24th May 2016 07:05
LONDON (Alliance News) - Helical Bar PLC on Tuesday said it is well-placed to deal with any headwinds, having de-risked its two largest London office developments, after posting a large rise in pretax profit for its financial year.
The property investment and development company reported pretax profit of GBP120.1 million for its financial year ended March 31, 37% higher than the GBP87.4 million it saw a year earlier, on the back of growth in total property return.
Helical Bar posted total property return of GBP170.6 million, up from GBP155.3 million, with gains in net rental income and development property profits offsetting the lower gain on revaluation of investment properties for the year.
Helical Bar proposed a final dividend of 0.72 pence per share, taking the total dividend per share to 8.17p per share, a 13% rise from the 7.25p per share offered a year earlier.
"The greatest proportion of our performance this year has come from London where we have increased our portfolio weighting, primarily with the purchase of The Bower EC1. We also increased our weighting in industrial assets whilst reducing our exposure to retail. We have sold our Polish assets and continue to deliver on our retirement village programme," said Chief Executive Michael Slade.
The company said it had exceeded its targets set in 2012, which were to have an income producing investment portfolio representing at least 75% of our total property assets with our development programme making up the remaining 25% which is capable of producing exceptional profits.
Helical Bar said, over the next three years, it will be looking to complete and let its London schemes at The Bower, One Creechurch Place, One Bartholomew Close and Charterhouse Square, as well as complete the residential scheme at Barts Square and sell the remaining units. The group added that it will also be looking to maintain and grow "a sustainable investment income surplus" as well as take forward its London schemes in Hammersmith and Drury lane.
Helical Bar said it will seek to, "at the appropriate time, restock the London development pipeline to enable us to continue to create capital growth and development profit".
"We aim to do this against a background of increasing uncertainty, exacerbated by the imminent possibility of the UK voting to leave the European Union. However, with substantially increased contracted rents on our portfolio and having de-risked our two largest London office developments at One Creechurch Place EC3 and One Bartholomew Close EC1, Helical is well placed to deal with any headwinds that may come its way," Chief Executive Slade added.
By Hannah Boland; [email protected]; @Hannaheboland
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