Helical Bar Regulatory News (HLCL)

25 May 2012

H E L I C A L B A R P L C

("Helical"/"Company"/"Group")

Unaudited

P r e l i m i n a r y R e s u l t s

Financial Highlights

·; Profit before tax of £7.4m (2011: loss of £6.3m).

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

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

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

·; Diluted EPRA earnings per share of 3.4p (2011: loss of 6.4p).

·; Diluted EPRA net asset value per share down 1% to 250p (2011: 253p).

·; £130m of new bank facilities agreed during the year, including a £100m revolving credit facility with RBS. A further £32m has been agreed since the year end. As a result, the average maturity of the Group's debt is 2.7 years (2011: 2.1 years) at an average cost of debt of 4.10% (2011: 4.35%).

·; Group's share of property portfolio £573m (2011: £532m).

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

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

·; Final dividend proposed of 3.40p per share taking total dividends for the year to 5.15p (2011: 4.90p), up 5%.

Operational Highlights

·; Acquisition of £100m of investment assets, including Corby Town Centre, Hammersmith, Basildon and Chiswick, increasing the balance of income producing assets to development stock to 69:31 demonstrating on-going progress towards our 75:25 target.

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

·; Further sales agreed of £34m, all of which are non-income producing.

·; Planning consents achieved at:

o Mitre Square, London EC3

o Fulham Wharf, London SW6

o Parkgate Shirley, West Midlands

o Milton, Cambridgeshire

o Exeter, Devon

o Tyseley, Birmingham

o Stockport, Greater Manchester

o Great Alne, Warwickshire

·; Planning application made at Barts Square, London EC1.

·; Planning application to be made in respect of White City in summer 2012.

Increased London activities

·; 112,000 sq ft of office space now let at 200 Aldersgate, EC1, with additional 35,000 sq ft of basement space let to Virgin Active.

·; Planning consent achieved at Mitre Square, EC3 for 273,000 sq ft NIA of offices and 3,000 sq ft of retail/restaurant use.

·; Good progress at Barts Square, EC1, with planning submitted for a new urban mixed use scheme comprising circa 226,000 sq ft NIA of offices, 202,000 sq ft of residential and 24,000 sq ft of retail/restaurant space.

·; At Fulham Wharf, SW6 planning has been received for a 100,000 sq ft foodstore, together with 463 residential units (590,000 sq ft), on behalf of landowner Sainsbury's

·; At White City, W12 plans have been drawn up for a residential led mixed use scheme, comprising c.1.25 million sq ft of residential, 210,000 sq ft of commercial and 70,000 sq ft of retail/leisure uses with planning intended for submission in July 2012.

Retail Developments

·; At Parkgate, Shirley, West Midlands construction is due to commence on an 85,000 sq ft Asda, 72,000 sq ft of retail and circa 135 apartments and townhouses.

·; Helical Retail is actively pursuing a large number of potential foodstore sites around the UK, working closely with the major food retailers.

Poland

·; 50% of the 710,000 sq ft Europa Centralna development, in Gliwice, Poland, sold to an institutional client of Standard Life, returning £16m cash to Helical.

·; Scheme is currently 70% pre-let to tenants such as Tesco, H&M and Castorama and is anticipated to complete in October 2012.

Commenting on the results, Michael Slade, Chief Executive, said:

"We have performed strongly over the year and the continued efforts to address the imbalance in our business by increasing the Company's weighting towards income producing properties has been vindicated by Helical's return to profitability. Our ability to outperform our peers in the future will depend upon the strength of our development pipeline and it is that part of the business that offers the greatest opportunity for growth. We are increasingly redirecting our hard earned equity to London and the South-East, markets which currently represent 47% of our portfolio. The next few years are all about Central London and happily that is where we hold our most exciting assets. The prospects for substantial profits in respect of our London and retail developments provide cause for optimism for the future performance of the Company."

For further information, please contact:

Helical Bar plc 020 7629 0113

Michael Slade (Chief Executive)

Nigel McNair Scott (Finance Director)

Address: 11-15 Farm Street, London W1J 5RS

Website: www.helical.co.uk

FTI Consulting 020 7831 3113

Stephanie Highett/Dido Laurimore/Daniel O'Donnell

Financial Highlights

Notes:

1. Includes Group's share of net rental income of joint ventures of £5.1m (2011: £3.6m).

2. Calculated in accordance with IAS 33 and the best practice recommendations of the European Public Real Estate Association ("EPRA") (see note 8 of the Preliminary Announcement).

3. Excludes the final dividend of 3.4p per share payable, if approved, in July 2012.

4. Includes the trading and development stock surplus of £34.5m (2011: £32.4m).

5. Net gearing is the ratio of net debt, including the Group's share of net borrowings of joint ventures, to net assets.

Chief Executive's Statement

In the year to 31 March 2012 we continued the process of rebalancing our portfolio between income producing investment assets and non-income producing development sites. In the economic environment we find ourselves in today, we believe this will help deliver long term shareholder value through combining the twin drivers of an investment portfolio generating significant cash surpluses and a London centric development programme. Applied together, these portfolios offer defensive qualities much needed in this uncertain world, whilst providing the potential to deliver outperformance in the future.

Strategy

Our prime objective is to maximise returns for shareholders through income returns, development and trading profits and capital growth. Our strategy for achieving this is to:

- maintain and expand our investment portfolio, providing a blend of high yielding retail, office and industrial property which offers considerable opportunity to increase income and enhance capital values through proactive asset management and skilful stock selection;

- have circa 75% of our gross property assets in the investment portfolio creating positive net cash flow for the business which exceeds our net financing costs, administration costs and dividends;

- carry out London based redevelopments, whether new build or refurbishments, creating value through land assembly, planning and implementation in the office, residential, mixed use and retail sectors;

- carry out pre-let regional foodstore and retail developments;

- maximise returns by minimising the use of equity in development situations; and,

- reduce exposure to non-core assets i.e. non-UK assets and retirement villages.

Progress

During the year we made significant progress in each of these key strategic areas. We have sold £50m of investment assets and £26m of development sites, recovered £16m of cash through the sale of 50 per cent of our retail development at Gliwice in Poland and re-cycled these proceeds in over £100m of investment assets, increasing our annualised net rental income from £23m to circa £26m. We have also obtained over 850,000 sq ft of planning permissions at our office development at Mitre Square, our foodstore scheme at Fulham Wharf, our retail schemes at Shirley and Tyseley and our industrial scheme at Stockport and for over 850 residential units at Fulham Wharf, Shirley and our retirement villages at Great Alne, Milton and Exeter. More recently, we have submitted a planning application for our major mixed use scheme at Barts Square and intend to submit a planning application in respect of our scheme at White City later this summer.

The impact of this activity is clearly illustrated in the annual results for the year to 31 March 2012, with a 29% increase in the Group's share of net rental income to £22.9m (2011: £17.8m), a development profit of £0.7m (2011: loss of £16.6m), a net gain on the sale and revaluation of the investment portfolio of £3.3m (2011: £7.5m) and a pre-tax profit of £7.4m (2011: loss of £6.3m). EPRA earnings per share were 3.4p (2011: loss of 6.4p). This return to profitability encourages us to propose an increased final dividend of 3.40p (2011: 3.15p) per share, up 8% on 2011, taking the total dividend to 5.15p (2011: 4.90p). Our property portfolio delivered an ungeared total return of 5.6% (2011: 2.7%). EPRA net asset value per share fell marginally to 250p (2011: 253p).

Future

We live in a world where the news from Europe is dominating the headlines with daily warnings of the potential consequences of the impact of a collapsing Eurozone economy. Whatever the end result, there will be repercussions on the UK economy and our focus is on ensuring that the Company is well placed to ride out the storm that seems to be gathering.

We have performed strongly over the year and the continued effort to address the imbalance in our business by increasing the Company's weighting towards income producing properties has been vindicated by Helical's return to profitability. Our ability to outperform our peers in the future will depend upon the strength of our development pipeline and it is that part of the business that offers the greatest opportunity for growth. We are increasingly redirecting our hard earned equity to London and the South-East, markets which currently represent 47% of our portfolio. The next few years are all about Central London and happily that is where we hold our most exciting assets. The prospects for substantial profits in respect of our London and retail developments provide cause for optimism for the future performance of the Company.  

Michael Slade

Chief Executive

25 May 2012

Financial Review

Review of the Year

In the year to 31 March 2012 we made good progress towards the Company's stated target balance between the income producing investment portfolio and development stock of 75:25. Sales of over £50m of investment assets, where our asset management initiatives were completed, added to the sale of over £26m of trading properties and development sites. These, together with the recovery of £16m of cash through the sale of a 50% interest in our largest Polish retail development, provided funds for the acquisition of over £100m of new investment assets. This net new investment of over £52m, including capital expenditure, and the uplift in values at the year-end of £4m, took Helical's interest in its investment portfolio to £394m, including its share of assets held in joint venture, up from £338m. The impact of this increase in investment assets is seen in the Income Statement where net rents, including assets held in joint venture, increased from £17.8m to £22.9m, a 29% increase.

Deepening economic concerns over the Eurozone and its potential impact on the UK led to decreased valuations for a number of development sites held by the Company and this has been reflected in a write-down of £4.5m (2011: £14.9m). However, this was more than offset by profits made on the remainder of our development portfolio and the Company posted its first net development profit since 2008 of £0.7m (2011: loss £16.6m).

Administration costs, before performance related awards, increased by 6%. Net finance costs rose from £6.3m to £7.8m, reflecting the increase in the size of the investment portfolio. The downward trend in interest rates between April 2011 and March 2012 gave rise to a small loss when comparing the fair value of the Company's derivative financial instruments to their book value, but as a result of the cancellation of a number of these instruments during the year, the remaining fair value liability on the Company's balance sheet is now just £3m. During the year the Company was exposed to exchange rate movements on its share of the assets and liabilities relating to Poland and fluctuating rates generated a loss of £1.1m.

The net result for the year was a pre-tax profit of £7.4m compared to a £6.3m loss in the previous year. This profit resulted in a diluted EPRA earnings per share of 3.4p (2011: loss of 6.4p) which allows the Company to fund a total dividend of 5.15p (2011: 4.90p), of which 3.40p is recommended to shareholders as a final dividend, payable on 26 July 2012.

The total comprehensive income of £4m added 3.43p to the diluted EPRA net assets per share. However, the dividend paid in the year of 4.90p reduced this to 250p.

During the year, the Company entered into a number of new bank facilities totalling £130m, which were used to refinance existing assets and fund its purchase of new investment properties. The principal new facility was a five year £100m revolving credit facility with The Royal Bank of Scotland plc which was used to refinance its recent acquisition of Corby Town Centre, consolidate a number of other facilities with the bank and provide capacity for future acquisitions. The Company also entered into new investment facilities with Barclays enabling it to acquire properties in Newmarket and Hammersmith and, since the year end, refinanced its investment at Shepherd's Building, Shepherd's Bush in a new three year facility. HSBC provided a development facility enabling our retirement village at Durrants Village to be built out. In addition, new investment facilities were agreed with Nationwide and Clydesdale Bank during the year. Despite the perception that bank finance is difficult to obtain, we continue to receive strong support from our banks. As at 25 May 2012, Helical's average interest rate was 4.10%.

The Company faces the future with a sound financial base, having increased its income stream by replacing low growth assets with higher yielding retail properties, refinanced maturing debt with longer term bank facilities and reduced its exposure to any future interest rate rises by entering into new hedging instruments, taking advantage of current low interest rates. In addition, and with the backing of the major property lending banks, the Company has access to a number of new bank facilities which, when added to its cash balances, provides a level of liquidity and resources to enable it to deal with the current economic uncertainties and to continue to rebalance its portfolio.

Net rental income

The Group's share of net rental income increased to £22.9m (2011:£17.8m) including its share of net rental income of joint ventures. Head rents payable to freeholders increased following the acquisition of Newmarket on a long leasehold interest. Property overheads increased to £5.5m (2011: £5.3m). Tenant bad debts remain low at 2% of gross rental income.

Development profits

Total net development profits of £0.7m (2011: loss of £16.6m) were generated after deducting write-offs and provisions of £4.5m (2011: £14.9m). Development profits were generated at the retirement village scheme at Bramshott Place, Liphook, at our mixed use scheme at Fulham Wharf, London SW6, at our office development at Tilgate, Crawley and in Poland. In addition, we recognised the remaining profit in respect of our development management role at Riverbank House, London EC4 and fees for our development management roles at 200 Aldersgate Street, London EC1 and Barts Square, EC1. However, during the year we wrote down our sites at Southall, Stockport and Wolverhampton, all of which have subsequently been sold at their written down value. We have also written down to net realisable value our retirement village site at Exeter and our partially let office development at The Hub, Glasgow.

Share of results of joint ventures

These joint ventures include our share of the investment properties at Clyde Shopping Centre, Barts Square and our development schemes at Europa Centralna Gliwice, Poland; Shirley Town Centre, West Midlands; Leisure Plaza, Milton Keynes and King Street Hammersmith. During the year, the Group's share of results from joint ventures was £2.5m (2011: £2.9m) mainly due to its share of net rental income and the net revaluation surplus from its investment in the Clyde Shopping Centre and Barts Square.

Gain on sale and revaluation of investment properties

During the year the Group sold investment properties with book values of £50.8m (2011: £27.9m) on which it made a loss of £0.4m (2011: gain of £4.8m). The properties sold included 61 Southwark Street, Aldridge, Hawtin Park, East Grinstead, Fleet, Hailsham, Motherwell and Woolwich. The revaluation surplus for the year was £3.7m (2011: £2.7m).

Finance costs, finance income and derivative financial instruments

Interest payable on bank loans including our share of loans on assets held in joint ventures but before capitalised interest, increased from £12.9m to £13.9m due to a higher level of average debt during the year. Capitalised interest reduced from £4.2m to £3.3m reflecting the lower level of development stock held during the year. As a consequence of these two movements, total finance costs increased by £1.9m. Finance income earned on cash deposits reduced marginally to £0.6m (2011: £0.7m).

Derivative financial instruments have been fair valued on a mark to market basis and a charge of £0.3m (2011: credit of £1.8m) has been recognised in the Income Statement.

Taxation

The deferred tax asset is principally derived from tax losses which the Group believe will be utilised against profits in the foreseeable future.

Dividends

The Board is recommending to shareholders at the Annual General Meeting on 24 July 2012 a final dividend of 3.40p per share to be paid on 26 July 2012 to shareholders on the register on 29 June 2012. This final dividend, amounting to £3,972,753 has not been included as a liability at 31 March 2012, in accordance with IFRS.

During the year the Group paid the 2011 final dividend of 3.15p per share and an interim dividend for 2012 of 1.75p per share.

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).

Earnings per share calculations are based on the weighted average number of shares held in the year. This is a different basis to the net asset value per share calculations which are based on the number of shares at 31 March 2012.

Consolidated balance sheet

Investment portfolio

During the year investment properties with a book value of £51m were sold. New properties of £100m were acquired (including offices in Hammersmith and Chiswick and retail assets in Corby and Basildon). In addition, around £2m of capital expenditure was spent on refurbishing various office, industrial and retail buildings. At 31 March 2012 there was a revaluation surplus, net of joint venture share, of £3.7m (2011: £2.7m) on the investment portfolio.

Net asset values

Net assets have decreased by £1.7m. This has led to a small decrease in diluted net assets per share to 217p (2011: 218p). Taking into account the directors' valuation of trading and development stock of £34.5m (2011: £32.4m), the diluted EPRA net assets per share decreased by 1% to 250p (2011: 253p).

The net asset value per share calculations are included in Note 21 of this statement.

Net debt and financial risk

Net debt held by the Company has increased during the year from £206.1m to £227.8m. Including the Group's share of net debt of its joint ventures the Group's share of total net debt has increased from £241.3m to £264.2m.

The fair value of the Group's investment, trading and development portfolio at 31 March 2012 was £459.7m (2011: £451.9m). Including the Group's share of the property portfolio held in joint ventures the fair value of the total portfolio was £572.6m (2011: £532.2m). With the Group's share of total net debt of £264.2m (2011: £241.3m) the ratio of net debt to the value of the Group's share of the property portfolio was 46% (2011: 45%).

The Group seeks to manage financial risk by ensuring that there is sufficient financial liquidity to meet foreseeable needs and to invest surplus cash safely and profitably. The Group has over £65m (2011: £95m) of cash and agreed, undrawn, committed bank facilities as well as £16m (2011: £59m) of uncharged property on which it could borrow funds.

At 31 March 2012 the Group had £120.3m (2011: £75.3m) of fixed rate debt with an average effective interest rate of 4.80% (2011: 5.77%) and an average length of 1.9 years (2011: 2.3 years), and £142.9m of floating rate debt with an average effective interest rate of 3.47% (2011: 2.97%). In addition, the Group had £125m of interest rate caps at an average of 4.7% (2011: £91m at 4.9%). The average maturity of the Group's debt is 2.7 years (2011: 2.1 years).

As at 25 May 2012, Helical's average interest rate was 4.10%.

Nigel McNair Scott

Finance Director

25 May 2012

Our Business

Helical Bar is a property development and investment company; our aim is to make excellent returns for our shareholders (which include the management team who own 16% of the Company) through a wide variety of high margin activities. While our core areas include London office and mixed use development, we are able to deploy capital to whichever part of the property market we believe offers the best returns at different points in the cycle.

The tables below describes how we allocate our resources and the split between investment and development. The property portfolio schedules at the end of this business review explain which properties sit in each category and give more detail on these properties.

Our Portfolio - how we invest our capital

Note: excludes the surplus arising from the directors' valuation of trading and development stock.

Note: Barts Square is held as an investment.

Trading and Development Portfolio (Helical's Share)

Investment Strategy

The investment portfolio, which is mainly let and income producing, has two main purposes:

1. To provide a steady income stream to cover overheads, dividends and interest;

2. To produce above average capital growth over the cycle to contribute to growth in the Company's net asset value.

We seek to achieve these aims through careful, disciplined stock picking, generally of multi-let London offices, shopping centres, industrial estates and mixed portfolios. Our key aim is to be confident that there is sustainable demand from occupiers for all of our assets.

We frequently reposition our properties through significant refurbishment or extensions. We work closely with our tenants to maintain maximum occupancy and these relationships often lead to opportunities to increase value through re-gearing leases or moving tenants within a building as they expand or contract. Finally, at certain points in the cycle we may buy entirely vacant buildings (such as the Morgans, Cardiff or Shepherds Building, London W14) with a view to carrying out a major refurbishment, where we are confident that the occupational market is strong enough to allow the whole building to be let quickly.

Development Strategy

We employ a wide variety of approaches in our development activities. The principal aim is to be 'equity lean' to maximise our share of profits by leveraging our capital employed and managing the risks inherent in the development process given the size of our balance sheet. A summary of the alternative ways of participating in development schemes is as follows:

o Participate in profit share situations where no equity is required. We will minimise our ongoing fee to maximise our profit share so that our interests are completely aligned with our partners e.g. Fulham Wharf and 200 Aldersgate.

o Reduce up front equity required by entering into conditional contracts or options e.g. Mitre Square, where we have entered into conditional contracts, and Helical Retail.

o Co-investment alongside a larger partner where we have a minority stake e.g. Barts Square, where we will receive a "waterfall" above a hurdle which skews super profit towards Helical and White City, where our equity contribution entitles us to an enhanced profit share.

o Traditional forward funding. This requires the institution to want the cost overrun risk to be covered by the developer in return for a commensurate profit participation.

Year to 31 March 2012

Trading and Development Portfolio

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

Central London Offices

The focus of the Group over the last year has been on those schemes recently completed or under construction, letting up vacant space, and progressing a small number of major schemes for the future.

200 Aldersgate Street, London EC1

Originally developed in the late 1980's, this 370,000 sq ft office building had remained vacant since Clifford Chance left for Canary Wharf in 2005. In 2010, we were appointed under an asset and development management agreement by the owners of the building to advise on a refurbishment and re-letting programme. We have refreshed and re-clad parts of the building, creating a "vertical village" for office users. Having completed the works in November 2010 the building was launched in January 2011 and since then we have completed twelve office lettings totalling 112,000 sq ft In addition we have let 35,000 sq ft of basement to Virgin Active who are opening a new flagship Classic Club gym in June. The remaining space continues to attract interest from potential tenants and we are optimistic that there will be further letting success in 2012. Upon the completion of a successful letting programme and subsequent sale of the building by the current owners, we will receive a development management profit share to supplement the annual fee that we currently receive.

Mitre Square, London EC3

At Mitre Square, London EC3 we have signed agreements to purchase two adjoining sites from the City of London and SFL2 Limited (previously Ansbacher). The S.106 agreement which enabled the planning permission to be issued was signed last June. In addition we have been working with the City to obtain a Section 237 TCPA 1990 to overcome any injunctable rights to light. We now intend to proceed with the demolition of the existing buildings to facilitate the construction of a new building comprising offices of 273,000 sq ft NIA and 3,000 sq ft of retail/restaurant use. This construction will not commence until a substantial pre-let is agreed or a forward funding is obtained.

Barts Square, London EC1

In joint venture with The Baupost Group LLC (Baupost 66.6%, Helical 33.3%) we own the freehold interest in land and buildings at Bartholomew Close, Little Britain and Montague Street, a 3.2 acre site adjacent to the new Barts Hospital and just south of Smithfield Market. The current buildings comprise 420,000 sq ft let to the NHS for circa £3.5m per annum on a number of short term leases that expire between 2014 and 2016. In February 2012 we submitted a planning application for a new urban mixed use quarter integrating this historic location into a high quality office, residential and retail scheme. The proposed scheme seeks to retain some of the existing buildings and complement them with a sympathetic redevelopment of the site which will comprise circa 226,000 sq ft NIA of offices, 202,000 NIA sq ft of residential comprising 216 apartments and 24,000 sq ft of retail/restaurant use. We are hopeful that planning permission will be obtained by the end of 2012. We estimate a total development value of circa £460m.

West London Mixed Use

White City, London W12

At White City we intend submitting an outline planning application in July 2012 for a residential led mixed use scheme immediately adjacent to White City underground station. The Eric Parry design master plan comprises c. 1.25 million sq ft of residential, 200,000 sq ft of commercial and 70,000 sq ft of retail/leisure/community uses. The landscaping proposals include the creation of a new bridge link from Wood Lane opening out into an urban square surrounded by local retailers and cafes. A large publically accessible garden square will also be created together with private communal courtyard gardens for the residents. Assuming planning consent is granted by the end of 2012, we hope to be in a position to make a start on site at the end of 2013.

Fulham Wharf, London SW6

At Fulham Wharf we secured, on behalf of landowner Sainsbury's, planning permission for a new 100,000 sq ft foodstore, together with 463 residential units (590,000 sq ft) and 11,000 sq ft of restaurant/retail/community use at Sands End in Fulham. Helical has received a fee of £1.5m for obtaining planning permission and will receive a profit share on the sale of the site, which is expected to be completed in June 2012. This profit share will be paid when Sainsbury's receive their monies from the sale of the site.

King Street, Hammersmith, London W6

We have a development agreement with the London Borough of Hammersmith & Fulham, in partnership with residential specialist Grainger plc, for the regeneration of the west end of King Street, Hammersmith. We submitted a planning application in November 2010 for new council offices, a foodstore and restaurants around a new public square, 300 new homes and a new public footbridge across the Great West Road, re-connecting Hammersmith Town Centre to the River Thames and Furnival Gardens. A resolution to grant planning consent was obtained in November 2011, but its referral to the Mayor was withdrawn pending further discussions with the GLA.

Retirement Villages

A retirement village is a private residential community in which active over-55s are able to live independently in retirement. Residents have typically down-sized from a larger family home into a cottage or apartment with no maintenance or security issues. With access to a central clubhouse containing a bar, restaurant facilities, health and fitness rooms and surrounded by maintained grounds, this retirement option is proving increasingly popular.

Bramshott Place, Liphook, Hampshire

The original Bramshott Place Village was an Elizabethan mansion built in 1580, although now only the original Grade II listed Tudor Gatehouse remains, which we have fully restored. The land and buildings were derelict when Helical acquired them in 2001. Changing planning from its previously designated employment use to a retirement village took several years but was eventually achieved in 2006.

The development of 151 cottages and apartments, and the new clubhouse, started in late 2007 and has proceeded in phases as units are sold. To date, we have sold 90 units with reservations on a further 18 units. Construction of the final phase of 55 units will complete in September 2012.

Durrants Village, Faygate, Horsham, West Sussex

Durrants Village, a 30 acre site, had operated as a sawmill with outside storage for many years. We were granted planning permission, at appeal, in May 2009 following a public inquiry where the Inspector allowed a development comprising a retirement village of 148 units, eight affordable housing units, a 50 bed residential care home and a central facilities clubhouse building. Demolition has been completed and the first phase started in May 2012 for the construction of a retirement village and clubhouse. Following changes to the scheme the development will be for 171 units and we have reservations on five units in Phase One with reservations on a further eight units in future phases.

Maudsley Park, Great Alne, Warwickshire

This is a Green Belt site which has 320,000 sq ft of built footprint and benefits from Major Development Site planning policy. Measuring 82 acres this site received outline planning permission in April 2011 for a retirement village of 132 units plus 47 extra care units. Demolition and enabling works will commence in late 2012 with construction to follow in 2013.

St Loye's College, Exeter

This 19 acre site was acquired in 2007 from the St Loye's Foundation, a long established rehabilitation college in the city of Exeter. Resolution to grant planning permission was obtained in October 2009 for a retirement village of 206 units, a 50 bed residential care home, an affordable extra-care block of 50 units and a central facilities clubhouse building. Demolition, site clearance and archaeological survey work have been completed. In 2011 we received planning consent for 63 open market housing units on part of the site and expect to complete the sale of this part in Summer 2012. Construction of a retirement village and clubhouse in phases on the remainder of the site is expected to commence in late 2012/early 2013.

Ely Road, Milton, Cambridge

This 21 acre site was acquired from EDF in 2006 and was previously used as a training centre and depot. Located within the Green Belt, planning permission had been obtained for a retirement village of 101 units and a central facilities clubhouse building. In 2011 we received consent for 89 open market housing units and have agreed to sell the whole site with completion due in Summer 2012.

Retail

In the UK we have four retail development schemes:

Parkgate, Shirley, West Midlands

At Parkgate, Shirley we are due to commence the construction of an 85,000 sq ft Asda supermarket, 72,000 sq ft of retail and circa 135 apartments and townhouses. The £70m project is expected to complete in spring 2014.

Tyseley, Birmingham

Outline planning consent has recently been granted for a 70,000 sq ft foodstore and 78,000 sq ft of open A1 retail units as part of the regeneration of Tyseley. Discussions are in hand with a number of potential tenants and we are working towards a start on site in early 2013.

Cortonwood

A planning application is to be submitted in summer 2012 for a 96,000 sq ft A1 retail park. If successful, construction could commence in autumn 2013.

Leisure Plaza, Milton Keynes

At Leisure Plaza, Milton Keynes, we have planning consent for 113,000 sq ft of retail together with the existing 65,000 sq ft ice rink. We are working with the various interested parties in this development to bring it forward with a view to starting construction later this year.

Other Projects

Helical Retail, our joint venture with Oswin Developments, is actively pursuing a large number of potential foodstore sites around the UK and is working closely with the major food retailers to satisfy their location specific requirements.

Poland

In Poland we have two schemes totalling 76,600 sq m (0.8m sq ft):

Europa Centralna, Gliwice

During the year we sold 50% of this scheme to clients of Standard Life and recovered over £16m of capital through the payment of loans. The agreement for sale provides that we will sell the remaining ownership two years after completion of the development to the same clients of Standard Life. The scheme is being developed on land to the south of Gliwice at the intersection of the A4 and A1 motorways. This highly visible site has unparalleled accessibility and will be a major regional shopping destination. The retail park and shopping centre, comprising approximately 66,000 sq m (720,000 sq ft) of retail space, will incorporate three distinct parts, being a foodstore, DIY and household goods and fashion. The scheme is now over 70% pre-let to Tesco, Castorama, H & M, Media Saturn, Jula and others. Construction commenced in October 2011 and is expected to complete by October 2012.

Park Handlowy Mlyn, Wroclaw

Wroclaw is a large city in West Poland, some 100km from the German border and 470km south of Warsaw. This 9,600 sq m (103,000 sq ft) out of town retail development was completed in December 2008 and is fully let to a number of domestic and international retailers including T K Maxx, Media Expert, Makro, Deichmann, Smyk, Komfort and others.

Other

The Hub, Pacific Quay, Glasgow

The Hub, Pacific Quay, Glasgow was completed in 2009. This 60,000 sq ft building offers flexible office space with an onsite cafe and events area. Located in the midst of a media hotbed with BBC Scotland and STV as neighbours, this scheme has been partly let to The Digital Design Studio, the commercial arm of Glasgow School of Art, Shed Media and other high-tech, media-orientated tenants. We continue to make progress, albeit slowly, in letting the building.

Industrial development

We have now sold virtually all of our industrial developments. Sales of £3.3m have been achieved for the remaining units at Southall during the year. Since the year end we have conditionally exchanged to sell all the land at Stockport for £4.5m with completion due over the course of this financial year. This sale follows completion of all infrastructure works and a revised planning consent for a car dealership. Following the sale of Stockport, our only remaining industrial development is at Hailsham where we hope to sell the remaining units by the end of the year.

Sales

We have continued to make good progress in selling non-income producing assets or assets where we perceive there to be limited further asset management upside.

Since March 2011 we have completed on sales of £83.2m of property, of which £14.2m was non-income producing. Wood Lane (£10.1m) was sold to Aviva, our Joint Venture partner in our White City development, and will contribute to our development site. 61 Southwark Street was sold for £19.4m, the Union portfolio was sold for £18.4m and Woking (part of the F3 portfolio) was sold for £8.25m, together with a number of other smaller sales.

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

Since year end, we have exchanged or completed on £20.8m of sales (£13.8m non-income producing). A further £12.9m is under offer (all non-income producing).

Acquisitions

We have continued to acquire income producing properties throughout the year, some with longer term redevelopment or refurbishment potential.

The acquisition of Barts Square, EC1, was completed in joint venture with Baupost (Helical 33.3% interest) for £55m. A planning application for a major mixed use development has been submitted.

Vacant possession will be attained between 2014 and 2016. In the meantime we are receiving a net yield of circa 5.5%.

Office investments were acquired in Chiswick (£3.7m, 10% NIY) on a 25 year RPI linked sale and leaseback transaction, Botleigh Grange for £2.4m from the Administrators and King Street, Hammersmith. In Hammersmith, we acquired a part vacant office building with retail on the ground floor from the receivers for £14.1m. This is currently being refurbished and we hope to achieve a running yield in excess of 8% upon letting.

We also acquired a retail parade in Basildon and Corby Town Centre for a total of £81.3m, both yielding 8% where we intend to continue letting vacant space and implement minor refurbishments where necessary.

Total gross annual rental income (before joint venture shares) arising from these acquisitions is circa £12m.

There was a valuation increase of 0.7% in the year to 31 March 2012 including capex, sales and purchases which compares to the IPD monthly index of 0.7% over the same period.

Investment Portfolio

Asset Management

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

Our material exposures to tenant administrations have been Peacocks / Bon Marche, Priceless Shoes, Shoon, Game and Clintons.

Including units which have been let or are under offer since March 2012, but excluding Clintons, we have lost £0.4m of rent from administrations. Total rent at risk from administration (excluding Clintons) was £1.2m. Of this total we have retained/re-let or have under offer 63% of rent at risk from administration.

The Morgans, Cardiff

A prime retail asset on the Hayes opposite St David's 2, let to Urban Outfitters, Joules, Fred Perry, Molton Brown and TK Maxx. With current contracted rent of £3.1m versus ERV of £4.23m, we see many opportunities for asset management initiatives and further rental growth over the medium term, following capital growth of 30% for the asset since the opening of St Davids 2 in September 2009. Since the year end, we have completed a new letting to Jack Wills and set a new rental level of £172 Zone A.

Clydebank Shopping Centre, Clyde

Since acquiring this property in January 2010, net income has increased from £5.85m to £6.02m with a further £374,000 of income contracted through expiry of rent free periods. There is £206,000 of rent in solicitors' hands.

Despite some tenant insolvencies, letting has remained strong. We lost four tenants through administrations but have subsequently re-let or put under offer all four units at a total rent of £273,000 compared with rents prior to administration of £261,000.

There were no tenant breaks or lease expiries exercised by tenants in the year 2011 to 2012 and the void rate now stands at only 3% of floor area.

Corby Town Centre

We acquired this centre in October 2011. It comprises in excess of 700,000 sq ft of retail space including Oasis Retail Park, Willow Place (2007 new build shopping centre) and Corporation Street. This asset was acquired for 8.0% NIY (triple net). Since acquisition we have sold Deene House for £1.5m (4.98% NIY). Despite administrations, upon conclusion of leases in solicitors' hands, net rental income will be in excess of that at acquisition. This is due to a combination of new lettings (8 in solicitors' hands), service charge and rates mitigation and by taking operation of the car park in-house, eliminating substantial costs. Further, circa £400,000 of works has been instructed which will increase NOI by circa £100,000, by reducing costs and enabling lettings.

Shepherds Building, London W14

This is a 151,000 sq ft refurbished office just south of Shepherds Bush Green and Westfield shopping centre. The building is let on 64 leases, mainly to media related tenants, at an average rent of £23.50 psf. Ongoing tenant demand is strong with recent lettings at £25 to £30 psf depending on size, giving good prospects for rental growth over the next three to five years. There is only one unit of 860 sq ft vacant at present.

Silverthorne Road, Battersea, London SW8

Acquired with vacant possession in 2005 we subsequently fully refurbished this office and TV studio complex to create a multi let TV production and media office hub of approximately 56,000 sq ft.

In 2007 we secured planning consent for a further 50,000 sq ft of raised floor, air conditioned office accommodation over five floors which was developed out during 2008 and concluded in early 2009. The site is currently 70% let by floor area.

Levels of interest and the lettings currently in negotiation suggest that the low total occupational cost of circa £40psf including rent, rates and service charge is making the building increasingly attractive to those occupiers no longer able to afford more central locations.

Future Investment Acquisitions

Following our recent acquisitions in the retail sector, especially Corby for circa £70m last October, we are now concentrating on London for future purchases. We are targeting multi-let offices with low rents (£20/£30 psf) in the 'villages' such as Southwark, Clerkenwell and Hammersmith. Our preference is for buildings in need of refurbishment and active management, often with some vacancies.

An example of the sort of assets we are keen to purchase is illustrated by our acquisition in January of Broadway House, King Street in Hammersmith, which we acquired from receivers for £14.1m, 5.7% IY. This building is partly retail, let at low rents (£105-125 psf Zone A) to Café Nero, Thomas Cook, Dolland & Aitchison and others. There is also 23,270 sq ft of offices, 50% let at £24.50 psf and 50% vacant and being refurbished. Once the vacant offices are let at circa £30 psf, the building will be 52% retail income and 48% office income and the yield on cost will be circa 8% (including capex).

Investment Portfolio Statistics

The following statistics all refer to Helical's share of the investment portfolio.

Helical Bar Portfolio vs IPD to March 2012

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

Valuation Movements, Portfolio Weightings and Changes to Rental Values

Note: Including sales, purchases and capex

Capital Values, Vacancy Rates and Unexpired Lease Terms

Lease expiries and tenant break options:

53% of Helical's net rent roll has greater than 5 years to expiry

Top Tenants (Helical's share of rent)

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 

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Unaudited Consolidated Income Statement

For the year to 31 March 2012

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Unaudited Consolidated Statement of Comprehensive Income

For the year to 31 March 2012

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Unaudited Consolidated Balance Sheet

At 31 March 2012

Helical Bar plc

Unaudited Consolidated Balance Sheet

At 31 March 2012

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Unaudited Consolidated Cash Flow Statement

For the year to 31 March 2012

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Unaudited Statement of Changes in Equity

For the year to 31 March 2012