REG - Helical PLC - Results for the Half Year to 30 September 2025
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RNS Number : 9943I Helical PLC 26 November 2025
HELICAL PLC
("Helical" or the "Group" or the "Company")
Results for the Half Year to 30 September 2025 (the "Period"/"Half Year")
executing the strategy
Matthew Bonning-Snook, Chief Executive, commented:
"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.
"The improvement in sentiment has been driven by occupiers typically taking
more and better space as they see their office as pivotal in attracting,
retaining and developing the very best talent, as evidenced by State Street
Corporation acquiring 100 New Bridge Street, EC4. The strength of active
demand and constrained supply for best-in-class office space is predicted to
drive rental growth of 4-5% per annum. Against this backdrop, we are
increasingly confident that our pipeline office schemes at 10 King William
Street, EC4, Brettenham House, WC2, and Paddington, W2, all of which are in
undersupplied sub-markets with excellent connectivity, will set new benchmark
rent levels.
"In the last three months, we have seen a material increase in the levels of
occupier interest at our 334,000 sq ft office campus at The Bower, EC1. This
is being fuelled by the limited supply in the City core, and the resurgence in
tech and AI driven demand, which is attracted to fitted, flexible space that
can accommodate future expansion. This demand is highly focused on the very
best buildings and, as a result, we have discussions ongoing for all available
space and, encouragingly, have commenced re-gear negotiations with existing
tenants who have near-term lease events.
"There has been a marked uplift in investment activity, although there remains
uncertainty in the wider macro-economic environment. Our forward sale of 100
New Bridge Street, EC4 remains the largest single asset transaction in London
in 2025. As the investment market and pricing confidence returns, we will look
to unlock new office opportunities. In the Period, we have agreed terms with
Places for London to develop a c.55,000 sq ft office in Farringdon and a
planning application has been submitted. A significant amount of London real
estate is reaching the end of its life and is in the hands of owners who
remain committed to this asset class but who do not have the expertise to
redevelop. Working with these owners, as we are on Brettenham House, WC2,
should provide Helical with further opportunities to deliver its expertise for
enhanced returns within equity-light structures.
"We continue to pursue the best value use for each opportunity, as with
Southwark, SE1 where we have pivoted from office to PBSA. London's educational
and intellectual influence enhances its global status, being home to
prestigious universities and provides us with the confidence to actively
explore new PBSA opportunities with Places for London. These include one
adjacent to White City Tube station and two further sites which are undergoing
feasibility assessment.
"Market conditions continue to support Helical's strategy and we will look to
maximise the opportunity, typically working in joint venture or equity-light
structures, providing enhanced shareholder returns."
Operational Activity During the Period
Delivering 464,500 sq ft of new and refurbished office space in 2026
· 100 New Bridge Street, EC4 - The forward sale of this 194,500 sq ft
headquarters building to State Street Corporation remains on track to complete
in April 2026. The net sales price of £333m (£166.5m Helical's share), based
on a £100 psf ERV and a 5.00% capitalisation yield, continues to be the
largest outright office sale so far in London this year, demonstrating
returning liquidity for larger lot sizes. The wholesale "carbon friendly"
refurbishment and extension of the 1990s building has been undertaken in just
24 months.
· Brettenham House, WC2 - Completion of the comprehensive refurbishment
of Brettenham House is anticipated in Q3 2026. This c.128,000 sq ft landmark
1930s building is being remodelled to deliver new prime office space, within a
historical context, and provide extensive amenity including five terraces with
exceptional river views along the Thames. The equity-light capital structure
demonstrates Helical's continuing ability to unlock complex developments in
partnership with existing landowners.
· 10 King William Street, EC4 - The development of this eight-storey,
142,000 sq ft best-in-class office scheme, located on a rare island site
within the City of London above the new Bank station entrance on Cannon
Street, is targeting practical completion in December 2026. This centre core
building with large, virtually column free, floorplates has been designed to
appeal to a broad range of requirements. With the supply of best-in-class
office space severely constrained and City of London space remaining highly
sought after, we are seeing encouraging pre-let occupier interest across
multiple sectors.
Future Schemes in Progress
· Southwark, SE1 - Heads of terms have been agreed for the forward funding
of the 429 studio student accommodation building with Places for London and
the forward sale of the 44 affordable homes to the London Borough of
Southwark. With matters being closed out, both transactions are expected to
exchange before the year end. Construction is scheduled to commence in H1
2026, with completion of both buildings targeted for 2029.
· Paddington, W2 - Preparatory work has commenced on site ahead of the
formal site acquisition in January 2026. It is anticipated that main works for
the construction of this 235,000 sq ft office building, located above
Paddington station and adjacent to the vibrant canalside, will commence in Q1
2026. Through early engagement with the main contractor, the programme has
been materially accelerated with completion now targeted for Q3 2028 and at a
point of particularly limited supply in the London market. Initial credit
approval has been obtained from the prospective lender and it is anticipated
that the facility agreement will be signed in Q1 2026.
Investment Portfolio
· The Bower, EC1 - Discussions are ongoing with potential tenants across
all available floors within the campus, with the range of finishes, from
traditional Cat-A to fully fitted options, appealing to a broad mix of
occupational requirements. Within the last three months, interest levels have
significantly increased, driven in part by renewed demand from the technology
and AI sectors.
· The Loom, E1 - During the Period, the lease of the largest tenant,
occupying 10% of the NIA, was extended until July 2036, thereby enhancing the
asset's WAULT. We continue to remain focused on bringing down the overall
vacancy rate.
Financial and Portfolio Performance
Earnings and Dividends
· IFRS profit of £1.8m (2024: £4.7m).
· IFRS basic earnings per share of 1.5p (2024: 3.8p).
· EPRA earnings per share(1) of 2.4p (2024: 2.3p).
· Interim dividend of 1.50p per share (2024: 1.50p).
Balance Sheet
· Net asset value of £422.8m (31 March 2025: £426.1m).
· Total Accounting Return(1) on IFRS net assets of 0.2% (2024: 1.3%).
· Total Accounting Return(1) on EPRA net tangible assets of 1.0% (2024:
0.8%).
· EPRA net tangible asset value per share(1) of 349p (31 March 2025:
348p).
· EPRA net disposal value per share(1) of 345p (31 March 2025: 347p).
Financing
· IFRS net borrowings of £118.3m (31 March 2025: £97.2m).
· See-through loan to value(1) of 28.2% (31 March 2025: 20.9%).
· See-through net borrowings(1) of £164.5m (31 March 2025: £112.8m).
· Average maturity of the Group's share(1) of secured investment debt of
3.0 years (31 March 2025: 2.5 years).
· 100% of drawn debt protected by interest rate hedging to expiry of
facilities.
· Average cost of the Group's share of secured investment facilities(1)
of 3.5% (31 March 2025: 3.8%).
· Group's share(1) of cash and undrawn bank facilities of £192.4m (31
March 2025: £244.5m).
Portfolio Update
· 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.
· IFRS investment property portfolio value of £373.5m (31 March 2025:
£373.3m). There were no sales or acquisitions in the Period.
· See-through investment portfolio(1) valued at £572.6m (31 March 2025:
£535.4m).
· Contracted rents of the completed investment portfolio of £19.8m (31
March 2025: £20.2m), compared to an ERV of £29.3m (31 March 2025: £29.3m).
· See-through portfolio WAULT(1) to break/expiry of 2.8 years (31 March
2025: 3.1 years). See-through portfolio WAULT(1) to expiry of 4.6 years.
· Vacancy rate on completed assets of 22.4% at 30 September 2025 (31
March 2025: 21.3%).
Sustainability Highlights
· Design stage BREEAM certificates received for 10 King William Street,
EC4, and Brettenham House, WC2, both with an Outstanding rating.
· NABERS Design for Performance Reviewed Target Rating of 5* received
for 10 King William Street, EC4.
· WELL precertification received at 10 King William Street, EC4 and
Brettenham House, WC2.
· The Tower, EC1 retained its EPC B rating under the new regulations.
Interim Dividend Timetable
Announcement date 26 November 2025
Ex-dividend date 4 December 2025
Record date 5 December 2025
Dividend payment date 14 January 2026
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial
Services Limited. The DRIP enables the Company's Shareholders to elect to have
their cash dividend payments used to purchase the Company's shares. More
information can be found at www.shareview.co.uk/info/drip
(http://www.shareview.co.uk/info/drip) .
For further information, please contact:
Helical plc 020 7629 0113
Matthew Bonning-Snook (Chief Executive)
James Moss (Chief Financial Officer)
Address: 22 Ganton Street, London, W1F 7FD
Website: www.helical.co.uk (http://www.helical.co.uk)
LinkedIn: linkedin.com/company/helicalplc/
FTI Consulting 020 3727 1000
Dido Laurimore/Richard Gotla/Andrew Davis
schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)
Results Presentation
Helical will be holding a presentation for analysts and investors starting at
9:00am on Wednesday 26 November 2025 at the offices of FTI Consulting, 200
Aldersgate, Aldersgate Street, London, EC1A 4HD. If you would like to attend,
please contact FTI Consulting on 020 3727 1000, or email
schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)
The presentation will be on the Company's website www.helical.co.uk
(http://www.helical.co.uk) and a live webcast and Q&A will also be
available.
Webcast Link:
https://brrmedia.news/HLCL_HY_25/26 (https://brrmedia.news/HLCL_HY_25/26)
Half Year Results Statement
At Helical, sustainability is at the heart of everything we do and is a key
component of our strategy. With this in mind, we have taken the decision to
cease mailing hard copies of our half year results reports to our Shareholders
and other stakeholders unless specifically requested. Should you wish to
receive a hard copy of our Results for the Half Year to 30 September 2025 by
post, please email your request to companysecretary@helical.co.uk
(mailto:companysecretary@helical.co.uk) . An electronic version of our Results
for the Half Year to 30 September 2025 is available on our website
(https://www.helical.co.uk/investors/results-and-presentations/
(https://www.helical.co.uk/investors/results-and-presentations/) ).
1. See Glossary for definition of terms. These interim condensed
consolidated financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the UK and the Disclosure Guidance
and Transparency Rules sourcebook of the UK's Financial Conduct Authority. In
common with usual and best practice in our sector, alternative performance
measures have also been provided to supplement IFRS, some of which are based
on the recommendations of the European Public Real Estate Association
("EPRA"), with others designed to give additional information about the
Group's share of assets and liabilities, income and expenses in subsidiaries
and joint ventures.
Chief Executive's Statement
Executing the Strategy
We continue to deliver on our strategy of developing best-in-class buildings
in highly desirable central London locations. A year ago, having recycled
equity to fund our development pipeline, we stated that "now is the time to
build" to "deliver best-in-class office developments into a supply constrained
2026". We are delivering on that strategy, having made significant progress on
the construction of 100 New Bridge Street, EC4, Brettenham House, WC2 and 10
King William Street, EC4, all of which complete in 2026. In April this year,
we announced the forward sale of 100 New Bridge Street, EC4 to State Street
Corporation for their own occupation, a year ahead of completion and in a
market defining transaction. The lack of development activity and, in
particular, the lack of the highest quality product in core submarkets is
underpinning the supply and demand imbalance and our decision to commit to our
significant development programme. With rental growth projected at 4-5% per
annum, we are confident that our office schemes being built, and about to
start, will deliver significant profits.
Maximising our Returns
Through working in partnership with existing landowners or capital providers,
we look to make our equity work harder. Our joint venture with Places for
London ("PfL") is progressing well, with terms now agreed with them to forward
fund the 429 unit PBSA scheme at Southwark, SE1. Enabling works have commenced
on our 235,000 sq ft Paddington office scheme ahead of the site drawdown in
January 2026, and we have lined up development financing at accretive terms
which is now credit approved and targeted to complete alongside the site
purchase.
The full refurbishment of Brettenham House, WC2, our equity-light c.128,000 sq
ft office scheme adjacent to Waterloo Bridge, is due to complete in Q3 2026.
This scheme highlights the opportunity to work with existing landlords to
transform their buildings into the best space, bringing our property
development expertise and providing a meaningful contribution to the capital
expenditure required.
Results for the Half Year
The results reflect a period of concentrated construction activity and a
focused effort on unlocking our future pipeline. The profit after tax for the
period to 30 September 2025 was £1.8m (2024: £4.7m). See-through net rental
income reduced by 30% to £7.7m (2024: £11.0m) following the disposal of
investment assets in the prior year. The developments generated a see-through
profit of £1.5m (2024: £0.3m) and there was a see-through net gain on sale
and revaluation of the investment portfolio of £2.0m (2024: £9.2m).
Total see-through net finance costs reduced to £2.5m (2024: £5.1m),
reflecting a lower level of debt and reduced refinancing costs. There was fall
of £3.2m (2024: £4.7m) in the valuation of the Group's see-through
derivative financial instruments.
Recurring see-through administration costs, before performance related awards,
decreased from £5.2m to £3.2m. For the period to 30 September 2025, £0.9m
of staff costs were recognised as development costs which is consistent with
the treatment for the year ended 31 March 2025 and aligns the costs to the
value they create. However, this adjustment was not made in the prior half
year period as it was not material. Performance related share awards and bonus
decreased to £0.5m (2024: £0.8m).
Since 1 April 2022, Helical has been a REIT and there was a £nil tax charge
(2024: £nil) for the Period.
The IFRS basic earnings per share was 1.5p (2024: 3.8p) and EPRA earnings per
share was 2.4p (2024: 2.3p).
Investment property valuations showed a small decrease on a like-for-like
basis of 0.5%, while the development portfolio value increased by 1.9%,
resulting in a net 0.3% increase overall. The see-through total investment
portfolio value increased to £572.6m (31 March 2025: £535.4m), primarily due
to capital expenditure on the development pipeline and a net valuation surplus
of £1.9m.
The Total Accounting Return, being the growth in the IFRS net asset value of
the Group, plus dividends paid in the Period, was 0.2% (2024: 1.3%). Based on
EPRA net tangible assets, the Total Accounting Return was 1.0% (2024: 0.8%).
EPRA net tangible assets per share increased to 349p (31 March 2025: 348p),
with an EPRA net disposal value per share of 345p (31 March 2025: 347p).
Balance Sheet Strength and Liquidity
The Group has a significant level of liquidity, with see-through cash and
unutilised bank facilities of £192.4m (31 March 2025: £244.5m) and a
development pipeline with Helical's equity commitment fully funded.
At 30 September 2025, the Group had £13.8m of cash deposits available to
deploy without restrictions and a further £12.6m of rent in bank accounts
available to service payments under loan agreements, cash held at managing
agents and cash held in joint ventures. In addition, the Group held rental
deposits from tenants of £7.9m. Furthermore, the Group had £158.1m of loan
facilities available to draw on.
The see-through loan to value ratio ("LTV") increased to 28.2% at the balance
sheet date (31 March 2025: 20.9%), with the see-through net gearing, the ratio
of net borrowings to the net asset value of the Group, increasing to 38.9% (31
March 2025: 26.5%), reflecting the development activity.
At the Period end, the average debt maturity of the Group's secured investment
debt increased to 3.0 years (31 March 2025: 2.5 years), after the exercising
of the first of two one-year extension options of the Group's Revolving Credit
Facility. The average cost of debt of this loan fell to 3.5% (31 March 2025:
3.8%). The Group's share of the weighted average cost of secured development
debt in joint ventures at 30 September 2025, excluding commitment fees, was
7.6% (31 March 2025: 8.5%) and the weighted average debt maturity was 3.0
years (31 March 2025: 3.5 years). Both development debt facilities benefit
from one-year extension options.
Asset Management
Our 334,000 sq ft campus at The Bower, EC1 sits on the newly peninsularised
roundabout at Old Street, extending the already generous public realm and
providing a much-improved connection to the revamped underground station. The
main ground floor reception and café have been significantly enhanced, and
the vacant accommodation presents to the market in both fitted and Cat-A
finishes, with a managed solution available on the lower two floors via the
serviced operation, Beyond the Bower. In the last three months we have seen a
material increase in the level of occupier interest. We believe this is
fuelled by the limited supply in the City core and the resurgence in tech/AI
demand which is attracted to fitted, flexible space that can accommodate
future expansion. This demand is highly focused on the very best buildings,
adjacent to the core markets, such as The Bower, EC1 which continues to
present as new.
We have negotiations ongoing on all of the available space and re-gear
discussions are underway for key 2027 lease events. We feel confident of
capturing this income and extending the WAULT as these transactions occur.
At The Loom in Whitechapel, whilst we have re-geared the lease with the
largest tenant in the Period, vacancy levels are stubbornly high, reflecting
the high availability levels in that particular submarket. Focus remains on
filling the vacant space, all of which has been refurbished, on flexible lease
terms.
Dividends
We continue to anchor our distributions with the annual Property Income
Distribution ("PID") payment, while considering EPRA earnings which include
development profits. In the Half Year to 30 September 2025, EPRA earnings per
share increased from 2.3p to 2.4p.
In light of the results for the year, the Board will be recommending to
Shareholders an interim dividend of 1.50p (2024: 1.50p) per share, all of
which will be a PID.
In addition, as announced with the forward sale of 100 New Bridge Street, EC4,
in April 2025, Helical remains committed to returning further capital to
Shareholders following receipt of the net proceeds of the sale, due in April
2026. We expect to recommend a minimum return to Shareholders of 50% of the
realised net profits from the joint venture, subject to the requirements of
the business.
Board Changes
As previously announced, the Board was pleased to welcome Martina Malone,
Non-Executive Director, to the Board on 1 September this year. Martina brings
30 years of finance, banking and real estate experience and serves on the
Nominations, Remuneration and Audit and Risk Committees.
During the Period, our Senior Independent Director, Sue Farr, stepped into the
role of designated Non-Executive Director for workforce engagement. Sue was
formally appointed to the position by the Board in July 2025 and has since
commenced a programme of engagement with the Helical team.
Future Pipeline and Outlook
In addition to our schemes at 10 King William Street, EC4, Southwark, SE1 and
Paddington, W2, our long-term joint venture with PfL will provide further
exciting opportunities both in the Office and PBSA/living-led sectors. As one
of the largest landowners in London, Transport for London and its property
business PfL have access to well-located sites on or adjacent to numerous
major transport hubs. The joint venture has now submitted a planning
application for a new c.55,000 sq ft office in Farringdon, located between two
of our former successful developments, The JJ Mack Building and Kaleidoscope,
and opposite the site for the new Museum of London.
London stands as one of the most dynamic and culturally significant global
cities. Its economy thrives across diverse sectors including finance,
technology, creative industries, education and tourism, offering opportunities
that attract ambitious professionals and entrepreneurs from across the globe.
London's educational and intellectual influence enhances its global status,
being home to prestigious universities such as University College London,
Imperial College and the London School of Economics and this provides us with
confidence in alternative use sectors, such as PBSA and living-led schemes.
Building upon the framework structure we have established for Southwark, SE1,
we are actively exploring additional opportunities for the PfL joint venture.
The likely first of these is a site located adjacent to White City Tube
station, which could be unlocked to provide a large PBSA scheme and benefits
from its proximity to an existing university. We also have two further
opportunities in London undergoing feasibility assessment.
With a significant amount of London real estate reaching the end of its life
and in the hands of owners who remain committed to owning London assets but
who do not have the expertise to redevelop, we see opportunities for new
partnerships, employing our equity-light approach, as we have at Brettenham
House, WC2, and pursuing the best value use for each opportunity.
Finally, as the investment market and pricing confidence returns, we will look
to deploy the equity released from committed and potential future sales into
new office opportunities in more traditional joint venture structures,
leveraging our existing relationships and building a network of new partners.
Matthew Bonning-Snook
Chief Executive
25 November 2025
Our Market
Overview
The central London office market continues to be shaped by strong occupational
demand and an ongoing shortage of new, high-quality space is driving strong
rental growth. These conditions support Helical's development-led strategy.
Working with partners the Group focuses on large scale office projects but
will pivot to alternative uses where appropriate, being flexible on deal
structures to help drive attractive returns.
There is clear evidence that occupiers are better informed of, and becoming
increasingly concerned about, future supply, often planning further ahead and
considering a broader range of options to secure the scarce best-in-class
space. At the same time, the investment market is seeing an increasing volume
of capital looking to be deployed and encouraging evidence of liquidity
returning for larger lot sizes.
The central London market is at the forefront of office investment recovery,
with investment growth up 60% over the course of the first half of this
calendar year according to JLL. The transaction close price versus asking
price spread has returned to positive for the first time since 2022,
signalling renewed competition and confidence among buyers.
This momentum is further supported by competitive debt markets, with lenders
increasingly keen to deploy funds to the strongest sponsors delivering the
best projects, with the cost of debt becoming increasingly accretive to
returns.
On the construction side, inflation has moderated compared to the sharp
increases experienced over the past two years, bringing greater stability to
project delivery. However, for many, development viability remains
challenging. The complex regulatory environment increasingly requires
developers to demonstrate considerable skill and adaptability to deliver
profitable schemes. Taken together, these factors explain why Knight Frank is
projecting less than 1m sq ft of new offices reaching practical completion in
2028, which is 5m sq ft below the long-term average take-up level for new and
refurbished space.
In this context, and despite these headwinds, the ability of experienced
developers such as Helical to deliver high-quality schemes into a
supply-constrained market and to structure effective partnerships is
increasingly valued, as both occupiers and investors seek certainty of
delivery and long-term value.
Occupational Market
Occupier demand in central London has remained strong throughout 2025. JLL
reports that leasing volumes reached 7.7m sq ft by the end of Q3, a 16%
increase over the equivalent period in 2024 and 8% above the ten-year average,
with the City recording its strongest year-to-date performance since 2018.
The occupational market continues to be defined by a pronounced flight to
quality. According to JLL, best-in-class space, including pre-let, newly
built, or comprehensively refurbished buildings accounts for 58% of
year-to-date take-up. Pre-letting remains a significant trend, with 25% of all
transactions involving space secured ahead of completion.
Vacancy rates for new and refurbished space in core submarkets are
exceptionally low. Knight Frank highlights that the new-build vacancy rate is
just 1.3% across central London, falling to 0.5% in the City core and 0.3% in
the West End core. This shortage of prime space continues to support rental
growth; Knight Frank records that prime rents have increased by 11.1% in the
City core and 21.7% in the West End core over the past year. Looking forward,
this is expected to continue, with forecasts indicating rental growth of
between 4-5% per annum for best-in-class space across the core markets.
However, the overall vacancy rate has risen slightly to 9.1%, primarily due to
increased second-hand supply in non-core locations. This trend reinforces
Helical's strategy to pursue alternative use schemes in sub-markets where
traditional office space is no longer considered the best use case, such as at
Southwark, SE1.
With increasing competition for the scarce, highest quality product, occupiers
are having to commit early, often in advance of their occupational need, to
secure the right space. With reducing new supply and increasing rents,
occupiers are turning their focus to the very best buildings in locations
adjacent to core markets where availability is currently greater and the
all-in occupational cost can be significantly lower. This trend is evident at
our Bower campus, where we have seen a notable increase in viewing numbers as
pricing and all-in occupational cost remain key factors in tenant
decision-making. Looking forward, this is set to intensify; Knight Frank
details that average rents at scale in the City core and West End core,
defined as requirements of 40,000 sq ft or more, are now 10% and 18% more
expensive respectively, leading to non-core viewings up 14% year on year as a
result. This differential will increasingly widen when the Valuation Office
Agency updates valuations for business rates purposes in April 2026.
JLL records 28 active searches for space over 100,000 sq ft, 75% above the
long-term average, with more than half of the total current active
requirements coming from occupiers with lease events from 2028 onwards,
underlining the need for businesses to forward plan to secure the best
available space and de-risk their occupational strategy.
Investment Market
Investment activity in central London has begun to re-emerge through 2025. By
the end of Q3 2025, total investment volumes reached £6bn, representing a 47%
increase over the equivalent period in 2024, though still 24% below the
long-term average. This recovery has been led by the City, which recorded a
76% increase in transactions compared to Q3 2024, while the West End also saw
a notable rise of 33%.
A defining trend this year has been the return of larger transactions. There
have been 15 deals over £100m completed so far in 2025, surpassing the total
for the whole of 2024. This has pushed the average lot size to £53m, a 67%
increase on last year, according to Knight Frank. Knight Frank also notes that
a further seven transactions above £100m are currently under offer and
awaiting exchange, suggesting continued momentum at the larger end of the
market.
Despite these positive indicators, overall activity remains below the
long-term average. Many investors, particularly those from overseas, appear to
be adopting a wait-and-see approach in light of recent global political
uncertainty prior to making capital allocation decisions. Positively, CBRE
highlights that Q3 marks the second consecutive quarter of increased
international equity targeting London, underlining London's continued appeal
to global capital even in a period of macroeconomic uncertainty.
As businesses increasingly prioritise amenity-rich real estate to attract and
retain talent, the combination of a highly competitive occupational market and
limited near-term availability of best-in-class space is driving occupiers to
explore less common routes, such as owner occupation, to secure future
accommodation early. A clear example of this is at 100 New Bridge Street, EC4,
where State Street Corporation forward purchased the development to secure its
long-term business needs.
Positively, there remains a significant volume of capital seeking to be
deployed, with growing interest in participating in development. Partnership
models that allow for risk sharing and leveraging on-the-ground development
expertise are increasingly attractive. Helical is well positioned to benefit
from these trends, building upon its established reputation to engage with a
range of capital partners to pursue equity-light and creative deal structures.
Development Pipeline
The central London development pipeline remains notably constrained, with a
pronounced supply-demand imbalance for the highest quality space. As of Q3
2025, there is 18.0m sq ft under construction across central London, of which
40% is already pre-let or under offer, leaving just 10.8m sq ft available
speculatively. This marks a significant shortfall in supply when set against
projected lease expiries of 28.1m sq ft over the next three years,
highlighting the growing challenge occupiers face in securing prime
accommodation.
Although construction cost inflation has moderated, with medium-term inflation
forecast at c.3%, scheme viability remains challenged. Developers are having
to engage early with a limited pool of top-tier contractors to secure delivery
and mitigate cost and program risk, while also enabling the most efficient
construction methods to be adopted. This, when combined with a complex
regulatory environment that continues to evolve with increasing requirements
around sustainability, safety, and design, is having a significant impact on
profitability and the ability to deliver schemes. Navigating these challenges
requires both experience and a forward-looking approach, to anticipate and
mitigate risks, as the landscape continues to shift.
The majority of the speculative pipeline beyond 2026 faces multiple barriers
to delivery, including planning, funding, and regulatory challenges. Over 59%
of the speculative pipeline scheduled for delivery in the next five years is
subject to such constraints, making actual delivery uncertain and further
reducing potential supply.
Notably, the supply crunch is most acute in the core submarkets. The City core
and West End core are projected to experience the largest shortfalls, with
Knight Frank forecasting a combined undersupply of nearly 11m sq ft of new and
refurbished space over the next five years.
As an experienced developer with extensive relationships across the sector,
these conditions should enable Helical to continue to profitably bring forward
a range of schemes.
Conclusion
The central London office market continues to be shaped by robust occupational
demand for the best space and an ongoing shortage of supply. The inherent
challenges and complexities in delivering new product is likely to see these
conditions persist. Helical's development-focused portfolio positions us to
take advantage of the prevailing market imbalance.
We remain agile in response to market conditions, delivering different use
classes where appropriate and structuring transactions to enhance our returns.
Through collaboration with our strategic partners, we continue to evaluate new
opportunities and apply our experience, market knowledge, and relationships to
bring forward profitable schemes that support sustainable value creation for
our Shareholders.
Sustainability
We are currently in the process of reviewing and updating our sustainability
strategy "Built for the Future" which was published five years ago. With a
strong pipeline of developments and future opportunities we recognise that our
sustainability strategy needs to reflect the core activities of the business.
We continue to progress well against the targets we have set, with a
particular focus on driving down carbon emissions at our development sites. In
further support of this ambition, we submitted 10 King William Street, EC4 to
the UK Net Zero Carbon Building Standard Pilot Scheme. The aim of the pilot
was to test and review real life projects against the targets and limits set
as part of the Standard. Comments and feedback from this process have been fed
into the official Version 1 of the Standard which is due to be released in
early 2026.
At our developments, 10 King William Street, EC4 received its Design Stage
BREEAM certificate in the Period, achieving a score of 92.9% and securing an
Outstanding rating. Alongside this, the development has also been awarded a
NABERS Design for Performance Reviewed Target Rating of 5*. This is the first
building within the Platinum Portfolio, Helical's joint venture with PfL, to
achieve this milestone and sets a new standard for energy efficiency and
sustainability within commercial offices.
We were also pleased to see the sustainability ambitions at Brettenham House,
WC2 recognised, with the receipt of both a Design Stage BREEAM certificate
achieving an Outstanding rating and the WELL precertification. This major
refurbishment of an original Art Deco building posed several sustainability
challenges which required the team to strike a careful balance between
creating a highly energy-efficient, green asset, while also preserving the
building's historic character.
At The Bower, EC1, an EPC review at The Tower was undertaken resulting in the
building retaining its EPC rating of B despite being assessed under the new
and more onerous Part L 2021 requirements. A testament to our commitment to
keep the campus "as new", this was achieved through a number of energy
efficiency upgrades implemented at the building including LED lighting, a BMS
upgrade and the installation of solar panels.
For our sustainability reporting, we received a Gold Award for the sixth
consecutive year from EPRA's Sustainability Best Practice Recommendations
(sBPR). The EPRA sBPR is intended to raise the standards and consistency of
sustainability reporting for listed real estate companies across Europe.
Alongside this, our commitments to sustainability were recognised by the
Financial Times , where Helical has been listed in the Financial Times'
Europe's Climate Leaders 2025, a prestigious independent ranking spotlighting
companies across Europe that have delivered the most significant reductions in
greenhouse gas emissions intensity and demonstrated credible climate action.
We were also pleased to see Helical among 101 companies to be recognised with
the London Stock Exchange Green Economy Mark, signifying that Helical
generates 50% or more of its annual revenue from green economy activities as
per the LSE's and FTSE Russell's classification standards.
Helical's Property Portfolio - 30 September 2025
Property Overview
We seek to maximise returns through delivering capital gains from our
development activity and income growth from active asset management. Focused
on central London, the Helical portfolio comprises investment assets we have
created and an exciting pipeline of development schemes, each designed to the
very highest standards to enable their occupiers to thrive and benefitting the
communities in which they are located. The pipeline includes three office
developments that will deliver into a supply constrained market in 2026, and
two further schemes that will formally commence within the next 12 months. We
are actively looking to add to our pipeline with further joint ventures and
equity-light opportunities.
Development Portfolio
100 New Bridge Street, EC4
Significant progress has been made throughout the Period on the extensive
refurbishment of 100 New Bridge Street. Practical completion is on target for
April 2026, upon which the forward sale of Helical Bicycle 3 Limited, the
corporate entity owning 100 New Bridge Street, shall complete. State Street
Corporation are acquiring the 194,500 sq ft office building to become their
new UK HQ in the City of London. The £333m net sale price (Helical share:
£166.5m) agreed in April 2025 reflects a capital value of £1,712 psf and a
5.00% capitalisation yield, underscoring the scheme's exceptional quality and
investor appeal.
The development is located adjacent to City Thameslink and a short walk from
Farringdon and Blackfriars stations, an area which has benefitted from
extensive recent redevelopment and has been transformed into a vibrant
business district. Designed to deliver the best quality workspace, the
building spans ground plus ten floors and features four terraces, including a
7,450 sq ft eighth-floor terrace with panoramic views of St. Paul's Cathedral
and central London. The development is targeting the highest sustainability,
technology and wellness credentials including EPC A, BREEAM Outstanding,
NABERS 5*, WELL Shell & Core Platinum, and WiredScore Platinum.
Brettenham House, WC2
Completion of the comprehensive refurbishment of Brettenham House is
anticipated in Q3 2026. This c.128,000 sq ft landmark building will deliver
prime office space with each floor benefitting from exceptional river views
along the Thames. Helical has worked to substantially remodel the building,
introducing enhanced amenities including five external terraces, a
triple-height reception, and a new dedicated entrance accessed via Savoy
Street. The historic façade and Art Deco features of the building, including
two marble clad staircases, have been carefully restored breathing new life
into the 1930s building. The development is targeting the highest
sustainability and wellness credentials including EPC A, BREEAM Outstanding,
NABERS 5*, and WELL Shell & Core Platinum.
Helical continues to co-invest in the development via a £12.5m secured loan.
This equity-light scheme is generating £2.5m in development management fees
and a profit share linked to rental performance, offering strong upside once
the building is successfully let. Occupier engagement remains encouraging with
active marketing to begin as practical completion approaches. The two storey
retail unit is now under offer to a leading food and beverage brand, further
enhancing the overall amenity offer.
10 King William Street, EC4
The ground up development of this eight-storey, 142,000 sq ft office scheme,
located on a rare island site within the City of London above the new Bank
station entrance on Cannon Street, is targeting practical completion in
December 2026. The building will feature virtually column-free floorplates, a
double-height reception, and a dedicated wellness lounge on the mezzanine
level. Occupiers will also benefit from 7,000 sq ft of external terraces with
panoramic views of London. Significant public realm enhancements will be
delivered as part of the scheme, including the transformation of Abchurch Lane
into a pedestrian-prioritised shared surface. The building is targeting BREEAM
Outstanding, NABERS 5*, WELL Shell & Core Platinum, and EPC A ratings.
Construction remains on programme and has progressed significantly in the
Period, with the structure topping out shortly. The £125m development
facility with HSBC will fund the remaining construction costs. With the supply
of new office space severely constrained and the City of London remaining a
highly sought after market, we are seeing encouraging pre-let occupier
interest from organisations operating in a range of sectors.
Southwark OSD, SE1
The development above Southwark underground station will comprise a
purpose-built student accommodation building with 429 high-quality studio
units, alongside 44 affordable homes in a separate block. The scheme will also
deliver significant public realm improvements, including a ground-floor retail
unit, extensive landscaping, and enhanced urban greening. It is targeting
BREEAM Outstanding certification and an EPC rating of A.
Construction is scheduled to commence in H1 2026 following receipt of Gateway
2 approval, with completion of both buildings targeted for 2029. Heads of
terms have been agreed for the forward funding of the student accommodation
building with Places for London and the forward sale of the affordable homes
to the London Borough of Southwark. It is intended that the respective
contracts will be exchanged before the year end.
Paddington OSD, W2
Paddington is set to be a market leading, sustainable new build development,
showcasing Helical's trademark design excellence and sustainability
credentials in a unique canal side location directly above the eastern
entrance of Paddington station. This building will deliver 235,000 sq ft of
best-in-class office accommodation across 15 floors. Each office floor will
benefit from full height windows to all elevations, panoramic views across
London, minimal columns for easy space planning, and private south facing
terraces. Paddington is targeting BREEAM Outstanding, WELL Shell & Core
Platinum, and EPC A ratings, and for the first time for Helical, a NABERS 5.5*
rating, which would be a significant achievement given only two other London
office developments currently hold a Design Stage Review Target rating.
During the Period, preparatory works have commenced on site ahead of the
formal site acquisition in January 2026. The design development has continued
to progress with non-material amendments securing further enhancements to the
original planning consent. It is anticipated that main works will commence in
Q1 2026 with a main contractor now appointed to provide pre-construction
services. Practical completion is targeted for Q3 2028, at a point of
particularly limited supply in the London market.
Investment Portfolio
The Tower, The Bower, EC1
The Tower is the largest building on The Bower campus and offers 171,432 sq ft
of office space arranged across seventeen floors. The Tower is home to a
diverse range of occupiers across many sectors including FinTech and
Marketing. In addition, the flexible offering at Beyond The Bower on the first
and second floors continues to be well utilised. The Tower also provides
10,905 sq ft of retail space across two units, let to Serata Hall and
Wagamama.
Asset management activity continues at The Tower with a primary focus on the
leasing of the 50,517 sq ft available space and continued engagement with
existing tenants. Discussions are ongoing with potential tenants across the
five available floors within the campus, with the range of different finishes,
from traditional Cat-A to fully fitted options, appealing to a broad mix of
occupational requirements. Within the last three months, interest levels have
significantly increased, driven in part by renewed demand from the technology
and AI sectors.
The Warehouse and Studio, The Bower, EC1
The Warehouse comprises 122,858 sq ft of grade A office accommodation arranged
over nine floors. The Studio provides a further 18,283 sq ft of fully let,
self-contained grade A office accommodation arranged over ground and three
upper floors.
There is just one floor of The Warehouse currently vacant which has been fully
refurbished and discussions are ongoing with an existing tenant looking to
take the floor as part of a business expansion. There is 10,298 sq ft of fully
let retail space across The Warehouse and Studio, resulting in an overall
vacancy rate of 8.2%.
The Loom, E1
The Loom is a former Victorian wool warehouse offering 107,227 sq ft of office
space plus a 1,313 sq ft café. At the end of the Period, vacancy stands at
33.4%, an increase from 28.6% at 31 March 2025. During the Period, we
successfully regeared our largest tenant, who occupies 10% of the NIA,
extending the lease to 2036, thereby enhancing the WAULT. With increasing
levels of interest we continue to actively manage the asset to reduce the
vacancy through flexible lease offerings.
Portfolio Analytics
See-through Total Portfolio by Fair Value
Investment % Development % Total
£m £m £m %
London Offices
- Completed properties 379.7 66.3 - 0.0 379.7 65.1
- Development pipeline 192.6 33.7 10.5 96.9 203.1 34.8
Total London Core 572.3 100.0 10.5 96.9 582.8 99.9
Other 0.2 0.0 0.3 3.1 0.5 0.1
Total Non-Core Portfolio 0.2 0.0 0.3 3.1 0.5 0.1
Total 572.5 100.0 10.8 100.0 583.3 100.0
Capital Expenditure
We have a committed and planned development and refurbishment programme.
Property Capex budget Proposed equity (Helical share) Proposed debt (Helical share) Commencement Completion
date
(Helical share) £m £m date
£m
Investment - committed
- 100 New Bridge Street, EC4 9.8 - 9.8 Under development Q2 2026
- Brettenham House, WC2 6.1 6.1 - Under development Q3 2026
- 10 King William Street, EC4 46.1 0.9 45.2 Under development Q4 2026
- Southwark OSD, SE1 13.9(1) 13.9(1) - H1 2026 Q3 2029
- Paddington OSD, W2 40.1 18.1 22.0(2) Q1 2026 Q3 2028
Investment - planned
- Paddington OSD, W2 121.0 54.5 66.5(2) Q1 2026 Q3 2028
1. £10.9m relates to the site purchase which
will not be incurred if the forward funding is achieved.
2. Assumes 55% LTC debt facility arranged.
Asset Management
Asset management is a critical component in driving Helical's performance.
Through having well considered business plans and maximising the combined
skills of our management team, we are able to create value in our assets.
Passing % Contracted rent % ERV % ERV change
Investment portfolio rent £m £m like-for-like
£m %
London Offices 18.9 100.0 19.8 100.0 29.3 62.7 0.0
Development pipeline - 0.0 - 0.0 17.3 37.1 0.0
Total London 18.9 100.0 19.8 100.0 46.6 99.8 0.0
Other 0.0 0.0 0.0 0.0 0.1 0.2 0.0
Total 18.9 100.0 19.8 100.0 46.7(1) 100.0 0.0
1. Reduces to £36.9m on sale of 100 New Bridge Street, EC4.
See-through
total portfolio contracted rent
£m
Rent lost at break/expiry (0.2)
Movement in rent through active asset management (0.2)
Net decrease in the Period (0.4)
Investment Portfolio
Valuation Movements
Valuation Investment portfolio Investment portfolio
change weighting weighting
% 30 September 2025 31 March 2025
% %
London Offices
- Completed properties (0.5) 66.3 71.0
- Development pipeline 1.9 33.7 29.0
Total 0.3 100.0 100.0
Portfolio Yields
EPRA topped EPRA topped Reversionary Reversionary True equivalent yield True equivalent yield
up NIY up NIY yield yield 30 September 31 March
30 September 31 March 30 September 31 March 2025 2025
2025 2025 2025 2025 % %
% % % %
London Offices
- Completed properties 5.1 5.0 7.1 7.1 7.0 7.1
- Development pipeline n/a n/a 5.9 6.1 5.3 5.3
Total 5.1 5.0 6.4 6.5 6.0 6.0
See-through Capital Values, Vacancy Rates and Unexpired Lease Terms
Capital value Capital value Vacancy rate Vacancy rate WAULT WAULT
30 September 31 March 30 September 31 March 30 September 31 March
2025 2025 2025 2025 2025 2025
£ psf £ psf % % Years Years
London Offices 856 856 22.4 21.3 2.8(1) 3.1
Development pipeline 573 462 n/a n/a n/a n/a
1. WAULT to expiry is 4.6 years.
See-through Lease Expiries or Tenant Break Options
Half Year to Year to Year to Year to Year to 2030
2026 2027 2028 2029 2030 onward
% of rent roll 2.9% 9.6% 56.2% 12.7% 11.3% 7.3%
Number of leases 7 11 22 7 5 8
Average rent per lease (£) 82,104 172,850 504,591 358,046 443,985 180,560
Financial Review
IFRS Performance EPRA Performance
Profit after tax EPRA earnings
£1.8m (2024: £4.7m)
£3.0m (2024: £2.8m)
Earnings per share (EPS) EPRA EPS
1.5p (2024: 3.8p)
2.4p (2024: 2.3p)
Diluted NAV per share EPRA NTA per share
345p (31 March 2025: 346p)
349p (31 March 2025: 348p)
Overview
The period ended 30 September 2025 has seen significant progress in the
construction of the development pipeline, resulting in valuation gains on
these assets and an increase in development income. The sale of Investment
properties in the prior year has resulted in the reduction of net rental
income, with corresponding repayment of debt reducing net finance costs. The
benefits of the actions taken in the prior period to reduce overheads,
including moving offices and reducing headcount, are now being realised.
Results for the Period
The IFRS profit for the Period of £1.8m (2024: £4.7m) includes revenue from
rental income of £9.9m, service charge income of £3.7m and development
management and promote fees of £2.9m. These were offset by direct costs of
£7.3m, of which £3.7m are the corresponding service charge costs, resulting
in a net property income of £9.2m (2024: £8.6m). There was a net loss on
sale and revaluation of investment properties of £1.8m (2024: net gain of
£11.8m) and the gain from joint venture activities was £3.4m (2024: loss of
£1.1m). Administration expenses of £3.6m (2024: £5.9m) and net finance
costs of £2.5m (2024: £3.8m), were further increased by a loss in the fair
value of derivatives of £2.9m (2024: £4.9m).
The Group holds a significant proportion of its property assets in joint
ventures. As the risk and rewards of ownership of these underlying properties
are the same as those it wholly owns, Helical supplements its IFRS disclosure
with a "see-through" analysis of alternative performance measures, which looks
through the structures to show the Group's share of the underlying business.
The see-through results for the period to 30 September 2025 include net rental
income of £7.7m (2024: £11.0m), a net gain on sale and revaluation of the
investment portfolio of £2.0m (2024: £9.2m) and development profits of
£1.5m (2024: £0.3m), leading to a Total Property Return of £11.2m (2024:
£20.4m). Administration costs of £3.6m (2024: £6.0m) and see-through net
finance costs of £2.5m (2024: £5.1m) plus see-through losses from the
mark-to-market valuation of derivative financial instruments of £3.2m (2024:
£4.7m) contributed to an overall IFRS profit of £1.8m (2024: £4.7m).
The increase in development fees and reduction in administrative and net
finance costs, partially offset by a fall in net rental income, resulted in an
increase in EPRA EPS for the Period to 2.4p (2024: 2.3p).
The interim dividend, payable on 14 January 2025, will be 1.50p per share
(2024: 1.50p).
The EPRA net tangible asset value per share increased to 349p (31 March 2025:
348p).
The Group's investment portfolio, including its share of assets held in joint
ventures, increased to £572.6m (31 March 2025: £535.4m), primarily due to
capital expenditure on the investment portfolio of £35.6m, as well as a net
revaluation gain of £1.9m.
The Group's see-through loan to value at 30 September 2025 was 28.2% (31 March
2025: 20.9%). The Group's weighted average cost of secured investment debt at
30 September 2025, including commitment fees, was 3.5% (31 March 2025: 3.8%)
and the weighted average debt maturity was 3.0 years (31 March 2025: 2.5
years). The Group's share of the weighted average cost of secured development
debt in joint ventures at 30 September 2025, excluding commitment fees, was
7.6% (31 March 2025: 8.5%) and the weighted average debt maturity was 3.0
years (31 March 2025: 3.5 years).
At 30 September 2025, the Group had unutilised bank facilities of £158.1m and
cash of £34.3m on a see-through basis. These are primarily available to fund
future property acquisitions and capital expenditure.
Total Property Return
We calculate our Total Property Return to enable us to assess the aggregate of
income and capital profits made each year from our property activities. Our
business is primarily aimed at producing surpluses in the value of our assets
through asset management and development, with the income side of the business
seeking to cover our annual administration and finance costs.
Half Year to Half Year to Half Year to
2025 2024 2023
£m £m £m
Total Property Return 11.2 20.4 (84.8)
See-through Total Accounting Return
Total Accounting Return is the growth in the net asset value of the Group plus
dividends paid in the Period, expressed as a percentage of the net asset value
at the beginning of the Period. The metric measures the growth in
Shareholders' Funds each period and is expressed as an absolute measure.
Half Year to Half Year to Half Year to
2025 2024 2023
% % %
Total Accounting Return on IFRS net assets 0.2 1.3 (15.9)
Total Accounting Return on EPRA net tangible assets is the growth in the EPRA
net tangible asset value of the Group plus dividends paid in the Period,
expressed as a percentage of the EPRA net tangible asset value at the
beginning of the Period.
Half Year to Half Year to Half Year to
2025 2024 2023
% % %
Total Accounting Return on EPRA net tangible assets 1.0 0.8 (16.6)
Earnings Per Share (EPS)
The IFRS earnings per share of 1.5p (2024: 3.8p) is based on the after-tax
earnings attributable to ordinary shares divided by the weighted average
number of shares in issue during the year.
On an EPRA basis, the earnings per share was 2.4p compared to an earnings per
share of 2.3p in 2024, reflecting a decrease in the Group's share of net
finance costs to £2.5m (2024: £5.1m) and an increase in development profits
to £1.5m (2024: £0.3m) offset by a reduction in net rental income to £7.7m
(2024: £11.0m). EPRA EPS excludes gains on sale and revaluation of investment
properties of £2.0m (2024: £9.2m).
Net Asset Value
IFRS diluted net asset value per share decreased marginally to 345p per share
(31 March 2025: 346p) and is a measure of Shareholders' Funds divided by the
number of shares in issue at the Period end, adjusted to allow for the effect
of all dilutive share awards.
EPRA net tangible asset value per share increased to 349p (31 March 2025:
348p).
EPRA net disposal value per share decreased to 345p (31 March 2025: 347p).
Income Statement
Rental Income and Property Overheads
Gross rental income for the Group in respect of wholly owned properties
decreased marginally to £10.0m (2024: £10.3m) before adjusting for lease
incentives.
Offset against gross rental income are lease incentives of £0.1m reflecting
the net reversal of previously recognised rental income accrued in advance of
receipt (2024: £0.1m addition). Overall, this resulted in gross rental income
of wholly owned properties of £9.9m (2024: £10.4m).
2025 2024
£000
£000
Gross rental income (excluding lease incentives) - subsidiaries 10,034 10,351
Lease incentives - subsidiaries (133) 52
Total gross rental income 9,901 10,403
Gross rental income in joint ventures decreased to £nil (2024: £3.1m) as a
result of the sale of The JJ Mack Building, EC1, in the prior year.
Property overheads in respect of wholly owned assets and in respect of those
assets in joint ventures decreased to £2.2m (2024: £2.5m) in line with the
reduced joint venture rental income.
Overall, see-through net rents decreased by 30% to £7.7m (2024: £11.0m) due
to sales of investment assets in the prior year.
The table below demonstrates the movement of the accrued income balance for
rent free periods granted and the respective rental income adjustment over the
period to 31 March 2029, based on the tenant leases at 30 September 2025. The
actual adjustment will vary depending on lease events such as new lettings and
early terminations and future acquisitions or disposals.
Accrued Adjustment to rental income
income £000
£000
6 months to 31 March 2026 5,674 (656)
Year to 31 March 2027 4,389 (1,285)
Year to 31 March 2028 3,249 (1,140)
Year to 31 March 2029 2,039 (1,210)
Rent Collection
We have collected 99.9% of all rent contracted and payable for the half year
to 30 September 2025 and, to date, have collected 99.4% of the September 2025
quarter rents demanded (98.5% at the corresponding date last year). In the
Period, £12,000 was written off as a bad debt relating to amounts considered
irrecoverable from one tenant at The Loom, E1.
Development Profits
During the Period, the Group recognised development management and promote
fees for 100 New Bridge Street, EC4, Brettenham House, WC2, and 10 King
William Street, EC4, totalling £2.9m. These were offset by development staff
costs of £0.9m and other net development costs of £0.5m, leading to a net
development profit of £1.5m (2024: £0.3m).
Share of Results of Joint Ventures
Net rental income recognised in the Period was £nil (2024: £2.7m) following
the sale of The JJ Mack Building, EC1, in October 2024. All other significant
properties in joint ventures are in the course of development, with no rental
income being earned.
The revaluation of our investment properties held in joint ventures generated
a surplus of £3.6m (2024: deficit of £2.7m) and a retention received
relating to an Investment property sold in a prior year of £0.2m was
recognised in the Period.
Finance, administration and other sundry costs totalling £0.4m (2024: £1.1m)
were incurred and after a tax charge of £nil (2024: £nil), there was a net
profit from our joint ventures of £3.4m (2024: loss of £1.1m).
Gain on Sale and Revaluation of Investment Properties
The net gain on the sale and revaluation of the investment portfolio on a
see-through basis, including in joint ventures, was £2.0m (2024: £9.2m).
Administrative Expenses
Recurring administration costs in the Group, before performance related
awards, decreased from £5.1m to £4.0m. For the period to 30 September 2025,
£0.9m of staff costs were recognised in development costs which is consistent
with the treatment for the year ended 31 March 2025, but this adjustment was
not reflected in the period ended 30 September 2024.
Performance related share awards and bonus payments decreased to £0.5m (2024:
£0.8m). Of this amount, £0.4m (2024: £0.4m), being the charge for share
awards under the Performance Share Plan, is expensed through the Income
Statement but added back to Shareholders' Funds through the Statement of
Changes in Equity.
2025 2024
£000 £000
Administrative expenses (excluding performance related awards) 4,002 4,493
Accelerated depreciation charges and restructuring costs - 607
Total Group administrative expenses 4,002 5,100
Recognised in development costs (cost of sales) (912) -
Net Group administration expenses 3,090 5,100
Performance related awards and related NIC 477 795
3,567 5,895
In joint ventures 81 82
Total 3,648 5,977
Finance Costs, Finance Income and Change in Fair Value of Derivative Financial
Instruments
Net finance costs excluding changes in fair value of derivative financial
instruments, but including joint ventures, reduced to £2.5m (2024: £5.1m).
This was largely due to the sale of the JJ Mack Building, EC1 in October 2024
and additional costs in the previous year related to the refinancing of the
Group's Revolving Credit Facility.
Group 2025 2024
£000
£000
Interest payable on secured bank loans 2,466 1,511
Other interest payable and similar charges 784 1,276
Total interest payable before cancellation of loans 3,250 2,787
Cancellation of loans - 1,960
Total finance costs 3,250 4,747
Finance income (726) (923)
Net finance costs 2,524 3,824
Joint Ventures
Interest payable on secured bank loans 2,241 1,209
Other interest payable and similar charges - 108
Interest capitalised (2,239) -
Total finance costs 2 1,317
Finance income (12) (27)
Net finance (income)/costs (10) 1,290
See-through net finance costs 2,514 5,114
The movement downwards in medium and long-term interest rate projections
during the Period contributed to a loss of £3.2m (2024: £4.7m) on the
mark-to-market valuation of the derivative financial instruments on a
see-through basis.
IFRS Disclosure 2025 2024
£000 £000
Net finance costs -subsidiaries 2,524 3,824
Change in fair value of derivative financial instruments -subsidiaries 2,943 4,893
Net finance costs and change in fair value of financial instruments 5,467 8,717
Taxation
The Group has been a REIT since 1 April 2022, and is exempt from UK
corporation tax on the profits of its property activities that fall within the
REIT regime. Helical will continue to pay corporation tax on its profits that
are not within this regime.
As a consequence, the tax charge for the Period was £nil (2024: £nil).
Dividends
The Board has declared an interim dividend for the Period of 1.50p (2024:
1.50p) per share. All of the dividend is a PID as required under the REIT
regime.
Balance Sheet
Shareholders' Funds
Shareholders' Funds at 1 April 2025 were £426.1m. The Group generated Total
Comprehensive Income for the Period of £1.8m (2024: £4.7m). Movements in
reserves arising from the Group's share schemes decreased funds by £0.8m due
to purchasing own shares and settling a deferred bonus, offset by the charge
for the Performance Share Scheme being added back. The Company paid dividends
to Shareholders during the Period of £4.3m. As a result of these movements,
Shareholders' Funds decreased by £3.3m to £422.8m.
Investment Portfolio
Wholly owned In joint venture See-through
£000
£000 £000
Valuation at 31 March 2025 379,900 155,495 535,395
Capital expenditure 2,031 33,527 35,558
Letting costs amortised (106) - (106)
Revaluation (deficit)/surplus (1,895) 3,613 1,718
Valuation at 30 September 2025 379,930 192,635 572,565
Brought forward lease incentives (6,557) - (6,557)
Adjustment for lease incentives 133 - 133
Book value at 30 September 2025 373,506 192,635 566,141
The Group expended £35.6m on capital works across the Investment portfolio on
a see-through basis at 100 New Bridge Street, EC4 (£23.0m), 10 King William
Street, EC4 (£10.6m), The Bower, EC1 (£1.4m), and The Loom, E1 (£0.6m).
Revaluation gains resulted in a £1.7m increase in the see-through fair value
of the portfolio, before lease incentives, to £572.6m (31 March 2025:
£535.4m). The accounting for head leases and lease incentives resulted in a
book value of the see-through investment portfolio of £566.1m (31 March 2025:
£528.8m).
Debt and Financial Risk
The Group's secured investment debt at 30 September 2025 was £150.0m (31
March 2025: £175.0m) with a weighted average cost of 3.5% (31 March 2025:
3.8%) and average maturity of 3.0 years (31 March 2025: 2.5 years). The
Group's share of secured development debt at 30 September 2025 was £53.2m (31
March 2025: £20.8m) with a weighted average cost of 7.6% (31 March 2025:
8.5%) and average maturity of 3.0 years (31 March 2025: 3.5 years).
Debt Profile at 30 September 2025 - Excluding the Amortisation of Arrangement
Fees
Group's secured investment debt Total Total Available Weighted average Average maturity of facilities
facility utilised facility interest rate(1) Years
£000s £000s £000s %
£210m Revolving Credit Facility 210,000 150,000 60,000 3.5 3.0
Working capital 10,000 - 10,000 - 1.0
Total 220,000 150,000 70,000 3.5 2.9
1. Including commitment fees.
Group's share of secured development debt Total Total Available Weighted average Average maturity of facilities
facility utilised facility interest rate(2) Years
£000s £000s £000s %
£155m 100 New Bridge Street Development Facility 77,500 44,301 33,199 7.5 2.6
£125m 10 King William Street Development Facility 63,750 8,863 54,887 8.5 3.4
Total 141,250 53,164 88,086 7.6 3.0
2. Excluding commitment fees.
Secured Debt
The Group arranges its secured investment and development facilities to suit
its business needs as follows:
- £210m Revolving Credit Facility
Both of the Group's wholly owned investment assets are secured in this
facility. The fair value of the Group's properties secured in the facility at
30 September 2025 was £380m (31 March 2025: £380m), with a corresponding
loan to value of 39.5% (31 March 2025: 46.1%). This facility is hedged by
£175m of interest rate swaps with a weighted average maturity of 3.1 years
and a weighted average swap rate of 1.5%, resulting in an overall weighted
average interest rate (including commitment fees) of 3.5%.
During the Period, a one-year extension option was exercised to extend the
repayment date to September 2028. The average maturity of the facility at 30
September 2025 was 3.0 years (31 March 2025: 2.5 years). There is one further
extension option available to exercise to extend the facility's repayment date
to September 2029.
- Joint Venture Facilities
The Group has a number of investment and development properties in joint
ventures with third parties and includes our share, in proportion to our
economic interest, of the debt associated with each asset.
The £155m 100 New Bridge Street, EC4 facility with an institutional lender
and NatWest was drawn to £44.3m (31 March 2025: £20.3m). This facility is
fully hedged by £105m of fixed rate debt and stepped interest rate swaps at
3.8% plus margin. This margin starts at 4.65% during the development phase,
reducing to 2.25% on letting post completion. Following a margin reduction for
the exchange on sale of the building in April 2025, the weighted average
interest rate, excluding commitment fees, was 7.5% (31 March 2025: 8.5%) with
an average maturity of 2.6 years at 30 September 2025 (31 March 2025: 3.1
years).
At the Period end, the £125m facility with HSBC for 10 King William Street,
EC4, was drawn to £8.9m (31 March 2025: £0.5m). This facility is fully
hedged by stepped interest rate swaps, had a weighted average interest rate
(excluding commitment fees) of 8.5% (31 March 2025: 8.5%) and an average
maturity of 3.4 years at 30 September 2025 (31 March 2025: 3.9 years). The
margin starts at 4.60% during the development phase, reducing to 2.25% on
letting post completion.
Both facilities benefit from one-year extension options.
Unsecured Debt
The Group's utilised unsecured debt is £nil (31 March 2025: £nil).
Cash and Cash Flow
At 30 September 2025, the Group had £192.4m (31 March 2025: £244.5m) of cash
and agreed, undrawn, committed bank facilities including its share in joint
ventures.
Net Borrowings and Gearing
Total gross borrowings of the Group, including in joint ventures, have
increased from £195.8m to £203.2m during the period to 30 September 2025
primarily due to funding development activity at 100 New Bridge Street, EC4
and 10 King William Street, EC4, offset by the net repayment of the RCF of
£25m. After deducting cash balances of £34.3m (31 March 2025: £79.0m) and
unamortised refinancing costs of £4.4m (31 March 2025: £4.0m), see-through
net borrowings increased from £112.8m to £164.5m. The see-through gearing of
the Group, including in joint ventures, increased from 26.5% to 38.9%.
30 September 31 March
2025 2025
See-through gross borrowings £203.2m £195.8m
Unamortised refinancing costs £4.4m £4.0m
See-through cash balances £34.3m £79.0m
See-through net borrowings £164.5m £112.8m
Shareholders' funds £422.8m £426.1m
See-through loan to value 28.2% 20.9%
See-through gearing - IFRS net asset value 38.9% 26.5%
James Moss
Chief Financial Officer
25 November 2025
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
a) The condensed unaudited consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting;
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events and their
impact during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
On behalf of the Board
James Moss
Chief Financial Officer
25 November 2025
Independent Review Report to Helical Plc
Introduction
We have been engaged by Helical plc ('the Company') to review the condensed
set of financial statements of the Company and its subsidiaries (the 'Group')
in the half year financial report for the six months ended 30 September 2025
which comprises consolidated income statement, consolidated balance sheet,
consolidated cash flow statement, consolidated statement of changes in equity
and notes to the half year results. We have read the other information
contained in the half-yearly financial report and considered whether it
contains any apparent material misstatements of fact or material
inconsistencies with the information in the condensed set of financial
statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 is not prepared,
in all material respects, in accordance with International Accounting Standard
34, "Interim Financial Reporting" as contained in UK-adopted International
Accounting Standards, and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" ('ISRE (UK) 2410') issued for use in
the United Kingdom. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with UK adopted International Accounting Standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting" as contained in UK-adopted International
Accounting Standards.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the Group and
the Company to cease to continue as a going concern.
Responsibilities of Directors
The half-yearly financial report, is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with International Accounting
Standard 34, "Interim Financial Reporting" as contained in UK-adopted
International Accounting Standards and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the Directors are responsible
for assessing the Group's and the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to
liquidate the Group or the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Review of the Financial Information
In reviewing the half-yearly financial report, we are responsible for
expressing to the Company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our conclusion, including our
Conclusions Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our Report
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK) 2410 "Review of Interim Financial
Information performed by the Independent Auditor of the Entity". Our review
work has been undertaken so that we might state to the Company those matters
we are required to state to them in an independent review report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company, for our review work,
for this report, or for the conclusions we have formed.
RSM UK Audit LLP
Chartered Accountants
25 Farringdon Street
London
EC4A 4AB
25 November 2025
Unaudited Consolidated Income Statement
For the Half Year to 30 September 2025
Notes Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Revenue 3 16,483 16,920 31,962
Cost of sales 3 (7,303) (8,361) (15,389)
Net property income 4 9,180 8,559 16,573
Share of results of joint ventures 12 3,401 (1,143) 20,825
12,581 7,416 37,398
Gain on sale of Investment properties 5 - 10,090 9,376
Revaluation (loss)/gain on Investment properties 11 (1,762) 1,757 2,642
10,819 19,263 49,416
Administrative expenses 6 (3,567) (5,895) (10,705)
Operating profit 7,252 13,368 38,711
Net finance costs and change in fair value of derivative financial instruments 7 (5,467) (8,717) (10,762)
Profit before tax 1,785 4,651 27,949
Tax on profit on ordinary activities 8 - - -
Profit for the Period 1,785 4,651 27,949
Earnings per share 10
Basic 1.5p 3.8p 22.8p
Diluted 1.5p 3.8p 22.7p
All the activities of the Group are from continuing operations.
There were no items of comprehensive income in the current or prior periods
other than the profit for the Period and, accordingly, no Statement of
Comprehensive Income is presented.
Unaudited Consolidated Balance Sheet
At 30 September 2025
Notes At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Non-current assets
Investment properties 11 373,506 371,933 373,343
Owner occupied property, plant and equipment 1,875 2,826 2,105
Investment in joint ventures 12 153,417 142,042 141,537
Other investments 13 707 586 670
Derivative financial instruments 21 11,403 12,742 14,346
Trade and other receivables 16 5,658 1,056 3,164
546,566 531,185 535,165
Current assets
Land and developments 14 499 28 139
Asset held for sale 15 - 6,880 -
Trade and other receivables 16 16,533 15,472 13,109
Cash and cash equivalents 17 30,288 66,130 76,499
47,320 88,510 89,747
Total assets 593,886 619,695 624,912
Current liabilities
Trade and other payables 18 (20,893) (25,023) (23,273)
Lease liability 19 (371) (861) (339)
(21,264) (25,884) (23,612)
Non-current liabilities
Borrowings 20 (148,549) (186,594) (173,730)
Lease liability 19 (1,289) (3,008) (1,476)
(149,838) (189,602) (175,206)
Total liabilities (171,102) (215,486) (198,818)
Net assets 422,784 404,209 426,094
Equity
Called-up share capital 22 1,233 1,233 1,233
Share premium account 116,619 116,619 116,619
Revaluation reserve (50,058) (48,502) (48,296)
Capital redemption reserve 7,743 7,743 7,743
Own shares held (2,478) (1,675) (1,675)
Other reserves 291 291 291
Retained earnings 349,434 328,500 350,179
Total equity 422,784 404,209 426,094
Unaudited Consolidated Cash Flow Statement
For the Half Year to 30 September 2025
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Cash flows from operating activities
Profit before tax 1,785 4,651 27,949
Adjustment for:
Depreciation 254 844 1,326
Revaluation loss/(gain) on Investment properties 1,762 (1,757) (2,642)
Letting cost amortisation 106 70 173
Gain on sale of Investment properties - (10,090) (9,376)
Loss/(profit) on sale of plant and equipment 9 (36) (48)
Net financing costs 2,524 3,824 7,473
Change in value of derivative financial instruments 2,943 4,893 3,289
Share based payment charge 413 396 1,096
Share of results of joint ventures (3,401) 1,143 (20,825)
Profit on disposal of 5 Hanover Square lease - - (125)
Cash inflows from operations before changes in working capital 6,395 3,938 8,290
Change in trade and other receivables (3,423) 1,709 2,342
Change in land, developments and trading properties (360) - (111)
Change in trade and other payables (2,469) 495 (2,273)
Cash inflows generated from operations 143 6,142 8,248
Finance costs (3,342) (4,148) (8,437)
Finance income 625 923 1,629
(2,717) (3,225) (6,808)
Net cash (used by)/generated from operating activities (2,574) 2,917 1,440
Cash flows from investing activities
Additions to Investment property (2,031) (3,782) (5,090)
Net purchase of other investments (37) (21) (105)
Loans to third parties (2,393) - (2,997)
Net proceeds from sale of Investment property and available for sale assets - 152,029 158,875
Investments in joint ventures and subsidiaries (8,674) (69,742) (116,042)
Proceeds from disposal of interest in joint ventures - - 71,027
Dividends from joint ventures 196 481 582
Sale of plant and equipment - 52 66
Purchase of leasehold improvements, plant and equipment (33) (118) (335)
Net cash (used by)/generated from investing activities (12,972) 78,899 105,981
Cash flows from financing activities
Borrowings drawn 15,000 - 37,000
Borrowings repaid (40,000) (42,000) (92,000)
Lease liability payments (156) (406) (529)
Purchase of own shares (1,225) - -
Equity dividends paid (4,284) (1,913) (4,026)
Net cash used by financing activities (30,665) (44,319) (59,555)
Net (decrease)/increase in cash and cash equivalents (46,211) 37,497 47,866
Cash and cash equivalents at start of Period 76,499 28,633 28,633
Cash and cash equivalents at end of Period 30,288 66,130 76,499
Unaudited Consolidated Statement of Changes in Equity
At 30 September 2025
Share Share Revaluation Capital Own shares Other Retained earnings Total
capital premium reserve redemption held reserves £000 £000
£000 £000 £000 reserve £000 £000
£000
At 31 March 2024 1,233 116,619 (134,797) 7,743 (1,675) 291 411,661 401,075
Total comprehensive income - - - - - - 27,949 27,949
Revaluation surplus - - 2,642 - - - (2,642) -
Realised on disposals - - 83,859 - - - (83,859) -
Transactions with owners
Performance Share Plan - - - - - - 896 896
Share settle bonus - - - - - - 200 200
Dividends paid - - - - - - (4,026) (4,026)
Total transactions with owners - - - - - - (2,930) (2,930)
At 31 March 2025 1,233 116,619 (48,296) 7,743 (1,675) 291 350,179 426,094
Total comprehensive income - - - - - - 1,785 1,785
Revaluation deficit - - (1,762) - - - 1,762 -
Transactions with owners
Performance Share Plan - - - - - - 413 413
Share settled bonus - - - - 240 - (421) (181)
Purchase of own shares - - - - (1,043) - - (1,043)
Dividends paid - - - - - - (4,284) (4,284)
Total transactions with owners - - - - (803) - (4,292) (5,095)
At 30 September 2025 1,233 116,619 (50,058) 7,743 (2,478) 291 349,434 422,784
Share Share Revaluation Capital Own Other Retained earnings Total
capital premium reserve redemption shares reserves £000 £000
£000 £000 £000 reserve held £000
£000 £000
At 31 March 2024 1,233 116,619 (134,797) 7,743 (1,675) 291 411,661 401,075
Total comprehensive income - - - - - - 4,651 4,651
Revaluation surplus - - 1,757 - - - (1,757) -
Realised on disposals - - 84,538 - - - (84,538) -
Transactions with owners
Performance Share Plan - - - - - - 396 396
Dividends paid - - - - - - (1,913) (1,913)
Total transactions with owners - - - - - - (1,517) (1,517)
At 30 September 2024 1,233 116,619 (48,502) 7,743 (1,675) 291 328,500 404,209
Unaudited Notes to the Half Year Results
1. Financial Information and Basis of Preparation
The Company is a public limited company incorporated and domiciled in England
and Wales and listed on the Main Market of the London Stock Exchange. The
registered office address is 22 Ganton Street, London, W1F 7FD. These
condensed interim financial statements were approved for issue on 25 November
2025.
The financial information contained in this statement does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006. The full accounts for the year ended 31 March 2025, approved by the
Board of Directors on 20 May 2025, which were prepared under International
Financial Reporting Standards as adopted by the United Kingdom and which
received an unqualified report from the Auditors, and did not contain a
statement under Section 498(2) or Section 498(3) of the Companies Act 2006,
have been filed with the Registrar of Companies.
These interim condensed unaudited consolidated financial statements do not
include all of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial statements
of the Group for the year ended 31 March 2025.
These interim condensed unaudited consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by
the United Kingdom and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority. The same
accounting policies and methods of computation are followed in the 30
September 2025 interim condensed unaudited consolidated financial statements
as in the most recent annual financial statements.
Change in Accounting Policies
In the current year, the following amendments have been adopted which are
effective for periods commencing on or after 1 January 2025:
· Amendments to IAS 1: Non-current liabilities with covenants, and
classification of liabilities as current or non-current;
· Amendments to IFRS 16: Lease liability in a sale and leaseback; and
· Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements.
As a result of the adoption of the amendments to IAS 1, the Group changes its
accounting policy for the classification of borrowings:
· "Borrowings are classified as current liabilities unless at the end of
the reporting period the Group has a right to defer settlement of the
liability for at least 12 months after the reporting period."
This new policy did not result in a change in the classification of the
Group's borrowings. The Group did not make any retrospective adjustments as a
result of adopting the amendments to IAS 1.
Standards and Interpretations in Issue but Not yet Effective
At the date of authorisation of these financial statements there were
standards and amendments which were in issue but not yet effective and which
have not been applied. The principal ones were:
· IFRS 18: Presentation and Disclosure in Financial Statements
(effective 1 January 2027 - subject to endorsement by the UKEB).
The Directors do not expect the adoption of these standards and amendments to
have a material impact on the financial statements.
Going Concern
The Directors have considered the appropriateness of adopting a going concern
basis in preparing the financial statements. Their assessment is based on
forecasts for the next 12 month period, with sensitivity testing undertaken to
replicate severe but plausible downside scenarios related to the principal
risks and uncertainties associated with the business.
The key assumptions used in the review are summarised below:
· The Group's rental income receipts were modelled for each tenant on an
individual basis;
· Existing loan facilities remain available;
· Certain property additions/disposals are assumed in line with the
individual asset business plans; and
· Free cash is utilised where necessary to repay debt/cure bank facility
covenants.
Compliance with the financial covenants of the Group's main debt facility, its
£210m Revolving Credit Facility, was one of the Directors' key areas of
review, with particular focus on the following three covenants:
· Loan to Value ("LTV") - the ratio of the drawn loan amount to the
value of the secured property as a percentage;
· Loan to Rent Value ("LRV") - the ratio of the loan to the projected
contractual net rental income for the next 12 months; and
· Projected Net Rental Interest Cover Ratio ("ICR") - the ratio of
projected net rental income to projected finance costs.
The covenant compliance position as at the most recent interest payment date
of 30 October 2025 is summarised below:
Covenant Requirement Actual
LTV <65% 39%
LRV <12 8.7
ICR >185% 362%
The results of this review demonstrated the following:
· The forecasts show that all bank facility financial covenants will be
met throughout the review period, with headroom to withstand a 24% fall in
contracted rental income;
· Property values could fall by 18% before loan to value covenants come
under pressure; and
· Additional asset sales could be utilised to generate cash to repay
debt, materially increasing covenant headroom.
Based on this analysis, the Directors have adopted a going concern basis in
preparing the accounts for the Period.
Principal Risks and Uncertainties
The ability to identify, assess, monitor and manage risks is fundamental to
the financial stability, continuing performance and reputation of our
business. The responsibility for the Group's risk-centric governance
arrangements lies with the Board of Directors of Helical (the "Board") and it
is through application of the Group's established risk management framework
that the Board determines the nature and extent of the principal risks the
Group is willing to take to achieve its long-term strategic objectives.
The Board assesses and monitors the principal risks of the business and
considers how these risks can be managed or mitigated, where possible, through
a combination of risk management procedures and internal controls. Whilst the
Board is ultimately responsible for the management of risk, the Group is
structured so that risk identification, assessment, management and monitoring
occur at all levels of the Helical team and risk management is a standing
agenda item at the Group's management meetings.
For the period to 30 September 2025, the Group considered the appropriateness
of its principal risks, taking into account the Group's performance, the
macro-political and economic environment and current business projects. In
accordance with our strategy, the Group has made significant progress over the
Period with respect to its current best-in-class developments which are on
track to be delivered into the reportedly undersupplied market. We will
continue to exploit the opportunities that the market presents and continue to
operate resiliently, adapting our risk appetite and bolstering our mitigation
and controls accordingly.
Following its review of the Period, the Board concluded that the nature of the
principal risks and uncertainties facing the Group remain materially unchanged
from those reported in the Group's 2025 Annual Report and Accounts
("Accounts") but will be continuing to keep them under review, with the impact
of geopolitical tensions on global supply chains, commodity price inflation,
UK public finance and fiscal policy and resulting market uncertainty being
closely monitored. Furthermore, the review confirmed that the Group's risk
appetite as reported in the Accounts remained appropriate.
As at 30 September 2025, the Group considers its principal risks to be:
Risk Principal Risk Description
Category
Strategic 1 The Group's strategy is inconsistent with the market
2 Risks arising from the Group's significant development projects
3 Property values decline/reduced tenant demand for space
4 Geopolitical and economic
5 Climate change
Financial 6 Availability and cost of bank borrowing, cash resources and potential breach
of loan covenants
Operational 7 Our people and relationships with business partners and reliance on external
partners
8 Health and safety risk
9 Significant business disruption/external catastrophic event/cyber-attacks to
our business and our buildings
Reputational 10 Poor management of stakeholder relations and non-compliance with prevailing
legislation, regulation and best practice
2. Revenue from Contracts with Customers
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Development property income 2,855 865 3,020
Service charge income 3,727 5,652 7,662
Other - - 43
Total revenue from contracts with customers 6,582 6,517 10,725
The total revenue from contracts with customers is the revenue recognised in
accordance with IFRS 15 Revenue from Contracts with Customers.
No impairment of contract assets was recognised in the Period (Half Year to 30
September 2024: £nil, Year to 31 March 2025: £nil).
3. Segmental Information
The Group identifies two discrete operating segments whose results are
regularly reviewed by the Chief Operating Decision Maker (the Chief Executive)
to allocate resources to these segments and to assess their performance. The
segments are:
· Investments: investment properties, including buildings under the
course of construction, which are owned or leased by the Group, wholly or in
joint venture, for long-term income and for capital appreciation and the
revenue includes the net rental income associated with these assets; and
· Developments: development properties include site costs incurred
prior to acquisition and the revenue includes fees and profit shares/promotes
from development activities on assets either owned in joint venture, or not
owned by the Group.
Revenue Investments Developments Total Investments Developments Total
Half Year to Half Year to Half Year to Half Year to 30.09.24 Half Year to Half Year to
30.09.25 30.09.25 30.09.25 £000 30.09.24 30.09.24
£000 £000 £000 £000 £000
Gross rental income 9,901 - 9,901 10,403 - 10,403
Development property income - 2,855 2,855 - 865 865
Service charge income 3,727 - 3,727 5,652 - 5,652
Revenue 13,628 2,855 16,483 16,055 865 16,920
Revenue Investments Developments Total
Year to Year to Year to
31.03.25 31.03.25 31.03.25
£000 £000 £000
Gross rental income 21,237 - 21,237
Development property income - 3,020 3,020
Service charge income 7,662 - 7,662
Other revenue 43 - 43
Revenue 28,942 3,020 31,962
Cost of sales Investments Developments Total Investments Developments Total
Half Year to Half Year to Half Year to Half Year to 30.09.24 Half Year to Half Year to
30.09.25 30.09.25 30.09.25 £000 30.09.24 30.09.24
£000 £000 £000 £000 £000
Property overheads (2,176) - (2,176) (2,151) - (2,151)
Service charge expense (3,727) - (3,727) (5,652) - (5,652)
Development cost of sales - (488) (488) - (536) (536)
Development staff costs - (912) (912) - - -
Development sales expenses - - - - (22) (22)
Cost of sales (5,903) (1,400) (7,303) (7,803) (558) (8,361)
Cost of sales Investments Developments Total
Year to Year to Year to
31.03.25 31.03.25 31.03.25
£000 £000 £000
Rents payable (17) - (17)
Property overheads (4,989) - (4,989)
Service charge expense (7,662) - (7,662)
Development cost of sales - (754) (754)
Development staff costs - (1,945) (1,945)
Development sales expenses - (22) (22)
Cost of sales (12,668) (2,721) (15,389)
Profit before tax Investments Developments Total Investments Developments Total
Half Year to Half Year to Half Year to Half Year to 30.09.24 Half Year to Half Year to
30.09.25 30.09.25 30.09.25 £000 30.09.24 30.09.24
£000 £000 £000 £000 £000
Net property income 7,725 1,455 9,180 8,252 307 8,559
Share of results of joint ventures 3,410 (9) 3,401 (1,371) 228 (1,143)
(Loss)/gain on sale and revaluation of Investment properties (1,762) - (1,762) 11,847 - 11,847
Segmental profit 9,373 1,446 10,819 18,728 535 19,263
Administrative expenses (3,567) (5,895)
Net finance costs (2,524) (3,824)
Change in fair value of derivative financial instruments (2,943) (4,893)
Profit before tax 1,785 4,651
Profit before tax Investments Developments Total
Year to Year to Year to
31.03.25 31.03.25 31.03.25
£000 £000 £000
Net property income 16,274 299 16,573
Share of results of joint ventures 20,848 (23) 20,825
Gain on sale and revaluation of Investment properties 12,018 - 12,018
Segmental profit 49,140 276 49,416
Administrative expenses (10,705)
Net finance costs (7,473)
Change in fair value of derivative financial instruments (3,289)
Profit before tax 27,949
Net assets Investments Developments Total Investments Developments Total
at 30.09.25 at 30.09.25 at 30.09.25 at 30.09.24 at 30.09.24 at 30.09.24
£000 £000 £000 £000 £000 £000
Investment properties 373,506 - 373,506 371,933 - 371,933
Land and developments - 499 499 - 28 28
Asset held for sale - - - 6,880 - 6,880
Investment in joint ventures 153,170 247 153,417 134,356 7,686 142,042
526,676 746 527,422 513,169 7,714 520,883
Other assets 66,464 98,812
Total assets 593,886 619,695
Liabilities (171,102) (215,486)
Net assets 422,784 404,209
Net assets Investments Developments Total
at 31.03.25 at 31.03.25 at 31.03.25
£000 £000 £000
Investment properties 373,343 - 373,343
Land and developments - 139 139
Investment in joint ventures 141,285 252 141,537
514,628 391 515,019
Other assets 109,893
Total assets 624,912
Liabilities (198,818)
Net assets 426,094
4. Net Property Income
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Gross rental income 9,901 10,403 21,237
Head rents payable - - (17)
Property overheads (2,176) (2,151) (4,989)
Net rental income 7,725 8,252 16,231
Development property income 2,855 865 3,020
Development cost of sales (488) (536) (754)
Development staff costs (912) - (1,945)
Sales expenses - (22) (22)
Development property profit 1,455 307 299
Other revenue - - 43
Net property income 9,180 8,559 16,573
Included within gross rental income above is a net deduction of £133,000
(Half Year to 30 September 2024: a net addition of £52,000, Year to 31 March
2025: net deduction of £598,000) of accrued income for rent free periods.
Also included within gross rental income are dilapidation receipts of £nil
(Half Year to 30 September 2024: £146,000, Year to 31 March 2025: £278,000).
5. Gain on Sale of Investment Properties and Assets held for sale
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Net proceeds from the sale of Investment properties and assets held for sale - 152,029 158,875
Book value of Investment properties (Note 11) - (99,178) (106,738)
Asset held for sale - (42,761) (42,761)
Gain on sale of Investment properties and assets held for sale - 10,090 9,376
6. Administrative Expenses
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Administration costs 3,090 5,100 7,412
Performance related awards, including annual bonuses and NIC 477 795 3,293
Administrative expenses 3,567 5,895 10,705
7. Net Finance Costs and Change in Fair Value of Derivative Financial
Instruments
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Interest payable on bank loans and overdrafts 2,466 1,511 5,083
Other interest payable and similar charges 784 1,276 1,916
Total before cancellation of loans 3,250 2,787 6,999
Cancellation of loans - 1,960 2,145
Finance costs 3,250 4,747 9,144
Finance income (726) (923) (1,671)
Net finance costs 2,524 3,824 7,473
Change in fair value of derivative financial instruments 2,943 4,893 3,289
Net finance costs and change in fair value of derivative financial instruments 5,467 8,717 10,762
8. Tax on Profit on Ordinary Activities
The Group became a UK REIT on 1 April 2022. As a REIT, the Group is not
subject to Corporation Tax on the profits of its property rental business and
chargeable gains arising on the disposal of investment assets used in the
property rental business, but remains subject to tax on profits and chargeable
gains arising from non REIT business activities. No current tax charge arises
in the period to 30 September 2025 (Half Year to 30 September 2024: £nil,
Year to 31 March 2025: £nil) in respect of non-REIT activities.
At 30 September 2025, no deferred tax was recognised (30 September 2024:
£nil, 31 March 2025: £nil). This is on the basis that deferred tax assets
and liabilities either relate to the Group's exempt property rental business,
or are deferred tax assets where it is unlikely that there will be taxable
profit in the future against which they could be used.
9. Dividends
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Attributable to equity share capital
Ordinary
- Prior period interim paid 1.50p per share - - 1,841
- Prior period final paid 3.50p per share (2024: 1.78p) 4,284 1,913 2,185
4,284 1,913 4,026
The interim dividend of 1.50p per share (30 September 2024: 1.50p per share)
was approved by the Board and will be paid on 14 January 2026 to Shareholders
on the register on 5 December 2025. This interim dividend, amounting to
£1,836,000 has not been included as a liability as at 30 September 2025.
10. Earnings Per Share
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shares divided by the weighted average number of
shares in issue during the Period. This is a different basis to the net asset
per share calculations which are based on the number of shares at the Period
end.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares and the post tax effect
of dividends on the assumed exercise of all dilutive share awards.
The earnings per share is calculated in accordance with IAS 33 Earnings per
Share and the best practice recommendations of the European Public Real Estate
Association ("EPRA").
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
000 000 2025
000
Ordinary shares in issue 123,355 123,355 123,355
Own shares held (952) (602) (602)
Weighted average ordinary shares in issue for calculation of basic and EPRA 122,403 122,753 122,753
earnings per share
Weighted average ordinary shares issued on share settled bonuses 91 154 262
Weighted average ordinary shares to be issued under Performance Share Plan 200 304 -
Weighted average ordinary shares in issue for calculation of diluted earnings 122,694 123,211 123,015
per share
£000 £000
£000
Earnings used for calculation of basic and diluted earnings per share 1,785 4,651 27,949
Basic earnings per share 1.5p 3.8p 22.8p
Diluted earnings per share 1.5p 3.8p 22.7p
£000 £000 £000
Earnings used for calculation of basic and diluted earnings per share 1,785 4,651 27,949
Net (gain)/loss on sale and revaluation of Investment properties
1,762 (11,847) (12,018)
- subsidiaries
(3,796) 2,694 (20,216)
- joint ventures
Gain on movement in share of joint ventures (12) (30) (30)
Fair value movement on derivative financial instruments
2,943 4,893 3,289
- subsidiaries
307 (170) (17)
- joint ventures
Expense on cancellation of loans - 1,960 2,145
Sale of Charterhouse Street group - - 805
Non-operating items - 607 779
Earnings used for calculations of EPRA earnings per share 2,989 2,758 2,686
EPRA earnings per share 2.4p 2.3p 2.2p
The earnings used for the calculation of EPRA earnings per share include net
rental income and development property profits but exclude investment and
trading property gains.
11. Investment Properties
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Book value at 1 April 373,343 472,522 472,522
Additions at cost 2,031 3,782 5,090
Disposals - (99,178) (106,738)
Transfer to Asset held for sale - (6,880) -
Letting cost amortisation (106) (70) (173)
Revaluation (loss)/gain (1,762) 1,757 2,642
As at Period end 373,506 371,933 373,343
There are two small sites held at Directors' valuation totalling £280,000.
All remaining properties are stated at market value and are valued by
professionally qualified external valuers (Cushman & Wakefield LLP) in
accordance with the Valuation - Professional Standards, published by the Royal
Institution of Chartered Surveyors. The fair value of the Investment
properties is as follows:
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Book value 373,506 371,933 373,343
Lease incentives and costs included in trade and other receivables 6,424 7,217 6,557
Fair value 379,930 379,150 379,900
Interest capitalised in respect of the refurbishment of Investment properties
at 30 September 2025 amounted to £8,271,000 (30 September 2024: £8,271,000,
31 March 2025: £8,271,000). Interest capitalised during the Period in respect
of the refurbishment of Investment properties amounted to £nil (30 September
2024: £nil, 31 March 2025: £nil).
The historical cost of Investment property is £424,079,000 (30 September
2024: £420,737,000, 31 March 2025: £422,045,000).
The fair value of the Group's Investment property as at 30 September 2025 was
determined by independent external valuers at that date, except for Investment
properties valued by the Directors. The valuations are in accordance with the
RICS Valuation - Professional Standards ("The Red Book") and the International
Valuation Standards and were arrived at by reference to market transactions
for similar properties.
Fair values for Investment properties are calculated using the present value
income approach. The main assumptions underlying the valuations are in
relation to rent profile and yields as discussed below. A key driver of the
property valuations is the terms of the leases in place at the valuation date.
These determine the cash flow profile of the property for a number of years.
The valuation assumes adjustments from these rental values to current market
rent at the time of the next rent review (where a typical lease allows only
for upward adjustment) and as leases expire and are replaced by new leases.
The current market level of rent is assessed based on evidence provided by the
most recent relevant leasing transactions and negotiations. The equivalent
yield is applied as a discount rate to the rental cash flows which, after
taking into account other input assumptions such as vacancies and costs,
generates the market value of the property.
The equivalent yield applied is assessed by reference to market transactions
for similar properties and takes into account, amongst other things, any risks
associated with the rent uplift assumptions.
The net initial yield is calculated as the current net income over the gross
market value of the asset and is used as a sense check and to compare against
market transactions for similar properties. The valuation outputs, along with
inputs and assumptions, are reviewed to ensure these are in line with what a
market participant would use when pricing each asset.
The reversionary yield is the return received from an asset once the estimated
rental value has been captured on today's assessment of market value.
There are interrelationships between all the inputs as they are determined by
market conditions. The existence of an increase in more than one input would
be to magnify the input on the valuation. The impact on the valuation will be
mitigated by the interrelationship of two inputs in opposite directions.
A sensitivity analysis was performed to ascertain the impact of a 25 and 50
basis point shift in the equivalent yield and a 5.0% and 10.0% shift in ERVs
for the wholly owned investment portfolio:
At Change in portfolio value
30 September
2025 % £m
True equivalent yield 7.0%
+ 50bps (7.2) (27.5)
+ 25bps (3.7) (14.2)
- 25bps 4.0 15.3
- 50bps 8.4 31.9
ERV £66 psf
+ 10.00% 8.7 33.1
+ 5.00% 4.3 16.5
- 5.00% (4.3) (16.2)
- 10.00% (8.5) (32.4)
12. Joint Ventures
Share of results of joint ventures Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Revenue - 3,080 3,704
Gross rental income - 3,080 3,704
Property overheads - (348) (366)
Net rental income - 2,732 3,338
Gain/(loss) on revaluation of Investment properties 3,613 (2,694) 22,531
Gain/(loss) on sale of Investment properties 183 - (2,315)
Development property loss - (9) (23)
3,796 29 23,531
Administrative expenses (81) (82) (229)
Operating profit/(loss) 3,715 (53) 23,302
Interest payable on bank loans and overdrafts (2,241) (1,209) (2,018)
Other interest payable and similar charges - (108) (108)
Change in fair value of derivative financial instruments (307) 170 17
Interest capitalised 2,239 - 380
Finance income 12 27 38
Profit/(loss) before tax 3,418 (1,173) 21,611
Tax (29) - (11)
Profit/(loss) after tax 3,389 (1,173) 21,600
Adjustment for Barts Square economic interest¹ 12 30 30
Sale of Charterhouse Street group(2) - - (805)
Share of results of joint ventures 3,401 (1,143) 20,825
1. This adjustment reflects the impact of the consolidation of a joint
venture at its economic interest of 50% (31 March 2025: 50%) rather than its
actual ownership interest of 33%.
2. This adjustment relates to costs incurred resulting from the
corporate sale of the Charterhouse Street group.
Investment in joint ventures At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Summarised balance sheets
Non-current assets
Investment properties 192,635 205,187 155,495
Owner occupied property, plant and equipment 63 63 63
Derivative financial instruments - 170 17
192,698 205,420 155,575
Current assets
Land and developments 9,973 5,627 4,572
Trade and other receivables 3,479 6,906 7,788
Cash and cash equivalents 3,979 3,516 2,478
17,431 16,049 14,838
Current liabilities
Trade and other payables (12,580) (7,310) (17,218)
Borrowings - (66,746) -
(12,580) (74,056) (17,218)
Non-current liabilities
Trade and other payables - (1,314) -
Borrowings (50,234) (4,359) (18,040)
Leasehold interest - (5,166) -
Derivative financial instruments (291) - -
(50,525) (10,839) (18,040)
Net assets pre-adjustment 147,024 136,574 135,155
Acquisition costs 6,393 5,468 6,382
Investment in joint ventures 153,417 142,042 141,537
The fair value of Investment properties held by joint ventures at 30 September
2025 is as follows:
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Book value 192,635 205,187 155,495
Lease incentives and costs included in trade and other receivables - 4,626 -
Head leases capitalised - (4,317) -
Fair value 192,635 205,496 155,495
13. Other Investments
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Book value at 1 April 670 565 565
Acquisitions 37 21 117
Return of capital - - (12)
As at Period end 707 586 670
On 6 August 2021, the Group entered into a commitment of £1,000,000 to invest
in the Pi Labs European PropTech venture capital fund ("Fund") of which
£37,000 (Half Year to 30 September 2024: £21,000, Year to 31 March 2025:
£117,000) was invested during the Period. The Fund is focused on investing in
the next generation of proptech businesses.
The fair value of the Group's investment is based on the net asset value of
the Fund, representing Level 2 fair value measurement as defined in IFRS 13
Fair Value Measurement.
14. Land and Developments
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
At 1 April 139 28 28
Additions 360 - 111
As at Period end 499 28 139
The Directors' valuation of development stock shows a surplus of £302,000 (30
September 2024: £302,000, 31 March 2025: £302,000) above book value. This
surplus has been included in the EPRA net tangible asset value (Note 23). No
interest has been capitalised or included in land and developments.
15. Assets Held for Sale
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
At 1 April - 42,761 42,761
Transfer to assets held for sale - 6,880 -
Disposals - (42,761) (42,761)
As at Period end - 6,880 -
16. Trade and Other Receivables
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Trade receivables 1,761 2,134 2,428
Other receivables 4,025 3,846 2,291
Prepayments 1,670 2,279 1,341
Accrued income 9,077 7,213 7,049
Current trade and other receivables 16,533 15,472 13,109
Other receivables >1 year 5,658 1,056 3,164
Non-current trade and other receivables 5,658 1,056 3,164
Total trade and other receivables 22,191 16,528 16,273
Included in accrued income is accrued income from rent free periods granted to
tenants of £6,331,000 (30 September 2024: £7,113,000, 31 March 2025:
£6,464,000). Prepayments include capital contributions to tenants of £93,000
(30 September 2024: £104,000, 31 March 2025: £93,000). Taken together, these
form the lease incentives adjustment in Note 11.
17. Cash and Cash Equivalents
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Cash held at managing agents 4,493 4,113 2,372
Rental deposits 7,865 10,498 7,751
Restricted cash 4,167 5,095 5,172
Cash deposits 13,763 46,424 61,204
Total cash and cash equivalents 30,288 66,130 76,499
Restricted cash is made up of rental deposits and cash in restricted accounts.
18. Trade and Other Payables
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Trade payables 12,126 15,762 11,811
Other payables 1,824 923 1,847
Accruals 2,347 3,399 5,230
Deferred income 4,596 4,939 4,385
Total trade and other payables 20,893 25,023 23,273
19. Lease Liability
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Current lease liability 371 861 339
Non-current lease liability 1,289 3,008 1,476
The current lease liability and non-current lease liability both relate to the
long leasehold of the Group's head office.
20. Borrowings
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Current borrowings - - -
Borrowings repayable within:
- two to three years 148,549 186,594 173,730
Non-current borrowings 148,549 186,594 173,730
Total borrowings 148,549 186,594 173,730
At At
30 September 2025 At 31 March
£000 30 September 2024 2025
£000 £000
Total borrowings 148,549 186,594 173,730
Cash (30,288) (66,130) (76,499)
Net borrowings 118,261 120,464 97,231
Net borrowings exclude the Group's share of borrowings in joint ventures of
£50,234,000 (30 September 2024: £71,105,000, 31 March 2025: £18,040,000)
and cash of £3,979,000 (30 September 2024: £3,516,000, 31 March 2025:
£2,478,000). All borrowings in joint ventures are secured.
At At
At 30 September 2024 31 March
30 September 2025 £000 2025
£000 £000
Net assets 422,784 404,209 426,094
Net gearing 28.0% 29.8% 22.8%
21. Derivative Financial Instruments
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Derivative financial instruments asset 11,403 12,742 14,346
A loss on the change in fair value of £2,943,000 has been recognised in the
Unaudited Consolidated Income Statement (30 September 2024: £4,893,000, 31
March 2025: £3,289,000) as a result of the unwinding of the derivative asset
and the reduction in the medium and long-term interest rate projections.
The fair values of the Group's outstanding interest rate swaps and caps have
been estimated by calculating the present values of future cash flows, using
appropriate market discount rates, representing Level 2 fair value
measurements as defined in IFRS 13 Fair Value Measurement.
22. Share Capital
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Authorised 39,577 39,577 39,577
The authorised share capital of the Company is £39,577,000 divided into
ordinary shares of 1p each.
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Allotted, called up and fully paid:
- 123,355,197 (30 September 2024 and 31 March 2025: 1,233 1,233 1,233
123,355,197) ordinary shares of 1p each
1,233 1,233 1,233
23. Net Assets Per Share
At Number of shares At Number of shares p
30 September 000 31 March 000
2025 p 2025
£000 £000
IFRS net assets 422,784 123,355 426,094 123,355
Adjustments:
- own shares held (952) (602)
Basic net asset value 422,784 122,403 345 426,094 122,753 347
- future PSP shares 187 -
- share settled bonus 91 262
Diluted net asset value 422,784 122,681 345 426,094 123,015 346
Adjustments:
- fair value of financial instruments (11,112) (14,363)
- fair value of land and developments 302 302
- real estate transfer tax 35,912 35,894
EPRA net reinstatement value 447,886 122,681 365 447,927 123,015 364
- real estate transfer tax (19,746) (19,741)
EPRA net tangible asset value 428,140 122,681 349 428,186 123,015 348
At Number of shares p At Number of shares p
30 September 000 31 March 000
2025 2025
£000 £000
Diluted net asset value 422,784 122,681 345 426,094 123,015 346
Adjustments:
- surplus on fair value of stock 302 302
EPRA net disposal value 423,086 122,681 345 426,396 123,015 347
At Number of shares p
30 September 000
2024
£000
IFRS net assets 404,209 123,355
Adjustments:
- own shares held (602)
Basic net asset value 404,209 122,753 329
- share settled bonus 154
- dilutive effect of Performance Share Plan 308
Diluted net asset value 404,209 123,215 328
Adjustments:
- fair value of financial instruments (12,911)
- fair value of land and developments 302
- real estate transfer tax 39,049
EPRA net reinstatement value 430,649 123,215 350
- real estate transfer tax (22,932)
EPRA net tangible asset value 407,717 123,215 331
At Number of shares p
30 September 000
2024
£000
Diluted net assets 404,209 123,215 328
Adjustments:
- surplus on fair value of stock 302
EPRA net disposal value 404,511 123,215 328
The net asset values per share have been calculated in accordance with
guidance issued by the European Public Real Estate Association ("EPRA").
The adjustments to the net asset value comprise the amounts relating to the
Group and its share of joint ventures.
The calculation of EPRA net tangible asset value includes a real estate
transfer tax adjustment which adds back the benefit of the saving of the
purchaser's costs that Helical expects to receive on the sales of the
corporate vehicles that own the buildings, rather than direct asset sales.
The calculation of EPRA net disposal value per share reflects the fair value
of all the assets and liabilities of the Group at 30 September 2025.
24. Related Party Transactions
The following amounts were due from/(to) the Group's related parties:
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Charterhouse Place Limited group - 1,306 -
Platinum joint venture group 743 4 204
Barts Square companies 51 51 51
Bicycle group 51,437 50,037 50,133
Shirley Advance LLP - (43) -
K2 Advisers Limited (1,190) - (1,102)
A development management, accounting and corporate services fee of £nil was
due from the Charterhouse Place Limited group after disposing of this joint
venture in the prior year (30 September 2024: £55,000; 31 March 2025: £nil).
During the Period, the Group incurred costs of £452,000 relating to a new
scheme within the Platinum joint venture group with Places for London. A
development management fee of £139,000 (30 September 2024: £nil; 31 March
2025: £145,000) was charged to the Platinum joint venture group as well as an
administrative fee of £15,000 (30 September 2024: £nil; 31 March 2025:
£52,000). These amounts are included in the balance above.
An accounting and corporate services fee of £25,000 (30 September 2024:
£25,000; 31 March 2025: £50,000) was charged by the Group to the Barts
Square companies, and this amount is included in the balance above.
A development management fee of £1,058,000 (30 September 2024: £317,000; 31
March 2025: £810,000) was charged to the Bicycle group following the sale of
100 New Bridge Street, EC4, to the joint venture group in May 2024. At 30
September 2025, the Bicycle group owed £51,437,000 (30 September 2024:
£50,037,000; 31 March 2025: £50,133,000) to Helical plc. This amount is
interest free. The remainder of the balance above relates to a working capital
loan which is repaid periodically.
At 30 September 2025, an amount of £1,190,000 (30 September 2024: £nil; 31
March 2025: £1,100,000) was accrued for K2 Advisers Ltd whose sole Director
is Gerald Kaye, a former Director of the Group. This relates to ongoing
consultancy services provided on two development schemes.
25. See-through Analysis
Helical holds a significant proportion of its property assets in joint
ventures with partners that provide a significant equity contribution, whilst
relying on the Group to provide asset management or development expertise.
Accounting convention requires Helical to account under IFRS for its share of
the net results and net assets of joint ventures on an equity basis in the
Income Statement and Balance Sheet. Helical considers that Net asset value per
share, a key performance measure used in the real estate industry, as reported
in the financial statements under IFRS, does not provide Shareholders with the
most relevant information on the fair value of assets and liabilities within
an ongoing real estate company with a long-term investment strategy.
This analysis incorporates the separate components of the results of the
consolidated subsidiaries and Helical's share of its joint ventures' results
into a "see-through" analysis of its property portfolio, debt profile and the
associated income streams and financing costs, to assist in providing a
comprehensive overview of the Group's activities.
See-through Net Rental Income
Helical's share of the gross rental income, head rents payable and property
overheads from property assets held in subsidiaries and in joint ventures is
shown in the table below.
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Gross rental income - subsidiaries 9,901 10,403 21,237
- joint ventures - 3,080 3,704
Total gross rental income 9,901 13,483 24,941
Rents payable - subsidiaries - - (17)
Property overheads - subsidiaries (2,176) (2,151) (4,989)
- joint ventures - (348) (366)
See-through net rental income 7,725 10,984 19,569
See-through Net Development Profits
Helical's share of development profits from property assets held in
subsidiaries and in joint ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
In parent and subsidiaries 1,455 307 299
In joint ventures - (9) (23)
See-through development profits 1,455 298 276
See-through Net Gain on Sale and Revaluation of Investment Properties
Helical's share of the net gain on the sale and revaluation of Investment
properties held in subsidiaries and joint ventures is shown in the table
below.
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Revaluation (gain)/loss on Investment properties - subsidiaries (1,762) 1,757 2,642
- joint ventures 3,613 (2,694) 22,531
Total revaluation gain/(loss) 1,851 (937) 25,173
Net gain/(loss) on sale of Investment properties - subsidiaries - 10,090 9,376
- joint ventures 183 - (2,315)
Total net gain on sale of Investment properties 183 10,090 7,061
See-through net gain on sale and revaluation of Investment properties 2,034 9,153 32,234
See-through Administration Expenses
Helical's share of the administration expenses incurred in subsidiaries and
joint ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Administration expenses - subsidiaries 4,002 5,100 9,357
- joint ventures 81 82 229
Transfer to development staff costs - subsidiaries (912) - (1,945)
Total administration expenses 3,171 5,182 7,641
Performance related awards, including NIC - subsidiaries 477 795 3,293
Total performance related awards, including NIC 477 795 3,293
See-through administration expenses 3,648 5,977 10,934
See-through Net Finance Costs
Helical's share of the interest payable, finance charges, capitalised interest
and interest receivable on bank borrowings and cash deposits in subsidiaries
and joint ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Interest payable on bank loans and overdrafts - subsidiaries 2,466 1,511 5,083
- joint ventures 2,241 1,209 2,018
Total interest payable on bank loans and overdrafts 4,707 2,720 7,101
Other interest payable and similar charges - subsidiaries 784 1,275 1,916
- joint ventures - 108 108
Cancellation of loans - subsidiaries - 1,961 2,145
Interest capitalised - joint ventures (2,239) - (380)
Total finance costs 3,252 6,064 10,890
Interest receivable and similar income - subsidiaries (726) (923) (1,671)
- joint ventures (12) (27) (38)
See-through net finance costs 2,514 5,114 9,181
See-through Property Portfolio
Helical's share of the investment, land and development property portfolio in
subsidiaries and joint ventures is shown in the table below.
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Investment property fair value - subsidiaries 379,930 379,150 379,900
- joint ventures 192,635 205,496 155,495
Asset held for sale - subsidiaries - 6,880 -
Total Investment property fair value 572,565 591,526 535,395
Land and development stock - subsidiaries 499 28 139
- joint ventures 9,973 5,627 4,572
Total land and development stock 10,472 5,655 4,711
Total land and development stock surplus 302 302 302
Total land and development stock at fair value 10,774 5,957 5,013
See-through property portfolio 583,339 597,483 540,408
See-through Net Borrowings
Helical's share of borrowings and cash deposits in subsidiaries and joint
ventures is shown in the table below.
At At
At 30 September 2024 31 March
30 September 2025 £000 2025
£000 £000
Gross borrowings more than one year - subsidiaries 148,549 186,594 173,730
- joint ventures 50,234 4,359 18,040
Total 198,783 190,953 191,770
Gross borrowings less than one year - joint ventures - 66,746 -
Total - 66,746 -
Cash and cash equivalents - subsidiaries (30,288) (66,130) (76,499)
- joint ventures (3,979) (3,516) (2,478)
Total (34,267) (69,646) (78,977)
See-through net borrowings 164,516 188,053 112,793
26. See-through Net Gearing and Loan to Value
At At At
30 September 2025 30 September 2024 31 March
£000 £000 2025
£000
Property portfolio 583,339 597,483 540,408
Net borrowings 164,516 188,053 112,793
Net assets 422,784 404,209 426,094
See-through net gearing 38.9% 46.5% 26.5%
See-through loan to value 28.2% 31.5% 20.9%
27. Total Accounting Return
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
000 000 2025
000
Brought forward IFRS net assets 426,094 401,075 401,075
Carried forward IFRS net assets 422,784 404,209 426,094
(Decrease)/increase in IFRS net assets (3,310) 3,134 25,019
Dividends paid 4,284 1,913 4,026
Total accounting return 974 5,047 29,045
Total accounting return percentage 0.2% 1.3% 7.2%
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
000 000 2025
000
Brought forward EPRA net tangible assets 428,186 406,468 406,468
Carried forward EPRA net tangible assets 428,140 407,717 428,186
(Decrease)/increase in EPRA net tangible assets (46) 1,249 21,718
Dividends paid 4,284 1,913 4,026
Total EPRA accounting return 4,238 3,162 25,744
Total EPRA accounting return percentage 1.0% 0.8% 6.3%
28. Total Property Return
Half Year to Half Year to Year to
30 September 2025 30 September 2024 31 March
000 000 2025
000
See-through net rental income 7,725 10,984 19,569
See-through development profits 1,455 298 276
See-through revaluation gain/(loss) 1,851 (937) 25,173
See-through net gain on sale of Investment properties 183 10,090 7,061
Total property return 11,214 20,435 52,079
29. Capital Commitments
The Group has commitments of £116,000,000 (31 March 2025: £136,600,000), of
which £9,800,000 relates to the development of 100 New Bridge Street, EC4,
and £46,100,000 to the development of 10 King William Street, EC4. In
addition, there is a commitment to provide a loan contribution of £6,100,000
to the development of Brettenham House, WC2. The remaining £54,000,000
relates to the site purchases of, and capital expenditure committed to, the
PfL sites at Southwark, SE1, (£13,900,000), and Paddington, W2,
(£40,100,000).
30. Post Balance Sheet Events
The Group has evaluated events after the reporting period through to 25
November 2025 and determined that there are no events requiring adjustment to,
or disclosure in, these financial statements.
Appendix 1 - Glossary of Terms
Building Research Establishment Environmental Assessment Methodology
("BREEAM")
Building Research Establishment method of assessing, rating and certifying the
sustainability of a building.
Capital value (psf)
The open market value of the property divided by the area of the property in
square feet.
Company or Helical or Group
Helical plc and its subsidiary undertakings.
Diluted figures
Reported amounts adjusted to include the effects of potential shares issuable
under the Director and employee remuneration schemes.
Earnings per share ("EPS")
Profit after tax divided by the weighted average number of ordinary shares in
issue.
EPRA
European Public Real Estate Association.
EPRA earnings per share
Earnings per share adjusted to exclude gains/losses on sale and revaluation of
Investment properties and their deferred tax adjustments, the tax on
profit/loss on disposal of Investment properties, trading property
profits/losses, movement in fair value of available-for-sale assets and fair
value movements on derivative financial instruments, on an undiluted basis.
Details of the method of calculation of the EPRA earnings per share are
available from EPRA (see Note 10).
EPRA net assets per share
Diluted net asset value per share adjusted to exclude fair value surplus of
financial instruments, and deferred tax on capital allowances and on
investment properties revaluation but including the fair value of trading and
development properties in accordance with the best practice recommendations of
EPRA (see Note 23).
EPRA net disposal value per share
Represents the Shareholders' value under a disposal scenario, where deferred
tax, financial instruments and certain other adjustments are calculated to the
full extent of their liability, net of any resulting tax (see Note 23).
EPRA net reinstatement value per share
Net asset value adjusted to reflect the value required to rebuild the entity
and assuming that entities never sell assets. Assets and liabilities, such as
fair value movements on financial derivatives, that are not expected to
crystallise in normal circumstances and deferred taxes on property valuation
surpluses are excluded (see Note 23).
EPRA net tangible assets per share
Assumes that entities buy and sell assets, thereby crystallising certain
levels of unavoidable deferred tax, but excludes assets and liabilities, such
as fair value movements on financial derivatives, that are not expected to
crystallise in normal circumstances and deferred taxes on property valuation
surpluses are excluded (see Note 23).
EPRA topped-up NIY
The current annualised rent, net of costs, topped-up for contracted uplifts,
expressed as a percentage of the fair value of the relevant property.
Estimated rental value ("ERV")
The market rental value of lettable space as estimated by the Group's valuers
at each Balance Sheet date.
Initial yield
Annualised net passing rents on Investment properties as a percentage of their
open market value.
Like-for-like valuation change
The valuation gain/loss, net of capital expenditure, on those properties held
at both the previous and current reporting period end, as a proportion of the
fair value of those properties at the beginning of the reporting period plus
net capital expenditure.
Net asset value per share ("NAV")
Net assets divided by the number of ordinary shares at the Balance Sheet date
(see Note 23).
Net gearing
Total borrowings less short-term deposits and cash as a percentage of net
assets.
Net internal area ("NIA")
The usable area within a building measured to the internal face of the
perimeter walls at each floor level.
Passing rent
The annual gross rental income being paid by the tenant.
Places for London ("PfL")
The wholly owned property company of Transport for London
Purpose Built Student Accommodation ("PBSA")
Specifically designed and developed housing for students.
Reversionary yield
The income/yield from the full estimated rental value of the property on the
market value of the property grossed up to include purchaser's costs, capital
expenditure and capitalised revenue expenditure.
See-through/Group share
The consolidated Group and the Group's share in its joint ventures (see Note
25).
See-through net gearing
The see-through net borrowings expressed as a percentage of net assets (see
Note 26).
Total Accounting Return
The growth in the net asset value of the Company plus dividends paid in the
Period, expressed as a percentage of net asset value at the start of the
Period (see Note 27).
Total Property Return
The total of net rental income, trading and development profits and net gain
on sale and revaluation of Investment properties on a see-through basis (see
Note 28).
Transport for London
Local government body responsible for most of the transport network in London.
True equivalent yield
The constant capitalisation rate which, if applied to all cash flows from an
Investment property, including current rent, reversions to current market rent
and such items as voids and expenditures, equates to the market value. Assumes
rent is received quarterly in advance.
Unleveraged returns
Total property gains and losses (both realised and unrealised) plus net rental
income expressed as a percentage of the total value of the properties.
WAULT
The total contracted rent up to the first break, or lease expiry date, divided
by the contracted annual rent.
HELICAL PLC
Registered in England and Wales No.156663
Registered Office:
22 Ganton Street
London
W1F 7FD
T: 020 7629 0113
E: reception@helical.co.uk (mailto:reception@helical.co.uk)
www.helical.co.uk (http://www.helical.co.uk)
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