Helical (HLCL) H1 2025 earnings summary

Executive summary

• Returned to profitability with £4.7m profit after tax, reversing a £93.1m loss in H1 2023, driven by £245m of asset sales at a surplus to book value, reducing pro-forma LTV to a record low 15.9% and fully funding the development pipeline.

• Strategic focus on best-in-class, sustainable developments and equity-light structures, with major joint ventures, notably with Places for London.

• Significant operational progress, including major asset sales, new lettings, and a five-project pipeline in Central London.

• Adjusted dividend policy to align with EPRA earnings per share, with interim dividend set at 1.50p per share.

• Achieved strong sustainability ratings, including 5-star GRESB and BREEAM Outstanding for 100 New Bridge Street.

Financial highlights

• IFRS profit after tax: £4.7m (2023: £93.1m loss); EPRA EPS: 2.25p (2023: 1.15p); basic EPS: 3.8p (2023: -75.8p).

• Net asset value up 0.8% to £404.2m; EPRA NTA per share unchanged at 331p.

• Interim dividend per share 1.50p (2023: 3.05p), fully covered by earnings.

• Net gain on sale and revaluation £9.2m (2023: £96.7m loss); portfolio value at £597.5m (Mar 2024: £662.3m).

• Pro-forma net debt £77m; pro-forma cash and undrawn facilities £217.6m.

Outlook and guidance

• Development pipeline fully funded, with three major schemes (460,000 sq ft) completing in 2026, targeting a supply-constrained market.

• Anticipated development profits of c.£102m plus £10m in management fees from current pipeline, with further upside from rental growth.

• Pro-forma LTV expected to remain below 35%, with a medium-term target range of 15%-35%.

• Dividend policy rebased to reflect lower near-term EPRA earnings, with future growth expected from completions and new opportunities.

• Market conditions favor best-in-class assets, with prime rental growth forecast and strong demand for high-quality space.