21st Nov 2018 11:13
LONDON (Alliance News) - Helical PLC on Wednesday reported a sharp rise in interim profit on a gain on revaluation of investment properties, as the firm agreed to let a further two floors at The Bower in London.
For the six months to September 30, the property investment and development company's pretax profit leapt to GBP29.1 million from GBP1.2 million the year before.
Helical's net rental income in the first half decreased 35% to GBP11.7 million from GBP17.9 million. But the firm had a GBP32.5 million gain on revaluation of investment properties.
The London and Manchester focused developer declared a 4% rise in interim dividend to 2.6 pence from 2.5p the year before.
"The financial year to date has seen Helical make significant progress on three main fronts: development completions, letting activity and balance sheet strength," said Gerald Kaye, chief executive officer.
The company's net asset value at September 30 increased 3.5% to GBP552.6 million from GBP533.9 million at March 31, with its EPRA NAV per share increasing slightly to 471p from 468p at March 31.
Helical's see-through property portfolio decreased 31% year-on-year to GBP837.6 million from GBP1.21 billion.
Looking ahead, Helical believes the uncertainty surrounding the UK's exit from the EU "may provide opportunities".
Kaye added: "London will remain the best source of potential capital gains and development profits in the medium and long term, whilst we continue to view Manchester as the most dynamic regional city in the UK."
Separately Wednesday, Helical said it let two floors at The Bower's tower office in Shoreditch in London to Brilliant Basics.
Brilliant Basics has agreed a 10 year lease at a blended rate of GBP72 per square foot. The building is now 63% let within ten weeks of practical completion.
Shares in Helical were down 1.1% Wednesday at 316.50 pence each.
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