Helical Bar Regulatory News (HLCL)

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

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

28 November 2014

Half Year Results

For the Six Months to 30 September 2014

STRONG RESULTS WITH PLENTY TO COME

Financial Highlights:

Another excellent financial performance and strong shareholder returns

· Profit before tax of £42.9m (2013: record £68.9m).

· Total property return of £69.2m (2013: £88.5m):

- Group's share of net rental income up 33% to £18.8m (2013: £14.1m).

- Development profits of £15.6m (2013: £63.5m).

- Net gain on sale and revaluation of investment properties of £34.8m (2013: £10.9m).

· Adjusted diluted EPRA earnings per share of 11.5p (2013: 40.5p).

· Diluted EPRA net asset value per share up 10.2% to 345p (31 March 2014: 313p).

· Interim dividend payable of 2.10p per share (2013: 2.00p), up 5%.

Improved capital returns

· Investment portfolio valuations increased by 6.5% on a like-for-like basis (4.9% including sales and purchases) during the period.

· Group's share of property portfolio £919m (31 March 2014: £802m).

Strong financial position

· £100m 4% Convertible Bond issued in June.

· See-through LTV of 33% on a secured basis (31 March 2014: 36%) and 53% overall (31 March 2014: 46%).

· Average maturity of the Group's share of debt of 3.5 years (31 March 2014: 3.9 years) at an average cost of 4.7% (31 March 2014: 4.5%).

· Group's share of cash and undrawn bank facilities of £198m (31 March 2014: £186m).

Operational Highlights:

Development portfolio well placed to deliver good profits over next few years

· Assignment of our purchase contract on 99 Clifton Street generates £14.7m profit.

· At Barts Square, London EC1, 45 residential units exchanged on phase 1 out of 88 units released.

· Lettings progress at The Bower, Old Street, London EC1.

· C-Space, London EC1 and Creechurch Place, London EC3 under construction.

Growing investment portfolio

· 9.2% valuation increase on London offices and 8.8% valuation increase on regional offices.

· Portfolio initial yield of 6.0% growing to 7.3% reversionary.

· Acquisitions of £94m (excluding associated costs) of assets during the half year and £46m of assets sold. On average one new property was acquired every eight days during the period.

· Investment portfolio now comprises 40% London offices, 35% retail, 13% industrial, 11% regional offices, 1% other.

Asset management activity

· Helical's share of gross annualised passing rent from the investment portfolio has increased to £40.9m

· (31 March 2014: £37.7m) with ERV of £57.1m (31 March 2014: £45.6m).

· £2.0m of new lettings in period.

· Like-for-like rents up £1.0m. Increase driven by new lettings and uplifts at lease renewal of £2.3m, offset by losses at lease end or expiry of £1.3m.

· On average, the Group achieved a new letting or lease renewal every two days in the period.

· £0.6m contracted rental increase in Churchgate and Lee House, Manchester.

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

"Our strategy of developing in Central London for sale or long term investment whilst maintaining a high yielding regional investment portfolio continues to bear fruit. As the UK economy strengthens outside of London and the South East we anticipate continuing to invest in regional assets both for their relatively high yield and the potential to create added value. Our development programme is expected to provide surpluses for the next three years as we complete and let our schemes.

Although the next 12 months are likely to be impacted by the usual hiatus in the run-up to the General Election and the subsequent flurry of activity which follows, as well as the ongoing uncertainty in the Eurozone and the global economy, we remain confident that our balance of assets held for income and capital gains, with strong exposure to London, provides shareholders with the prospect of substantial growth in value for the foreseeable future."

For further information, please contact:

Half Year Results Presentation

Helical will be holding a presentation for analysts and investors at 9.30am (GMT), Friday 28 November 2014 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD. 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").

3. Diluted EPRA earnings per share adjusted for performance related awards.

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

5. Calculated in accordance with guidance issued by EPRA.

6. See-through loan to value is the ratio of see-through net borrowings to see-through property portfolio. See Note 25.

7. See-through net gearing is the ratio of see-through net borrowings to net assets. See Note 25.

CHIEF EXECUTIVE'S STATEMENT

Helical's approach to real estate is to identify opportunities across the property spectrum which produce regular and growing rental income as well as development profits through the property cycle. We seek a balance between an investment portfolio that covers our operational and finance costs and dividends, and a development programme that, through the use of limited equity, looks to maximise returns. This balance currently targets, and has achieved an investment portfolio representing 75% of our property assets and a development programme covering the remaining 25% which is capable of producing exceptional profits.

The first half continued the good progress of the Group with a strong financial performance from our diverse property portfolio. Our income producing portfolio continues to grow with net rents of £18.8m, up 33% on the corresponding period last year. The investment portfolio produced a revaluation surplus of £33.4m taking the gross value of the portfolio to £692m. The first half also saw the start of a rotation out of assets, mainly shopping centres, that have served us well since their acquisition in 2010 and 2011, and the reinvestment of the net receipts - together with the proceeds of the Convertible Bond - into high yielding distribution warehouses, out of town retail parks and regional offices, which we are confident offer a good blend of income and capital growth.

Our development portfolio continues to combine exceptional contributions from individual schemes with significant progress in delivering our programme of new and refurbished properties. At 99 Clifton Street, London EC2 we have forward sold an office development of 45,000 sq ft which is due to complete in summer 2015 for £38.25m having committed to purchase it on completion for £21m. An exceptional result. At Barts Square, London EC1 we have exchanged contracts on 45 of the 88 residential units released in September, from Phase 1 of the development, which is due to commence in January 2015 and complete in Q2 2017. We have equity funded, with a joint venture partner, our 271,000 sq ft office development at 1 Creechurch Place, London EC3 which is now under construction with completion due in October 2016.

At The Bower, Old Street, London EC1 works continue on phase one, refurbishing and extending The Warehouse and The Studio which have been pre-let. At C-Space, London EC1 we have started work to refurbish the building, increasing the office building from 50,000 sq ft to 62,000 sq ft.

We also continued to grow our overall portfolio, now valued at £919m up from £802m at 31 March 2014. In doing so we seek to maximise growth in net asset value per share, funding the increase in our portfolio size through the use of gearing. Our strategy with regard to gearing is to use debt on a tactical and judicious basis, in order to accentuate property performance when property returns are expected to materially outperform the cost of debt. We believe that this continues to be the most appropriate means by which we can grow our business at this point in the cycle. The £100m 4% Convertible Bond issued in June 2014 continues the move away from the use of secured borrowings, started in 2013 with the issue of the 6% £80m Retail Bond. We draw a distinction between secured borrowings, on which we have a net LTV of 33%, and unsecured forms of debt i.e. our retail and convertible bonds, which increase our overall LTV to 53%. This debt structure allows us to achieve the exposure to real estate that is commensurate with our business plan and objectives, whilst protecting the balance sheet from external headwinds.

Our strategy of developing in Central London for sale or long term investment whilst maintaining a high yielding regional investment portfolio continues to bear fruit. As the UK economy strengthens outside London and the South East, we anticipate continuing to invest in regional assets both for their relatively high yield and the potential to create added value. Our development programme is expected to provide surpluses for the next three years as we complete and let our schemes.

Although the next 12 months are likely to be impacted by the usual hiatus in the run-up to the General Election and the subsequent flurry of activity which follows, as well as the ongoing uncertainty in the Eurozone and the global economy, we remain confident that our balance of assets held for income and capital gains, with strong exposure to London, provides shareholders with the prospect of substantial growth in value for the foreseeable future.

Michael Slade

Chief Executive

28 November 2014

Financial Review

The half year to 30 September 2014 produced pre-tax profits for Helical of £42.9m, compared to last year's record first half profits of £68.9m.

See-through net rents from the Group's share of the property portfolio increased by 33% from £14.1m to £18.8m, comprising £16.4m (2013: £11.1m) from wholly owned assets and £2.4m (2013: £3.0m) from assets held in joint ventures.

On 30 September 2014, Helical exchanged contracts on the forward sale of 99 Clifton Street, London, EC2 for £38.25m allowing the Group to recognise £14.7m of development profit. Profits from the Group's retirement village programme of £1.0m and development management fees of £0.9m in respect of our schemes for Scottish Power in Glasgow and at Barts Square, London EC1 and The Bower, London EC1, were partially offset by a provision of £2.0m against our retail development at Europa Centralna, Poland. We recognised a further £1.2m on our foodstore development at Leisure Plaza, Milton Keynes. The Group's share of net development profits were £15.6m (2013: £63.5m).

The investment portfolio, including assets held in joint venture, rose 6.5% on a like-for-like basis (2013: 3.5%) and 4.9% after sales and purchases (2013: 2.3%), reflected as a gain on revaluation of £33.4m (2013: £10.9m). Sales of investment properties produced a gain of £1.4m (2013: £nil).

Administration costs, before performance related awards, increased to £5.0m (2014: £4.1m), mainly arising from Helical's office move to Hanover Square, London W1S from Farm Street, London W1J, its home for the previous 25 years, reflecting the increasing size of the Company. The results of the Group for the half year have increased expectations that awards issued by the long term performance share plan will vest in the next few years and that cash and deferred shares payable in accordance with the Group's bonus schemes will vest. Accordingly, based on these results, a total charge of £6.0m (2013: £6.6m) plus National Insurance has been made in these accounts to provide for the future vesting of these awards.

See-through net finance costs, excluding the interest payable on the retail bond and convertible bond, increased from £5.4m to £6.1m. Including interest accrued on the retail bond and convertible bond payable half yearly in December and June, and writing off the costs of raising the convertible bond, interest payable in the see-through net finance costs increased to £12.4m (2013: £6.7m).

The fall in medium and long term interest rate projections since the year end contributed to a £1.8m loss (2013: gain of £5.3m) on the fair value of the Group's share of derivative financial instruments. Exchange rate movements on the Group's share of the assets and liabilities relating to its Polish developments generated a loss of £0.2m (2013: £0.2m). Valuing the convertible bond at its fair value at 30 September 2014 gave rise to a surplus of £1.6m.

The net result for the half year was a pre-tax profit of £42.9m compared to a profit of £68.9m in the corresponding period last year. This profit resulted in adjusted diluted EPRA earnings per share of 11.5p (2013: 40.5p). Diluted EPRA earnings per share were 5.3p (2013: 34.2p). The Directors have declared an interim dividend of 2.10p (2013: 2.00p) an increase of 5%. This dividend will be paid on 30 December 2014 to shareholders on the register on 12 December 2014.

Net Assets

Net asset value increased by £28.6m from £340.5m at 31 March 2014 to £369.1m at 30 September 2014. EPRA net asset value per share at 30 September 2014 was 345p (31 March 2014: 313p), an increase of 10.2%. This increase was mainly due to the increase in the value of the investment portfolio as set out below.

Financing

Since 31 March 2014, Helical has raised £100m through the issue of a five year convertible bond with a 4% coupon. It has used £30m to temporarily repay revolving credit facilities with the balance used to supplement the Group's cash resources. These were used to acquire two investment portfolios and a number of additional assets for a total of £99m. The composition of the Group's debt structure has significantly changed since 31 March 2013 with unsecured debt now representing 33% of debt drawn at 30 September 2014.

As at 30 September 2014 Helical's debt profile was as follows.

*Net LTV is the ratio of gross borrowings less cash deposits to the fair value of the property portfolio.

The Group's cash balances at 30 September 2014 were £47.0m with its share of cash in its joint ventures of £14.1m. In addition, the Group owned £120.0m of unsecured properties on which it could generate additional cash to invest.

The Group is protected from future interest rate rises through a combination of interest rate swaps and the fixed rate debt of the £80m 6% Retail Bond and the £100m 4% Convertible Bond. At 30 September 2014, the Group had £300m of interest rate swaps (including in joint ventures) at an average of 1.9% with an average maturity of 3 years.

Tim Murphy

Finance Director

28 November 2014

PROPERTY PORTFOLIO

The investment portfolio currently comprises 75% of Helical's portfolio by fair value (75% at 31 March 2014).

The development portfolio comprises 25% of Helical's portfolio by fair value (25% at 31 March 2014).

INVESTMENT PORTFOLIO OVERVIEW

At 30 September 2014, our income producing investment portfolio comprised 75% of our assets by fair value (78% by book value). The income stream from this portfolio has grown steadily since 2010 and is highly reversionary. The passing rent from our investment portfolio is £40.9m (31 March 2014: £37.7m) and the estimated rental value of the portfolio is £57.1m (31 March 2014: £45.6m). This reversionary income will be captured through letting vacant units and rent reviews over the next few years.

During the six months to 30 September 2014, and subsequently, we have sought to rotate our investment portfolio, selling those assets that we believe have served their purpose, providing good cash on cash returns, and reinvesting the proceeds, together with the cash received from the issue of the convertible bond, into other high yielding assets which we believe offer a greater expectation of capital growth.

Investment Property Portfolio Values

At 30 September 2014, the investment property portfolio was valued at £691.6m (31 March 2014: £600.7m), with £586.8m (31 March 2014: £493.2m) held in wholly owned subsidiaries and £104.8m (31 March 2014: £107.5m) held in joint ventures, as set out below.

Acquisitions

During the half year we acquired two portfolios of industrial and office investments. In April we acquired The Constellation Portfolio, a mixed-use portfolio for £40.2m, reflecting an 8.35% net initial yield. In August we acquired a portfolio of eleven industrial and distribution warehouse assets known as the Boss Portfolio for £29.7m, reflecting a net initial yield of 8.0% (excluding a vacant property at Rugby which was subsequently sold). In addition we purchased two retail warehouses in Harrogate and Stockport for £12.1m at a net initial yield of 6.95% and a regional distribution warehouse in Yate, Bristol, for £11.5m at a net initial yield of 10.1%.

Since 30 September 2014, we have acquired a distribution facility in Leighton Buzzard for £9.9m at a net initial yield of 7.85% and a distribution facility in Wolverhampton for £3.9m at a net initial yield of 8.75%. We have a further £28m of assets under offer to purchase. In total, these purchases will add £2.76m to our net rental income.

Capital Expenditure

We have a refurbishment and redevelopment programme upgrading and increasing space at a number of our investment properties.

Disposals

During the half year to 30 September 2014, we sold The Guineas, Newmarket, a 142,000 sq ft town centre shopping centre for £18.3m; a research and development facility at Fordham, Newmarket for £15.9m; an office building in Preston for £1.7m; an office building in Milton Keynes for £2.6m; a Co-op supermarket in Doncaster for £0.9m; and a small unit in Corby for £0.3m. Total proceeds of £40.0m exceeded book value by £2.4m (4%) which netted down to a total profit on disposal of £1.4m after sale costs.

Since 30 September 2014 we have exchanged or completed on the sale of retail assets in Sutton-in-Ashfield and Basildon for £25.7m, industrial units in Leicester, Slough and Rugby for £7.6m and an office in Botleigh for £4.6m. Total sales value was marginally above book value.

Revaluation Surplus

Valuation movements, yields, capital values and other relevant portfolio metrics relating to the investment portfolio are noted in the table below. These metrics include Helical's share of all investment properties.

Asset Management

During the half year, contracted income increased by £1.0m as a result of new lettings and rent reviews, net of losses from breaks and expiries (31 March 2014: £0.4m).

We concluded £2.0m of new lettings and an uplift at lease renewal of £0.3m (6.4% of rent roll), more than offsetting the loss of rent at lease end or break of £1.3m (3.2% of rent roll).

Overall we have seen good demand across the whole portfolio. In particular, we have seen continued strong take up and rental growth in our London office portfolio with estimated rental values increasing by 3.6%.

Asset Management Overview: Cash on Cash Returns

Our high yielding assets continue to deliver strong cash on cash returns:

Across the portfolio, rent collection was 95% within two weeks of the quarter day.

We have a strong rental income stream and a diverse tenant base. Our top 10 tenants accounted for 26% of our rent roll.

Top tenants in the portfolio are:

Lease expiries or tenant breaks

Principal Investment Properties

Offices

Barts Square, London EC1

In joint venture with The Baupost Group LLC (Helical 33.3%) Helical owns the freehold interest in land and buildings at Bartholomew Close, Little Britain and Montague Street, a 3.2 acre site adjacent to the new Barts hospital and just south of Smithfield Market. The current buildings comprise 420,000 sq ft let to the NHS for c. £3.5m pa on a number of short leases that expire between 2014 and 2016.

Planning consent has been obtained for a comprehensive redevelopment of 19 buildings to provide a total of 236 residential apartments, two office buildings of 202,000 sq ft and 26,000 sq ft, 24,200 sq ft of retail/A3 at ground floor and major public realm improvements. The construction of Phase 1, comprising 144 residential units, will commence in January 2015 and that part of the site has been transferred to development stock in anticipation of the works commencing shortly.

The Bower, Old Street, London EC1

This 3.12 acre asset was acquired in November 2012 for £60.8m in joint venture with Crosstree Real Estate Partners LLP (Helical interest 33.3%). 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 is benefitting from substantial investment in infrastructure. Since acquisition, planning consent has been obtained to increase the floor space on the site by 106,000 sq ft to refurbish existing areas and significantly upgrade the public realm with the creation of a new pedestrian street.

Building work started on Phase 1 (211 Old Street) in January 2014 comprising The Warehouse 122,000 sq ft and The Studio 18,363 sq ft, and is due for completion in June 2015. In Phase 1, we have signed an agreement to lease the whole of The Studio to John Brown Media for 15 years at £45 psf and have agreed heads of terms for a further 42,000 sq ft in The Warehouse. At Empire House, 17,315 sq ft has been pre-let to Z Hotels at a rent of £650,000pa on a 35 year lease and 3,411 sq ft to Peruvian restaurant Ceviche, at a rent of £140,000pa on a 25 year lease.

At 207 Old Street (The Tower) and the retail parade we continue to receive rent whilst we work up plans to refurbish and extend the Tower with works expected to start in June 2015.

C-Space, 37-45 City Road, London EC1

We acquired C-Space (formerly Maple House) in June 2013. Planning consent has been obtained for a complete refurbishment of the building which will increase the existing 50,000 sq ft office building to 62,000 sq ft. The works will involve 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. Works have commenced and are expected to complete by summer 2015.

Shepherds Building, London W14

The refurbishment of the common parts (East, West & Central receptions, ground floor common parts, new showers and café/bar) are now complete. These works have given the building a much needed refresh and have been positively received by the occupiers.

The building is currently 98.5% let and the only vacant space is awaiting refurbishment. The average rent in the building is increasing as we complete new lettings/renewals but is still a very modest £25 psf. Over the summer, we completed new open market lettings to two tenants of £37.50 psf. These deals have set evidence of new rental values in the building and we are expecting rents to continue to increase from this level.

New Loom House, London, E1

We have now secured planning consent for a comprehensive refurbishment/reconfiguration of the reception and common parts and plan to start these works in January 2015 for completion in October 2015. We are in the final stage of negotiations with contractors to carry out this work.

We have completed three renewals and seven new lettings since the start of April and have two further lettings currently in solicitors' hands. We have been achieving rents of £34.50 psf for units that have been comprehensively refurbished, typically on five year terms with three year breaks. Comprehensive refurbishment works are ongoing on other units as and when these are given back and we are confident of securing at least £34.50 psf for this space.

These rents significantly exceed what we expected to achieve for refurbished space at purchase (£25 psf) and this is typical of the continued rental growth that we are seeing across all of our London assets.

Enterprise House, London W2

Enterprise House, W2 is a freehold investment adjacent to Paddington Station in London comprising 45,000 sq ft. The building was acquired on a sale and leaseback arrangement with Network Rail, which holds a 20 year lease without breaks, for c. £31m representing a yield of 5.7%, generating annual rental income of £1.8m.

One King Street, London W6

One King Street, London W6 is a 35,000 sq ft building acquired in 2012 comprising 22,000 sq ft of offices and 13,000 sq ft of retail. We recently commenced works to construct an additional office floor on top of the building which we hope to be complete by Easter 2015.

Churchgate & Lee House, Manchester

In March 2014, we acquired Churchgate House and Lee House, two interlinked office buildings comprising 250,000 sq ft of office space, for a net consideration of £34m reflecting a net initial yield of 5.9%. Since acquisition we have refurbished the reception and let 55,000 sq ft. Upon expiry of the rent free period granted, the building will be yielding 7.8% on cost. There is a further 38,000 sq ft to let.

Retail

The Morgan Quarter, Cardiff

The increased activity reported in the last period has continued to gain momentum with seven new lettings and a lease renewal having been agreed in the period. We continue to discuss potential increases in space requirements with tenants in The Hayes and new lettings with tenants in the Arcades.

The first phase of the Creative Quarter office refurbishment was completed at the end of April. Phase 2 of the Creative Quarter which provides c. 7,500 sq ft together with the common "Hub" break-out area and meeting rooms remains on schedule to complete by the end of December 2014. We have already concluded our first two lettings of this phase.

Corby Town Centre

Leasing continues and a number of re-gears are ongoing. New leases to Yours Clothing, Heron Foods and Papa Johns have recently completed with all operators now open and trading. Planning was approved on unit 29/31 Corporation Street to convert this unit into three. Two of these units have pre-lets with interest in the third to provide a combined rent of c. £100,000 pa.

Clyde Shopping Centre, Clydebank

Works to extend the centre were completed in June 2014 and the unit handed over to Pure Gym for a 15 year term. There are a number of new lettings and increased space requirements being worked on.

Mixed Use Portfolios

Quartz Portfolio

In December 2013, we acquired a portfolio of ten regional properties comprising five retail and leisure assets, four office properties and one industrial property for a total consideration of c. £49m. During the six months to 30 September 2014 we sold a retail asset in Doncaster for £0.9m at c. 7% above book value and retain the remaining properties.

Constellation Portfolio

In April 2014, we acquired a mixed-use portfolio of ten properties for a total consideration of c. £40m. The portfolio includes modern high-bay logistic facilities and regional and headquarter offices. During the half year we sold offices in Preston for £1.7m, marginally above book value and, since 30 September 2014, we have sold a distribution warehouse in Leicester for £5.2m, c. 8% above acquisition cost.

Boss Portfolio

In August 2014, we acquired a portfolio of 11 industrial and distribution warehouse assets for a total consideration of £29.7m, reflecting a net initial yield of 8.0% (excluding one vacant property in Rugby subsequently sold). The portfolio, with a total floor area of c. 460,000 sq ft, comprises seven multi-let industrial entities and four single let distribution warehouses.

DEVELOPMENT PORTFOLIO OVERVIEW

We have a development programme as follows:

Barts Square Residential Phase 1, London, EC1

In September 2014, the first phase of the residential development at Barts Square was launched in anticipation of construction commencing in January 2015. Of the 88 plots released for sale we have exchanged contracts for sale on 45 units with four further units reserved comprising, in total, c. 56% of the total released. On average these units have been sold at a price of £1,570 psf.

99 Clifton Street, London, EC2

In November 2013, we committed to forward purchase a new 45,000 sq ft (NIA) office building in Clifton Street, London EC2 for £21m. Since contracting on the building, Helical has worked with the developer to achieve a revised planning consent and to refine the building's specifications to ensure it meets the demands of Shoreditch tech occupiers. It was intended that the Group would complete the freehold purchase upon practical completion of the construction in summer 2015. However, on 30 September 2014 Helical exchanged contracts on the forward sale of 99 Clifton Street for £38.25m, allowing the Group to recognise development profits of £14.7m at the half year.

Creechurch Place, London EC3 

Creechurch Place is a landmark City office scheme in the heart of the insurance sector in London. In May 2014, the Group signed a joint venture agreement with HOOPP (Healthcare of Ontario Pension Plan) to redevelop this site in a 90:10 joint venture (Helical interest 10%) with Helical acting as development manager for which it will receive a promote payment depending on the outcome of the scheme. Construction of the building has commenced and is expected to complete in October 2016 with a capital value of c. £250m.

Scottish Power Headquarters, Glasgow

Helical and local development partner, Dawn Developments Limited, were appointed as development managers by Scottish Power for the construction of their new headquarters at St Vincent Street, Glasgow, pre-sold by Scottish Power to M&G Real Estate. The completed building will comprise 220,000 sq ft of prime office space in the heart of the city's commercial district. Since making a start on site in October 2013 Helical has been awarded the Cat B fit out contract and works are due to complete in December 2015. As part of the deal Helical is purchasing, for c. £5.75m, three additional existing Scottish Power sites in Glasgow, Yoker and Falkirk which are surplus to their requirements.

King Street, Hammersmith, London W6

King Street, Hammersmith is a mixed use scheme, in joint venture with Grainger plc, for the regeneration of the west end of King Street. Planning permission for the scheme was granted in April 2014 for 196 apartments, a three screen cinema to be operated by Curzon, new retail, restaurant and café space and replacement offices for the Council with a new public square. Work is expected to start in the second half of 2015.

Europa Centralna, Poland

This retail park and shopping centre comprises 720,000 sq ft of retail space and was built in a 50:50 joint venture with clients of Standard Life. The scheme opened in March 2013 and is over 86% let to Tesco, Castorama, H&M, Sports Direct, Media Saturn and others. The sale of 50% of the scheme in 2011 included a provision that we will sell the remaining ownership stake two years after the date of completion of the development to our existing joint venture partners and this sale is expected to complete by March 2015.

Park Handlowy Mlyn, Wroclaw, Poland

This 103,000 sq ft out-of-town retail development was completed in December 2008 and is fully let to a number of international and local retailers including Sports Direct, TK Maxx, Media Expert, Super Pharm, Deichmann, Smyk, Komfort and others. We have agreed terms to sell the development and expect to complete the sale by our year end.

Leisure Plaza, Milton Keynes

Leisure Plaza is a 50:50 joint venture with Abbeygate Developments. Completion of an 80,000 sq ft supermarket, pre-let to Morrisons on a long lease and pre-sold to Aviva Investors' Lime Property Fund at a headline yield of 4.25%, will occur in December 2014. A second phase of development including 33,000 sq ft of open A1 retail and the refurbishment of an existing ice rink is expected to commence in 2015.

Helical Retail

Parkgate, Shirley, West Midlands

The shopping centre at Parkgate, Shirley, where we have a 50% interest, has completed on site and the 80,000 sq ft Asda and a number of other retailers have opened successfully for trade. The space beyond the foodstore is 80% pre-let to occupiers such as Peacocks, 99p Stores, Pizza Express, Wetherspoons, Prezzo and the Shirley Library. Two residential sites have been sold to provide 97 private and extra-care units with a further site in solicitors's hands. Six apartments and eight town houses are being built out directly. A residentially orientated second phase is being put together on a site of 10 acres opposite the Parkgate scheme and a planning application is likely to be submitted in spring 2015.

Cortonwood

Planning consent has been secured at appeal and marketing is in hand for an 80,000 sq ft Open A1 non-food retail park. Negotiations are in hand with a number of leading fashion retailers. A start on site is anticipated in the summer of 2015.

Truro

In Truro we have entered into a Conditional Purchase Agreement on the six acre Truro City Football Club Site and a Planning Application is being submitted shortly for a 78,000 sq ft non-food retail park.

Kingswinford

A conditional contract has been secured on a site owned by Ibstock and a Planning Application for a 75,000 sq ft non-food scheme is to be submitted in the first quarter of 2015.

Retirement Villages

Our retirement village development programme continues apace with Bramshott Place completed and Durrants Village, Millbrook Village and Maudslay Park at varying stages of construction.

Bramshott Place, Liphook, Hampshire

Construction of this 151 unit village completed in December 2012. We have completed or exchanged on the sale of 144 units (compared to 136 at the year end) and have a further two under offer leaving five to be sold.

Durrants Village, Faygate, Horsham, West Sussex

We started the first phase of this 171 unit village in May 2012, and construction is expected to continue in phases, completing in 2017. The Clubhouse is expected to complete in summer 2015. We have completed on the sale of 19 units with a further nine reserved.

Millbrook Village, Exeter

We started the construction of this 164 unit village in 2013 and expect completion of the building works during 2018. To date we have completed on one unit and exchanged on five units with a further 23 reserved in the first two phases of 84 units.

Maudslay Park, Great Alne, Warwickshire

We have completed the construction of the marketing suite and during the period started the first phase of the development, which totals 150 units. Completion of the scheme is expected in 2018 and to date we have reservations on four units.

Independent review report to the members of Helical Bar plc

Introduction

We have reviewed the condensed set of unaudited financial statements in the Half Year Results of Helical Bar plc for the six months ended 30 September 2014 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 Half Year Results: Financial Highlights, Chief Executive's Statement, Financial Review, Property Portfolio, Investment Portfolio Overview and Development Portfolio Overview, and have considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of unaudited financial statements.

This report is made solely to the Company's members, as a body, 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'. Our review work has been undertaken so that we might state to the Company's members those matters we are required to state to them 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 and the Company's members as a body, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The Half Year Results are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the Half Year Results 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 unaudited financial statements included in the Half Year Results 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 unaudited financial statements in the Half Year Results 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'. 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 unaudited financial statements in the Half Year Results for the six months ended 30 September 2014 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 LLP

AUDITOR

London

28 November 2014

Unaudited Consolidated Income Statement

For the Half Year to 30 September 2014

Unaudited ConsolidatedStatement of Comprehensive Income

For the Half Year to 30 September 2014

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

Unaudited Consolidated Balance Sheet

At 30 September 2014

Unaudited Consolidated Cash Flow Statement

For the Half Year to 30 September 2014

Unaudited Consolidated Statement of Changes in Equity

At 30 September 2014

The adjustment against retained earnings of £3,150,000 (31 March 2014: £6,333,000) adds back the share based payments charge in accordance with IFRS 2 Share Based Payments.

There were net transactions with shareholders of £8,530,000 (31 March 2014: £89,000) made up of the performance share plan charge of £3,150,000 (31 March 2014: £6,333,000), dividends paid of £5,538,000 (31 March 2014: £6,660,000), the purchase of own shares of £6,995,000 (31 March 2014: £950,000), the issue of new shares of £120,000 (31 March 2014: nil) and the share settled bonus of £733,000 (31 March 2014: £1,366,000).

At 30 September 2013

There were net transactions with shareholders of £2,756,000 made up of the performance share plan charge of £1,567,000 and dividends paid of £4,323,000.

For a breakdown of total comprehensive income see the Unaudited Consolidated Statement of Comprehensive Income.

Unaudited notes to the Half Year Results

1. Financial Information

The financial information contained in this statement does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The full accounts for the year ended 31 March 2014, which were prepared under International Financial Reporting Standards as adopted by the European Union and which received an unqualified report from the Auditors, and did not contain a statement under Section 498 of the Companies Act 2006, have been filed with the Registrar of Companies.

These interim condensed unaudited consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. With the exception of the convertible bond policy noted below, the principal accounting policies have remained unchanged from the prior financial period to 31 March 2014.

Convertible Bonds

Convertible bonds are designated as fair value through the profit and loss and so are presented on the Balance Sheet at fair value with all gains and losses, including the write-off of issuance costs, recognised in the Income Statement. The interest charge in respect of the coupon rate on the bonds has been recognised within Finance Costs on an accruals basis.

These interim condensed unaudited consolidated financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ending 31 March 2014.

The Directors have a reasonable expectation that the Group will continue in operational existence for the foreseeable future and have, therefore, used the going concern basis in preparing the financial statements.

Principal risks and uncertainties

The responsibility for the governance of the Group's risk profile lies with the Board of Directors of Helical. The Board is responsible for setting the Group's risk strategy by assessing risks, determining its willingness to accept those risks and ensuring that the risks are monitored and that the Group is aware of and, if appropriate, reacts to, changes in those risks. The Board is also responsible for allocating responsibility for risk within the Group's management structure.

The Group considers its principal risks to be:

- market risk

- strategic risk

- financial risk

- development risk, and

- people risk.

There have been no significant changes to these risk areas in the period nor are there expected to be for the half year to 31 March 2015. A further analysis of these risks is included within the consolidated financial statements of the Group for the year ended 31 March 2014.

The half year statement was approved by the Board on 28 November 2014 and is being sent to shareholders and will shortly be available from the Company's registered office at 5 Hanover Square, London W1S 1HQ and on the Company's website at www.helical.co.uk.

2. Statement of Directors' responsibilities

Each of the Directors confirms that, to the best of his knowledge, the condensed set of unaudited financial statements, which has been prepared in accordance with IAS 34 as adopted by the European Union, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole and that the interim management report herein includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

Balances with related parties at 30 September 2014 and 31 March 2014 are disclosed in note 24.

A list of current Directors is maintained at 5 Hanover Square, London W1S 1HQ and at www.helical.co.uk.

On behalf of the Board

Tim Murphy

Finance Director

28 November 2014

3. Segmental information

The Group identifies two discrete operating segments whose results are regularly reviewed by the Chief Operating Decision Maker (the Chief Executive) to allocate resources to these segments and to assess their performance. The segments are:

· investment properties, which are owned or leased by the Group for long-term income and for capital appreciation, and trading properties, which are owned or leased with the intention to sell; and,

· development properties, which include sites, developments in the course of construction, completed developments available for sale, and pre-sold developments.