Helical Bar Regulatory News (HLCL)

29 Nov 2007 07:01

Helical Bar PLC29 November 2007 29 November 2007 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 2007 THE PROPERTY CYCLE TURNS • Profit after tax for the half year of £13.0m (2006: £10.2m) • Interim dividend up 9% to 1.75p per share (2006: 1.60p) • Diluted earnings per share of 13.4p (2006: 10.5p) • Cash and unused bank facilities of £100m ensuring the Company is well positioned to capitalise on market opportunities • Portfolio well diversified with strong asset management opportunities Commenting on the results, Giles Weaver, Chairman, said: "Helical has done many of its best deals in challenging markets and we arecertainly more confident of being able to source interesting deals at sensibleprices over the next couple of years than over the last two. We remain arelatively small, nimble company where future purchases will continue to have amarked impact on our performance." For further information, please contact: Helical Bar plc 020 7629 0113Michael Slade (Chief Executive) 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 2007 30 September 2006 31 March 2007 Notes £m £m £m Net rental income 7.9 6.7 14.8Development profits 4.3 1.7 13.6Trading profits - 4.6 2.1Share of results of joint ventures 1 0.4 3.3 6.2Profits before gains on investment propertiesand taxation 7.3 10.8 19.5 Gains on investment properties 2 - 0.6 40. 6 Profits before tax 7.3 11.4 60. 1 pence pence pence Basic earnings per share 14.3 11.1 58.0 Diluted earnings per share 13.4 10.5 53.7 Diluted EPRA earnings per share 3 9.7 7.5 16.6 Dividends per share - ordinary dividend 1.75 1.60 4.05 Adjusted diluted net assets per share 2 342 283 334 Diluted EPRA net assets per share 4 382 314 374 £m £m £m Value of investment portfolio 2 323.2 290.4 316.0 Net borrowings 179.0 132.1 134.0 Net assets 293.0 236.5 282.2 Net gearing 61% 56% 47% Notes 1. The Group's share of the results of entities controlled equally bythe Group and its joint venture partners. 2. There has been no interim revaluation of the investment portfolio asat 30 September 2007 and 30 September 2006. 3. Calculated in accordance with IAS33 and the best practicerecommendations of the European Public Real Estate Association ("EPRA"). Seenote 8 of Interim Statement. 4. Calculated in accordance with the best practice recommendations ofEPRA. See note 20 of Interim Statement. C h a i r m a n ' s S t a t e m e n t Introduction In commercial property's bull run yields were pushed down to unsustainablelevels and we are now witnessing what we consider to be a well overduecorrection. Helical thrives in cyclical markets and our worst fear was thatyields would stay low, offering pedestrian prospective returns for mainstreamproperty assets. Naturally a market correction is painful and we are by no meansimmune but we have sought to mitigate the adverse effect of rising yields on ourbusiness by reducing, over time, the size of our investment portfolio as aproportion of our overall business. Over the last decade the investmentportfolio has typically been twice our net asset value whereas it is currentlyabout one times net asset value with the investment assets we have retainedeither offering asset management opportunities or rental growth potential.Whilst our gearing has risen from 47% to 61% in the half year we still havemodest gearing by historical standards compared to a typical range of 100-150%.This gives us a considerable war chest for future deals. Most importantly we have built up our exposure to a variety of projects wherefuture profits will not be undermined by adverse yield shift. For instance,amongst other activities we are adept in unlocking value by obtaining planningconsents for more valuable uses - frequently non-commercial uses such asresidential, retirement or nursing homes and student accommodation. Suchactivity remains profitable at any point of the property cycle and provides uswith a stream of future development opportunities. Where we subsequently chooseto undertake developments we usually de-risk our exposure through pre-lets orpre-sales. This approach allows us to reduce the impact of cyclical market falls. It doesnot, however, necessarily generate a steady stream of growing half yearlyprofits. We are confident about the size of profit margins we can make but theprecise timing of these profits is harder to predict and in no way does thisdetract from the robustness of our business model or our potential to maintainour exemplary long term track record. Indeed, challenging markets throw up muchbetter purchasing opportunities than those we have seen in recent years. We are hopeful that as our existing pipeline of deals bears fruit we willalso be able to lay the foundations for future outperformance with opportunisticpurchases in 2008 and 2009 as we increase our investment stock at reducedprices. Results Profits before tax, including investment gains, were £7.3m (2006: £11.4m). Netrental income for the period was £7.9m (2006: £6.7m). Trading profits at £0m(2006: £4.6m) and development profits of £4.3m (2006: £1.7m) added to the shareof results of joint ventures of £0.4m (2006: £3.3m). Administration costs weresteady at £6.1m (2006: £6.0m) and net financing income was £0.6m (a cost of£0.3m in 2006). The corporation tax charge of £1.3m (2006: £3.6m) has been offset by a deferredtax credit of £7.0m (2006: £2.4m). This deferred tax credit arises from areduction in the tax rate applied to deferred tax assets and liabilities, from30% to 28%, which will be effective from 1 April 2008, and the recognition ofdeferred tax assets arising from tax relief available to the company on thefuture vesting of share awards (calculated at 30 September 2007 share price of456.75p). Diluted earnings per share were 13.4p (2006: 10.5p) and adjusted earnings pershare were 9.7p (2006: 7.5p). Basic net assets per share rose to 323p per share (31 March 2007: 311p) and thefully diluted net assets per share adjusted for the adding back of the deferredtax provision rose to 342p per share (31 March 2007: 334p). In line with Helical's long held policy, there has been no interim revaluationof the investment portfolio as at 30 September 2007. Financing Purchases of trading and development stock of £48m have contributed to anincrease in net debt to £179m at 30 September 2007 (31 March £134m). Gearinghas increased to 61% from 47% at 31 March 2007. As at yesterday's date thecompany had £25m of cash on deposit, over £75m of undrawn facilities and £154mof uncharged property. Share price The FTSE 350 Real Estate Sector is down 38% in the year to date and Helicalshares have not been immune, falling 23% to 363p over the same period. For onlythe third time in our 22 years as a property company we now trade at a discountto our net asset value including stock surplus. It is clear to us that the market is undergoing its biggest correction since theearly 90s and a consensus is building that a 10-15% fall in capital valuescaused by a 75-100bp rise in yields is playing out. The latent potential withinour portfolio that we expect to unlock over the next few years shouldcomfortably exceed the potential diminution in value that would be caused bysuch a rise in yields. Outlook Rising yields create a poor short-term outlook for commercial property values.However, it is when the market is at its most heated that mistakes are mosteasily made. We had felt that risk premiums were far too low in our marketthroughout 2006 and 2007 and are relieved to have maintained our disciplineduring this time. Helical has done many of its best deals in challenging marketsand we are certainly more confident of being able to source interesting deals atsensible prices over the next couple of years than over the last two. We remaina relatively small, nimble company where future purchases will continue to havea marked impact on our performance. Giles WeaverChairman28 November 2007 HELICAL PROPERTY PORTFOLIO A complete list of the Group's ongoing projects is noted below. Highlights during the half year to 30 September 2007 are as follows: Planning pipeline We acquired sites for an aggregate of circa £35 million at Exeter, FieldgateStreet, London E1, and Telford where we intend to submit planning applicationsrespectively for retirement villages, student accommodation and open markethousing. • Our planning appeal was heard regarding our retirement village schemein Great Alne, Warwickshire and we anticipate a decision in December. • A planning application was made for 236 residential units atWhitstable on a former employment site. • In addition, good progress was made across our change of use portfolioand we hope to be able to make some positive announcements during the secondhalf. Developments Planning consent has been gained for our largest industrial development, a250,000 sq ft scheme for unit freehold sales in Southall, West London. Phase 1,comprising 165,000 sq ft, has commenced construction with a very good level ofinterest from purchasers. We have started construction of a 50,000 sq ft second phase of our businesscentre in Battersea, London SW8 having gained consent to double the size of ourexisting facility on part of the car park. Enabling works are ongoing at Riverbank House, London EC4 where we aredevelopment managers for Pace Investments of a 320,000 sq ft office schemepre-let to Man Group. We have started the refurbishment of 35,000 sq ft of offices and 23,000 sq ft ofleisure and retail at Clareville House, London SW1 where we are developmentmanagers for National Grid Pension Scheme. We are shortly to commence the first 45 units of our retirement village schemeat Liphook, Hampshire. We have signed a joint venture agreement with National Grid Pension Scheme atHigh Wycombe to pursue high density 100,000 sq ft retail and leisure plus 125residential units adjoining the new Eden Shopping Centre. Refurbishment of a 22,000 sq ft listed station building in Wolverhampton hascommenced following the pre-letting to a major casino operator. Finally, in Poland we have acquired a 21 hectare site at Opole where 41,000 sq mof out of town retail is proposed. This complements existing retail projects inGliwice (64,000 sq m) and Wroclaw (10,000 sq m). Investments Just under half our investment portfolio by value is held in London officeswhere we continue to experience strong occupational demand. With the finalletting in our first phase of Battersea Studios in solicitors' hands and due tosign shortly, we will have full occupancy in our London holdings. Thesecomprise 104 lettable units in 350,000 sq ft occupied by 77 tenants generating areversionary rent roll of over £9.5 million per annum, an average of just over£27 per sq ft. In our industrial portfolio we have let the last three of our vacant units inNorth Woolwich achieving a £10 psf benchmark against previous rentals of £8.75psf. At Aldridge we also have full occupancy having let 135,000 sq ft on a tenyear lease without break. Our largest single investment is the former Morgan Department store in Cardiffwhere TK Maxx, Borders, Moss Bros and Rossiters are now all open and trading.The 56 residential units, all forward sold, will be completed in early 2008. Helical Property Portfolio Ongoing Projects I - InvestmentD - DevelopmentT - Trading Mixed use Developments Description Helical share Morgan Department Store, Cardiff O 160,000 sq ft retail - Borders, TK 100% Maxx, Moss Bros. I O 56 flats, all sold. O Completion early 2008 Trinity Square, Nottingham O 180,000 sq ft retail - Borders, TK 65% Maxx, Dixons D O 700 student units O Forward sold to Morley for over £100m O Completion 2008 C4.1, Milton Keynes O 110,000 sq ft Sainsbury's (forward 50% sold) D O 440 residential units (forward sold) O 35,000 sq ft of retail and offices O Completion 2008 White City, London W12 O Planning consent to be sought for 4.5 Consortium landowner million sq ft of commercial and residential & development manager on 33 acres D Amen Corner, Bracknell O Land and options held for a gateway 100% office/mixed use development off the A329M D Bluebrick, Wolverhampton O 11 acre site. Individual land sales 75% completed for 208 flats, 20,000 sq ft showroom, 88 bed hotel, 7,000 sq ft pub D O A casino use is proposed for the remaining listed building Ropemaker Park, Hailsham O 70,000 sq ft light industrial, 27,000 50% sq ft trade counter, 12,000 sq ft car showroom, 4,000 sq ft convenience store and D 4,000 sq ft creche O Construction started 2006 Leisure Plaza, Milton Keynes O Planning consent gained for 165,000 sq 50% ft retail store, 65,000 sq ft casino, 50,000 sq ft ice rink, plus a further 25,000 sq ft D of leisure Tiviot Way, Stockport O A planning application will be 80% submitted in 2008 for 100,000 sq ft industrial, 49,000 sq ft trade counter, D 20,000 sq ft self storage, 20,000 sq ft builders merchant and car showroom Parkgate, Shirley, Birmingham O 200,000 sq ft retail - Asda (80,000 50% sq ft supermarket) D O 200 residential units O Construction to commence 2008 Hagley Road West, Quinton, O 16,000 sq ft retail plus 15 75%Birmingham residential units D O Construction to commence 2008 O 100,000 sq ft of retail/leisureLily's Walk, High Wycombe O 125 residential units 80% O JV signed D O Planning application to be submitted 2008 Office Developments Description Helical share Riverbank House, London EC4 O 320,000 sq ft pre-let to Man Group Development management role O Under construction D Clareville House, London SW1 O Refurbishment of 35,000 sq ft offices Development plus 23,000 sq ft of restaurant, nightclub management role and retail. D O Construction started Battersea Studios, London SW8 O 50,000 sq ft of new office 75%(Phase 2) development D O Completion late 2008 Mitre Square, London EC3 O 350,000 sq ft 50% O Site assembly ongoing D Forestgate, Crawley O Refurbishment of 24,000 sq ft 75% completed D O Scheme for two new buildings of 21,000 sq ft and 18,000 sq ft Industrial developments Description Helical share Watlington Road, Cowley, Oxford O 71,000 sq ft of industrials and 80% offices of which 49,000 sq ft sold D Langford Lane, Kidlington O 140,000 sq ft of industrial units for 80% freehold sites D O Phase 1 of 72,000 sq ft completed O Phase 2 of 12,000 sq ft pre-sold Scotts Road, Southall, West London O 250,000 sq ft of industrial units for 80% freehold sales D O Construction of Phase 1 of 165,000 sq ft commenced 2007 Millbrook Trading Estate, O Construction of 50,000 sq ft of 80%Southampton industrial units, 65,000 sq ft of trade D counters to commence in January 2008 O 1 acre sold for self-storage O Phase 2 of 4 acres of industrial land Retail developments Description Helical share Macon Way, Crewe O 25,000 sq ft bulky goods scheme 50% subject to planning consent D Gliwice, Poland O 64,000 sq m out of town retail 50% O construction to commence 2008 D Wroclaw, Poland O 10,000 sq m out of town retail 50% O construction due to commence 2008 D O 21 hectare site acquired in Opole, Southern Poland 50% O 41,000 sq m out of town retail DOpole, Poland Retirement Village Developments Description Helical share Lime Tree Village, Rugby O 154 bungalows, cottages and 33% apartments being constructed in phases D O 122 sold to date Bramshott Place, Liphook O Construction to commence in 2008 of 90% 144 units D Projects with change of use Description Helical sharepotential Maudslay Park, Great Alne O 314,000 sq ft industrial estate on a 90% 20 acre site with an outstanding planning appeal for 175 retirement home units D Waterside, Fleet O 54,000 sq ft of industrial property 75% on 5 acres with planning application for 207 residential units D Vauxhall, O In partnership with National Grid UK Profit ShareLondon SW8 Pension Fund we are seeking to gain an allocation for a large residential led D mixed-use development on a Thames-side industrial estate Ely Road, Milton, Cambridge O 32,000 sq ft of industrial on 20 90% acres D O Planning application to be submitted in 2007 for 120 unit retirement village Thanet Way, Whitstable O 80,000 sq ft of industrial on 6 acres 90% O Planning application submitted for D 236 residential units O Former saw mill on 15 acresCherry Tree Yard, Faygate, Horsham O Planning application to be submitted 90% in 2007 for 175 retirement home units D Winterhill, Milton Keynes O 28,000 sq ft of warehouses and 50% offices with retail warehouse or trade counter potential I Arleston, Telford O 19 acre greenfield site with 90% residential potential D St Loye's College, Exeter O 18 acre site currently used 90% as a college D O Potential for retirement village use, planning application to be submitted for 195 units in 2008 Fieldgate Street, London E1 O Planning consent sought for 14,000sq ft of retail and 350 student residential 67% units D Cardiff Royal Infirmary O Vacant hospital on a peppercorn lease 75% with residential potential I Income producing assets Offices Description Helical share Rex House, Lower Regent Street, O 80,000 sq ft office building 100%London SW1 refurbished in 2001 I O Short leasehold expiring 2035 O Acquired vacant in 2000 Shepherds Building, Shepherds O 150,000 sq ft of studio offices 90%Bush, London W14 refurbished in 2001 and let to over 50 I tenants O Acquired vacant in 2000 61 Southwark Street, London SE1 O 66,000 sq ft of offices that have been 100% subject to a rolling refurbishment and a new penthouse floor I O Acquired 1998 Battersea Studios, O 55,000 sq ft of media style offices 75%London SW8 refurbished in 2006 I O Acquired vacant in 2005 Amberley Court, O Partial refurbishment of 31,000 sq ft 90%Crawley office campus I Retail - in town Description Helical share Morgan & Royal Arcades, Cardiff O 56 units to be subject to intensive 100% management on completion of the adjoining development at the David Morgan Department I Store O Acquired 2005 1-5 Queens Walk, East Grinstead O 37,000 sq ft of retail opposite a 87% proposed new retail scheme I O Acquired 2005 Glasgow Portfolio O Three unit shop investments and part 100% of a multi-let office block, all in Glasgow City Centre I/T O acquired 2005 Retail - out of town Description Helical share Otford Road Retail Park, Sevenoaks O 43,000 sq ft with open A1 consent let 75% to Wickes, Currys and Carpetright I O Acquired 2003 Stanwell Road, Ashford O 32,000 sq ft Focus DIY store 75% O Acquired 2004 I 215 Brixham Road, Paignton O 24,000 sq ft Focus store with open A1 67% consent I O Acquired 2005 Industrial Description Helical share Hawtin Park, Blackwood O 251,000 sq ft estate, part vacant 100% O Acquired 2003 I Fordham, O 70,000 sq ft of R&D space and offices 53%Newmarket on a 32 acre landscaped site let on a long I lease O Acquired 2007 Westgate, Aldridge O 208,000 sq ft 80% O Acquired 2006 I Dales Manor, Sawston, Cambridge O 70,000 sq ft multi-let estate 67% O Acquired 2003 I/D Golden Cross, Hailsham O 102,000 sq ft unit let on a long RPI 100% lease I O Acquired 2001 Standard Industrial Estate, North O 50,000 sq ft estate 60%Woolwich O Acquired 2002 I Bushey Mill Lane, Watford O 24,000 sq ft income producing with 80% development potential D O acquired 2006 Independent Review Report to the Members of Helical Bar Plc Introduction We have been engaged by the company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30September 2007 which comprises Group income statement, Statement of recognisedincome and expenses, Group balance sheet, Group cash flow statement and therelated notes. We have read the other information contained in the half-yearlyfinancial report and considered whether it contains any apparent misstatementsor material inconsistencies with the information in the condensed set offinancial statements. This report is made solely to the company in accordance with guidance containedin APB Statements of Standards for Reporting Accountants "International Standardon Review Engagements (UK and Ireland) 2410". Our review work has beenundertaken so that we might state to the company those matters we are requiredto state to them in a review report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyoneother than the company for our review work, for this report, or for theconclusion we have formed. Directors' Responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. As disclosed in note 1, the annual financial statements of the group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, ''Interim Financial Reporting,'' as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, ''Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity'' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 30 September 2007 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34 asadopted by the European Union and the Disclosure and Transparency Rules of theUnited Kingdom's Financial Services Authority. Grant Thornton UK LLPChartered accountantsLondon28 November 2007 Unaudited Condensed Consolidated Income StatementFor the Half Year to 30 September 2007 Half Year To 30 Half Year To 30 Year To September September 31 March 2007 2006 2007 £000 £000 £000 Notes Revenue 3 32,326 51,644 123,176 Net rental income 4 7,917 6,748 14,771Trading profits 3 4,634 2,094Development profits 4,339 1,681 13,587Share of results of joint ventures 388 3,280 6,196Other operating income 164 737 766 Gross profit before (loss)/gain on investment 12,811 17,080 37,414properties (Loss)/gain on sale and revaluation of investment 5 (28) 644 40,637properties Gross profit 12,783 17,724 78,051 Administrative expenses (6,067) (6,010) (17,544) Operating profit 6,716 11,714 60,507 Finance costs 6 (1,141) (1,784) (2,710)Finance income 1,814 1,124 1,335Change in fair value of derivative financial (78) 395 956instrumentsProfit before tax 7,311 11,449 60,088Tax 7 5,692 (1,227) (8,000)Profit after tax 13,003 10,222 52,088 - attributable to minority interests - 342 300- attributable to equity shareholders 13,003 9,880 51,788Profit for the period 13,003 10,222 52,088 Earnings per 1p share 8 Basic 14.3p 11.1p 58.0pDiluted 13.4p 10.5p 53.7p Unaudited Condensed Consolidated Balance SheetAt 30 September 2007 At At At 30 September 30 September 31 March 2007 2006 2007 Notes £000 £000 £000 Non-current assetsInvestment properties 9 323,175 290,401 316,025Owner occupied property, plant and equipment 1,546 438 351Investment in joint ventures 6,577 3,575 6,188Goodwill 30 68 30 331,328 294,482 322,594Current assetsLand, developments and trading properties 10 163,857 115,489 110,815Available-for-sale investments 11 6,816 72 912Derivative financial instruments 267 - 345 Trade and other receivables 12 40,485 38,893 70,526 Cash and cash equivalents 13 6,019 4,535 3,389 217,444 158,989 185,987 Total assets 548,772 453,471 508,581 Current liabilitiesTrade payables and other payables 14 (50,570) (57,008) (64,203)Current tax liabilities (5,811) (6,255) (3,909)Borrowings 15 (47,497) (23,273) (31,560) (103,878) (86,536) (99,672)Non-current liabilitiesBorrowings 15 (137,507) (113,370) (105,847)Derivative financial instruments - (216) -Deferred tax provision 7 (14,212) (16,644) (20,697)Obligations under finance leases (178) (180) (179) (151,897) (130,410) (126,723) Total liabilities (255,775) (216,946) (226,395) Net assets 292,997 236,525 282,186 Unaudited Condensed Consolidated Balance Sheet (continued)At 30 September 2007 At At At 30 September 30 September 31 March 2007 2006 2007 Notes £000 £000 £000Equity Called-up share capital 16/19 1,223 1,216 1,222Share premium account 19 42,520 42,520 42,520Revaluation reserve 19 82,089 63,326 79,664Capital redemption reserve 19 7,478 7,478 7,478Other reserves 19 291 291 291Retained earnings 19 163,389 130,154 157,006Own shares held 19 (3,993) (8,802) (5,995) Equity attributable to equity holders of the 292,997 236,183 282,186parent Minority interests - 342 - Total equity 292,997 236,525 282,186 Net assets per share Basic 20 323p 265p 311pDiluted 20 318p 260p 307pAdjusted diluted 20 342p 283p 334p Unaudited Condensed Consolidated Cash Flow StatementFor the Half Year to 30 September 2007 Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000Cash flows from operating activitiesProfit before tax 7,311 11,449 60,088Depreciation 100 88 180Loss/(gain) on investment properties 28 (644) (40,637)Other non-cash items (186) (3,413) (6,294)Cash flows from operations before changes in working capital 7,253 7,480 13,337Change in trade and other receivables 31,477 (4,670) (36,317)Change in land, developments and trading properties (50,453) (27,521) (19,705)Change in trade and other payables (11,348) 6,537 14,828Cash used in operations (23,071) (18,174) (27,857)Finance costs (4,708) (3,492) (8,035)Finance income 503 730 574Minority interest dividends paid - - (300)Dividends from joint ventures - - 303Tax paid (85) (199) (2,602) (4,290) (2,961) (10,060) Cash flows from operating activities (27,361) (21,135) (37,917) Cash flows from investing activitiesPurchase of investment property (9,262) (10,062) (27,772)Sale of investment property 2,972 15,124 53,446Purchase of shares by ESOP (3,424) (1,663) (5,084)Purchase of investments (8,064) (3,264) (4,164)Sale of investments 3,986 3,828 3,909Sale of plant and equipment 40 13 7Purchase of plant and equipment (1,336) (45) (48)Cash flows from financing activities (15,088) 3,931 20,294Issue of shares - 37 43Borrowings drawn down 52,541 29,448 46,206Borrowings repaid (4,926) (15,564) (31,616)Equity dividends paid (2,468) (2,174) (3,615)Refinancing costs (68) (143) (141) 45,079 11,604 10,877Net increase/(decrease) in cash and cash equivalents 2,630 (5,600) (6,746)Cash and cash equivalents at start of period 3,389 10,135 10,135Cash and cash equivalents at period end 6,019 4,535 3,389 Unaudited Condensed Consolidated Statement of Recognised Income and ExpenseFor the Half Year to 30 September 2007 Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000 Profit for the period 13,003 10,222 52,088Fair value movements- available-for-sale investments 1,772 6 (24)- associated deferred tax (557) - - Total recognised income and expense for the period 14,218 10,228 52,064 - attributable to equity shareholders 14,218 9,886 51,764- attributable to minority interest - 342 300 14,218 10,228 52,064 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 2007, 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 2007. The interim statement was approved by the Board on 28 November 2007 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. Statement of director's responsibilities The directors confirm that, to the best of their knowledge, this condensed setof financial statements has been prepared in accordance with IAS34 as adopted bythe European Union, and that the interim management report herein includes afair review of the information required by DTR 4.2.7 and DTR 4.2.8. The directors of Helical Bar plc are listed in the Group's 2007 Annual Reportand Financial Statements, with the exception of the following changes in theperiod: • Matthew Bonning-Snook - appointed 1 August 2007 • Jack Pitman - appointed 1 August 2007 A list of current directors is maintained at 11-15 Farm Street, London W1J 5RSand at www.helical.co.uk. On behalf of the Board Nigel McNair ScottFinance Director28 November 2007 3. Revenue Half Year To Half Year To Year To 30 September 2007 30 September 2006 31 March 2007 £000 £000 £000 Rental income 9,434 8,102 18,044Trading property sales - 20,378 12,355Developments 18,793 19,164 88,685Other income 4,099 4,000 4,092 32,326 51,644 123,176 4. Net rental income Half Year To Half Year To Year To 30 September 2007 30 September 2006 31 March 2007 £000 £000 £000 Gross rental income 9,434 8,102 18,044Rents payable (21) (54) (137)Other property outgoings (1,496) (1,300) (3,136) Net rental income 7,917 6,748 14,771 5. (Loss)/gain on sale and revaluation of investment properties Half Year To Half Year To Year To 30 September 2007 30 September 31 March £000 2006 2007 £000 £000 Net proceeds from the sale of investment properties 3,302 15,124 53,446 Book value (note 9) (3,330) (14,475) (45,638)Lease incentive and letting costs adjustment - (5) (351)(Loss)/gain on sale of investment properties (28) 644 7,457Revaluation gains on investment properties - - 33,180(Loss)/gain on sale and revaluation of investment (28) 644 40,637properties 6. Finance costs Half Year To Half Year To Year To 30 September 2007 30 September 31 March £000 2006 2007 £000 £000 Interest payable on bank loans and overdrafts 4,953 3,730 8,437Other interest payable and similar charges (55) 120 228Finance arrangement costs 51 59 114Interest capitalised (3,808) (2,125) (6,069)Finance costs 1,141 1,784 2,710 7. Taxation on profit on ordinary activities Half Year To Half Year To Year To 30 September 2007 30 September 31 March £000 2006 2007 £000 £000 The tax charge is based on the profit for the period andrepresents: 1,985 3,588 6,449United Kingdom corporation tax at 30% (2006: 30%)- group corporation tax- adjustment in respect of prior periods (635) - (141)Current tax charge 1,350 3,588 6,308 Deferred tax - revaluation surpluses (2,947) (2,306) 2,628 - capital allowances (89) 66 (7) - other temporary differences (4,006) (121) (929) Deferred tax (7,042) (2,361) 1,692 Tax on profit on ordinary activities (5,692) 1,227 8,000 At AtDeferred tax provision 30 September 31 March 2007 2007 £000 £000 Capital gains 20,608 23,555Capital allowances 2,079 2,168Other temporary differences- income statement (9,032) (5,026)- equity reserves 557 -Deferred tax provision 14,212 20,697 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 £2.1mwould be released and further capital allowances of £11.4m would be available toreduce future tax liabilities. The provision in respect of capital gains hasbeen reduced by indexation. The deferred tax asset in respect of other temporary differences (incomestatement) arises from the recognition of tax relief available to the company onthe future vesting of share awards, calculated at the 30 September 2007 shareprice of 456.75p (31 March 2007: 429.25p) per share. 8. Earnings per 1p 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 period. Shares held by the ESOP, which has waived itsentitlement to receive dividends, are treated as cancelled for the purpose ofthis calculation. The calculation of diluted earnings per share is based on the basic earnings pershare, adjusted to allow for the issue of shares and the post tax effect ofdividends on the assumed exercise of all dilutive options. The earnings per share are calculated in accordance with IAS 33 and the bestpractice recommendations of the European Public Real Estate Association ("EPRA") Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below. Half Year Half Year to 30 to 30 September September 2006 2007 000s 000sOrdinary shares in issue 95,719 94,372Weighting adjustment (5,094) (5,075)Weighted average ordinary shares in issue for calculation of basic earnings 90,625 89,297per shareDilutive effect of share options 6,608 4,368Weighted average ordinary shares in issue for calculation of diluted earnings 97,233 93,665per share Earnings used for calculation of basic and diluted earnings per share 13,003 9,880 Basic earnings per share 14.3p 11.1p Diluted earnings per share 13.4p 10.5p Earnings used for calculation of basic and diluted earnings per share 13,003 9,880Loss/(gain) on sale and revaluation of investment properties 28 (644)Fair value movement on derivative financial instruments 78 - Deferred tax in respect of investment properties (3,037) (2,240)Tax on profit on disposal of investment properties (635) - Earnings used for calculation diluted EPRA earnings per share 9,437 6,996 Diluted EPRA earnings per share 9.7p 7.5p 9. Investment properties Valuation Cost £000 £000 Fair value at 1 April 2007 316,025 213,501Additions at cost 10,482 10,482Disposals (3,330) (2,809)Amortisation of finance lease (2) - As at 30 September 2007 323,175 221,174 All properties are stated at market value as at 31 March 2007, as adjusted foradditions and disposals in the half year to 30 September 2007. Interestcapitalised in respect of investment properties at 30 September 2007 amounted to£3,724,445 (31 March 2007: £2,505,000). Interest capitalised during the periodin respect of investment properties was £1,218,996. 10. Land, developments and trading properties At At 30 September 31 March 2007 2007 £000 £000 Development sites 162,203 109,165Properties held as trading stock 1,654 1,650 163,857 110,815 The directors' valuation of trading and development stock showed a surplus of£36m above book value at 31 March 2007. Interest capitalised in respect of the development of sites is included in stockto the extent of £8,302,375 (31 March 2007 £4,523,000). Interest capitalisedduring the period in respect of development sites amounted to £2,589,032. 11. Available-for-sale investments At At 30 September 31 March 2007 2007 £000 £000 UK listed investments at fair value 2,804 -UK unlisted investments at fair value 4,000 900UK treasury stock at fair value 12 12 6,816 912 12. Trade and other receivables At At 30 September 31 March 2007 2007 £000 £000 Trade receivables 13,105 50,850Other receivables 12,112 6,575Prepayments and accrued income 15,268 13,101 40,485 70,526 13. Cash and cash equivalents At At 30 September 31 March 2007 2007 £000 £000 Rent deposits and cash held at managing agents 3,068 1,852Cash secured against debt and cash held at solicitors 162 1,045Cash deposits 2,789 492 6,019 3,389 14. Trade payables and other payables At At 30 September 31 March 2007 2007 £000 £000 Trade creditors 8,990 9,841Other payables 9,045 8,552Accruals and deferred income 32,535 45,810 50,570 64,20315. Borrowings At At 30 September 31 March 2007 2007 £000 £000Bank overdraft and loans - maturityDue within one year 47,497 31,560Due after more than one year 137,507 105,847 185,004 137,407 At At 30 September 31 March 2007 2007Gearing £000 £000 Total borrowings 185,004 137,407Cash (6,019) (3,389)Net borrowings 178,985 134,018 Net borrowings exclude the Group's share of borrowings in joint ventures of £18,785,000(31 March 2007: £12,583,000). Net assets 292,997 282,186 Gearing 61% 47% 16. Share capital At At 30 September 31 March 2007 2007 £000 £000 Authorised 39,577 39,577 39,577 39,577The authorised share capital of the Company is £39,576,626.60 divided intoordinary shares of 1p each and deferred shares of 1/8p each Allotted, called up and fully paid - 95,732,457 ordinary shares of 1p each 958 957- 212,145,300 deferred shares of 1/8 p each 265 265 1,223 1,222 As at 1 April 2007 the Company had 95,719,432 ordinary 1p shares in issue. On 28September 2007 options over 13,025 new ordinary 1p shares were exercisedincreasing the issued share capital of the Company to 95,732,457 ordinary 1pshares. Share options At 30 September 2007 unexercised options over 1,939,965 (31 March 2007:1,956,070) new ordinary 1p shares in the Company and 2,629,695 (31 March 2007:3,964,695) 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. 17. Dividends Half Year To Half Year To Year To 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000 Attributable to equity share capitalOrdinary- interim paid 1.60p per share - - 1,441- prior period final paid 2.75p (2006: 2.45p) 2,468 2,174 2,174per share 2,468 2,174 3,615 The interim dividend of 1.75p (30 September 2006: 1.60 pence per share) wasapproved by the board on 28 November 2007 and will be paid on 21 December 2007to shareholders on the register on 7 December 2007. This interim dividend,amounting to £1,586,502, has not been included as a liability as at 30 September2007. 18. Own shares held 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 2007 the Trust held 5,075,226 (31 March 2007: 5,174,701)ordinary shares in Helical Bar plc. At 30 September 2007 options over 2,629,695 (31 March 2007: 3,964,695) ordinaryshares in Helical Bar plc had been granted through the Trust. At 30 September2007 awards over 7,085,825 (31 March 2007: 5,960,575) ordinary shares in HelicalBar plc had been made under the terms of the Performance Share Plan. 19. Statement of changes in equity Capital Share Share Revaluation redemption Other Retained Own shares capital premium reserve reserve reserves earnings held Total £000 £000 £000 £000 £000 £000 £000 £000 At 31 March 2006 1,209 42,490 64,820 7,478 291 120,948 (7,139) 230,097Total recognised - - - - - - - - income 52,064 52,064Dividends paid - - - - - (3,615) - (3,615)Revaluation - - 30,552 - - (30,552) - - surplusRealised on - - (15,708) - - 15,708 - - disposalsMinority interest - - - - - (300) - (300)Issue of shares 13 30 43Purchase of - - - - - - (5,155) (5,155) sharesShare options - - - - - - 71 71exercisedPerformance - - - - - 8,981 - 8,981 share planOwn shares - - - - - (6,228) 6,228 - heldAt 1 April 2007 1,222 42,520 79,664 7,478 291 157,006 (5,995) 282,186Total recognised - - - - - 14,218 - 14,218 incomeDividends paid - - - - - (2,468) - (2,468)Revaluation - - 2,947 - - (2,947) - - surplusRealised on - - (522) - - 522 - - disposalsIssue of shares 1 - - - - - - 1Purchase of - - - - - - (3,424) (3,424) sharesPerformance - - - - - 2,484 - 2,484 share planOwn shares - - - - - (5,426) 5,426 - held At 30 September 1,223 42,520 82,089 7,478 291 163,389 (3,993) 292,9972007 The adjustment to retained earnings of £2,484,000 adds back the share basedpayments charge, in accordance with IFRS 2 Share Based Payments. 20. Net assets per share 30 September Number of 30 September 2007 2007 shares pence £000 000's per share Net asset value 292,997 95,732 Less: own shares held by ESOP - (5,075)deferred shares (265)Basic net asset value 292,732 90,657 323Add: unexercised share options 1,988 1,940Diluted net asset value 294,720 92,597 318Adjustment for - fair value of financial instruments (267)- deferred tax on capital allowances 2,079- deferred tax on capital gains 20,607 Adjusted diluted net asset value 317,139 92,597 342Adjustment for - fair value of trading and development properties 36,480 Diluted EPRA net asset value 353,619 92,597 382 Adjustment for- fair value of financial instruments 267- deferred tax on capital allowances (2,079)- deferred tax on capital gains (20,607)Diluted EPRA NNNAV 331,200 92,597 358 The adjustment for the fair value of trading and development propertiesrepresents the surplus as at 31 March 2007. 31 March Number of 31 March 2007 2007 shares pence £000 000's per share Net asset value 282,186 95,719Less: own shares held by ESOP - (5,174)deferred shares (265)Basic net asset value 281,921 90,545 311Add: unexercised share options 2,002 1,956Diluted net asset value 283,923 92,501 307Adjustment for- fair value of financial instruments (345)- deferred tax on capital allowances 2,168- deferred tax on capital gains 23,555 Adjusted diluted net asset value 309,301 92,501 334Adjustment for- fair value of trading and development properties 36,480 Diluted EPRA net asset value 345,781 92,501 374Adjustment for- fair value of financial instruments 345- deferred tax on capital allowances (2,168)- deferred tax on capital gains (23,555) Diluted EPRA NNNAV 320,403 92,501 346 The net asset values per share have been calculated in accordance with the bestpractice recommendations of the European Public Real Estate Association ("EPRA"). 21. Related party transactions At 30 September 2007 and 31 March 2007 the following amounts were due from theGroup's joint ventures. At At 31 September 31 March 2007 2007 £000's £000's Abbeygate Helical (Leisure Plaza) Ltd 1,081 889Abbeygate Helical (Winterhill) Ltd (590) (864)Abbeygate Helical (C4.1) LLP (636) (636)Grosvenor Hill (Sprucefield) Ltd (17) (17)Shirley Advance LLP 5,219 4,112The Asset Factor Ltd 733 551 This information is provided by RNS The company news service from the London Stock Exchange