Helical Bar Regulatory News (HLCL)

HELICAL'S MILESTONES DELIVERING GROWTH

Gerald Kaye, Chief Executive, commented:

"Against a background of some uncertainty in the UK Real Estate market and widespread debate as to whether the "property cycle" has peaked or is merely pausing, Helical's results for the half year to 30 September 2016 show growing net rental income, a net gain on sale and revaluation of our investment portfolio, growth in Shareholders' Funds and an increase in our EPRA net asset value per share.

"Helical's portfolio at the half year reflected passing rents of £39m, contracted rents of a further £13m and an ERV of £78m. As this reversionary potential is captured and passing rental income grows, I would expect our EPRA earnings per share to grow proportionately.

"In London, where most of this reversionary potential exists, we have an exciting collection of assets under refurbishment and development in locations where we believe demand from occupiers will continue to be robust. Today's news of a 59,000 sq ft pre-let at The Bower is a good example of this and I am confident that we will continue to attract occupiers to ensure that our schemes become vibrant and dynamic office communities.

"Looking ahead, the UK faces a continued period of uncertainty as it seeks its place in a post Brexit world. However, I believe it will remain resilient and London will continue to be a World City attracting people, businesses and investors."

Financial Highlights

Results

· EPRA net asset value per share up 3% to 471p (31 March 2016: restated 456p).

· EPRA earnings per share of 4.4p (2015: 13.0p).

· IFRS Profit before tax of £31.1m (2015: £85.9m).

· Total Property Return of £47.8m (2015: £107.6m).

- Group's share of net rental income of £24.6m (2015: £20.8m) - up 18%.

- Net gain on sale and revaluation of investment properties of £25.8m (2015: £68.1m).

· Interim dividend proposed of 2.40p per share (2015: 2.30p) - up 4.3%.

Property Valuations

· Group's share of property portfolio £1,250m (31 March 2016: £1,240m).

· Investment property valuations, on a like-for-like basis, up 4.0% (3.0% including sales and purchases) with London office valuations up 5.3% (5.3% including sales and purchases).

Financing

· See-through loan to value of 39% on a secured basis (31 March 2016: 40%) and 53% overall (31 March 2016: 55%). Post 30 September 2016 sales reduce pro forma loan to value to 34% on a secured basis and 49% overall.

· Average maturity of the Group's share of debt of 4.0 years (31 March 2016: 4.5 years) at an average cost of 4.3% (31 March 2016: 4.2%).

· Group's share of cash and undrawn bank facilities at 30 September 2016 of £220m (31 March 2016: £193m).

Operational Highlights

London Portfolio

· 5.3% valuation increase of London investment portfolio now valued at £651m (61.5% of investment portfolio) - 31 March 2016: £593m (56.4%).

· Contracted rents on our London portfolio at 30 September 2016 were £23.4m compared to an ERV of £46.9m.

· At Barts Square EC1, 108 of the 144 residential units in Phase One had exchanged at 23 November 2016 (31 March 2016: 102 units), with a further two reserved.

· One King Street, Hammersmith, W6 was sold post 30 September 2016 for £34.5m, its March value, at a net initial yield of 4.85%.

· Completion of a major refurbishment at The Loom, E1 with 13,750 sq ft subsequently let at rents in excess of £50 psf and a further 9,250 sq ft under offer.

Regional Portfolio

· 1.0% valuation increase in the Regional investment portfolio, on a like for like basis, now valued at £408m (38.5% of investment portfolio) - 31 March 2016: £460m (43.6%).

· Contracted gross rents on regional investment portfolio of £28.5m (31 March 2016: £32.4m).

· Regional investment portfolio now comprises 9.5% offices, 5.4% in town retail, 3.0% retail parks, 19.5% logistics and 1.1% other (percentages of whole investment portfolio)

· Sales of nine regional assets during the period comprising two logistics units, two offices and five retail assets for £56m at a 3.6% discount to March values.

· Sales of ten logistics units and one retail asset post 30 September 2016 for £55m at a 6.7% premium to March values.

· 23,735 sq ft let at Churchgate House, Manchester at average rents of £16.50 psf, 7.7% above March ERV.

· 92,672 sq ft logistics unit let in Burton-on-Trent at £5.50 psf, 5% above March ERV.

· Since March 2016, 56 retirement village units sold for £22.7m with 44 reserved for £22.3m.

· Land at Liphook sold for £3.7m (of which £2.5m was subsequent to half year end).

For further information, please contact:

Half Year Results Presentation

Helical will be holding a presentation for analysts and investors at 9:30am, Thursday 24 November 2016 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. If you would like to attend, please contact Jenni Nkomo on 020 3727 1000, or jenni.nkomo@fticonsulting.com.

The presentation will be on the Company's website www.helical.co.uk and a conference call facility will be available. The dial-in details are as follows:

Financial Highlights

Notes

1. Includes Group's share of income and gains of its subsidiaries and joint ventures. See Note 25.

2. Calculated in accordance with IAS 33 and guidance issued by the European Public Real Estate Association ("EPRA"). EPRA earnings per share exclude the net gain on sale and revaluation of the investment portfolio of £25.8m (2015: £68.1m) but include development losses of £2.6m (2015: profits of £18.7m).

3. Includes the Group's share of assets and liabilities of its subsidiaries and joint ventures. See Note 25.

4. The EPRA Net Asset Value per share at 31 March 2016 has been restated from 461p for the matters referred to in note 28.

5. See-through loan to value is the ratio of see-through net borrowings to see-through property portfolio. See Note 26.

6. See-through loan to value at 30 September 2016, adjusted for £91.5m of sales since the half year end.

7. See-through net gearing is the ratio of see-through net borrowings to net assets. See Note 26.

8. See-through net asset value gearing is the ratio of see-through net borrowing to EPRA net asset value. See Note 26.

Chief Executive's Statement

Overview

I am pleased to be able to announce the Company's Half Year Results to 30 September 2016, my first results as Chief Executive Officer of Helical.

Against a background of some uncertainty in the UK Real Estate market and widespread debate as to whether the "property cycle" has peaked or is merely pausing, Helical's results show growing net rental income, a net gain on sale and revaluation of our investment portfolio, growth in Shareholders' Funds and an increase in our EPRA net asset value per share.

The results demonstrate:

· our ability to enhance value through our development programme;

· the success of our asset management initiatives for individual assets; and,

· that stock selection is key to performance.

Our business model, using investment, trading and development strategies to acquire assets on an opportunity led basis, continues to have the potential to create value for Shareholders. For a number of years we have sought a balance between a higher yielding regional portfolio providing good cash flow for the business with development and capital profits coming from the London portfolio, augmented by our retirement and retail development programmes. 

In recent years, we have made significant progress in de-risking our development programme, funding our largest two London schemes at One Creechurch Place, EC3 and One Bartholomew Place, EC1, with third party investors. Since 31 March 2016 we have made further progress on de-risking this development programme. These actions have enabled Helical to release equity from those properties where our asset management objectives have been met (One King Street, Hammersmith and two logistics portfolios) and to reduce our loan to value ("LTV") below our medium to long term target of 50%. As further asset management plans reach their conclusion, and as we continue to focus the business, I would expect additional recycling of equity to provide firepower for future acquisitions or to further reduce LTV levels.

Helical's portfolio at the half year reflected passing rents of £39m, contracted rents of a further £13m and an ERV of £78m. As this reversionary potential is captured and passing rental income grows, I would expect our EPRA earnings per share to grow proportionately.

In London, where most of this reversionary potential exists, we have an exciting collection of assets under refurbishment and development in locations where we believe demand from occupiers will continue to be robust. Today's news of a 59,000 sq ft pre-let at The Bower is a good example of this and I am confident that we will continue to attract occupiers to ensure that our schemes become vibrant and dynamic office communities.

Results for the Half Year

The IFRS profit before tax for the half year to 30 September 2016 was £31.1m (2015: £85.9m), Total Property Return was £47.8m (2015: £107.6m) and included growing net rents of £24.6m, an increase of 18.3% on 2015 (£20.8m), offset by development losses of £2.6m (2015: profit of £18.7m). The gain on sale and revaluation of the investment portfolio contributed £25.8m (2015: £68.1m).

Net finance costs of £12.8m were higher than in 2015 (£10.0m), and the Income Statement was adversely affected by falls in expected future interest rates which led to a £5.9m charge (2015: credit of £0.01m) arising from the valuation of the Group's derivative financial instruments. The valuation of the Group's Convertible Bond provided a credit of £7.7m (2015: £0.1m). Recurring administration costs were £5.8m (2015: £5.4m) and the provision for performance related remuneration, including associated NIC, was £0.1m (2015: £8.7m).

These results allow the Board to continue its progressive dividend policy and to recommend to Shareholders an interim dividend of 2.40p (2015: 2.30p), an increase of 4.3%.

The London Portfolio

Since 2010 we have steadily acquired property in two "clusters"; the City and Tech Belt districts of Farringdon, Shoreditch, Aldgate through to Whitechapel and the West London districts of Hammersmith, Shepherds Bush and Chiswick.

The London investment and development portfolio contributes capital growth and development profits and, increasingly, rental income. In the half year to 30 September 2016, London provided c. 66% of the total property return of £47.8m (2015: £107.6m).

· City and Tech Belt

Helical has a portfolio of six investment assets in the East London districts of Shoreditch, Farringdon and Whitechapel acquired between 2012 and 2015. Five of these assets have been subject to complete or substantial redevelopment/refurbishment programmes. The assets in the Tech Belt comprise 42% of our total property portfolio and have made a substantial contribution to the growth of our current and future rental income stream and to the growth in our net assets.

Phase One of The Bower, comprising The Warehouse and The Studio, is fully let with contracted rents of £8.0m at an average of £53 psf compared to an ERV of £62 psf. Phase Two, The Tower, is being redeveloped, adding 65,000 sq ft to the current building, taking the completed building to 171,200 sq ft of offices and 7,200 sq ft of retail with works due for completion in June 2018. We are pleased to be able to announce today the pre-letting of six floors, comprising c. 59,000 sq ft, to WeWork, the global provider of flexible collaborative co-working space.

At The Loom, E1 we completed a major repositioning in September and recently announced two separate lettings totalling 4,750 sq ft at rents of £52.50 psf, a 17% premium to March 2016 ERV. A further 29,000 sq ft of this 110,000 sq ft building is available to let with 9,250 sq ft currently under offer.

We have let the remaining 15,387 sq ft at C-Space, EC1 and at 25 Charterhouse Square, EC1 we have made good progress on the redevelopment and expect works at this 43,674 sq ft building to complete in March 2017.

In the City we have completed and launched our 272,555 sq ft new office building at One Creechurch Place, EC3, funded with our joint venture partner HOOPP (Healthcare of Ontario Pension Plan). Several potential tenants are showing interest in taking space in the building and we hope that we shall be able to announce lettings by the end of our financial year.

At Barts Square, EC1, our mixed use scheme in joint venture with The Baupost Group LLC, we have now exchanged contracts on 108 of the 144 residential units with a further two units reserved in Phase One of the development. Phased completion of these units is expected to commence in Q2 2017. Demolition of the existing buildings for the second phase of residential is due to commence in December 2016 for 92 additional units with completion expected in 2019. Terms have been agreed with HSBC for the financing of these works. The office development of 213,000 sq ft at One Bartholomew Close, forward funded by clients of Ashby Capital, is under construction with completion due in August 2018.

· The West

We had five assets in West London at 30 September 2016 comprising c. 17% of our total property portfolio. At One King Street, Hammersmith we have completed our asset management programme, having refurbished the building, adding a fifth floor to create 26,000 sq ft of offices with retail units on the ground floor. Having delivered on the business plan we sold the building in November 2016 for its March 2016 book value of £34.5m, a net initial yield of 4.85%. At Shepherd's Building, Shepherds Bush, W14 we have grown contracted rents to £6.3m with the most recent lettings at £54 psf. At Power Road Studios, W4 we have taken 17,000 sq ft of space back and are shortly to start on refurbishment works which is partly funded by dilapidations receipts and will increase rents from £22 psf to £42.50 psf. A planning application to add further office space is expected to be submitted in December 2016.

The Regional Portfolio

The regional portfolio provides a rental stream from a high yielding investment portfolio while contributing development profits from our retirement village and out-of-town retail development programmes.

The regional investment portfolio reduced to £408m at 30 September 2016 (31 March 2016: £460m) following the sale of two distribution warehouses, five retail assets and two regional offices for total proceeds of £56m. Subsequent to the half year end we have sold a further ten distribution warehouses and one retail asset for c.£55m, a 3.3% premium to 30 September 2016 book values and an 6.7% premium to March 2016 book values. Regional assets contributed £17.8m of net rental income during the period (2015: £15.6m).

Our regional development exposure is limited to our retirement villages, out-of-town retail development programmes and our Scottish Power project in Glasgow, where balance sheet risk is limited. In our retirement village development programme we continued the construction of units at Bramshott Place Liphook, Durrants Village Horsham, Millbrook Village Exeter and Maudslay Park Great Alne, near Stratford-upon-Avon. Since March we have sold 56 residential units at the three schemes (14 since 30 September 2016) and land at Liphook for £3.7m (£2.5m since 30 September 2016). In our retail development programme, we have forward funded our 79,750 sq ft retail park in Cortonwood, which is 95% pre-let and due for completion in June 2017. Scottish Power's new headquarters building in Glasgow is due to be completed by the end of this month.

Finance

In recent years, the Group has expanded its activities significantly, seeking to increase Shareholder Funds through the generation and retention of increased net rental streams, development profits and valuation surpluses. This growth has been financed through an increase in secured debt borrowed primarily from UK high street banks and, since 2013, through the use of unsecured debt in the form of a retail bond and a convertible bond.

At 31 March 2016, the growth in the activities took the LTV up to 55%. Since 31 March 2016, we have sold five of our eight out-of-town retail assets, two of our regional offices, 12 of our distribution warehouses (ten since 30 September 2016), one of our Central London offices and our 50% share of a shopping centre (both post half year end), reducing LTV to 53% at 30 September 2016 and to c. 49% on a pro-forma basis, taking into account the recent sales. With the first phase of our major residential scheme at Barts Square completing in mid 2017 and our retirement village development programme expected to be cash positive going forward, we expect to see further reductions in net debt levels and LTV in the foreseeable future, notwithstanding the planned capital expenditure on the portfolio.

As our individual asset management initiatives on our investment portfolio complete, driving rental income upwards and maximising value, we would expect to see equity recycled and cash resources boosted, enabling the Group to finance new acquisitions with potential for growth.

In pursuing this strategy, the Group operates with an average debt maturity of 4.0 years (31 March 2016: 4.5 years) with no secured loan repayable before November 2019, and with an average cost of debt of 4.3% (31 March 2016: 4.2%). The Group continues to retain a significant level of liquidity with cash and unutilised bank facilities of £220m (31 March 2016: £193m) to fund capital works and potential future additions to its portfolio.

Outlook

We stated in May that Helical is well placed to deal with any headwinds that may come its way and we reiterate that statement in the knowledge that we have made good progress on our development programme:

· we have completed One Creechurch Place, EC3 on time and on budget and are encouraged with the level of interest being shown by potential tenants;

· we have agreed a fixed price building contract on the second phase of The Bower and have pre-let one third of the space at rents in line with our latest valuation;

· we have let the remaining space at C Space, EC1 at 31 March 2016 ERV levels;

· construction works continue at One Bartholomew Close, EC1, a scheme forward sold and wholly funded by clients of Ashby Capital;

· we are on track to complete the redevelopment work at Charterhouse Square, EC1 in March 2017 and initial interest from potential tenants is encouraging; and,

· we have exchange contracts on over 75% of Phase One of our residential scheme at Barts Square, well in advance of completion and have agreed terms for the financing of the final phase of residential.

In addition, we have a robust investment portfolio where we have demonstrated value through lettings above ERV and sales above book value.

When considering our strategy, we remain of the view that our portfolio, balanced between investments and redevelopment schemes in central London and high yielding regional investment assets, provides investors with access to a growing income stream and potential future capital growth.

Looking ahead, the UK faces a continued period of uncertainty as it seeks its place in a post Brexit world. However, I believe the UK will remain resilient and London will continue to be a World City attracting people, businesses and investors.

Gerald Kaye

Chief Executive

24 November 2016

Financial Review

Results for the Half Year

Despite growing concerns over the impact of global events, we are pleased to be able to report good results with pre-tax profits of £31.1m in the half year to 30 September 2016 (2015: £85.9m). Growing net rental income of £24.6m and a valuation surplus of £28.6m (2015: £59.8m) were driven by our London development and asset management strategies.

The fair value of the Group's real estate portfolio, including its share of assets held in joint ventures, increased to £1,250m (31 March 2016: £1,240m).

The Group acquired no new assets during the period and concentrated on value enhancing capital expenditure and letting available space which helped to create an increase in the value of its investment portfolio by £34.4m, of which £5.3m came through lease incentives and £29.1m as revaluation surpluses. This valuation increase and sales of £57m of investment assets during the period, helped to reduce the Group's loan to value to 53% (31 March 2016: 55%). Since the half year end, further sales of £91.5m of assets has reduced the Group's loan to value, based on the 30 September 2016 balance sheet, to 34% on a secured basis and 49% overall.

During the period we increased our facility with Deutsche Pfandbriefbank by £21m to £120m to fund the redevelopment of Charterhouse Square and refinanced our retirement village development facility with HSBC to fund the development of Phase 4 at Bramshott Place Liphook. At 30 September 2016, the Group's overall debt maturity profile reduced to 4.0 years (31 March 2016: 4.5 years) with a weighted average cost of debt marginally increasing to 4.3% (31 March 2016: 4.2%).

At 30 September 2016, the Group had unutilised bank facilities of £155m and £65m of cash. These facilities are primarily available to fund Phase Two of the Group's redevelopment of The Bower, London EC1, its retirement village development programme, Phase One of the construction works at Barts Square, London EC1, refurbishment works at 25 Charterhouse Square, London EC1 and potential future investment acquisitions.

EPRA Earnings per Share

EPRA earnings per share were 4.4p (2015: 13.0p), reflecting the Group's share of net rental income of £24.6m (2015: £20.8m) net of development losses of £2.6m (2015: profits £18.7m) but excluding gains on sale and revaluation of investment properties of £25.8m (2015: £68.1m).

EPRA Net Asset Value

EPRA net asset value per share increased by 3% to 471p per share (31 March 2016: 456p). This increase arose principally from a total comprehensive income (retained profits) of £31.7m (2015: £75.7m) less dividends paid of £0.8m (2015: £5.9m) and reflecting a reduction in the surplus on valuation of the trading and development stock to £13.6m (31 March 2016: £19.4m).

Income Statement

Rental Income and Property Overheads

Gross rental income receivable by the Group in respect of wholly owned properties increased by 20% to £25.5m (2015: £21.2m) as we continue to capture the investment portfolio's reversionary potential. In the joint ventures, gross rents fell from £1.0m to £0.8m. Property overheads in respect of wholly owned assets and in respect of those assets in joint ventures increased from £1.1m to £1.5m and after taking account of net rents payable to our profit share partners of £0.2m (2015: £0.2m), see-through net rents increased by 18.3% to £24.6m (2015: £20.8m).

Development Profits

Development profits, before provisions, reduced from £20.2m to £4.0m on a see-through basis. The main contributor to profits during the period was the out-of-town retail development at Cortonwood where we recognised £3.1m of development profits at this 79,750 sq ft retail park. Continued development management fees at the Scottish Power headquarters in Glasgow and at One Creechurch Place, London EC3, plus profits from the sale of our site in Bracknell, contributed a further £1.3m. Provisions against the carrying value of sites at Maudslay Park, Great Alne and King Street, London W6 offset these development profits and resulted in a net loss on developments of £2.6m on a see-through basis.

Share of Results of Joint Ventures

The results of the joint ventures include our development schemes at Barts Square, London EC1; One Creechurch Place, London EC3; Shirley Town Centre, West Midlands; and King Street, London W6. Detailed analysis of our share of these joint ventures is provided in note 13 to this report and in the see-through analysis in note 25. In the period, net rents of £0.7m (2015: £0.8m) were received. A loss on the revaluation of the investment assets of £0.5m (2015: gain of £23.4m) arose in respect of Barts Square, London EC1. Net of taxes, our joint ventures incurred a loss of £1.0m (2015: profit of £31.8m).

Gain on Sale and Revaluation of Investment Properties

The valuation of our investment portfolio reflected our increased exposure to London offices where we generated an increase of 5.3% overall and also on a like-for-like basis. The regions showed a valuation fall of 0.1% overall and an increase of 1.1% on a like-for-like basis. In total, the investment portfolio showed a valuation increase of 3.0%, or 4.0% on a like-for-like basis.

The total impact on our financial statements of the gain on sale and revaluation of our investment portfolio was a net gain of £25.8m (2015: £68.1m).

Administration Costs

Administration costs, before performance related awards, increased by 7% from £5.4m to £5.8m. Performance related share awards of £0.3m (2015: £2.8m) and bonus payments of £nil (2015: £4.5m), were accrued. In addition, there was a credit for the reversal of previously accrued National Insurance of £0.2m (2015: charge of £1.4m).

Finance Costs, Finance Income and Derivative Financial Instruments

Interest payable on secured bank loans, including our share of loans on assets held in joint ventures, but before capitalised interest, increased to £10.6m (2015: £10.0m) reflecting the impact of funding our development programme with bank finance. Interest payable in respect of the unsecured Retail and Convertible Bonds was £4.4m (2015: £4.4m). Capitalised interest increased from £2.4m to £3.5m as development schemes progressed. Other interest payable increased from £1.5m to £2.5m reflecting an increase in the amortisation of bank arrangement fees. Total finance costs increased from £13.4m to £14.1m and finance income earned was £2.3m (2015: £1.2m). Net finance costs for the period reduced from £12.1m to £11.7m. The continued fall in medium and long term interest rate projections at 30 September 2016 contributed to a charge of £5.9m (2015: £nil) on the derivative financial instruments which have been valued on a mark-to-market basis.

Taxation

Helical pays corporation tax on its net rental income, trading and development profits and realised chargeable gains, after offset of administration and finance costs.

The deferred tax credit for the half year is principally derived from the recognition of tax losses which the Group believes will be utilised against profits in the foreseeable future.

Dividends

Helical follows a progressive dividend policy, seeking to increase its dividends in line with its results and expected future profitability, whilst retaining the majority of funds generated for investment in growing the business. The interim dividend to be paid on 30 December 2016 is 2.40p (2015: 2.30p) per share, an increase of 4.3%.

Balance Sheet

Investment Portfolio

During the period no new investment assets were acquired whilst nine investment assets were sold with a combined book value of £57.2m. In accordance with the Group's current development and refurbishment programme, £26.1m was expended on capital works in the London investment portfolio and £3.5m on the regional investment portfolio. During the period, new lettings, erosion of rent free periods and other asset management activities created a revaluation surplus of £34.4m

Debt and Financial Risk

In seeking to finance Helical's recent expansion, the Group has used a combination of secured facilities, whose purpose and terms reflect the nature of the assets charged to the lenders, and unsecured bonds which have provided the firepower to acquire many of the assets which have contributed to the recent growth in Shareholders' Funds. The composition of the Group's debt structure has significantly changed in recent years with unsecured debt now representing 24% of debt drawn at 30 September 2016.

In total, Helical's outstanding debt at 30 September 2016 of £737m (31 March 2016: £778m) had an average maturity of 4.0 years (31 March 2016: 4.5 years) and a weighted interest cost of 4.3% (31 March 2016: 4.2%).

Debt profile at 30 September 2016 (excluding the impact of capitalised refinancing costs)

Secured Debt

The Group arranges its secured investment and development facilities to suit its business needs as follows:

- Investment Facilities

We have £190m of revolving credit facilities which enable the group to acquire, refurbish, reposition and hold significant parts of our investment portfolio. We have used these facilities mainly to finance our regional portfolio. Our London investment assets are primarily held in £400m of secured loan facilities which, where appropriate, allow us to finance refurbishment projects, including the redevelopment of The Tower at The Bower, London EC1 and 25 Charterhouse Square, London EC1. Of the total of £590m of investment facilities we have £117m available to fund these redevelopment works and finance any new acquisitions. The average maturity of the Group's investment facilities at 30 September 2016 was 4.4 years with a weighted average interest rate of 4.3%.

- Development Facilities

These facilities finance the construction of the retirement villages at Durrants Village Horsham; Maudslay Park Great Alne; Phase IV at Bramshott Place Liphook and Millbrook Village, Exeter. The average maturity of the Group's development facilities at 30 September 2016 was 3.9 years with a weighted average interest rate of 3.6%.

- Joint Venture Facilities

We hold a number of investment and development properties in joint venture with third parties and include in our reported figures our share, in proportion to our economic interest, of the debt associated with each asset. The average maturity of the Group's share of bank facilities in joint ventures at 30 September 2016 was 3.2 years with a weighted average interest rate of 3.1%.

Unsecured Debt

The Group's unsecured debt, including the convertible bond at its mark-to-market valuation, is £175.1m as follows:

- Retail Bond

In June 2013, the Group raised £80m from the issue of an unsecured Retail Bond with a 6.00% coupon. This bond is repayable in June 2020.

- Convertible Bond

In June 2014, the Group raised £100m from the issue of a listed unsecured Convertible Bond with a 4.0% coupon, repayable in June 2019, or, subject to certain conditions, convertible at the option of the bond holders into ordinary shares, unless a cash settlement option is exercised by the Company. The initial conversion price has been set at £4.9694 per share, representing a 35% premium above the price on the day of the issue and a premium of 59% above the Company's EPRA net asset value per share at 31 March 2014. The value of the Bond at 30 September 2016, as determined by the listed market price, was £95.1m.

- Short term working capital facilities

These facilities provide access to additional working capital for the Group.

Cash and Cash Flow

At 30 September 2016, the Group had £220m of cash and agreed, undrawn, committed bank facilities including its share in joint ventures as well as £93m of uncharged property on which it could borrow funds.

Net Borrowings and Gearing

Total gross borrowings of the Group, including in joint ventures, have reduced from £777.9m to £737.3m during the period to 30 September 2016. After deducting cash balances of £64.6m and unamortised refinancing costs of £8.4m, net borrowings reduced from £681.8m to £664.3m. The gearing of the Group, including in joint ventures, reduced from 142% to 131%. Including EPRA adjustments to IFRS shareholder's funds, the see-through net asset value gearing reduced from 126% to 118%. This gearing measure, the ratio of see-through net borrowings to EPRA net asset value, represents a longer term view of gearing than the standard measure.

Hedging

At 30 September 2016, the Group had £647.7m (31 March 2016: £635.5m) of fixed rate debt with an average effective interest rate of 4.2% (31 March 2016: 4.2%) and £46.4m (31 March 2016: £107.1m) of floating rate debt with an average effective interest rate of 2.9%. In our joint ventures, the Group had £43.2m (31 March 2016: £35.3m) of floating rate debt with an effective rate of 3.1% (31 March 2016: 3.4%).

Interest Cover

In assessing the results of the Group for each financial year Helical considers its interest cover as a measure of its performance and its ability to finance its annual interest payments from its net operating income, before revaluation gains or losses on the investment portfolio and provisions on the trading and development stock. In the half year to 30 September 2016, this interest cover was 2.2 times (2015: 4.1 times).

Investment Property Accounting Treatment

International Accounting Standard 40 - Investment Property requires that accrued operating lease income assets should be shown separately and deducted from the fair value of the investment properties in the Statement of Financial Position. This accounting treatment had not been applied at 31 March 2016 but has been adopted for the period ended 30 September 2016. A prior year adjustment has been made to ensure consistency of comparative information, clarity and transparency.

The effect of the adjustment on the relevant financial statement line items for the year ended 31 March 2016 is detailed in note 28.

Tim MurphyFinance Director

24 November 2016

Helical's Property Portfolio - 30 September 2016

Total Portfolio by Fair Value

Investment Portfolio by Asset Status

Income producing assets are those assets where the majority of the space is let. Major projects are those assets that are being substantially developed or refurbished.

Trading and Development Portfolio

Overview

Helical divides its property activities into two core markets, London and the Regions. The London Portfolio represents 59% of the total property portfolio and drives capital growth, development profits and, increasingly, income. The Regional Portfolio, which accounts for the remaining 41%, predominantly generates rental income.

The London Portfolio

Our strategy is to increase our London holdings, focusing on select areas where we see strong tenant demand and growth potential, such as the "Tech Belt" that runs from King's Cross through Old Street and Shoreditch to Whitechapel and in West London, in particular Hammersmith, Shepherds Bush and Chiswick. Our London portfolio comprises income producing multi-let offices, office refurbishments and developments and residential development schemes.

· City and Tech Belt

The Bower, Old Street EC1

This 3.12 acre asset was acquired in November 2012 for £60.8m in joint venture with Crosstree Real Estate Partners LLP. The site is in the heart of an area which has become a "creative halo", a district of London which is a hub for technology, media and telecommunications companies and which is benefitting from substantial investment in infrastructure. A planning consent has been implemented to increase the floor space on the site by 116,000 sq ft, to refurbish existing areas and significantly upgrade the public realm with the creation of a new pedestrian street.

On 20 January 2016, Helical acquired The Warehouse and The Studio (211 Old Street) and The Tower (207 Old Street) from the joint venture.

- 211 Old Street EC1

The development of phase 1, comprising The Warehouse, 128,262 sq ft, and The Studio, 23,177 sq ft, completed in November 2015.

Phase 1 is fully let to CBS, Farfetch, Pivotal, Allegis and Stripe (The Warehouse) and John Brown Media (The Studio), and all tenants are in occupation. Retail operators Bone Daddies, Draft House, Enoteca da Luca, Honest Burger and Maki are open and trading.

- 207 Old Street EC1

Comprising The Tower, the phase 2 deconstruction works have been concluded and the main contractor has started on site with practical completion scheduled for Q2 2018. Whilst the formal letting campaign for the building is expected to commence closer to completion, we have pre-let 6 floors, comprising 59,000 sq ft, to WeWork, the global provider of flexible collaborative co-working space.

Barts Square EC1

In joint venture with The Baupost Group LLC 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 and the Farringdon East station on the Elizabeth Line (Crossrail) due to be operational in 2018.

Planning consent has been implemented for a comprehensive redevelopment of 19 buildings to provide a total of 236 residential apartments, three office buildings of 213,000 sq ft, 23,000 sq ft and 10,200 sq ft, 20,600 sq ft of retail/A3 at ground floor as well as major public realm improvements, which will be incorporated into the wider Smithfield Area Strategy being worked up by the City of London.

- Phase 1 - Residential/offices/retail

Phase 1 of the redevelopment of Barts Square comprises 144 residential units, 8,800 sq ft of retail space, 23,000 sq ft of new offices behind retained facades and public realm improvements. Completion of Phase 1 is expected in summer 2017. Contracts have been exchanged for the sale of 108 residential units for a total value of c.£138.5m at an average £1,580 psf, with a further two units under offer.

- Phase 2 - One Bartholomew Close - Offices

One Bartholomew Close was sold to clients of Ashby Capital LLP ("Ashby") for £102.4m in August 2015. The demolition of the existing building and the construction of a new 12 storey office block of 213,000 sq ft, commenced in January 2016. The building is due to be completed in August 2018. Ashby's clients finance the development costs and when the building is completed and successfully let the joint venture will be entitled to receive a profit share payment. Helical is the development manager for delivery of the project.

- Phase 3 - Residential/retail

Phase 3 of the redevelopment of the site, involving the demolition of Queen Elizabeth II Building, 62 Bartholomew Close, 42-44 Little Britain and 45-47 Little Britain, is expected to commence after vacant possession of these buildings is obtained at the end of November 2016. In their place, 92 residential units and 11,800 sq ft of retail space will be constructed, with completion due in early 2019.

One Creechurch Place, City of London EC3

One Creechurch Place, is a landmark City office scheme in the heart of the insurance sector in London. In May 2014, Helical signed a joint venture agreement with HOOPP (Healthcare of Ontario Pension Plan) to redevelop the site. Under the terms of the joint venture, HOOPP and Helical jointly funded the project on a 90:10 split, with Helical acting as development manager for which it will receive a promote payment depending on the successful outcome of the scheme. The new building, comprising 272,555 sq ft NIA of offices and 787 sq ft of retail, achieved practical completion on 7 November 2016 and is currently being marketed for occupation. A number of potential tenants have viewed the building and we are hopeful of being able to announce letting progress before our year end in March 2017.

C-Space, 37-45 City Road EC1

Helical acquired C-Space in June 2013. Planning consent was obtained for a complete refurbishment of the building which increased the previous existing 50,000 sq ft office building to 62,000 sq ft. The works, which were completed in October 2015, involved an additional floor and extensions to the third floor, a landscaped courtyard and entrance "pavilion" to the rear and full height glazing to the raised ground floor. 75% of the space was pre-let to the creative agency MullenLowe in June 2015, with the remaining space let to NeuLion in November 2016.

25 Charterhouse Square, Smithfield EC1

In January 2016, Helical was granted a new 155 year leasehold interest in 25 Charterhouse Square, from the Governors of Sutton's Hospital in Charterhouse for £16m. Helical has received planning for and commenced a major refurbishment of the existing building, which will increase the current 34,000 sq ft to 38,500 sq ft of offices, with the addition of a new sixth floor, and add 5,100 sq ft of retail/restaurant. The completed building is expected to be delivered in Q1 2017.

The Loom, Whitechapel E1

This 110,000 sq ft listed former wool warehouse was acquired in 2013. A major repositioning was completed in September 2016 to include a new entrance and reception onto Gowers Walk, showers and a bike store. A rolling refurbishment of the offices is also ongoing with circa 60,000 sq ft completed. The average contracted rent for the building is £32 psf. The largest, most prominent unit in the building of 9,000 sq ft was let in July in excess of £50 psf. Since then a further 4,750 sq ft has been let at £52.50 psf, a 17% premium to March 2016 ERV. 29,000 sq ft is currently available in 10 different sized units with an overall ERV of £1.4m.

Chart House, Islington N1

Chart House is a 10,500 sq ft office building in Islington. There is currently planning consent for an additional floor of residential on top of the building. This building is 100% let.

· The West

Shepherds Building, Shepherds Bush W14

This 151,000 sq ft multi-let office building close to the Westfield London shopping centre maintains an occupancy approaching 100%, as it has for eight consecutive years. A rolling refurbishment of the common parts continues and the average contracted rent for the building is £44 psf with a total contracted rent of £6.3m and a passing net rent of £4.9m. During the period, 10 new lettings, all in excess of £50 psf, were completed securing a contracted rent of £350,000 and two rent reviews settled with an uplift to contracted rent of £225,000.

Power Road Studios, Chiswick W4

The site comprises 62,000 sq ft of offices across five buildings and is multi-let to a wide range of predominantly media tenants. Recent lettings have been concluded at a rent of £38 psf compared to an average rental of £24 psf at acquisition. Cineworld, who occupy 17,000 sq ft, have surrendered their lease which permits the comprehensive refurbishment of the unit and creation of a new entrance at the front of the building. The works, which are planned to commence in November 2016 and expected to last nine months, should increase the rent for this space from £22.00 psf to £42.50 psf. A planning application to add a further 45,000 sq ft of office space is expected to be submitted in December 2016.

One King Street, Hammersmith W6

This multi-let 39,000 sq ft building was acquired in 2012, comprising 26,000 sq ft of offices and 13,000 sq ft of ground floor retail. The building is fully let with a contracted rent of £1.8m. Following the period end this property has been sold to Orchard Street Investment Management at its March 2016 book value of £34.5m reflecting a net initial yield of 4.85%.

King Street, Hammersmith W6

King Street, Hammersmith W6, is a Council led regeneration project which is being carried out in a 50/50 joint venture with Grainger plc. Planning permission for the scheme has been granted for 196 apartments, a three-screen cinema, new retail and restaurant space and replacement offices for the Council. A minor amendment to the existing planning consent has been approved and demolition of the cinema site has commenced.

The Powerhouse, Chiswick W4

Helical acquired this 24,288 sq ft office and recording studios by way of sale and leaseback. The Powerhouse is a listed building on Chiswick High Road and is fully let on a long lease to Metropolis Music Group.

In addition to our holdings in East and West London we have one scheme in Covent Garden WC2.

Drury Lane & Dryden Street, Covent Garden WC2

The existing buildings, which are in office and retail use, sit on an island site of approximately 0.5 acres. Approximately half of the site, adjacent to Dryden Street, sits within the Covent Garden Conservation Area. In July 2015, contracts were exchanged with Diageo Pension Fund (a fund managed by Savills Investment Management) for the conditional acquisition of the Drury Lane site. The contract is conditional on the viability of the scheme and Helical securing planning consent. A planning application for the residential led scheme of 68 apartments was submitted in August 2015 and resolution to grant consent was issued at a planning committee in April 2016. A further planning consent for an alternative office led scheme is expected to be submitted in December 2016.

The Regional Portfolio

Our approach to regional investment is to acquire assets where occupational demand is robust throughout the property cycle and the barriers to new supply are high. Successfully picking the sectors and assets with these attributes will ensure strong cash flows and rental growth. In general, yields for regional assets are higher than those in London and these assets are acquired to provide significant cash flow for the Group. We anticipate that income will become an increasingly important part of total returns as yield compression slows and, as such, we focus our attention on areas where we believe the occupational market remains robust.

Our regional portfolio contributed 72% of our net rental income from tenants in diverse sectors and geographical locations. The £508.4m regional portfolio comprises £205.5m of logistics (41% of the regional portfolio), £102.2m of offices (20%), £96.9m of retail comprising £31.7m of retail warehousing and £65.2m of in-town retail, mainly the Morgan Quarter, Cardiff (in aggregate 19%), £97.8m in our retirement village development programme (19%) and £6.0m of land (1%).

Distribution Warehouses

Helical had 34 distribution and light logistics units located around major UK transport networks at 30 September 2016, of which ten have subsequently been sold. These units generally have few bespoke features making them straightforward to re-let if vacancies occur with minimal capital expenditure required. The majority of the assets are single let. Significant assets within the portfolio include a 256,000 sq ft distribution warehouse let to Sainsbury's in Yate, Bristol, a 203,000 sq ft facility in Leighton Buzzard, Bedfordshire and a 183,000 sq ft distribution warehouse let to the Royal Mail in Chester.

Regional Offices

Our regional office investment portfolio comprises seven assets valued at £101.2m, with c. 70% of value in Manchester. Other assets are located in Crawley, Glasgow, Reading and Cobham. During the half year we sold two assets in Castle Donnington and Cheadle for £7.0m, a 3% discount to book value.

We have three offices in Manchester; a city with a diverse, thriving and growing economy which is widely regarded as England's second city and the centre of the "Northern Powerhouse".

Churchgate and Lee House, Manchester

This asset, comprising 248,000 sq ft of multi occupied offices, was purchased in March 2014.

Since then we have refurbished the reception, cafe and just over 73,735 sq ft of the offices and will continue to reposition the asset as floors become vacant.

In the period we have concluded three new lettings on over 23,000 sq ft increasing the contracted rent across the buildings by £418,000. At the end of the period the building was 95% let. We have subsequently agreed terms on the 1st Floor of Lee House and with the completion of its lease anticipated before the end of November, we are on course to be 100% let.

Dale House, Manchester

Dale House is a 54,000 sq ft office building situated in the Northern Quarter of Manchester. It is 87% let to a number of tenants with an average rent of £12.70 psf and was acquired in March 2015 for £7.4m. The property is a long term hold with plans to significantly refurbish the building over time. Strategic lease surrenders across the building have been obtained and a refurbishment of 33,000 sq ft will commence in January 2017, with completion in August 2017.

Fountain Court, 31 Booth Street, Manchester

This vacant office located in the prime city core was acquired in January 2016 for £4.7m. Refurbishment of this 25,349 sq ft building is underway and nearing completion. We anticipate that the building will be launched to the market in January 2017.

St Vincent Street, Glasgow

In partnership with local development partner, Dawn Developments Ltd, Helical is the development manager for the new headquarters building for Scottish Power at St Vincent Street, Glasgow. The completed building comprises c. 220,000 sq ft of prime office space in the heart of the City's commercial district. Funded by M&G Investments, all works, including Scottish Power's fit out, are due to be completed in November 2016. As part of the overall deal, Helical took on three existing Scottish Power sites which are surplus to requirements. The site at Cathcart has been sold to Barratt Homes' subject to detailed planning approval being received (outline planning already achieved) and the listed Cathcart House has been sold subject only to vacant possession being granted following the move to the new headquarters by Scottish Power. The site at Yoker was sold to a supermarket operator during the period and the site at Falkirk was sold in the prior year.

Retail

The retail market is undergoing major structural changes with many high profile companies going into administration. There is a continued migration of customers and retailers to prime centres where the leisure offer and quality of the environment are a big driver of footfall.

Our retail assets total £97m, 8% of our portfolio (31 March 2016: £143m). This part of the portfolio includes a prime retail asset in Cardiff, three retail parks, one retail unit and a number of pre let and/or prefunded retail developments.

During the half year, five retail properties were sold for a total of £41m, at c. 6% below book value. At the period end the portfolio consisted of assets in Cardiff, Great Yarmouth, Leicester, Sevenoaks and Southend.

The Morgan Quarter, Cardiff

During the period we have continued our plans to reposition the asset and consolidate rental tone. We have concluded six new retail leases representing over £200,000 per annum in rental income. These include two tenants upsizing within the estate and the addition of JoJo Maman Bébé.

Within the Creative Quarter we have completed five new office leases on 1,265 sq ft and one renewal lease. Work is underway on Phase Three of the refurbishment which is due to complete early 2017 providing 5,700 sq ft of new space.

Retail Developments

Parkgate, Shirley, West Midlands

The shopping centre at Parkgate, Shirley, where Helical has a 50% interest, was completed in 2014 and the 80,000 sq ft Asda, which had been pre-sold to the food-store, together with a number of other retailers have all opened successfully for trade. The space beyond the food-store is let to occupiers such as B&M, Peacocks, Poundland, Pizza Express, JD Wetherspoon, Prezzo, Shoe Zone and Shirley Library and in November 2016 was sold to a private purchaser at its 30 September 2016 book value.

A second phase of high density residential is being progressed on a 10 acre site opposite the Parkgate scheme. Terms have been agreed with a care home provider, a residential developer and a supermarket operator for a petrol filling station. Planning consent has been achieved subject to a s.106 Agreement.

Truro

Helical has entered into a Conditional Purchase Agreement on the six acre Truro City Football Club site which has planning consent, subject to a s.106 Agreement, for a 78,000 sq ft non-food retail park. The scheme proposals provide for the relocation of the football club and we anticipate starting on site in late 2017.

Cortonwood

This 79,750 sq ft retail park has been 95% pre-let to tenants including Outfit, H&M, New Look, River Island and Marks and Spencer. The scheme has been forward funded with clients of Aberdeen Asset Management and construction on site has started with completion due in June 2017. The remaining space is currently under offer.

Retirement Villages

Our retirement village portfolio consists of four villages. We design each of the villages with an active, independent retirement in mind and the communities that we create are the ideal place to live a social and varied lifestyle. Each private, age-exclusive retirement community is centred around a residents' clubhouse, and features many amenities including an indoor pool and gym, landscaped gardens, bar, restaurant and library. With an increasing UK population over 65 years old, and a severe under supply in retirement housing, this sector creates significant opportunities for investors and developers.

Bramshott Place, Liphook, Hampshire

This village is situated amongst natural parkland near the village of Liphook on the border of Hampshire, West Sussex and Surrey. The village features a selection of two and three bedroom cottages and one, two and three bedroom apartments arranged around a residents' clubhouse. All construction works to Phases 1-3 are completed. 151 units in total have been built and sold. Phase 4 commenced in August 2016 with the construction of 40 additional cottages, due for completion in January 2018. Sales on the site will be formally launched in July 2017, with seven of the 40 new cottages already having been reserved. The residents' clubhouse is currently being extended and refurbished with completion of this project due in January 2017.

Durrants Village, Faygate, West Sussex

Durrants Village is set within 30 acres of private parkland in the hamlet of Faygate, near Horsham in West Sussex. The village features a selection of cottages and apartments. Phases 1 and 2 of the construction completed in January 2016 with 105 units located around the residents' clubhouse. Phase 3A has commenced and consists of an additional 20 units and is due to complete in July 2017. Sales have progressed well with 82 units sold, 4 exchanged and an additional 13 units reserved.

Millbrook Village, Exeter, Devon

Millbrook Village is nestled close to the River Exe in the heart of the historic cathedral city of Exeter. The village features a selection of two and three bedroom cottages and one, two and three bedroom apartments. The site will comprise 164 units once completed. The clubhouse will include a restaurant and bar, games room, gym, cinema and a swimming pool. The build programme is well advanced with 81 units currently completed with more stock now coming online at regular three month intervals. We anticipate that the village will be fully constructed by early 2018 with the clubhouse handed over in March 2017. 37 units have been sold, 7 exchanged with an additional 18 reserved.

Maudslay Park, Great Alne, Warwickshire

Maudslay Park is set in 90-acres of parkland in the Warwickshire village of Great Alne, near Stratford-upon-Avon. The village will comprise 164 units with a mixture of cottages and apartments built around the central clubhouse facility. The clubhouse will include a restaurant and bar, games room, gym, cinema and a swimming pool. Phase 1 of the development is currently under construction which consists of 14 cottages, 35 apartments and the central clubhouse facility. We have recently launched the sales office on site and have achieved six reservations on cottages. We anticipate the first cottages being completed in February 2017 with the central clubhouse facility being completed in March 2018.

Capital Expenditure

We have a planned development and refurbishment programme to drive the rental value and secure the future of our assets.

Retirement Villages

Asset Management

Asset management is a critical component in driving Helical's performance. Through having intelligent business plans and by maximising the combined skills of our management team, we are able to create value in our assets without relying on market movements.

During the half year contracted income increased by £1.1m as a result of new lettings and rent reviews, net of any losses from breaks and lease expiries (2015: £1.5m). The significant contributors to the new lettings were: The Loom, London E1 (£0.3m), Shepherds Building, London W14 (£0.4m) and our logistics unit in Burton-on-Trent (£0.5m).

There was significant activity within the investment portfolio with 165 lease events.

Portfolio yields

Capital values, vacancy rates and unexpired lease terms

\* The vacancy rates exclude assets in the course of redevelopment/refurbishment.

Valuation movements

Lease expiries or tenant break options

We have a strong rental income stream and a diverse tenant base, with the largest tenant in the portfolio accounting for only 7.5% of the rent roll. The top 10 tenants account for 31.3% of the total rent roll and the tenants come from a variety of industries.

Independent review report to the members of Helical plc

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the Half Year Results report of Helical plc for the six months ended 30 September 2016 which comprises the Unaudited Consolidated Income Statement, the Unaudited Consolidated Statement of Comprehensive Income, the Unaudited Consolidated Balance Sheet, the Unaudited Consolidated Cash Flow Statement, the Unaudited Consolidated Statement of Changes in Equity and the related unaudited notes. We have read the other information contained in the report: Financial Highlights, Chief Executive's Statement, Financial Review and Helical's Property Portfolio and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express a conclusion on the condensed set of financial statements in the report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the report for the six months ended 30 September 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Grant Thornton UK LLPStatutory Auditor, Chartered Accountants

London 24 November 2016

Unaudited consolidated income statement

For the Half Year to 30 September 2016

Unaudited consolidated statement of comprehensive income

For the Half Year to 30 September 2016

The exchange differences on retranslation of net investments in foreign operations will be reclassified to the Income Statement on disposal.

Unaudited consolidated balance sheet

At 30 September 2016

Unaudited consolidated cash flow statement

For the Half Year to 30 September 2016

Unaudited consolidated statement of changes in equity

At 30 September 2016