Helical Bar doubles interim profit and names new CEO

Property developer Helical Bar doubled interim pre-tax profits thanks to revaluation gains and higher revenue.

In the six months to 30 September, the group posted a pre-tax profit of £85.9m from £42.8m in the corresponding period in 2014, as Helical reported a £42.3m net gain on the revaluation of its properties in the period, compared with a £23.1m in the previous 12 months.

The group said the valuation gain was largely driven by its London portfolio - where developments include the Bower offices on Old Street, numbers 1 and 3 Bunhill Row and the Fulham Wharf mixed development - adding it planned to increase its commitment in the capital by retaining its current development and refurbishment programmes.

"Our portfolio is primarily targeted towards London for capital growth and development profits, and the regions for high yielding investment assets and trading profits,” said chief executive Mike Slade.

"Our larger balance sheet and our belief that the London office market will show continued growth has encouraged the company to increase its exposure to locations which we believe will outperform.”

Helical added its joint ventures contributed £31.8m in the first half compared with £12.9 in the same period last year, while revenue rose 46.8% year-on-year to £58.3m and net rental income increased 21.9% to £20m.

Meanwhile, the London-listed group confirmed the flamboyant Slade will step down from his current role after the company’s annual general meeting in July 2016 to become non-executive chairman.

The outgoing CEO will be replaced by current development director Gerald Kaye, who has been with the company since 1994.

Helical shares were down 2.97% to 446.33p at 1209 GMT on Thursday.