Helical Bar has reduced its gearing again, in response to uncertain times for the property market.
Reporting a fall in interim pre-tax profits from £15.1m last year to £11.1m, the company said it had reduced gearing from 96% at the March year-end to 66%. Fully diluted net asset value (NAV) per share was up from 776p at the year-end to 797p.
Chairman John Southwell said: “In the light of recent events Helical’s decision to degear, taken in the summer of 2000, appears to have been timely. We are waiting to see value before reinvesting in the market and with the events of September 11 still reverberating around the world we may have to wait longer than previously anticipated.”
However he warned: “In the meantime it is not possible to predict with confidence the timing of development profits.”
In the half-year, Helical successfully let 3 Bunhill Row, EC1 to Linklaters and forward sold the scheme to Matrix Securities. It also let 1 Plough Place, EC4 to the New Opportunities Fund. Helical said gross rents for the six months were up by 12% to £15.2m from £13.6m.
EGi News 14/11/01
