Helical PLC on Wednesday reported increased confidence in the London office property sector as it disclosed broadly stable asset values in the first half of its financial year.
The London-focused property developer said pretax profit fell 62% to £1.8 million in the half year to September 30 from £4.7 million the year prior.
Revenue edged down 2.4% to £16.5 million from £16.9 million with diluted earnings per share of 1.5 pence, down 61% from 3.8p.
Under European Public Real Estate Association standards, EPS increased 4.3% to 2.4p from 2.3p the year prior.
EPRA net tangible asset value per share edged up to 349p from 348p six months previously.
‘These results reflect a period of concentrated construction activity as we continue to deliver on our strategy of developing best-in-class buildings in highly desirable central London locations. There is increasing confidence in the London office sector, and the lack of development activity underpins our decision to commit to a significant development programme,’ said Chief Executive Matthew Bonning-Snook.
In addition, the CEO noted ‘a marked uplift in investment activity, although there remains uncertainty in the wider macro-economic environment.’
‘As the investment market and pricing confidence returns, we will look to unlock new office opportunities,’ he added.
Shares in Helical rose 1.1% to 200.00 pence each in London on Wednesday.
Investment property valuations marginally decreased on a like-for-like basis by 0.5%, while the development portfolio value increased by 1.9%, resulting in a net 0.3% gain overall, Helical said.
At the end of September, IFRS investment property portfolio value was £373.5 million, little changed from £373.3 million at March 31.
Contracted rents fell slightly to £19.8 million at September 30 from £20.2 million at the end of March, with estimated rental value of £29.3 million unchanged from six months before.
The dividend was maintained at 1.5p per share.
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