News

Helical Bar profits up

27 November 2008 08:01:00

Real estate specialist Helical Bar saw half-year profits rise but said it does not underestimate the challenge of preserving the value of its existing assets due to the prevailing market conditions.

Profit before tax for the half year was £12.7m from £7.3m in the same period last year on revenue that increased to £55.1m from £32.3 previously. Net rental income for the period was £8.2m (2007: £7.9m). Development profits of £7.9m (2007: £4.3m).

"Whilst we had scaled down our investment portfolio over recent years, the company is not immune from the impact of rising capitalisation rates which reduce the value of our remaining investment assets," said the group.

The group said its development and trading stock has the benefit of being diversified across a wide range of sectors and activities but properties are taking longer to sell and are achieving lower prices.

"However, in such torrid market conditions we expect to see buying opportunities that arise only once or twice in a property career. We have built up our own cash resources and agreed joint venture arrangements with well capitalised partners who are eager to invest alongside us where and when we find compelling value," it added.

Interim dividend maintained at 1.75p per share.

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