News

Real estate specialist Helical Bar has maintained its dividend despite falling into the red last year after taking a hit on property values.

The company reported a loss before tax of £32.8m in the year to 31 March after showing a profit of £40.6m the year before.

The loss was suffered after a £32.8m downgrade in the value of the company’s investment properties; the year before Helical had recorded a £40.6m gain on the revaluation of its properties.

Profits before the loss on sale and revaluation of investment properties fell from £19.5m to £8.5m, reflecting a reduction in development profits, an absence of trading profits and a decline in the company’s share of the results of 50:50 joint ventures.

Net rental income improved to £16.4m from £14.8m.

The group’s diluted net asset value, calculated according to European Public Real Estate (EPRA) standards, fell 6% to 352p per share from 374p.

Net debt increased to £205m at the end of March from £134m a year earlier, and gearing has consequently increased to 76% from 47%.

The group had £14m of cash on deposit, over £65m of undrawn facilities and £170m of uncharged property as at 4 June 2008.

Chief executive Michael Slade said the company foresaw the downturn in the UK property market and greatly reduced the proportion of its assets held in the investment portfolio while also diversifying its exposure into a broader spread of activities including retail warehouse developments in Poland, planning deals, mixed use developments and retirement villages.

“There remains significant latent potential to be unlocked within our development and trading portfolio which should continue to mitigate any underlying slide in market values,” Slade claimed.

The final dividend has been maintained at 2.75p, making the full year dividend 4.5p, up 3% on the 4.35p paid a year earlier.