Helical Bar Regulatory News (HLCL)

26 May 2011

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

HELICAL ESTABLISHES PLATFORM FOR FUTURE

OUTPERFORMANCE

Financial Highlights

§ Group's share of net rental income up 19% to £17.8m (2010: £14.9m).

§ Net gain on sale and revaluation of investment properties of £7.5m (2010: £8.2m).

§ Loss before tax of £6.3m (2010: profit of £7.9m).

§ Diluted EPRA net asset value, including trading and development stock surplus, down 7% to 253p per share (2010: 272p).

§ Group's share of property portfolio of £532.2m (2010: £494.5m)

§ Ratio of net borrowings to value of property portfolio of 45.3% (2010: 46.3%)

§ Final dividend proposed of 3.15p per share taking total dividends for the year to 4.90p (2010: 4.75p), up 3.2%.

Operational Highlights

Good progress with sales and acquisitions programme and asset management initiatives.

London

§ Purchase, with joint venture partners, of investment at Barts, London EC1 for £55m. Planning permission to be sought for a major new office building and high quality residential apartments.

§ Refurbishment of 200 Aldersgate, London EC1 completed. Considerable interest from potential tenants.

§ Planning permission granted at Mitre Square, London EC3 for a 270,000 sq ft NIA office development.

Poland and Eastern Europe

§ Completion of out of town retail development at Opole, Poland. Pre-lettings at Europa Centralna, Gliwice at 50%.

§ New Thameling joint venture in discussions with a number of potential tenants for distribution warehouses in Eastern Europe.

Other UK

§ £110m of sales of assets during the year and a further £58m sold or agreed since the year end. Sales include £60m of non-income producing assets.

§ To date capital recycled into the acquisition of £125m of investment assets, including Helical's share of Barts, yielding 8%.

§ Sales of assets totalling £40m from the mixed industrial and office portfolio purchased during the year showing profits generated so far of £5m, with remaining assets showing c.45% cash on cash return.

§ Purchases include two shopping centres for £33.8m, showing a yield of 8.25% net of all void costs, giving us a cash on cash yield of 18.5% after debt.

§ Planning permission granted at Great Alne, Warwickshire for a retirement village of 132 units.

§ Helical Retail engaged in a number of new retail warehouse schemes.

Giles Weaver, Chairman, commented:

"Helical is now actively pursuing new investment and development opportunities. We are pleased with the number and quality of investment purchases, in particular our acquisition at Barts, London EC1, making full use of the proceeds from our recent placing. The number of sales achieved during the year, and subsequently, draw a line under the difficulties of the last four years and the Company can move forward confidently."

Michael Slade, Chief Executive, added:

"It has been a long and hard four years since the warning bells sounded in mid 2007. It has required patience and discipline, however, the slate is now clean and the platform established to enable us to return to our outperforming ways."

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:

1. Includes Group's share of net rental income in joint ventures of £3.6m (2010: £0.7m)

2. The Group's share of the results of entities controlled equally by the Group and its joint venture partners.

3. 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).

4. Excludes the final dividend of 3.15p per share payable, if approved, in July 2011.

5. Calculated in accordance with the best practice recommendations of EPRA (see note 21).

6. As per 5, but excluding the adjustment for the fair value of development stock.

7. Includes the trading and development stock surplus of £32m (2010: £33m).

8. Includes Group's share of property portfolio and net borrowings in joint ventures.

Chairman's Statement

In the year to 31 March 2011 Helical has continued to transform its property holdings, realising cash from the sales of both non-income producing properties and assets with limited potential going forward, and reinvesting in growth assets which offer much promise for future years. This rolling of the "drum" as we rotate out of the old and into the new has changed the shape of the Group's property portfolio and its prospects for the future, albeit at a cost of limited write-downs and losses. The last four years have been a difficult period for property companies but, by protecting our shareholders, with limited calls for new capital and only at net asset value per share or at a premium, we believe we have now set a solid platform for future growth.

Results

The profit before tax, property write-downs and investment gains reduced to £2.9m (2010: £9.7m). Development losses, before stock write-downs, totalled £1.7m (2010: profits of £8.7m). There were trading losses of £0.4m (2010: £nil) and a reduced contribution from the Group's share in the results of joint ventures of £2.9m (2010: £3.7m). However, write-downs of trading and development stock of £14.9m (2010: £10.0m), mainly resulting from a write-down of the Group's office developments in Glasgow and Crawley and reductions in the carrying value of land held for industrial and change of use potential, and an impairment of the group's available-for-sale investments of £1.8m (2010: £nil) are set against these profits. Net rental income, excluding that in joint ventures, remained steady at £14.2m (2010: £14.2m). Loss before tax was £6.3m (2010: profit £7.9m).

Administration costs reduced from £8.7m to £7.1m with a credit for share awards of £0.2m (2010: charge £1.2m). Net finance costs before capitalised interest reduced from £11.5m to £10.5m due to a lower average level of borrowings during the year and lower average interest rates. Capitalised interest increased to £4.2m from £3.2m. There was a profit on the mark to market valuation of the Group's financial instruments of £1.8m (2010: £1.2m). The Group made a loss on currency movements of £0.1m (2010: £1.1m) on its Polish operations.

The investment portfolio rose 2.5% including sales and purchases (2010: 5%) or 1.7% on a like-for-like basis, reflected as a gain on revaluation of £2.7m (2010: £13.1m). A profit on sale of investment properties of £4.8m compares with a loss of £4.9m in the previous year.

Diluted loss per share was 3.6p (2010: earnings 9.1p) and diluted EPRA loss per share was 6.4p (2010: 0.1p).

The Group's diluted EPRA net asset value per share fell by 7% to 253p (2010: 272p). The directors' valuation of trading and development stock showed a surplus of £32m (2010: £33m).

The Board is recommending to shareholders an additional final dividend of 3.15p per share, payable, if approved, after the Annual General Meeting in July. Taken with the interim dividend paid in December 2010 of 1.75p (2009: 1.75p) it represents a total dividend of 4.90p (2010: 4.75p), an increase of 3.2% for the year.

Financing

In the year to 31 March 2011, Helical repaid £45m of debt from the sale of properties including Fieldgate Street, Paignton, Watford, Crawley and industrial units at Southampton, Southall and Kidlington. Since the year end, the Group has repaid £10m of loans from the sale of 61 Southwark Street.

At 31 March 2011 the Group had net borrowings of £241.3m (2010: £228.8m) and gross property values of £532.2m (2010: £494.5m), with these property values and net borrowings including the Group's share of its joint venture properties and borrowings. The ratio of net borrowings to the value of the property portfolio (including directors' valuation of stock) was 45.3% (2010: 46.3%). Net debt to equity gearing at 31 March 2011 was 81% (2010: 84%).

At 31 March 2011, the Group had £75.4m (2010: £92.6m) of fixed rate borrowings with an average effective interest rate of 5.77% (2010: 6.43%) and an average maturity of 2.3 years (2010: 2.3 years) and £91m of interest rate caps at an average of 4.9% (2010: £34m at 6.00%). In addition, the Group has a £40m interest rate floor at 4.50% until 2013.

Placing

In December 2010, Helical issued 10,730,000 ordinary 1p shares at 270p per share, raising £28.0m net of costs. The Group was delighted that over 30 institutional investors participated in this Placing, including many new shareholders. The Placing was also supported by the Group's management with each director participating in a total management investment of over £1.1m.

Outlook

As outlined in our half year statement, Helical is now actively pursuing new investment and development opportunities. We are pleased with the number and quality of investment purchases, in particular our acquisition at Barts, London EC1, making full use of the proceeds from our recent placing. The number of sales achieved during the year, and subsequently, draw a line under the difficulties of the last four years and the Group can move forward confidently.

Giles Weaver

Chairman

26 May 2011

Chief Executive's Statement

Property is a long term game. It always has been and always will be. In the early 90s it took Helical six years to recover fully from the bottom of the market in 1991 to strong growth in 1997. Then, having reached the point where income covered interest, overheads and dividends from investment buying in 1994-95, we set about rebuilding our development portfolio. Whilst doing so, we lagged our peer group but by 1997 we were a major participant in the City and one of the largest suppliers of out-of-town retail in the UK between 1997-98. By 2001, we had trebled the size of the Company and by the end of 2004 had returned £156 million to our shareholders.

I now find us in a similar situation to that which faced us in 1996. By prudent use of our limited capital and making full use of the proceeds of our two small and accretive fund raisings, we have regained our ground so that once more our net rental income covers our interest, overhead and dividends. Once again we are preparing an extraordinary and diverse development programme.

I cannot promise to quite match our accelerated performance of the late 90s. I see no "driver" in our economy equal to the dot.com boom of those days but I am pleased to report that we have cleared the decks of our 'legacy' properties and can now concentrate on moving forward free of the shackles of the past.

We see ongoing value in the good secondary market where, for example, shopping centre equivalent yields at 7.75% are at a record premium to bond rates. Whilst interest rates remain low, we are enjoying the cash flow from our recent investment purchases. Buying £125m of property at an average 8% yield plus whilst borrowing at an average 4.4% provides an historic differential. Experience suggests you buy, buy, buy in such unusual circumstances, but the key is choosing your targets carefully, having full regard to the difficulties being encountered by tenants and the pitfalls of ever shortening leases.

We will continue to buy good secondary shopping centres and industrial estates although we are witnessing more interest in these sectors and a gradual reduction in yields. Targeted assets are of institutional quality which could generally benefit from capital expenditure and value enhancing initiatives. Key to our acquisition strategy are affordable occupational costs for our tenants (low rents) and good tenant demand for space. Careful, disciplined stock picking remains our key focus and the value of detailed due diligence before bidding cannot be underestimated.

London has always been our major playground. We are making good progress on lettings at 200 Aldersgate (370,000 sq ft of offices) and our current development programme in the City comprises two schemes of circa 750,000 sq ft at Mitre Square and Barts which will be coming forward over the next few years. In West London, our residential/mixed use portfolio is looking promising. We are confident of gaining planning consent at Fulham Wharf (100,000 sq ft Sainsbury's store, 463 residential units) where we act for Sainsbury, and at our joint venture with Grainger at Hammersmith Town Hall (110,000 sq ft council offices, 40,000 sq ft retail, 320 residential units). After several years of negotiation with other land owners and the planning authorities, we are now able to move forward and apply for planning at our White City site of 10 acres with a mixed use scheme of up to two million sq ft held jointly with our partner, Aviva. We hope to be ready to start on site by the end of 2012.

In all these cases we see values moving positively forward. Our total equity invested in these six London schemes is less than £30m so we continue our well proven theme of maximising the return on our equity.

As the development market recovers, we are also now able to rekindle our retail projects under the Helical Retail banner, working with the supermarket chains to obtain planning on optioned schemes throughout the UK, and continue our town-centre development at Shirley, Birmingham anchored by an 80,000 sq ft Asda store.

Poland offers opportunity and will remain on our target list as we develop and complete our two out-of-town retail schemes (a 1.1 million sq ft programme) and we look to expand our involvement in this region with large scale warehouse/logistics developments, similarly on a pre-let/pre-sold basis with our partners, Thameling, who are ex-Prologis.

In December I referred to our 'retirement village' portfolio and that we were reviewing our options. As we finalise our successful scheme at Liphook (generating a total estimated profit of £13m, with £7m still to come), we will now look to start to develop out schemes this year at Horsham (154 units) and Exeter (159 units), with Great Alne in Warwickshire (132 units) to follow in 2012. All three have now received planning consent with similar £10m to£15m plus profit projections spread over three to five years. To recapture equity, we plan to sell our sites at Milton in Cambridge and part of Exeter, as well as a site for open market housing at Telford upon finalising planning later this year. A 40-acre residential site at Cawston (50% share) will follow in 2013/14. These sale receipts, subject to planning, are estimated to total £25m plus.

It has been a long and hard four years since the warning bells sounded in mid 2007. It has required patience and discipline, however, the slate is now clean and the platform established to enable us to return to our outperforming ways. A special thanks to our shareholders and to our banks for their support throughout.

Michael Slade

Chief Executive

26 May 2011

Business Review

Our Portfolio - how we invest our capital

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

Development and Trading Portfolio -

 (Excluding Group's share of trading and development properties held in joint ventures)

Notes:

1. Total writedowns in the year were £15m of which £5m were in respect of assets sold by 31 March 2011.

2. 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; 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 table below describes how we allocate our resources between investment and development, and between the various sectors. 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.

Note: Barts is held as an investment.

Note: The tables above include the Group's share of investment, trading

and development properties held in joint ventures.

Investment

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 full 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

We employ a wide variety of approaches in our development activities. The principal aim is to maximise our share of profits leveraging our capital employed and managing the risks inherent in the development process given the size of our balance sheet. The table below explains how the process works and some of the different ways in which we are involved in our schemes.

Year to 31 March 2011

Trading and Development Portfolio

As highlighted at the half year, our primary concern over the last two years has been to recover equity from those assets with limited potential and, in particular, from those assets which are either non-income producing or where void costs exceed income. In today's market the only way to achieve sales of these assets is to be competitive on pricing and this has involved write-downs and sales below book value.

Since March 2009 we have sold circa £120m of trading and development stock of which £85m has been non-income producing, with £76m and £60m sold respectively in the year to 31 March 2011. This sales programme has generated significant cash surpluses, which we have re-deployed into new investment opportunities.

Losses from the Group's development programme of £1.7m (2010: profits of £8.7m) were increased by provisions of £14.9m (2010: £10.0m) made against the carrying value of development stock. Of the total provisions, £10.2m were recognised at 30 September 2010. Although profits were generated at our successful retirement village scheme at Bramshott Place, Liphook, losses were made on the sales of Crawley and Fieldgate Street and our industrial developments at Oxford, Kidlington and Southampton as we greatly reduced our stock of non-income producing office and retail developments. These losses were increased by the overhead costs of our retail development joint ventures in the UK and Poland.

At both the half year and year end we assessed the carrying value of our remaining trading and development stock and this led to total write-downs of £14.9m, (of which £4.7m was in the second half of the year) primarily against office buildings in Crawley and Glasgow and our industrial developments.

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.

200 Aldersgate Street, London EC1

Originally developed in the late 1980's, this 370,000 sq ft office building has remained vacant since Clifford Chance left for Canary Wharf in 2005. In 2010, we were appointed under an asset and development management agreement with the owners of the building. We have re-freshed and re-clad parts of the building, creating a "vertical village" for office users. These works were completed in November 2010 and the building is being marketed to potential tenants with an encouraging level of interest already being shown.

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. Planning permission has been granted for a new Grade A office development of 270,000 sq ft and we now have a deliverable scheme which we are able to start once a pre-let or funding partner is found.

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. Letting has been slower over the last 12 months but we expect interest to pick up as the market improves.

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 T K Maxx, Media Expert, Makro, Deichmann, Smyk, Komfort and others.

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 was completed in March 2011. Negotiations continue with potential tenants to let the remaining space.

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 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 50% pre-let to Tesco, Castorama, H & M, Media Expert and others. Construction is due to commence by Q3 2011 with completion expected in Q3 2012.

In the UK we have two retail schemes:

Parkgate, Shirley, West Midlands

At Parkgate, Shirley we have revised our plans for the redevelopment of this site and have submitted a new planning application to Solihull Metropolitan Borough Council, the results of which we expect in Summer 2011. 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.

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. We are working with the various interested parties in this development to bring it forward with a view to starting construction later this year.

Mixed use

White City, London W12

Following the publication of the draft White City Opportunity Area Planning Framework for public consultation we are now seeking to progress with a planning application for the redevelopment of the 10 acre site which we hold with our partner Aviva. A full professional team is currently being appointed with a view to submitting in the Spring of 2012. The project will involve 1.5 - 2m sq ft of mixed use space with a residential bias.

Fulham Wharf, London SW6

At Fulham Wharf we have submitted, with landowner Sainsbury's, a planning application for a 100,000 sq ft new foodstore, together with 463 residential units at Sands End in Fulham. 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. Helical will receive a fee once planning permission is secured together with a profit share.

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, over 320 new homes and a new public footbridge across the Great West Road, which will re-connect Hammersmith Town Centre to the River Thames and Furnival Gardens.

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 111 of these units (543,000 sq ft) including all of Southampton and the two Oxford sites, with just nine units remaining at Southall, of which three have been sold since the year end. In addition, we own a site in Stockport with planning permission for trade counters, industrial units and a builders' merchant, self storage and car showroom. Infrastructure works have recently completed at this site and parcels of land have been sold to Big Yellow and Infiniti (a car dealership).

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 69 units with reservations on a further 20 units. Construction of the final phase of 55 units has started.

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 has been completed and enabling works will commence shortly with construction of the retirement village and clubhouse, to be built in phases, expected to commence in late 2011. Following changes the scheme is now for 154 retirement village units.

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 2011 with construction to follow in 2012.

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 has been completed. Construction of the retirement village and clubhouse in phases is expected to commence during 2012.

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. We have submitted an application to remove the age restriction and re-plan the site for open market housing.

Quotient

In January 2007 we acquired a research facility near Newmarket in a joint venture with the majority shareholder of Quotient which occupies the buildings. As part of the transaction, we acquired a minority stake in Quotient, a private biosciences company. Previously valued at £13.3m, we have written down our investment to nil to reflect concerns over trading conditions and its financial position.

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 provides a source of income to cover overheads and finance costs as well as the potential for future capital growth.

Acquisitions

Having made our first significant investment property acquisition for four and a half years in January 2010, acquiring Clyde Shopping Centre in Glasgow with joint venture partners, we bought a mainly industrial portfolio for £46.5m in June 2010 (£48.6m gross cost). The portfolio comprised nine assets, of which six are multi-let industrial units, one is a single let industrial and two are offices (one located in Eastcheap in the City). Two of these assets were sub-sold for £15.8m pre-completion, leaving seven assets yielding 10.5% net. Four further assets have been sold since acquisition for a profit of £5.1m and there are valuation gains on the retained assets of £0.5m. One further asset is currently under offer for sale at its book value. The remaining portfolio yields 10% on cost.

In addition, in the year to 31 March 2011, we bought two shopping centres, in Newmarket and Sutton-in-Ashfield (with contracts due to exchange on a further retail parade imminently) and an industrial estate in East Kilbride. Newmarket was acquired for a NIY of 8.0% from the Administrators acting for Lloyds Bank. The centre has been undermanaged for some time and potential asset management initiatives include letting vacant units and implementing the consented extension. Sutton-in-Ashfield was acquired for a NIY of 8.5% with scope to implement rent reviews and amalgamate units.

We also acquired an office property adjacent to our development site at White City, which forms a key part of the proposed development, for £9.6m, a yield of 7.25%.

Barts, London EC1

In joint venture with the Baupost Group LLC (Baupost 66.6%, Helical 33.3%) we have purchased for £55m the freehold interest in land and buildings at Bartholomew Close, Little Britain and Montague Street. The existing buildings comprise 387,000 sq ft. The current income from the NHS is circa £3.5m per annum which reflects an initial yield of 6.3%. A major mixed use development comprising over 450,000 sq ft of offices, residential and retail is proposed and it is intended to submit a planning application later this year. Vacant possession will be obtained from 2014 enabling redevelopment to commence.

Sales

Since last year we have completed sales at Eastcheap London EC3, Witham, Woking and Sawston (from the industrial portfolio) at circa 30% above acquisition cost, and at Crawley and Paignton at 2% above the 31 March 2010 valuation.

There was a valuation increase of 2.5% in the year to 31 March 2011 including capex, sales and purchases which compares to the IPD monthly index of 5.4% over the same period.

The breakdown of the investment portfolio is as follows:

We hold 51% of our investment portfolio (£160m, our share) in four assets:

The Morgans, Cardiff

A prime retail asset on the Hayes opposite St David's 2, let to White Stuff, Moss Bros, Schoon and TK Maxx. New lettings to Urban Outfitters, Joules and Dr Martens in the year have increased rental values from £135 psf to £171 psf. With current contracted rent of £3.1m versus ERV of £4.17m, we see many opportunities for asset management initiatives and further rental growth over the medium term.

Clydebank Shopping Centre, Clyde

In January 2010, we completed the acquisition of Clydebank Shopping Centre, North West of Glasgow for £68m (8.3% net yield) from AXA/CIS (£72.1m gross cost) in a joint venture with Prime Commercial Properties, with Helical taking a 60% equity stake. Value has increased 12.5% since acquisition. The current annual gross rent is £7.75m and there is a vacant ERV of £1.5m pa. There is considerable upside potential both by way of yield shift and letting vacant units. Net of head rents, rental income has moved from £5.8m at acquisition to £5.75m, but with £500,000 of net income contracted once rent frees expire, letting progress is positive.

Shepherds Building, London W14

151,000 sq ft refurbished office just south of Shepherds Bush Green and Westfield shopping centre. The building is let, mainly to media related tenants, on an average rent of £22.40 psf. A break clause was served in December on £331,000 of income, but by the time the tenant actually vacates at the end of May we will have let £305,000 of this and expect to get a further £65,000 from the remaining three studio units. These are the only vacancies in the building. 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.

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 5 floors which was developed out during 2008 and concluded in early 2009. The site is currently 56% let by floor area.

New lettings of circa 15,000 sq ft in the last three months and the significant increase in viewings for larger requirements of 10,000 sq ft to 20,000 sq ft suggests that the low total occupational cost of circa £40psf is making the building increasingly attractive to those occupiers no longer able to afford more central locations.

Future Investment Acquisitions

The three tier market we have previously referred to continues and, if anything, the categorisation becomes more defined, namely:

1. Prime / trophy 'institutional' assets which have limited opportunities to add value, characterised by competitive bidding and, especially, by significant money flows from foreign investors. These are, generally, prime retail, South-East industrial and London.

2. Well located 'institutional' secondary assets, which would benefit from capex and value enhancing initiatives with good occupational demand.

3. Weak secondary / tertiary assets, which will in many cases show dramatic falls in rents, lack of occupational demand and increasing voids, a market which Helical is continuing to avoid.

The opportunity to buy assets with substantial surplus rental income over the cost of debt still exists, but demand is already getting stronger for properties fitting category 2 above. This is good news for our existing portfolio, but will mean that we are facing greater competition when bidding. We continue to seek multi-let properties, including good quality shopping centres, retail parks, industrial estates and inner-London offices, at yields of between 7.5% and 9.5% as well as portfolios offering opportunities for medium term trading profits (as with our recent industrial portfolio purchase).

Careful, disciplined stock picking of active management opportunities which are temporarily below the institutional radar but out of reach of buyers who are unable to raise debt is our key focus. Whilst some of these opportunities will come from banks selling distressed assets, we believe they are more likely to come from over-geared private property companies and from institutions and larger REITs looking to rebalance their portfolios. 

Valuation Movements

Note: Including sales, purchases and capex

Valuation Yields

Lease expiries and tenant break options in:

Lease expiries and tenant breaks in year

Contracted rent changes in the year

Investment Portfolio - changes in rental value

Financial Review

Consolidated Income Statement

Results for the year

The profit before tax, property write-downs and investment gains reduced to £2.9m (2010: £9.7m). Development losses, before stock write-downs, totalled £1.7m (2010: profits of £8.7m). There were trading losses of £0.4m (2010: £nil) and a reduced contribution from the Group's share in the results of joint ventures of £2.9m (2010: £3.7m). However, write-downs of trading and development stock of £14.9m (2010: £10.0m), mainly resulting from a write-down of the Group's office developments in Glasgow and Crawley and reductions in the carrying value of land held for industrial and change of use potential, and an impairment of the group's available-for-sale investments of £1.8m (2010: £nil) are set against these profits. Net rental income remained steady at £14.2m (2010: £14.2m). Loss before tax was £6.3m (2010: profit £7.9m).

Net rental income

The Group's share of net rental income increased to £17.8m (2010:£14.9m) including its share of net rental income of joint ventures. Excluding joint ventures, net rental income remained at £14.2m. Rental costs decreased to £4.4m (2010: £4.7m). Tenant bad debts remain low at less than 2% of gross rental income.

Development profits

Development profits from the schemes in Liphook were offset by stock write-downs of £14.9m (2010: £10.0m) and below book value sales at Crawley and Southampton to give a development loss for the year of £16.6m (2010: £1.3m).

Trading profits

Trading losses for the year were £0.4m (2010: £nil).

Share of results of joint ventures

During the year the Group's share of results from joint venture partners was £2.9m (2010: £3.7m) mainly due to the Group's share of net income and the revaluation surplus from its investment in the Clyde Shopping Centre.

Gain on sale and revaluation of investment properties

During the year the Group sold investment properties with book values of £27.9m (2010: £40.4m) on which it made a £4.8m gain (2010: loss of £4.9m). The properties sold included Eastcheap, Sawston Trade Park, Witham and Woking (which were bought in the year as part of the Focus portfolio), and Paignton. The revaluation surplus for the year was £2.7m (2010: £13.1m).

Administrative expenses

Administrative expenses decreased to £7.0m (2010: £8.7m) primarily driven by a reduction in the cost of share awards. Administrative expenses, before impairment of goodwill and share based payments credit, has increased to £7.3m (2010: £6.7m).

Finance costs, finance income and derivative financial instruments

Interest payable on bank loans, before capitalised interest, decreased from £11.0m to £9.7m due to a fall of average interest rates and a small reduction in the level of borrowings. Capitalised interest increased to £4.2m from £3.2m. Finance income earned on cash deposits decreased to £0.7m (2010:£1.0m).

Derivative financial instruments have been valued on a mark to market basis and a credit of £1.8m (2010: £1.2m) has been recognised in the Income Statement.

Foreign exchange gains

A foreign exchange loss of £0.1m (2010: £1.1m) has been recognised in respect of the Group's retail developments in Poland.

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 26 July 2011 a final dividend of 3.15p per share to be paid on 28 July 2011 to shareholders on the register on 1 July 2011. This final dividend, amounting to £3,213,000 has not been included as a liability at 31 March 2011, in accordance with IFRS.

During the year the Group paid the 2010 final dividend of 0.25p per share and an interim dividend for 2011 of 1.75p per share.

(Loss)/earnings per share

Loss per share in the year to 31 March 2011 was 3.6p (2010: Earnings per share of 9.1p) per share and on a diluted basis was 3.6p (2010: earnings of 9.1p) per share. Diluted EPRA loss per share increased to 6.4p (2010: 0.1p) per share. 

(Loss)/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 2011.

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 2011 and 31 March 2009 as losses were made during those years. Accordingly, the basic and diluted loss per share for these years are the same.

Consolidated balance sheet

Investment portfolio

During the year investment properties with a book value of £27.9m were sold. New properties of £74.6m were acquired (including the Focus portfolio, East Kilbride and two shopping centres in Sutton-in-Ashfield and Newmarket). The purchase of Barts is included in these accounts as an investment in joint ventures. In addition, around £3.2m of capital expenditure was spent on refurbishing various office, industrial and retail buildings. At 31 March 2011 there was a revaluation surplus, net of joint venture share, of £2.7m (2010: £13.1m) on the investment portfolio.

Net asset values

After removing the effect of the Placing in the year, equity shareholders' funds, on which the net asset value per share is calculated, have decreased by £15.2m. This has led to a 7% decrease in adjusted diluted net assets per share to 225p (2010: 241p). Taking into account the directors' valuation of trading and development stock of £32m (2010: £33m), the diluted EPRA net assets per share decreased by 7% to 253p (2010: 272p).

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

Borrowings and financial risk

Net debt has increased from £203.0m to £206.1m. Taken with an increase in net assets of £12.8m, the Group's net gearing has fallen from 84% to 81%.

The fair value of the Group's investment, trading and development portfolio at 31 March 2011 was £451.9m (2010: £435.4m). With net borrowings of £206.1m (2010: £203.0m) the ratio of net borrowings to the value of the property portfolio was 45.6% (2010: 46.6%).

At 31 March 2011 the Group had £75.4m (2010: £92.6m) of fixed rate borrowings with an average effective interest rate of 5.77% (2010: 6.43%) and an average length of 2.3 years (2010: 2.3 years), and £91m of interest rate caps at an average of 4.9% (2010: £34m at 6.00%). In addition, the Group had a £40m interest rate floor at 4.50% until 2013.

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 £95m of cash and agreed, unutilised, bank facilities as well as £59m (2010: £32m) of uncharged property on which it could borrow funds.

As at 25 May 2011, Helical's average interest rate was 4.35%.

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.

Placing

On 8 December 2010 the Company placed 10,730,000 ordinary 1p shares (the "Placing Shares") at a price of 270 pence per share, raising net proceeds of £28.0m. These Placing shares represented 9.9% of the Company's issued ordinary share capital prior to the pacing and were admitted to trading on 13 December 2010. The shares rank pari passu with existing ordinary shares.

Nigel McNair Scott

Finance Director,

26 May 2011

 Helical Bar plc

Unaudited Consolidated Income Statement

For the year to 31 March 2011

Helical Bar plc

Unaudited Consolidated Statement of Comprehensive Income

For the year to 31 March 2011

Helical Bar plc

Unaudited Consolidated Balance Sheet

At 31 March 2011