Helical swung to profit in the first six months under new chief executive Matthew Bonning-Snook.
In the six-month period ended 30 September 2024, the company reported an IFRS profit of £4.7m compared with a loss of £93.1m in the same period last year and its net asset value rose 0.8% to £404.2m.
Bonning-Snook said: “In my first six months as chief executive of Helical we have been implementing the strategy agreed following the business review undertaken earlier this year and have focused on shaping the company to best capture the cyclical growth opportunity. Our substantial development pipeline is set to deliver ‘best-in-class’ office developments into a supply-constrained 2026 and beyond.
“Recycling equity through £245m of sales at a surplus to book value has underpinned a return to profitability, alongside an increase in net asset value and a positive total accounting return. These sales have also reduced our post balance sheet pro-forma LTV to 15.9%, its lowest ever level. Importantly, this provides the group with all the anticipated equity it needs to complete its current development pipeline, including those schemes not yet started, providing the means to our future growth.
“While retaining a focus on offices, we are widening our offering to incorporate alternative uses, such as the student accommodation being planned above Southwark tube station, and we will continue to seek the best value use for sites in Central London.
“Our exciting development pipeline, delivering in joint venture with equity partners, will provide valuation surpluses as well as new revenue streams of significant development management fees and promotes. This pipeline will be supplemented with additional ‘equity-light’ opportunities as building owners seek specialists in development and refurbishment to partner with them to maximise the value of their assets.
“With an experienced management team and funds in place to deliver a substantial development pipeline, Helical is financially and operationally well placed to deliver a strong performance over the coming cycle.”
