4th Jun 2020 12:31
(Alliance News) - Property firm Helical PLC on Thursday reported a rise in net asset value but cut its annual dividend due to the Covid-19 pandemic.
In the year ended March 31, EPRA net asset value per share rose 6.0% to 511 pence from 482p.
Shares in the company were flat at 390.00p each in London on Thursday afternoon.
Chief Executive Gerald Kaye said: "These results are announced during a period of considerable uncertainty with the timing and strength of the recovery from the Covid-19 pandemic yet to be determined. For the office sector, questions are being asked about the desire to return to previous working practices.
"As we move through the various stages of the Covid-19 pandemic and arrive at the so-called 'new normal', we shall learn how businesses and their staff view their experiences and the productivity of working from home. What we do know, however, is that people are sociable and prefer to congregate together, both at work and at play."
However, due to the pandemic, Helical proposed a final payout of 6.0p per share, "a decrease of 20% as part of action taken to reduce outgoings and preserve the group's cash resources in the current uncertain environment".
This meant its full-year dividend was lowered by 14% to 8.70p from 10.10p.
"It is our view that a large majority of businesses will continue to seek space for their employees to gather in a centralised working environment and that the draw of London, as a pre-eminent global city, will remain. It is our challenge to ensure that what we have to offer is attractive to these businesses," CEO Kaye added.
"The company has robust finances and will seek to protect shareholder value and meet the challenges that the coming months will bring. Going forward, Helical has GBP279 million of cash and undrawn bank facilities available to pursue its strategy of growing the business when the opportunities arise."
By Eric Cunha; [email protected]
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