Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHelical Bar Regulatory News (HLCL)

Share Price Information for Helical Bar (HLCL)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 218.00
Bid: 216.50
Ask: 219.50
Change: 0.00 (0.00%)
Spread: 3.00 (1.386%)
Open: 224.50
High: 224.50
Low: 216.00
Prev. Close: 218.00
HLCL Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Interim Management Statement

28 Jan 2009 07:01

RNS Number : 3525M
Helical Bar PLC
28 January 2009
 



28 January 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

Helical Bar plc ("Helical" or the "Company")

Interim Management Statement for the third quarter to 31 December 2008

Commenting on the Company's activity in the third quarter, Mike Slade, Chief Executive, said:

"The Company continues to make steady progress on its existing pipeline of projects despite the challenges presented by the turbulent market conditions. In a rapidly falling market it has been prudent to delay making acquisitions but we remain convinced that compelling value lies ahead of us as prices fall considerably below equilibrium levels.  In light of this, the Company intends to raise additional equity so that it is even more favourably placed to take advantage of the many opportunities now starting to appear and which we expect to see in the coming months."

Market update

Strong falls in valuations across the sector in November and December contributed to a market drop of 27% in the IPD UK monthly index for 2008. This 12 month decline is similar in scale to the whole of the early 1990s property crash which took place over 43 months. The index has now fallen 36% from its peak in the summer of 2007 but further declines seem inevitable due to increasing tenant defaults, rising voids and falling rental values driven by the ongoing recession as well as the lack of available financing and liquidity in the investment marketTo date, unlike the early 1990s crash, we have witnessed few bank and receivership sales. However, with the complete erosion of the equity of the more highly leveraged property operators, we expect the banks to take increasing control of many assets and we await to see how they choose to work out these positions.

Against this backdrop, the Company continues to make progress across a wide range of sectors and activities, despite the difficulties presented by the recession. The Board believes that Helical has the resources and financial strength to cope with further anticipated declines in property values and their impact on banking covenants, whilst retaining the capacity to re-enter the market at the appropriate time. Additional spending power raised from the placing, as announced to shareholders today, ensures that Helical will be even better positioned to exploit the significant opportunities that are now appearing.

The Company has also identified investment partners that have indicated a desire to co-invest alongside Helical allowing the Company to deploy its capital efficiently and provides the opportunity to benefit from enhanced returns on successful investments.

Key activity over the last three months

We have received planning approval at MiltonCambridge for a retirement village of 100 units.

Our fully pre-let 10,000 sq m retail scheme at WroclawPoland was completed before Christmas and is trading well.

The site at GliwicePoland was acquired with bank finance provided by Aareal. Construction for this 68,000 sq m retail scheme, which is 30% pre-let to Carrefour & Castorama with a further 25% under offer to international retailers, is due to commence in 2009.

Our 36,000 sq m retail scheme at OpolePoland funded by Standard Life and part pre-let to Carrefour and Praktiker will commence on site in March. A further 20% is under offer to well known retailers.

Completion of the 50,000 sq ft new office development at the Hub, Glasgow is due in February with 30% pre-let to Glasgow School of Art. There is good interest from our target audience of media companies.

At Fordham, Newmarket we have completed the refurbishment of a laboratory, financed by the Royal Bank of Scotland and let to Quotient until 2022. The rent has increased by £283,000 pa.

In our small unit industrial developments we have sold two units and have 10 under offer plus six acres in solicitors' hands in Oxford, Southall, Southampton and Stockport.

At the Tideway Industrial Estate, London SW8 we received a further instalment of our profit with the remainder due later in 2009. We also received a further £6.9m instalment from Barratts in respect of C4.1 Milton Keynes with final payments due in March.

We have agreed to sell our freehold interest in Cardiff Royal Infirmary to the long leaseholder

At Liphook, Phase I of our retirement village is under construction with 17 of the 36 units reserved and 28 of a future Phase II of 49 units reserved.

At Lime Tree Village 138 of the 154 units have now been sold with reservations on a further five units.

Lettings in Sawston, Cambridge, Crawley and Shepherds Building, London W14 added over £100,000 pa to our rent roll.

Completion of the refurbishment of Clarevillle House, London SW1 on behalf of a UK pension fund is due in February 2009.

Tenant defaults in the quarter amounted to approximately 1.1% of the rent roll.

Financing

At 27 January 2009, the Company had gross borrowings of £302.3m at an average cost of 5.3% (30 September 2008: 6.1%) and a maturity profile as follows:

£m

< 1 year

12.5

1 - 2 years

83.1

2 - 3 years

60.7

3 - 4 years

65.6

4 - 5 years

80.4

302.3

The market value of the gross debt and interest rate swaps was £313.9m. At 27 January 2009, the Company had £40m cash, £42m of unutilised bank facilities and over £50of unsecured properties on which further funds could be obtained.

During the last three months, the Company has obtained £20m of additional bank finance to purchase its site in GliwicePoland and to finance an extension to its buildings at FordhamNewmarket. It has repaid £10.0m of current borrowings and extended £35.6m of short-term facilities by two years to December 2010. The Company has received confirmation that £7.0m of the facilities due to be repaid within one year will be renewed and will look to extend the remaining short term facilities of £5.5m due to expire in Autumn 2009.

The Company has been in discussions with a number of banks with regard to obtaining loans for future acquisitions. Whilst terms may be less favourable than in the recent past, the Company is confident it has access to additional bank finance should it be required.

Banking Covenants

Each bank loan is secured on individual properties in separate companies, where Helical usually stands as guarantor for the loans.

Loan to value covenants range from 64% to 85% and income covenants range from 1.08 to 1.75 of rent as a proportion of interest.

The Directors regularly stress test the portfolio with scenario planning to ensure that the Company can stay within its banking covenants allowing for recent and future potential falls in values. Covenants are monitored continuously and, where potential breaches are anticipated, the Company has recourse to cure rights to avert such breaches by the placing of deposits or additional security with lenders or by partial loan repayments. The Company's cash balances, unutilised bank facilities and unsecured properties provide it with the ability to remedy potential breaches of banking covenants on even the gloomiest of current market predictions.

 

For further information, please contact: 

Helical Bar plc

Michael Slade (Chief Executive)

Mike Brown (Deputy Chief Executive)

Nigel McNair Scott (Finance Director)

Address: 11-15 Farm StreetLondon W1J 5RS

Fax: 020 7408 1666

Website:  www.helical.co.uk

020 7629 0113

Financial Dynamics

Stephanie Highett/Dido Laurimore/Laurence Jones

020 7831 3113

Forward looking statements

This document may contain certain forward looking statements. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes of results expressed or implied by such forward looking statements.

Any forward looking statements made by or on behalf of Helical speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness for accuracy or the basis on which they were prepared. Helical does not undertake to update forward looking statements to reflect any changes in Helical's expectations with regard thereto or any changes in events, conditions or circumstance on which any such statement is based.

Information contained in this document relating to the Company should not be relied upon as an indicator of future performance.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IMSSELEFWSUSESF
Date   Source Headline
14th Nov 20227:00 amRNSFIRST LETTING AT THE JJ MACK BUILDING
11th Nov 202210:27 amRNSMajor Shareholding Notification
24th Oct 20227:00 amRNSTrading Update
12th Oct 202211:46 amRNSNotification under Listing Rule 9.6.14 (2)
13th Sep 20222:26 pmRNSDirector/PDMR Shareholding
9th Sep 20229:40 amRNSDirector/PDMR Shareholding
6th Sep 20224:22 pmRNSDisposal of Kaleidoscope, Farringdon for £158.5m
24th Aug 20229:23 amRNSNotification under Listing Rule 9.6.14 (2)
18th Aug 20227:00 amRNSDirector/PDMR Shareholding
28th Jul 20227:00 amRNSDirector/PDMR Shareholding
20th Jul 20223:44 pmRNSHolding(s) in Company
14th Jul 20221:03 pmRNSResult of AGM
14th Jul 20227:00 amRNSTrading Update
20th Jun 202210:18 amRNSMajor Shareholding Notification
14th Jun 20229:30 amRNSNotice of AGM & 2022 Annual Report & Accounts
24th May 20227:00 amRNSAnnual Results For The Year to 31 March 2022
24th May 20227:00 amRNSHelical agrees over £50 Million of disposals
28th Apr 202211:05 amRNSMajor Shareholding Notification
7th Apr 20227:00 amRNSTrading Update
6th Apr 20229:00 amRNSNotice of Results
24th Mar 20229:04 amRNSHolding(s) in Company
21st Mar 20222:50 pmRNSResult of General Meeting
16th Mar 20225:59 pmRNSDirector/PDMR Shareholding
14th Mar 202210:41 amRNSMajor shareholding notification
1st Mar 202212:05 pmRNSCompletion of 100 New Bridge Street acquisition
1st Mar 20229:28 amRNSDirector/PDMR Shareholding
25th Feb 20227:00 amRNSPublication of Circular and Notice of GM
22nd Feb 20226:15 pmRNSMajor shareholding notification
22nd Feb 20226:09 pmRNSDirector/PDMR Shareholding
21st Feb 202212:43 pmRNSDirector/PDMR Shareholding
21st Feb 20229:20 amRNSDirector/PDMR Shareholding
18th Feb 202211:39 amRNSResult of General Meeting
18th Feb 202210:05 amRNSCorrection: Director/PDMR Shareholding
17th Feb 20225:13 pmRNSMajor Shareholding Notification
15th Feb 20224:17 pmRNSDirector/PDMR Shareholding
14th Feb 202211:05 amRNSDirector/PDMR Shareholding
11th Feb 20227:00 amRNSChanges to Board & Committee Composition
2nd Feb 202211:43 amRNSCircular Publication and Notice of General Meeting
12th Jan 20227:00 amRNSHELICAL ANNOUNCES INTENTION TO CONVERT TO A REIT
5th Jan 20224:38 pmRNSDirector/PDMR Shareholding
21st Dec 20217:00 amRNSDirector/PDMR Shareholding
17th Dec 20217:00 amRNS£160M ACQUISITION OF 100 NEW BRIDGE STREET
23rd Nov 20214:36 pmRNSPrice Monitoring Extension
23rd Nov 20217:00 amRNSHalf-year Report
8th Oct 20217:00 amRNSTrading Update
21st Sep 202111:11 amRNSDirector/PDMR Shareholding
10th Aug 20217:00 amRNSDirector/PDMR Shareholding
15th Jul 20211:26 pmRNSResult of Annual General Meeting
15th Jul 20217:00 amRNSTrading Update
15th Jun 20217:05 amRNSNotice of AGM & 2021 Annual Report & Accounts

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.