Helical Bar Regulatory News (HLCL)

29 Nov 2006 07:02

Helical Bar PLC29 November 2006 29 November 2006 H E L I C A L B A R P L C ("Helical"/"Company") I n t e r i m R e s u l t s For the half year to 30 September 2006 HELICAL - STOCKING UP • Profit before tax, excluding investment gains, of £10.8m (2005: £7.9m) - up 37% • Interim dividend of 1.60p per share (2005: 1.45p) - up 10% • High levels of new transactions in joint venture to create new high margin business • Major planning gains at Liphook. Further retirement village sites acquired • £65m of forward sales of 360 residential units at Milton Keynes and Cardiff • Increased trading activity to bear fruit in 2007 and 2008 Commenting on the results, Giles Weaver, Chairman, said: "The last six months have seen significant progress in many of our schemes andfurther development of joint venture relationships. We are confident thatdespite the anticipated easing of recent yield compression, our diversified,value added, active management approach will create significant surpluses in theforeseeable future." For further information, please contact: Helical Bar plc 020 7629 0113Michael Slade (Managing Director)Nigel McNair Scott (Finance Director) Address: 11-15 Farm Street, London W1J 5RSFax: 020 7408 1666Website: www.helical.co.uk Financial Dynamics 020 7831 3113Stephanie Highett/Dido Laurimore FINANCIAL HIGHLIGHTS Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 Notes £m £m £m Net rental income 6.7 8.2 16.5 Development profits 1.7 3.9 4.6 Trading profits 4.6 6.8 13.4 Joint ventures 1 3.3 0.3 0.4 Other gross profits 0.7 0.1 0.2 Profits before gains on investmentproperties and taxation 10.8 7.9 13.5 Gain on investment properties 2 0.6 7.2 43.6 Profits before tax 11.4 15.1 57.1 pence pence pence Basic earnings per share 11.1 21.4 54.7 Diluted earnings per share 10.5 20.5 51.8 Adjusted diluted earnings per share 3 7.5 6.0 8.5 Dividends per share- ordinary dividend 1.60 1.45 3.65 Adjusted diluted net assets per share 1/4 283 231 278 £m £m £m Value of investment portfolio 290.4 239.2 294.6 Net borrowings 132.1 77.5 112.7 Net assets 2 236.5 202.0 230.1 Net gearing 56% 38% 49% Notes 1. The Group's share of the results of entities controlled equally by the Group and its joint venture partners. 2. There has been no interim revaluation of the investment portfolio as at 30 September 2006 (2005:nil) 3. After adding back deferred taxation arising from the clawback of capital allowances on sale of investment properties, the deferred taxation on the revaluation surpluses of the investment portfolio and the fair value of financial instruments. 4. Excludes any surplus arising from a valuation of trading stock. C h a i r m a n ' s S t a t e m e n t Introduction During the first six months Helical has made substantial progress on a number ofits existing schemes whilst continuing to identify and work on new high marginbusiness. With yields at historic lows, the prospective return from holding conventionalproperty investments is likely to be much lower than in recent years. However,we continue to find value in a variety of specialist niches including gainingchange of use, mixed use development, retirement village schemes and industrialunits built for freehold sales. Acting as lead partner in a series of jointventures, our growing pipeline is sourced by using partners hand picked for thequality of their execution in their specialist fields. We believe this modelwill be the key to outperformance as the benign impact of yield shift fades. At Liphook, Hampshire, we have obtained planning permission for a retirementvillage. Rather than selling the site for a gain of over £10m we intend toretain it and expand our involvement in this sector by building up a portfolioof such villages in Hampshire, Warwickshire, Cambridgeshire and other areas. At C4.1 Milton Keynes, forward sales to J. Sainsbury plc, KingsOak and Genesisexceed £100m. These sales enable us to recognise profit on this mixed usedevelopment. During the period, we also sold five assets which we had either owned ordeveloped with one of our specialist joint venture partners. These have allgenerated returns over cost of at least 25%. Lettings at our retail and mixed use developments in Luton, Cardiff and Wroclawand Gliwice in Poland and office developments in Central London will allgenerate healthy surpluses in the foreseeable future. Our industrial schemes at Oxford, Kidlington, Southall, Southampton and Hailshamare all expected to contribute to profitability in 2007 and 2008. Meanwhile ourinvolvement in outsourcing through The Asset Factor is making encouragingprogress. Results The results, excluding investment gains, for the first six months to 30September 2006 are up 37% to £10.8m (2005: £7.9m) on the comparative period lastyear with lower levels of finance costs and administrative costs exceeding thefall in operating profit. Profits before tax, including investment gains, were £11.4m (2005: £15.1m). Netrental income for the period was £6.7m (2005: £8.2m). Trading profits of £4.6m(2005: £6.8m) and development profits of £1.7m (2005: £3.9m) augmented the gainon the sale of investment properties of £0.6m (2005:£7.2m). Profit from jointventures contributed £3.3m (2005: 0.3m). Administration costs fell by 18% to£6.0m (2005:£7.4m) and net financing costs fell by 94% to £0.3m (2005:£4.1m). Diluted earnings per share were 10.5p (2005: 20.5p) and adjusted earnings pershare were 7.5p (2005: 6.0p). Basic net assets per share rose to 265p per share (31 March 2006: 259p) and thefully diluted net assets per share adjusted for the add back of the deferred taxprovision rose to 283p per share (31 March 2006: 278p). There has been no interim revaluation of the investment portfolio as at 30September 2006. Financing Purchases of trading and development stock of £29m have contributed to anincrease in net debt to £132.1m. Gearing has increased to 56% from 49% at 31March 2006. Outlook As indicated in our 2006 accounts our business model is not consistent with therequirements of the REIT legislation and Helical will not convert to REIT statusin 2007. However, we continue to believe that our model is robust enough tooutperform our REIT peers. The last six months have seen significant progress in many of our schemes andfurther development of joint venture relationships. We are confident thatdespite the anticipated easing of recent yield compression, our diversified,value added, active management approach will create significant surpluses in theforeseeable future. Giles WeaverChairman29 November 2006 Helical Property Portfolio A complete list of the group's ongoing projects is noted under Ongoing Projectsbelow. Highlights during the half year to 30 September 2006 are as follows: Milton Keynes At C4.1, Milton Keynes, our 50:50 joint venture with Abbeygate Developments hassuccessfully forward sold 300 residential units to KingsOak, a subsidiary ofBarratt Developments Plc. Forward sales on this mixed use development nowexceed £100m following the earlier sale of a 110,000 sq ft supermarket to J.Sainsbury plc and social housing sale to Genesis. Completion of this scheme isdue in 2008. Weston-super-Mare At Weston-super-Mare we have completed a new 29,000 sq ft retail warehouse whichwe have pre-let to Wickes and forward sold to Scottish Widows for £7.66m. Morgan Department Store, Cardiff The refurbishment of the Morgan Department Store, Cardiff is proceeding and theretail element of the scheme is due to complete before Christmas with 80%pre-let to Borders, TK Maxx, Moss Bros and Rossiters. In the meantime all 56residential apartments were sold on the first day of their launch for just under£11m with completion in Summer 2007. Leisure Plaza, Milton Keynes A resolution to grant planning consent has been gained for our scheme withAbbeygate Developments at the Leisure Plaza, Milton Keynes. This mixed usescheme comprises a new 150,000 sq ft retail store for ILVA, a refurbishment ofthe existing ice rink and a further 100,000 sq ft of leisure and retail uses. Hatters Retail Park, Luton In Luton our 80,000 sq ft retail scheme is under construction and is due to becompleted in Spring 2007. Tenants include DFS, Carpetright, Paul Simon, Harveysand SCS and the development is almost 90% pre-let. The completed developmentwill be sold and the company is in discussions with potential purchasers. St Austell During the six months to 30 September 2006 we sold our retail warehouse at St.Austell for £7.55m plus a top-up payment due on settlement of the outstandingrent review with Homebase. The property was acquired for £4.37m in 2002. Worthing Our Wickes retail warehouse was sold during the half year for £7.25m having beenbought for £4.32m in 2003. Freehold industrial developments The company continued to make progress on its freehold industrial developmentsby selling units at Cowley, Oxford and Sawston, Cambridge. A 145,000 sq ftindustrial unit at Sandiacre, Nottingham was sold to a supermarket operator.Further industrial sites at Southall, Watford, Southampton, Stockport, Hailshamand Whitstable have been acquired which are to be redeveloped/refurbished andsold. Retirement villages The planning success at Liphook, Hampshire where, after five years ofnegotiation, the site was given consent for a retirement village of 150 units,has prompted the company to expand its activity within this sector. Furthersites at Great Alne, Warwickshire and Milton, Cambridge have been acquired witha view to developing retirement villages at each site. Helical will retain acore central facility as a long term investment. Central London Riverside House At Riverside House, London EC4 we have a development management role on a300,000 sq ft development pre-let to Man Group. This development is due tostart in 2007. Ropemaker Place Helical has a Development Management Agreement with British Land who have nowcommenced piling on site. The Agreement provides for a fixed fee and a profitshare dependent upon outcome. Mitre Square Good progress is being made first in completing negotiations with the City ofLondon on the S.106 Agreement and second on completing the site acquisition.The project is planned to start on site in 2008. White City Preparations are now well advanced for the submission of an outline planningapplication based on the masterplan prepared by Rem Koolhaas's Office ofMetropolitan Architecture with both an Environmental Impact Assessment andTransport Assessment under way. The planning application will be for a majormixed use regeneration comprising circa 5m sq ft and will be submitted in 2007. Helical, jointly with Morley, are one of the major landowners and are appointedto lead the landowning consortium. Outsourcing The Asset Factor Since its launch at the end of 2005 The Asset Factor has established The AssetFactor Business Services and Space 2, two new joint ventures adding supply chainservices and short term management to the existing property and facilitiesmanagement team. The Asset Factor is in negotiation with a number of majororganisations regarding the provision of integrated property asset and leaseliability management solutions. Over the period The Asset Factor has worked forthe University of Westminster on its London property strategy and partnered withBT to undertake certain property aspects of key Local Authority outsourcingdeals. Ongoing Projects Mixed use Description HelicalDevelopments share Morgan Department • 160,000 sq ft retail - 100%Store, Cardiff Borders, TK Maxx, Moss Bros. Completion December 2006 • 55 flats, all sold. Completion 2007 Trinity Square, • 200,000 sq ft retail - Borders, TK 65%Nottingham Maxx, Dixons • 700 student units • Forward sold to Morley for over £100m • Completion 2007 C4.1, Milton Keynes • 110,000 sq ft Sainsbury's (forward 50% sold) • 440 residential units (forward sold) • Completion 2008 White City, London • Planning consent to be ConsortiumW12 sought for 5 million landowner & sq ft of commercial development and residential on manager 43 acres Amen Corner, • Land and options 50 to 100%Bracknell held for a gateway office development off A329M Bluebrick, • 11 acre site. 50%Wolverhampton Individual land sales completed for 208 flats, 20,000 sq ft showroom, 88 bed hotel, 7,000 sq ft pub • A casino use is proposed for the remaining listed building Ropemaker Park, • 70,000 sq ft light 50%Hailsham industrial, 27,000 sq ft trade counter, 12,000 sq ft car showroom, 4,000 sq ft convenience store and 4,000 sq ft creche • Construction started 2006 Leisure Plaza, • Resolution to grant 50%Milton planning consent forKeynes 165,000 sq ft ILVA store, 65,000 sq ft casino, 50,000 sq ft ice rink, plus a further 25,000 sq ft of retail Tiviot Way, • A planning application 80%Stockport will be submitted in 2007 for 100,000 sq ft industrial, 49,000 sq ft trade counter, 20,000 sq ft self storage, 20,000 sq ft builders merchant and car showroom Parkgate, Shirley, • 200,000 sq ft retail 50%Birmingham - Asda (80,000 sq ft supermarket) • 200 residential units • Construction to commence 2007 Hagley Road West, • 16,000 sq ft retail 75%Edgbaston, plus 15 residentialBirmingham units • Demolition imminent Commerce House, • 2 retail units plus 33 50%Letchworth retirement flats • Construction to commence early 2007 Office Description HelicalDevelopments share Mitre Square, London • 350,000 sq ft 50%EC3 • Due to start on site 2007/8 Riverbank House, • 300,000 sq ft pre-let DevelopmentLondon EC4 to Man Group Management • Due to start on role site 2007 Ropemaker Place, • 500,000 sq ft of DevelopmentLondon EC2 offices Management • Construction started role 2006 Clareville House, • Refurbishment of DevelopmentLondon SW1 35,000 sq ft offices Management plus 23,000 sq ft role of restaurant, nightclub and retail • Start on site March 2007 Battersea Studios, • Refurbishment of 50%London SW8 55,000 sq ft of media style studio offices completed 2006 • Planning consent gained for 40,000 sq ft new build Forestgate, • Refurbishment of 75%Crawley 24,000 sq ft completed • Scheme for two new buildings of 21,000 sq ft and 18,000 sq ft Amberley Court, • Partial refurbishment 90%Crawley of 31,000 sq ft • Office campus Industrial Description Helicaldevelopments share Watlington Road, • 71,000 sq ft of 80%Cowley, Oxford industrials and offices of which 25,000 sq ft of offices sold and 26,000 sq ft of industrials sold or under offer Longford Lane, • 140,000 sq ft of 80%Kidlington industrial units for freehold sales • Construction started 2006 Scotts Road, Southall, • 250,000 sq ft of 80%West London industrial units for freehold sales • Construction to commence 2007 Southampton • 50,000 sq ft of 80% industrial units, 65,000 sq ft of trade counters, 20,000 sq ft of self storage to commence 2007 plus a further 4 acres of industrial land Retail Description Helicaldevelopments share Hatters Retail Park, • 80,000 sq ft 80%Luton retail warehouse - DFS, SCS, Carpetright, Harveys, Paul Simon • Completion 2007 • 25,000 sq ft industrial to rear Gliwice, Poland • 500,000 sq ft out 50% of town retail • construction to commence 2007/08 Wroclaw, Poland • 100,000 sq ft 50% out of town retail • construction due to commence 2007 Retirement Description HelicalVillage shareDevelopments Lime Tree Village, • 154 bungalows, 33%Rugby cottages and apartments being constructed in phases • 82 sold to date Bramshott Place, • Planning consent 90%Liphook granted in 2006 for 144 units resulting in an increase of over £10 million in site value • Construction to commence 2007 Projects with Description Helicalchange of use sharepotential Maudslay Park, • 314,000 sq ft 90%Great Alne industrial estate on a 20 acre site with a planning application for 175 retirement home units Waterside, Fleet • 54,000 sq ft of 75% industrial property on 5 acres with planning application for 250 residential units Upper High Street, • Site with residential 100%Epsom consent subject to a planning appeal for an 80,000 sq ft supermarket Ely Road, Milton, • 32,000 sq ft 90%Cambridge of industrial on 20 acres • Planning application to be submitted in 2007 for 120 unit retirement village Thanet Way, • 80,000 sq ft of 90%Whitstable industrial on 6 acres with potential for mixed use development Winterhill, Milton • 28,000 sq ft of 50%Keynes warehouses and offices with retail warehouse or trade counter potential Cardiff Royal • Vacant hospital 75%Infirmary on a peppercorn lease with residential potential Income producingassets Offices Description Helical share Rex House, Lower • 80,000 sq ft office 100%Regent Street, building refurbishedLondon SW1 in 2001 • Short leasehold expiring 2035 • Acquired vacant in 2000 Shepherds Building, • 150,000 sq ft of 90%Shepherds Bush, studio officesLondon W14 refurbished in 2001 and let to over 50 tenants • Acquired vacant in 2000 61 Southwark • 66,000 sq ft of 100%Street, London offices that haveSE1 been subject to a rolling refurbishment and a new penthouse floor • Acquired 1998 Retail - in town Description Helical share Morgan & Royal • 55 units to be subject 100%Arcades, Cardiff to intensive management on completion of the adjoining development at the David Morgan Department Store • Acquired 2005 Garden Square, • 150,000 sq ft shopping 95%Letchworth centre acquired in 2003 • Rental values increased from £35 psf to £65 psf Zone A during ownership 1-5 Queens Walk, • 37,000 sq ft of retail 87%East Grinstead opposite a proposed new retail scheme • Acquired 2005 Glasgow Portfolio • six small unit shop 100% investments and part of a multi-let office block, all in Glasgow City Centre • acquired 2005 Retail - out of Description Helicaltown share Otford Road Retail • 43,000 sq ft with open 75%Park, Sevenoaks A1 consent let to Wickes, Currys and Carpetright • Acquired 2003 Stanwell Road, • 32,000 sq ft Focus 75%Ashford DIY store • Acquired 2004 215 Brixham Road, • 24,000 sq ft Focus 67%Paignton store with open A1 consent • Acquired 2005 Industrial Description Helical share Hawtin Park, • 251,000 sq ft estate, 100%Blackwood part vacant • Acquired 2003 Westgate, Aldridge • 208,000 sq ft part 75% vacant • Acquired 2006 Dales Manor, • 188,000 sq ft 67%Sawston, Cambridge multi-let estate • Acquired 2003 Golden Cross, • 102,000 sq ft unit 100%Hailsham let on a long RPI lease • Acquired 2001 Standard Industrial • 50,000 sq ft estate, 60%Estate, North recently refurbishedWoolwich • Acquired 2002 Bushey Mill Lane, • 24,000 sq ft income 80%Watford producing with development potential • acquired 2006 Properties sold / Description Helical projects completed shareduring half year Worthing • 26,000 sq ft Wickes 75% sold for 69% above 2003 purchase price St Austell • 36,000 sq ft Homebase 75% sold with a top-up payment on outstanding review • Anticipated proceeds circa 100% above 2002 purchase price Weston-super-Mare • 29,000 sq ft retail 75% warehouse development prelet to Wickes and presold to Scottish Widows • Completed 10/06 • Profit over 40% on cost Sandiacre, • 145,000 sq ft industrial 75%Nottingham sold to Tesco for potential supermarket development • 32% profit on cost over one year Sawston, • Final sales completed 67%Cambridge of 65,000 sq ft of offices and industrial units developed for freehold sales • 25% profit on cost Independent Review Report to Helical Bar plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 September 2006 which comprises the consolidated incomestatement, the consolidated balance sheet, the consolidated cash flow statement,the consolidated statement of recognised income and expense and the relatednotes 1 to 19. We have read the Chairman's Statement and considered whether itcontains any apparent misstatements or material inconsistencies with thefinancial information. This report is made solely to the Company, in accordance with guidance in APBBulletin 1999/4 "Review of Interim Financial Information". Our review work hasbeen undertaken so that we might state to the Company those matters we arerequired to state to them in a review report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility toanyone other than the Company, for our review work, for this report, or for theconclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The ListingRules of the Financial Services Authority require that the accounting policiesand presentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared inaccordance with International Accounting Standard 34 "Interim FinancialReporting". Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4"Review of Interim Financial Information" issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of makingenquiries of management and applying analytical procedures to the financialinformation and underlying financial data and, based thereon, assessing whetherthe accounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards on Auditing (UK and Ireland) and therefore provides alower level of assurance than an audit. Accordingly, we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2006. Grant Thornton UK LLPChartered AccountantsLondon29 November 2006 Unaudited Consolidated Income StatementFor the half year to 30 September 2006 Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 Notes £000 £000 £000 Revenue 2 51,644 52,394 119,274 Net rental income 3 6,748 8,229 16,524Trading profits 4,634 6,813 13,441Development profits 1,681 3,866 4,594Share of results of joint ventures 3,280 324 437Other operating income 737 140 235 Gross profit before gain on investment properties 17,080 19,372 35,231 Gain on sale and revaluation of investment properties 4 644 7,245 43,551 Gross profit 17,724 26,617 78,782 Administrative expenses (6,010) (7,354) (16,582) Operating profit 11,714 19,263 62,200 Finance costs 5 (1,784) (5,303) (7,421)Finance income 1,124 330 1,295Change in fair value of derivativefinancial instruments 395 834 1,046 Profit before tax 11,449 15,124 57,120Tax 6 (1,227) 3,069 (9,676) Profit after tax 10,222 18,193 47,444 - attributable to minority interests 342 (124) (124)- attributable to equity shareholders 9,880 18,317 47,568 Profit for the year 10,222 18,193 47,444 Earnings per 1p share 7 Basic 11.1p 21.4p 54.7pDiluted 10.5p 20.5p 51.8pAdjusted 7.5p 6.0p 8.5p Unaudited Consolidated Balance SheetAt 30 September 2006 At At At 30 September 30 September 31 March 2006 2005 2006 Notes £000 £000 £000 Non-current assetsInvestment properties 8 290,401 239,210 294,583Owner occupied property, plant andequipment 438 471 489Investment in joint ventures 3,575 2,519 295Goodwill 68 182 68 294,482 242,382 295,435Current assetsLand, developments and trading properties 9 115,489 71,043 86,076Available-for-sale investments 10 72 82 66Trade and other receivables 11 38,893 38,200 33,925Cash and cash equivalents 12 4,535 31,230 10,135 158,989 140,555 130,202 Total assets 453,471 382,937 425,637 Current liabilitiesTrade payables and other payables 13 (57,008) (52,624) (49,506)Tax liabilities (6,255) (6,318) (3,394)Borrowings 14 (23,273) (4,286) (42,683) (86,536) (63,228) (95,583)Non-current liabilitiesBorrowings 14 (113,370) (104,404) (80,160)Derivative financial instruments (216) (823) (610)Deferred tax provision 6 (16,644) (12,266) (19,005)Obligation under finance leases (180) (182) (182) (130,410) (117,675) (99,957) Total liabilities (216,946) (180,903) (195,540) Net assets 236,525 202,034 230,097 Unaudited Consolidated Balance SheetAt 30 September 2006 At At At 30 September 30 September 31 March 2006 2005 2006 Notes £000 £000 £000Equity Called-up share capital 18 1,216 1,204 1,209Share premium account 18 42,520 42,052 42,490Revaluation reserve 18 63,326 41,910 64,820Capital redemption reserve 18 7,478 7,467 7,478Other reserves 18 291 291 291Retained earnings 18 130,154 112,704 120,948Investment in own shares 18 (8,802) (7,139) (7,139) Equity attributable to equity holdersof the parent 236,183 198,489 230,097 Minority interests 342 3,545 - Total equity 236,525 202,034 230,097 Net assets per share Basic 19 265p 225p 259pDiluted 19 260p 219p 253pAdjusted diluted 19 283p 231p 278p Unaudited Consolidated Cash Flow StatementFor the half year to 30 September 2006 Half Year To Half Year To Year To 30 September 2006 30 September 2005 31 March 2006Cash flows from operating activitiesOperating profit 11,714 19,263 62,200Depreciation 88 87 179Gain on investment properties (644) (7,245) (43,551)Other non-cash items (3,678) (409) (454) Cash flows from operations before changes inworking capital 7,480 11,696 18,374Change in trade and other receivables (4,670) 1,904 3,232Change in land, developments and trading properties (27,521) 25,826 11,989Change in trade and other payables 6,537 (22,743) (30,779) Cash used in/generated from operations (18,174) 16,683 2,816 Finance costs (3,492) (6,849) (10,256)Finance income 730 330 1,295Minority interest dividends paid - - (3,545)Dividends from joint ventures - - 2,337Tax paid (199) (424) (4,743) (2,961) (6,943) (14,912) Cash flows from operating activities (21,135) 9,740 (12,096) Cash flows from investing activitiesPurchase of investment property (10,062) (15,909) (39,055)Sale of investment property 15,124 55,353 65,991Purchase of shares by ESOP (1,663) (175) (85)Purchase of investments (3,264) - -Sale of investments 3,828 - -Sale of plant and equipment 13 - 47Purchase of plant and equipment (45) (18) (140) 3,931 39,251 26,758Cash flows from financing activitiesIssue of shares 37 2,976 3,418Borrowings drawn down 29,448 13,555 35,146Borrowings repaid (15,564) (58,178) (65,647)Equity dividends paid (2,174) (1,831) (3,127)Return of cash - B share repurchase - (2,451) (2,451)Refinancing costs (143) (35) (69) 11,604 (45,964) (32,730) Net (decrease)/increase in cash and cash (5,600) 3,027 (18,068)equivalentsCash and cash equivalents at 1 April 2006 10,135 28,203 28,203Cash and cash equivalents at 30September 2006 4,535 31,230 10,135 Unaudited Consolidated Statement of Recognised Income and ExpenseFor the half year to 30 September 2006 Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000 Profit for the year 10,222 18,193 47,444Fair value movements on available-for-sale investments 6 - (14) Total recognised income and expense for period 10,228 18,193 47,430- attributable to equity shareholders 9,886 18,317 47,554- attributable to minority interest 342 (124) (124) 10,228 18,193 47,430 Unaudited Notes to the Interim Statement 1. Financial Information The financial information contained in this statement does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.The full accounts for the year ended 31 March 2006, which were prepared underInternational Financial Reporting Standards and which received an unqualifiedreport from the Auditors, and did not contain a statement under s237(2) or (3)of the Companies Act 1985, have been filed with the Registrar of Companies. The interim statement has been prepared in accordance with IAS 34 InterimFinancial Reporting. The principal accounting policies have remained unchangedfrom the prior financial period to 31 March 2006. The interim statement was approved by the Board on 28 November 2006 and is beingsent to shareholders and will be available from the Company's registered officeat 11-15 Farm Street, London W1J 5RS and on the Company's website atwww.helical.co.uk. 2. Revenue Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000 Rental income 8,102 10,135 20,102Trading property sales 20,378 30,694 72,101Developments 19,164 11,356 26,756Other income 4,000 209 315 51,644 52,394 119,274 3. Net rental income Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000 Gross rental income 8,102 10,135 20,102Rents payable (54) (307) (489)Other property outgoings (1,300) (1,599) (3,089) Net rental income 6,748 8,229 16,524 4. Gain on sale and revaluation of investment properties Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000Net proceeds from the sale of investmentproperties 15,124 55,353 65,992 Book value (14,475) (48,108) (57,565)Lease incentive and letting costs adjustment (5) - (609)Gain on sale of investment properties 644 7,245 7,818Revaluation gains on investment properties - - 35,733Gain on sale and revaluation of investment properties 644 7,245 43,551 5. Finance costs Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000 Interest payable on bank loans and overdrafts 3,730 4,483 7,638Other interest payable and similar charges 120 2,046 2,346Finance arrangement costs 59 169 234Interest capitalised (2,125) (1,395) (2,797)Finance costs 1,784 5,303 7,421 6. Tax Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000 The tax charge is based on the profit forthe period and represents:United Kingdom corporation tax at 30%(2005: 30%)- group corporation tax 3,588 2,411 5,983Current tax charge 3,588 2,411 5,983Deferred tax - capital allowances 66 (688) (804) - other timing differences (121) 248 (872) - revaluation surpluses (2,306) (5,040) 5,369 Deferred tax (2,361) (5,480) 3,693Tax on profit on ordinary activities 1,227 (3,069) 9,676 Deferred tax provision Capital gains 18,621 9,644 20,927Capital allowances 2,241 1,417 2,175Other temporary differences (4,218) 1,205 (4,097)Deferred tax provision 16,644 12,266 19,005 Under IAS 12, deferred tax provisions are made for the tax that wouldpotentially be payable on the realisation of investment properties and otherassets at book value. If upon sale of the investment properties the group retained all the capitalallowances, the deferred tax provision in respect of capital allowances of £2.2mwould be released and further capital allowances of £14.8m would be available toreduce future tax liabilities. The provision in respect of capital gains hasbeen reduced by indexation. 7. Earnings per share The calculation of the basic earnings per share is based on the earningsattributable to ordinary shareholders divided by the weighted average number ofshares in issue during the year. Shares held by the ESOP, which has waived itsentitlement to receive dividends, are treated as cancelled for the purposes ofthis calculation. The calculation of diluted earnings per share is based on the basic earnings pershare, adjusted to allow for the issue of shares on the assumed exercise of alldilutive options. Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below. Half Year To 30 September 2006 Weighted average Per share Earnings no of shares Amount £000 000 pence Basic earnings per share 9,880 89,297 11.1Dilutive effect of share options 4,368Diluted earnings per share 9,880 93,665 10.5 Adjustments - gain on investment properties (644) - deferred tax on revaluation surpluses (2,306) - deferred tax on capital allowances 66 Adjusted earnings per share 6,996 93,665 7.5 Half Year To 30 September 2005 Weighted average Per share Earnings no of shares amount £000 000 penceBasic earnings per share 18,317 85,716 21.4Dilutive effect of share options 3,512Diluted earnings per share 18,317 89,228 20.5 Adjustments - gain on investment properties (7,245) - deferred tax on revaluation surpluses (5,040) - deferred tax on capital allowances (688) Adjusted earnings per share 5,344 89,228 6.0 8. Investment properties Valuation Cost £000 £000 At 1 April 2006 294,583 209,529Additions 10,452 10,452Disposals (14,475) (10,675)Transfer to trading stock (157) (157)Amortisation of short leasehold (2) -As at 30 September 2006 290,401 209,149 All properties are stated at market value as at 31 March 2006, as adjusted foradditions and disposals in the half year to 30 September 2006. Interestcapitalised in respect of investment properties at 30 September 2006 amounted to£1,703,000 (31 March 2006: £1,313,000). Interest capitalised during the periodin respect of investment properties was £390,000. 9. Land, developments and trading properties At At 30 September 31 March 2006 2006 £000 £000 Development sites 45,047 40,568Properties held as trading stock 70,442 45,508 115,489 86,076 The directors' valuation of trading and development stock showed a surplus of£29m above book value at 31 March 2006. Interest capitalised in respect of the development of sites is included in stockto the extent of £3,567,000 (31 March 2006: £2,867,000). Interest capitalisedduring the period in respect of development sites amounted to £1,735,000. 10. Available-for-sale investments At At 30 September 31 March 2006 2006 £000 £000 UK listed investments at fair value 72 66 72 66 11. Trade and other receivables At At 30 September 31 March 2006 2006 £000 £000 Trade receivables 20,085 13,156Other receivables 6,098 5,999Prepayments and accrued income 12,710 14,770 38,893 33,92512. Cash and cash equivalents At At 30 September 31 March 2006 2006 £000 £000Rent deposits and cash held at managing agents 3,042 1,980Cash secured against debt and cash held at solicitors 670 189Cash held to fund future development costs 390 382Cash deposits 433 7,584 4,535 10,135 13. Trade payables and other payables At At 30 September 31 March 2006 2006 £000 £000 Trade creditors 17,661 8,424Other payables 7,126 7,372Accruals and deferred income 32,221 33,710 57,008 49,506 14. Borrowings At At 30 September 31 March 2006 2006 £000 £000Bank overdraft and loans - maturityDue within one year 23,273 42,683Due after more than one year 113,370 80,160 136,643 122,843 At At 30 September 31 March 2006 2006Gearing £000 £000Total borrowings 136,643 122,843Cash (4,535) (10,135)Net borrowings 132,108 112,708 Net assets 236,525 230,097 Gearing 56% 49% 15. Share capital At At 30 September 31 March 2006 2006 £000 £000 Authorised 39,577 39,577 39,577 39,577The authorised share capital of the Company is£39,576,626.60 divided into ordinary shares of 1p each,5.25p convertible cumulative redeemable preference shares2012 of 70p each and deferred shares of 1/8p eachAllotted, called up and fully paid- 95,060,612 ordinary shares of 1p each 951 944- 212,145,300 deferred shares of 1/8 p each 265 265 1,216 1,209 As at 1 April 2006 the Company had 94,371,925 ordinary 1p shares in issue. On30 June 2006 options over 654,792 ordinary 1p shares were exercised. On 29September 2006 options over 33,895 ordinary 1p shares were exercised increasingthe issued share capital of the Company to 95,060,612 ordinary 1p shares. Share options At 30 September 2006 unexercised options over 2,764,405 (31 March 2006:3,655,510) new ordinary 1p shares in the Company and 6,209,695 (31 March 2006:6,234,695) purchased ordinary 1p shares held by the ESOP had been granted todirectors and employees under the Company's share option schemes. During theperiod no new options were granted. 16. Dividends Half Year To Half Year To Year To 30 September 30 September 31 March 2006 2005 2006 £000 £000 £000Attributable to equity share capitalOrdinary- interim paid 1.45p per share - - 1,296- prior period final paid 2.45p(2005: 2.20p) per share 2,174 1,831 1,831 2,174 1,831 3,127 The interim dividend of 1.60p (30 September 2005: 1.45 pence per share) wasapproved by the board on 28 November 2006 and will be paid on 29 December 2006to shareholders on the register on 8 December 2006. This interim dividend,amounting to £1,423,000 has not been included as a liability as at 30 September2006. 17. Investment in own shares Following approval at the 1997 Annual General Meeting the Company establishedthe Helical Bar Employees' Share Ownership Plan Trust (the "Trust") to be usedas part of the remuneration arrangements for employees. The purpose of theTrust is to facilitate and encourage the ownership of shares by or for thebenefit of employees by the acquisition and distribution of shares in theCompany. The Trust purchases shares in the Company to satisfy the Company's obligationsunder its Share Option Schemes and Performance Share Plan. At 30 September 2006 the Trust held 6,092,131 (31 March 2006: 5,648,080)ordinary shares in Helical Bar plc. At 30 September 2006 options over 6,209,695 (31 March 2006: 6,234,695) ordinaryshares in Helical Bar plc had been granted through the Trust. At 30 September2006 awards over 5,960,575 (31 March 2006: 4,514,380) ordinary shares in HelicalBar plc had been made under the terms of the Performance Share Plan. 18. Statement of Changes in Equity Capital Investment Share Share Revaluation redemption Other Retained in own capital premium reserve reserve reserves earnings shares Total £000 £000 £000 £000 £000 £000 £000 £000 At 1 April 2006 1,209 42,490 64,820 7,478 291 120,948 (7,139) 230,097Totalrecognisedincome - - - - - 10,228 - 10,228Dividendspaid - - - - - (2,174) - (2,174)Revaluationsurplus - - 2,306 - - (2,306) - -Realised ondisposals - - (3,800) - - 3,800 - -Minorityinterest - - - - - (342) - (342)Issue ofshares 7 30 - - - - - 37Purchase ofshares - - - - - - (1,663) (1,663)Performanceshare plan - - - - - 4,551 - 4,551ProvisionFor ESOPpurchase - - - - - (4,551) - (4,551) At 30 Sept.2006 1,216 42,520 63,326 7,478 291 130,154 (8,802) 236,183 The adjustment to retained earnings of £4,551,000 adds back the share basedpayments charge, net of tax, in accordance with IFRS 2 Share Based Payments.The Group has made a provision of £4,551,000 in respect of future purchases ofshares by the ESOP in anticipation of the vesting of share awards under theGroup's Performance Share Plan. 19. Net assets per share 30 September 30 September *Number of 2006 2006 shares pence £000 000's per share Shareholders' funds 236,183 88,968Less: deferred shares (265) -Basic net asset value 235,918 88,968 265Add: unexercised share options 2,717 2,764Diluted net asset value 238,635 91,732 260Adjustment for- deferred tax on capital allowances 2,241- deferred tax on capital gains 18,621- fair value of financial instruments 151Adjusted diluted net asset value 259,648 91,732 283 The net asset values per share exclude any surplus from a valuation of tradingstock. * Excludes 6,092,131 shares held by the Company's Employee Share Ownership PlanTrust. This information is provided by RNS The company news service from the London Stock Exchange