,000 | 50% | Under offer | Completed development, fully let | New build |
| |||||||
| Opole |
|
| Poland | 440,000 | 50% | Standard Life | Under construction | New build |
| |||||||
| Europa Centralna, Gliwice |
| Poland | 720,000 | 50% | Helical | To commence late 2010 | New build |
| ||||||||
|
|
|
|
| 1,263,000 |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |||||||
| CHANGE OF USE POTENTIAL |
|
|
|
|
|
|
| |||||||||
|
|
|
|
| Area | Helical |
|
|
|
| |||||||
| Address |
|
| Region | Sq. Ft. | Interest | Fund/Owner | Description |
|
| |||||||
| White City, London W12 |
| London | 3,500,000 | Consortium | Consortium | Commercial and residential |
|
| ||||||||
| Fieldgate Street, London E1 | London | - | 100% | Helical | Sold since year end |
| ||||||||||
| Cawston, Rugby |
| Midlands | - | 100% | Helical | 32 acre greenfield site with residential potential |
| |||||||||
| Arleston, Telford |
| Midlands | - | 100% | Helical | 19 acre greenfield site with residential potential |
| |||||||||
|
|
|
|
| 3,500,000 |
|
|
|
|
| |||||||
|
DEVELOPMENT PROGRAMME RETIREMENT VILLAGES |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
| Helical | Description |
| |||||||||
| Address |
|
| Region | Units | Interest |
| ||||||||||
| Bramshott Place, Liphook, Hampshire | South East | 151 | 100% | 33 units sold, 28 under offer |
| |||||||||||
| Lime Tree Village, Rugby |
| Midlands | 154 | 33% | 153 units sold |
|
|
| ||||||||
| St Loye's College, Exeter |
| South West | 206 | 100% | Resolution to grant planning consent for a retirement village granted in October 2009 |
| ||||||||||
| Maudsley Park, Great Alne | Midlands | 150 | 100% | 314,000 sq ft industrial estate on a 20 acre site with potential for a retirement village |
| |||||||||||
| Ely Road, Milton, Cambridge | South East | 101 | 100% | Planning consent for a retirement village granted in 2009 |
|
| ||||||||||
| Cherry Tree Yard, Faygate, Horsham | South East | 148 | 100% | Planning consent for a retirement village granted in May 2009 |
|
| ||||||||||
|
|
|
|
| 910 |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |||||||
| MIXED USE DEVELOPMENTS |
|
|
|
|
|
| ||||||||||
|
|
|
|
| Helical |
|
|
|
| ||||||||
| Address |
|
| Region | Interest | Description |
|
|
| ||||||||
| C4.1, Milton Keynes |
| Midlands | 50% | 110,000 sq ft Sainsbury's, 440 residential units and 35,000 sq ft retail and offices |
| |||||||||||
| King Street, Hammersmith, London | London | 50% | Planning application to be made for new council offices, foodstore and restaurants |
| ||||||||||||
| Fulham Wharf, London SW6 | London | Dev. Man. | 100,000 sq ft foodstore and 475 residential units |
| ||||||||||||
| Leisure Plaza, Milton Keynes | Midlands | 50% | Consent for 165,000 sq ft retail store, 65,000 sq ft casino, 75,000 sq ft other leisure |
| ||||||||||||
| Parkgate, Shirley, West Midlands | Midlands | 50% | 80,000 sq ft Asda supermarket, 70,000 sq ft retail, 100 residential units |
| ||||||||||||
| Bluebrick, Wolverhampton | Midlands | 75% | Refurbished railway station with permission for casino use |
| ||||||||||||
| Hagley Road, Quinton, Birmingham | Midlands | 75% | Consent for 16,000 sq ft retail. Site under offer. |
| ||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Financial Review
Consolidated Income Statement
Results for the year
The Group made profits of £9.7m (2009: £16.2m) before writedowns of its investment and trading development properties and its loss on sale of investment properties. A revaluation surplus of £13.1m (2009: deficit £68.0m) less a £10.0m (2009: £23.3m) writedown of trading and development stock, a gain on sale of investments of £nil (2009: £1.9m) and a £4.9m loss on sale of investment property (2009: profit £1.3m) reduced this profit to £7.9m (2009: loss £71.9m). Profit after tax was £9.6m (2009: loss £53.5m).
Net rental income
Net rental income fell by 20% to £14.2m (2009: £17.7m) reflecting the sale of Rex House, London SW1 during the year. Rental costs increased to £4.7m (2009: £3.1m) as irrecoverable service charges on vacant units increased. Tenant bad debts remain low at less than 4% of gross rental income.
Development profits
Development profits from the schemes in Turawa Poland, Liphook, Riverbank House and Trinity Square Nottingham were offset by stock write-downs of £10.0m (2009: £23.3m) to give a development loss for the year of £1.3m (2009: £7.7m).
Trading profits
There were no trading profits in the year (2009: £0.5m).
Share of results of joint ventures
During the year the Asset Factor sold its investment in NB Entrust and this, together with profits from the Group's share of net income and revaluation surplus from its investment in Clyde Shopping Centre, and profits at C4.1, Milton Keynes contributed to the Group's share of the results of its joint ventures of £3.8m (2009: £1.8m).
Gain on sale and revaluation of investment properties
During the year the Group sold investment properties with book values of £40.4m (2009: £9.0m) on which it made a £4.9m loss (2009: £1.3m profit). The properties sold included Rex House, London SW1, residential units in Cardiff and offices in Glasgow. The revaluation surplus for the year was £13.1m (2009: deficit £68.0m).
Administrative expenses
Administrative expenses increased to £8.7m (2009: £8.1m) with the increased cost of share awards offsetting a reduction in other costs. Administrative expenses, before impairment of goodwill, share based payments charge and executive bonuses, reduced to £6.7m (2009: £7.4m).
Finance costs, finance income and derivative financial instruments
Interest payable on bank loans, before capitalised interest, decreased from £15.9m to £11.0m due to a fall of average interest rates and the repayment of the bank loan secured on Rex House. Capitalised interest reduced to £3.2m from £6.9m as interest rates fell and developments were completed. Finance income earned on cash deposits decreased to £1.0m (2009:£2.1m).
|
| 2010 | 2009 | 2008 |
| Net finance costs | £000 | £000 | £000 |
|
|
|
|
|
| Interest payable on bank loans | 10,956 | 15,890 | 11,901 |
| Other interest payable | 696 | 362 | 265 |
| Finance arrangement costs | 872 | 321 | 163 |
| Interest capitalised | (3,196) | (6,855) | (9,296) |
|
| 9,328 | 9,718 | 3,033 |
| Interest receivable | (1,039) | (2,082) | (2,579) |
Derivative financial instruments have been valued on a mark to market basis and a surplus of £1.2m (2009: deficit £13.4m) has been recognised in the Income Statement.
Foreign exchange gains
A foreign exchange loss of £1.1m (2009: gain of £4.0m) has been recognised in respect of the Group's retail developments in Poland.
Taxation
The Group corporation tax charge for the year is less than the standard rate of 28% due to the use of capital allowances, tax relief on share awards and tax losses. The adjustment in respect of prior periods related to corporation tax recoverable from previous years.
The deferred tax credit for the year reflects a reduction in the provision for tax on temporary differences between the carrying amount of assets and liabilities in the financial statements and their corresponding tax bases in accordance with IFRS.
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 21 July 2010 a final dividend of 0.25p per share to be paid on 23 July 2010 to shareholders on the register on 25 June 2010. This final dividend, amounting to £265,000 has not been included as a liability at 31 March 2010, in accordance with IFRS.
During the year the Group paid the 2009 final dividend of 2.75p per share and an initial interim dividend for 2010 of 1.75p per share. On 3 March 2010 a second interim dividend was declared at 2.75p per share and was paid on 1 April 2010. This dividend was included in current liabilities at 31 March 2010.
|
| 2010 | 2009 | 2008 |
| Dividends | pence | pence | pence |
|
|
|
|
|
| 1st interim | 1.75 | 1.75 | 1.75 |
| 2nd interim | 2.75 | - | - |
| Prior period final | 2.75 | 2.75 | 2.75 |
|
|
|
|
|
| Total | 7.25 | 4.50 | 4.50 |
Earnings/(loss) per share
Earnings per share in the year to 31 March 2010 were 9.1p (2009: loss of 56.6p) per share and on a diluted basis were 9.1p (2008: loss of 56.6p) per share. Diluted EPRA earnings per share decreased to 2.9p (2009: 9.0p) per share.
|
| 2010 | 2009 | 2008 |
| Earnings/(loss) per share | pence | pence | pence |
|
|
|
|
|
| Earnings/(loss) per share | 9.1 | (56.6) | (13.5) |
| Diluted earnings/(loss) per share | 9.1 | (56.6) | (13.5) |
| Diluted EPRA earnings per share | 2.9 | 9.0 | 11.6 |
Earnings/(loss) 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 2010.
In accordance with IAS 33 on Earnings per Share, no weighting adjustment has been made for share awards in existence during the years to 31 March 2009 and 31 March 2008 as a loss was made during that year. Accordingly, the basic and diluted loss per share for these years are the same.
Diluted EPRA earnings per share excludes from earnings the IFRS effects of including the gain on sale and revaluation of investment properties (net of tax) and fair value movement on derivative financial instruments.
Consolidated balance sheet
Investment portfolio
During the year investment properties with a book value of £40.4m were sold. No new properties were acquired (Clyde Shopping Centre is included in these accounts as an investment in joint ventures). In addition, around £4.2m of capital expenditure was spent on refurbishing various office, industrial and retail buildings. At 31 March 2010 there was a revaluation surplus, net of joint venture share, of £13.1m (2009: deficit £68.0m) on the investment portfolio.
|
| 2010 | 2009 | 2008 |
| Investment portfolio | £000 | £000 | £000 |
|
|
|
|
|
| Cost or valuation at 1 April | 241,287 | 306,778 | 316,025 |
| Additions at cost | 4,192 | 16,011 | 31,601 |
| Transferred from land, trading and development properties | - | 1,514 | - |
| Disposals | (40,438) | (9,005) | (6,250) |
| Joint venture share of revaluation | 1,756 | (6,006) | (2,044) |
| Revaluation | 13,104 | (68,005) | (32,554) |
| Cost or valuation at 31 March | 219,901 | 241,287 | 306,778 |
Net asset values
The performance of the Group in the year to 31 March 2010 has increased equity shareholders funds, on which the net asset value per share is calculated, by £5.5m. This has led to a 1% increase in diluted net assets per share to 228p (2009: 226p). Taking into account the directors' valuation of trading and development stock of £33m (2009: £45m), the diluted EPRA net assets per share decreased by 5% to 272p (2009: 286p).
|
| 2010 | 2009 | 2008 |
| Net asset values per ordinary share |
pence | pence |
pence |
|
|
|
|
|
| Diluted | 228 | 226 | 289 |
| Adjusted diluted | 241 | 242 | 306 |
| Diluted EPRA | 272 | 286 | 352 |
| Diluted EPRA triple NAV | 259 | 269 | 335 |
The net asset value per share calculations are included in Note 21 of this statement.
Borrowings and financial risk
The Group's sales of investment properties and development sites have decreased debt and, at 31 March 2010, net debt had decreased from £224.7m to £203.0m. Taken with an increase in net assets of £5.5m, the decrease in net debt combined to decrease the Group's net gearing from 95% to 84%.
The fair value of the Group's investment, trading and development portfolio at 31 March 2010 was £435.4m (2009: £497.2m). With net borrowings of £203.0m (2009: £224.7m) the ratio of net borrowings to the value of the property portfolio was 46.6% (2009: 45.2%).
At 31 March 2010 the Group had £92.6m (2009: £147.9m) of fixed rate borrowings with an average effective interest rate of 6.43% (2009: 6.31%) and an average length of 2.3 years (2009: 3.2 years), and £34m of interest rate caps at an average of 6.00% (2009: £110m at 6.73%).
|
| 2010 | 2009 | 2008 |
| Net debt and gearing |
|
|
|
|
|
|
|
|
| Net debt | £203.0 | £224.7m | £205.5m |
|
|
|
|
|
| Gearing | 84% | 95% | 76% |
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. At the year end, Helical had £8.2m (2009: £38.6m) of undrawn bank facilities and cash of £39.8m (2009: £72.8m). In addition it had £32m (2009: £64m) of uncharged property on which the Group could borrow funds.
As at 2 June 2010, Helical's average interest rate was 4.51%.
Going Concern
The directors have reviewed the current and projected financial position of the Group making reasonable assumptions about future trading performance.
The key areas of sensitivity are:
·; timing and value of property sales
·; availability of loan finance and related cash flows
·; future property valuation and its impact on covenants and potential loan repayment
·; committed future expenditure
·; future rental income and potential bad debt
·; repayment timing and value of trade receivables
The forecast cashflows have been sensitised to eliminate those cash inflows which are less certain and to take account of a potential further deterioration of property valuations. From their review the directors believe that the Group has adequate resources to continue to be operational as a going concern for the foreseeable future.
Nigel McNair Scott
Finance Director
3 June 2010
Helical Bar plc
Unaudited Consolidated Income Statement
For the year to 31 March 2010
|
|
| Year To 31 March 2010 | Year To 31 March 2009 |
|
| Notes | £000 | £000 |
|
|
|
|
|
| Revenue | 2 | 67,354 | 81,770 |
|
|
|
|
|
| Net rental income | 3 | 14,151 | 17,682 |
| Development property loss |
| (1,293) | (7,704) |
| Trading property loss |
| (10) | (514) |
| Share of results of joint ventures |
| 3,745 | 1,846 |
| Other operating income |
| 26 | 6,752 |
|
|
|
|
|
| Gross profit before net gain/(loss) on sale and revaluation of investment properties |
| 16,619 | 18,062 |
|
|
|
|
|
| Net gain/(loss) on sale and revaluation of investment properties | 4 | 8,195 | (66,670) |
| Gain on sale of investments |
| - | 1,892 |
| Gross profit/(loss) |
| 24,814 | (46,716) |
|
|
|
|
|
| Administrative expenses | 5 | (8,680) | (8,090) |
|
|
|
|
|
| Operating profit/(loss) |
| 16,134 | (54,806) |
|
|
|
|
|
| Finance costs | 6 | (9,328) | (9,718) |
| Finance income |
| 1,039 | 2,082 |
| Change in fair value of derivative financial instruments |
| 1,157 | (13,412) |
| Foreign exchange (loss)/gain |
| (1,127) | 3,999 |
|
|
|
|
|
| Profit/(loss) before tax |
| 7,875 | (71,855) |
| Tax | 7 | 1,711 | 18,359 |
|
|
|
|
|
| Profit/(loss) after tax |
| 9,586 | (53,496) |
|
|
|
|
|
| - attributable to minority interests |
| (33) | 143 |
| - attributable to equity shareholders |
| 9,619 | (53,639) |
| Profit/(loss) for the year |
| 9,586 | (53,496) |
|
|
|
|
|
| Basic earnings/(loss) per share | 8 | 9.1p | (56.6p) |
| Diluted earnings/(loss) per share | 8 | 9.1p | (56.6p) |
Helical Bar plc
Unaudited Consolidated Statement of Comprehensive Income
For the year to 31 March 2010
|
|
Year To 31 March 2010 £000 |
Year To 31 March 2009 £000 |
|
|
|
|
| Profit /(loss) for the year | 9,586 | (53,496) |
|
|
|
|
| Other Comprehensive Income:- |
|
|
| Fair value movements on available for-sale-investments | 2,962 | 4,142 |
| Associated deferred tax on the fair value movements | (829) | (1,159) |
| Retranslation of net investments in foreign operations | (131) | (309) |
| Total comprehensive income and expense for the year | 11,588 | (50,822) |
Helical Bar plc
Unaudited Consolidated Balance Sheet
At 31 March 2010
|
|
Notes | At 31 March 2010 £000 | At 31 March 2009 £000 |
|
|
|
|
|
| Non-current assets |
|
|
|
| Investment properties | 9 | 219,901 | 241,287 |
| Owner occupied property, plant and equipment | 10 | 1,638 | 1,745 |
| Available-for-sale investments | 11 | 13,325 | 13,310 |
| Investment in joint ventures |
| 26,384 | 7,924 |
| Derivative financial instruments |
| 1,944 | - |
| Goodwill | 12 | 16 | 30 |
| Deferred tax asset | 7 | 3,169 | 3,440 |
|
|
| 266,377 | 267,736 |
| Current assets |
|
|
|
| Land, developments and trading properties | 13 | 182,576 | 210,415 |
| Available-for-sale investments | 11 | 10,959 | 7,684 |
| Trade and other receivables | 14 | 39,789 | 41,459 |
| Cash and cash equivalents | 15 | 39,800 | 72,776 |
|
|
| 273,124 | 332,334 |
| Total assets |
| 539,501 | 600,070 |
|
|
|
|
|
| Current liabilities |
|
|
|
| Trade payables and other payables | 16 | (43,651) | (51,215) |
| Borrowings | 17 | (72,459) | (48,155) |
|
|
| (116,110) | (99,370) |
| Non-current liabilities |
|
|
|
| Borrowings | 17 | (170,299) | (249,297) |
| Derivative financial instruments |
| (10,485) | (14,337) |
|
|
| (180,784) | (263,634) |
| Total liabilities |
| (296,894) | (363,004) |
|
|
|
|
|
| Net assets |
| 242,607 | 237,066 |
Helical Bar plc
Unaudited Consolidated Balance Sheet
At 31 March 2010
|
|
Notes | At 31 March 2010 £000 | At 31 March 2009 £000 |
| Equity |
|
|
|
|
|
|
|
|
| Called-up share capital | 18 | 1,339 | 1,336 |
| Share premium account |
| 70,828 | 70,378 |
| Revaluation reserve |
| - | 529 |
| Capital redemption reserve |
| 7,478 | 7,478 |
| Other reserves |
| 291 | 291 |
| Retained earnings |
| 162,547 | 158,494 |
| Own shares held | 20 | - | (1,597) |
| Equity attributable to equity holders of the parent |
| 242,483 | 236,909 |
| Minority interests |
| 124 | 157 |
| Total equity |
| 242,607 | 237,066 |
|
|
|
|
|
| Net assets per share |
|
|
|
|
|
|
|
|
| Basic | 21 | 228p | 226p |
| Diluted | 21 | 228p | 226p |
| Adjusted Diluted | 21 | 241p | 242p |
| Diluted EPRA | 21 | 272p | 286p |
Helical Bar plc
Unaudited Consolidated Cash Flow Statement
For the year to 31 March 2010
|
| Year To 31 March 2010 | Year To 31 March 2009 |
|
| £000 | £000 |
| Cash flows from operating activities |
|
|
| Profit/(loss) before tax | 7,875 | (71,855) |
| Depreciation | 334 | 321 |
| Revaluation (gain)/loss on investment properties | (13,104) | 68,005 |
| Net interest payable | 8,289 | 6,999 |
| Gain on sale of investments | - | (1,892) |
| Loss/(gain) on sale of investment properties | 4,909 | (1,335) |
| (Gain)/loss on valuation of derivative financial instruments | (1,157) | 13,412 |
| Share based payment charge/(credit) | 1,151 | (1,363) |
| Share of results of joint ventures | (3,745) | (1,846) |
| Foreign exchange movement on financing activities | (1,153) | 4,703 |
| Other non-cash items | 2 | (448) |
| Cash flows from operations before changes in working capital | 3,401 | 14,701 |
| Change in trade and other receivables | 358 | 3,503 |
| Change in land, developments & trading properties | 30,707 | (23,632) |
| Change in trade and other payables | (11,555) | (8,688) |
| Cash inflow/(outflow) from operations | 22,911 | (14,116) |
| Finance costs | (12,345) | (16,992) |
| Finance income | 1,231 | 2,497 |
| Tax received | 834 | 1,439 |
| Tax paid | (77) | (331) |
|
| (10,357) | (13,387) |
| Cash flows from operating activities | 12,554 | (27,503) |
| Cash flows from investing activities |
|
|
| Purchase of investment property | (4,192) | (15,024) |
| Sale of investment property | 36,704 | 10,340 |
| Purchase of investments | - | (5,048) |
| Sale of investments | - | 2,100 |
| Investment in joint venture | (18,641) | - |
| Dividends from joint ventures | 3,926 | - |
| Cost of acquiring derivative financial instruments | (1,437) | - |
| Cost of cancelling interest rate swap | (3,202) | - |
| Purchase of shares by ESOP | - | (3,107) |
| Sale of plant and equipment | 28 | 14 |
| Purchase of leasehold improvements, plant & equipment | (237) | (77) |
|
| 12,949 | (10,802) |
| Cash flows from financing activities |
|
|
| Issue of shares | 453 | 27,972 |
| Borrowings drawn down | 13,739 | 93,250 |
| Borrowings repaid | (67,923) | (23,101) |
| Equity dividends paid | (4,748) | (4,130) |
|
| (58,479) | 93,991 |
| Net increase in cash and cash equivalents | (32,976) | 55,686 |
| Cash and cash equivalents at 1 April | 72,776 | 17,090 |
| Cash and cash equivalents at 31 March | 39,800 | 72,776 |
Helical Bar plc
Statement of Changes in Equity
For the year to 31 March 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital |
Share premium |
Revaluation reserve | Capital redemption reserve |
Other reserves | Retained earnings | Own shares held |
Minority interest |
Total |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 |
|
|
|
|
|
|
|
|
|
|
|
| As at 31 March 2008 | 1,222 | 42,520 | 57,072 | 7,478 | 291 | 163,911 | (3,992) | 157 | 268,659 |
| Revaluation deficit | - | - | (56,360) | - | - | 56,360 | - | - | - |
| Realised on disposals | - | - | (183) | - | - | 183 | - | - | - |
| Total recognised expense | - | - | - | - | - | (50,822) | - | - | (50,822) |
| Dividends payable | - | - | - | - | - | (4,130) | - | - | (4,130) |
| Minority interests | - | - | - | - | - | (143) | - | - | (143) |
| Performance share plan | - | - | - | - | - | (1,363) | - | - | (1,363) |
| Purchase of shares | - | - | - | - | - | - | (3,107) | - | (3,107) |
| Own shares held | - | - | - | - | - | (5,502) | 5,502 | - | - |
| Issue of shares | 114 | 27,858 | - | - | - | - | - | - | 27,972 |
| At 31 March 2009 | 1,336 | 70,378 | 529 | 7,478 | 291 | 158,494 | (1,597) | 157 | 237,066 |
| Revaluation surplus | - | - | 13,104 | - | - | (13,104) | - | - | - |
| Realised on disposals | - | - | (13,633) | - | - | 13,633 | - | - | - |
| Total recognised income | - | - | - | - | - | 11,588 | - | - | 11,588 |
| Dividends payable | - | - | - | - | - | (7,657) | - | - | (7,657) |
| Minority interests | - | - | - | - | - | 33 | - | (33) | - |
| Purchase of shares | - | - | - | - | - | - | 6 | - | 6 |
| Performance share plan | - | - | - | - | - | 1,151 | - | - | 1,151 |
| Own shares held | - | - | - | - | - | (1,591) | 1,591 | - | - |
| Issue of shares | 3 | 450 | - | - | - | - | - | - | 453 |
| As at 31 March 2010 | 1,339 | 70,828 | - | 7,478 | 291 | 162,547 | - | 124 | 242,607 |
|
|
|
|
|
|
|
|
|
|
|
The adjustment to retained earnings of £1,151,000 (2009: £1,363,000) adds back the share-based payments charge, 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.
Own shares held - relates to the shares purchased by the Helical Bar Employees' Share Ownership Plan Trust.
Unaudited Notes to the Preliminary Announcement
1. Basis of preparation
The financial information is abridged and does not constitute the Group's full financial statements for the years ended 31 March 2010 and 31 March 2009 from where the information has been derived. The Group's accounting policies are consistent with those applied in the year to 31 March 2009, amended to reflect any new Standards. The key amendments to Standards and interpretations which are mandatory for the year ended 31 March 2010 are:
IAS 1 Presentation of Financial Statements (revised 2007)
IFRS 8 Operating Segments (effective 1 January 2009).
The financial statements for the year ended 31 March 2009 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 s237 (2) or (3) of the Companies Act 1985.
The financial statements for the year to 31 March 2010 will be presented to the Members at the forthcoming Annual General Meeting.
2. Revenue
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| Rental income | 18,881 | 20,781 |
| Development property income | 47,822 | 54,097 |
| Trading property sales | 525 | - |
| Other income | 126 | 6,892 |
|
| 67,354 | 81,770 |
3. Net rental income
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| Gross rental income | 18,881 | 20,781 |
| Rents payable | (12) | (12) |
| Property overheads | (3,732) | (2,394) |
| Third party share of net rental income | (986) | (693) |
| Net rental income | 14,151 | 17,682 |
4. Net gain/(loss) on sale and revaluation of investment properties
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| Net proceeds from the sale of investment properties Book value (note 9) Lease incentive and letting costs adjustment |
36,704 (40,438) (1,175) |
10,340 (9,005) - |
| (Loss)/gain on sale of investment properties | (4,909) | 1,335 |
| Gain/(loss) on revaluation on investment properties | 13,104 | (68,005) |
| Net gain/(loss) on sale and revaluation of investment properties | 8,195 | (66,670) |
5. Administrative expenses
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
| Administrative expenses | 8,680 | 8,090 |
| Operating profit/(loss) is stated after: |
|
|
| Staff costs | 4,597 | 4,951 |
| Share-based payments charge/(credit) | 1,151 | (425) |
| Depreciation | 334 | 321 |
Administrative expenses includes salaries in respect of the directors of £1,918,000 (2009: £2,007,500) and cash bonuses payable to directors of £nil (2009: £300,000).
6. Finance costs
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| Interest payable on bank loans and overdrafts | 10,956 | 15,890 |
| Other interest payable and similar charges | 696 | 362 |
| Finance arrangement costs | 872 | 321 |
| Interest capitalised | (3,196) | (6,855) |
| Finance costs | 9,328 | 9,718 |
7. Taxation
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| The tax credit is based on the loss for the period and represents: United Kingdom corporation tax at 28% - Group corporation tax - adjustments in respect of prior periods |
- (1,152) |
- (1,915) |
| Current tax credit | (1,152) | (1,915) |
|
|
|
|
| Deferred tax - capital allowances - other temporary differences - revaluation surpluses | 52 (611) - | 480 (4,358) (12,566) |
| Deferred tax | (559) | (16,444) |
| Tax on profit/loss | (1,711) | (18,359) |
Deferred tax
| Capital gains | - | - |
| Capital allowances | (3,257) | (3,205) |
| Other temporary differences | (1,278) | 1,066 |
| Tax losses | 7,704 | 5,579 |
| Deferred tax asset | 3,169 | 3,440 |
8. Earnings per share
The calculation of the basic earnings/(loss) per share is based on the earnings/(loss) attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. Shares held by the ESOP, which has waived its entitlement to receive dividends, are treated as cancelled for the purposes of this calculation.
The calculation of diluted earnings/(loss) per share is based on the basic earnings/(loss) per share, adjusted to allow for the issue of shares and the post tax effect of dividends on the assumed exercise of all dilutive options.
The earnings/(loss) per share are calculated in accordance with IAS 33 and the best practice recommendations of the European Public Real Estate Association ("EPRA").
Reconciliations of the earnings/(loss) and weighted average number of shares used in the calculations are set out below.
|
| Year To 31 March 2010 | Year To 31 March 2009 |
|
| 000's | 000's |
| Ordinary shares in issue | 107,408 | 107,087 |
| Weighting adjustment | (1,852) | (12,242) |
| Weighted average ordinary shares in issue for calculation of basic earnings per share | 105,556 | 94,845 |
| Weighting adjustments - for diluted earnings per share | 700 | - |
| Weighted average ordinary shares in issue for calculation of diluted earnings per share | 106,256 | 94,845 |
| Weighting adjustments - for diluted EPRA earnings per share | - | 2,425 |
| Weighted average ordinary shares in issue for calculation of diluted EPRA earnings per share | 106,256 | 97,270 |
|
|
|
|
| Profit/(loss) used for calculation of basic and diluted earnings per share | 9,619 | (53,639) |
|
|
|
|
| Basic earnings/(loss) per share | 9.1p | (56.6p) |
| Diluted earnings/(loss) per share | 9.1p | (56.6p) |
|
|
|
|
| Profit/(loss) used for calculation of basic and diluted earnings per share | 9,619 | (53,639) |
| Net (gain)/loss on sale and revaluation of investment properties | (8,195) | 66,670 |
| Fair value movement on derivative financial instruments | (1,157) | 13,412 |
| Gain on disposal of investments | - | (1,892) |
| Deferred tax on the above | 2,853 | (15,843) |
| Earnings used for calculation of diluted EPRA earnings per share | 3,120 | 8,708 |
|
|
|
|
| Diluted EPRA earnings per share | 2.9p | 9.0p |
9. Investment properties
|
| Freehold 31.03.10 £000 | Leasehold 31.03.10 £000 | Total 31.03.10 £000 | Freehold 31.03.09 £000 | Leasehold 31.03.09 £000 | Total 31.03.09 £000 |
| Group |
|
|
|
|
|
|
| Fair value at 1 April | 182,812 | 58,475 | 241,287 | 230,853 | 75,925 | 306,778 |
| Additions at cost | 3,853 | 339 | 4,192 | 14,159 | 1,852 | 16,011 |
| Transfers from land, developments and trading properties | - | - | - | 1,514 | - | 1,514 |
| Disposals | (3,263) | (37,175) | (40,438) | (9,005) | - | (9,005) |
| Revaluation surplus/(deficit) | 13,756 | (652) | 13,104 | (49,273) | (18,732) | (68,005) |
| Joint venture share of revaluation | 1,643 | 113 | 1,756 | (5,436) | (570) | (6,006) |
| Fair value at 31 March | 198,801 | 21,100 | 219,901 | 182,812 | 58,475 | 241,287 |
A disposal of the investment property portfolio at its stated fair value would crystallise a payment due to the Group's joint venture partners in respect of their share of the revaluation surplus of £1.7m (2009: £nil). Investment properties exclude the Group's share of investment properties disclosed in investment in joint ventures of £45,300,000 (2009: nil)
Interest capitalised during the year in respect of the refurbishment of investment properties amounted to £nil (2009: £1,065,000).
Interest capitalised in respect of the refurbishment of investment properties is included in investment properties to the extent of £5,767,000 (2009: £6,205,000).
10. Owner occupied property, plant and equipment
|
| Short leasehold improvements 31.03.10 £000 | Vehicles and office equipment 31.03.10 £000 |
Total 31.03.10 £000 | Short leasehold improvements 31.03.09 £000 | Vehicles and office equipment 31.03.09 £000 |
Total 31.03.09 £000 |
| Cost at 1 April | 2,071 | 554 | 2,625 | 2,033 | 587 | 2,620 |
| Additions at cost | - | 237 | 237 | 38 | 39 | 77 |
| Disposals | - | (121) | (121) | - | (72) | (72) |
| Cost at 31 March | 2,071 | 670 | 2,741 | 2,071 | 554 | 2,625 |
| Depreciation at 1 April | 518 | 362 | 880 | 328 | 285 | 613 |
| Provision for the year | 190 | 144 | 334 | 190 | 131 | 321 |
| Eliminated on disposals | - | (111) | (111) | - | (54) | (54) |
| Depreciation at 31 March | 708 | 395 | 1,103 | 518 | 362 | 880 |
| Net book amount at 31 March | 1,363 | 275 | 1,638 | 1,553 | 192 | 1,745 |
11. Available for sale investments
|
| Non-Current £000 | Current £000 |
| At 1 April 2009 Additions Disposals Fair value adjustments | 13,310 - - 15 | 7,684 338 (10) 2,947 |
| At 31 March 2010 | 13,325 | 10,959 |
Non-current available-for-sale investment consists of Helical's stake in Quotient Bioscience Group Limited, a private biosciences company.
Within current available-for-sale investments is money lent to a private property developer and a 20% equity investment in the company.
The Group has accounted for its interests as available-for-sale investments in accordance with IAS39 as it does not have significant influence over the operating and financial policies of either company. Both investments are held at their fair values.
| 12. Goodwill
| At 31 March 2010 £000 | At 31 March 2009 £000 |
| Cost at 1 April Additions | 1,515 - | 1,515 - |
| Cost at 31 March | 1,515 | 1,515 |
| Impairment at 1 April Impairment for the year | 1,485 14 | 1,485 - |
| Impairment at 31 March | 1,499 | 1,485 |
|
|
|
|
| Fair value at 31 March | 16 | 30 |
13. Land, developments and trading properties
|
Cost |
| At 31 March 2010 £000 | At 31 March 2009 £000 |
| Development properties |
| 182,303 | 209,537 |
| Properties held as trading stock |
| 273 | 878 |
|
|
| 182,576 | 210,415 |
The directors' valuation of trading and development stock showed a surplus of £33m above book value at 31 March 2010 (2009: £45m).
Interest capitalised in respect of the development of sites is included in stock to the extent of £8,999,000 (2009: £8,749,000). Interest capitalised during the period in respect of development sites amounted to £3,196,000 (2009: £5,790,000).
14. Trade and other receivables
|
| At 31 March 2010 £000 | At 31 March 2009 £000 |
| Trade receivables | 12,316 | 19,001 |
| Other receivables | 12,826 | 16,917 |
| Prepayments and accrued income | 14,647 | 5,541 |
|
| 39,789 | 41,459 |
15. Cash and cash equivalents
|
| At 31 March 2010 £000 | At 31 March 2009 £000 |
| Rent deposits and cash held at managing agents | 1,274 | 1,215 |
| Cash deposits | 38,526 | 71,561 |
|
| 39,800 | 72,776 |
16. Trade payables and other payables
|
| At 31 March 2010 £000 | At 31 March 2009 £000 |
|
|
|
|
| Trade payables | 4,635 | 3,611 |
| Other payables | 9,857 | 15,702 |
| Accruals and deferred income | 29,159 | 31,902 |
|
| 43,651 | 51,215 |
17. Borrowings
|
Bank overdraft and loans - maturity | At 31 March 2010 £000 | At 31 March 2009 £000 |
|
|
|
|
| Due within one year | 72,459 | 48,155 |
| Due after more than one year | 170,299 | 249,297 |
|
| 242,758 | 297,452 |
|
Undrawn committed bank facilities | At 31 March 2010 £000 | At 31 March 2009 £000 |
| Expiring in one year or less Expiring in more than one year but not more than two years Expiring in more than two years | 8,187 - - | 35,646 3,000 - |
|
| 8,187 | 38,646 |
| Interest Rates | % | Expiry | At 31 March 2010 £000 |
| Fixed rate borrowings - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin - swap rate plus bank margin |
3.555 8.295 5.650 6.040 5.330 7.150 6.240 5.290 6.555 6.270 |
Jun 11 Oct 14 Nov 10 Jan 11 Jun 11 Oct 12 Dec 13 Mar 12 Aug 13 Oct 10 |
5,400 6,690 5,200 4,200 4,316 28,500 10,120 3,570 9,912 14,652 |
| Weighted average Floating rate borrowings | 6.429 2.321 | Jun 12 Jun 12 | 92,560 151,146 |
| Total borrowings Deferred arrangement costs |
|
| 243,706 (948) |
|
|
|
| 242,758 |
Floating rate borrowings bear interest at rates based on LIBOR.
Hedging
In addition to the fixed rates, borrowings are also hedged by the following financial instruments:
| Instrument | Value £000 | Rate % | Start | Expiry |
|
|
|
|
|
|
| Current |
|
|
|
|
| - cap | 30,000 - 40,950 | 6.000 | May 2008 | May 2013 |
| - floor | 30,000 - 40,950 | 4.500 | May 2008 | May 2013 |
| Gearing | At 31 March 2010 £000 | At 31 March 2009 £000 |
| Total borrowings | 242,758 | 297,452 |
| Cash | (39,800) | (72,776) |
| Net borrowings | 202,958 | 224,676 |
|
|
|
|
| Net assets | 242,607 | 237,066 |
|
|
|
|
| Gearing | 84% | 95% |
Net borrowings exclude the Group's share of borrowings in joint ventures of £29,752,000 (2009: £5,644,000).
18. Share capital
|
| At 31 March 2010 £000 | At 31 March 2009 £000 | |
|
|
|
| |
| Authorised | 39,577 | 39,577 | |
|
|
|
| |
|
| 39,577 | 39,577 | |
| The authorised share capital of the Company is £39,576,626.60 divided into ordinary shares of 1p each, and deferred shares of 1/8p each | |||
| Allotted, called up and fully paid - 107,407,522 (2009: 107,087,012) ordinary shares of 1p each |
1,074 |
1,071 | |
| - 212,145,300 deferred shares of 1/8 p each | 265 | 265 | |
|
|
|
| |
|
| 1,339 | 1,336 | |
As at 1 April 2009, the Company had 107,087,012 ordinary 1p shares in issue. In the year to 31 March 2010 320,510 new ordinary 1p shares were issued as the result of share options being exercised. At 31 March 2010 there were 107,407,522 ordinary 1p shares in issue.
Share options
At 31 March 2010 unexercised options over nil (31 March 2009: 320,510) new ordinary 1p shares in the Company and nil (31 March 2009: 1,057,095) purchased ordinary 1p shares held by the ESOP had been granted to directors and employees under the Company's share option schemes. During the period, no new options were granted.
19. Dividends
|
| Year To 31 March 2010 £000 | Year To 31 March 2009 £000 |
|
|
|
|
| Attributable to equity share capital |
|
|
|
|
|
|
| Ordinary - 1st interim paid of 1.75p (2009: 1.75p) per share - 2nd interim paid on 1 April 2010 of 2.75p (2009: nil) per share - prior period final paid of 2.75p (2009: 4.50p) per share | 1,851 2,909 2,897 | 1,640 - 2,490 |
| Total dividends paid and payable 7.25p (2009 : 4.50p) | 7,657 | 4,130 |
An interim dividend of 1.75p was paid on 23 December 2009 to shareholders on the register on 4 December 2009. A second interim dividend of 2.75p was declared on 3 March 2010 and paid on 1 April 2010 to shareholders on the register on 12 March 2010. At 31 March 2010 this dividend was included within current liabilities. The final dividend, if approved at the AGM on 21 July 2010, will be paid on 23 July 2010 to shareholders on the register on 25 June 2010. This final dividend, amounting to £265,000, has not been included as a liability at 31 March 2010, 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 Schemes and Performance Share Plan.
At 31 March 2010, the Trust held 1,291,844 (31 March 2009: 2,338,904) ordinary 1p shares in Helical Bar plc.
At 31 March 2010 unexercised options over nil (2009: 1,057,095) ordinary 1p shares in Helical Bar plc had been granted over shares held by the trust.
At 31 March 2010 outstanding awards over 4,870,283 (2009: 4,738,900) ordinary 1p shares in Helical Bar plc had been made under the terms of the Performance Share Plan over shares held by the Trust.
21. Net assets per share
|
|
At 31 March 2010 £000 | At 31 March 2010 Number of Shares 000's |
Pence per share |
At 31 March 2009 £000 | At 31 March 2009 Number of Shares 000's |
Pence per share |
| Net asset value | 242,607 | 107,408 |
| 237,066 | 107,087 |
|
| Own shares held by ESOP |
| (1,292) |
|
| (2,339) |
|
| Less deferred shares | (265) |
|
| (265) |
|
|
| Basic net asset value | 242,342 | 106,116 | 228 | 236,801 | 104,748 | 226 |
| Unexercised share options | - | - |
| 454 | 321 |
|
| Diluted net asset value | 242,342 | 106,116 | 228 | 237,255 | 105,069 | 226 |
| - Fair value of financial instruments - Deferred tax | 9,978 3,257 |
|
| 14,337 3,205 |
|
|
| Adjusted diluted net asset value - Fair value of trading properties | 255,577 32,991 | 106,116 | 241 | 254,797 45,455 | 105,069 | 242 |
| Diluted EPRA net asset value | 288,568 | 106,116 | 272 | 300,252 | 105,069 | 286 |
| - Fair value of financial instruments | (9,978) |
|
| (14,337) |
|
|
| - Deferred tax | (3,257) |
|
| (3,205) |
|
|
|
|
|
|
|
|
|
|
|
Diluted Triple NAV |
275,333 | 106,116 |
259 |
282,710 | 105,069 |
269 |