Helical (LON:HLCL) Releases Quarterly Earnings Results

Helical (LON:HLCL) issued its quarterly earnings results on Friday. The company reported GBX 4.60 EPS for the quarter, Digital Look Earnings reports. The business had revenue of GBX 3,325 million for the quarter. Helical had a net margin of 82.02% and a return on equity of 5.91%.

Here are the key takeaways from Helical’s conference call:

• Helical completed the £333 million forward sale of 100 New Bridge Street to State Street, and the company said this unlocked a significant realized development profit that supports a larger shareholder return.
• The board is proposing a total return of 16.4 pence per share for the year, including a special capital return and buybacks, the company’s largest return since 2004.
• Operating momentum remains strong at The Bower, where AI-driven demand has driven 30,000 sq ft of new lettings, with another 20,000 sq ft under offer and vacancy expected to fall to 3.4% once completed.
• Helical continues to de-risk and fund its pipeline, including a £220 million development facility for Delta Paddington and progress at Southwark, where forward funding and forward sales leave the group taking mainly delivery risk rather than market or operational risk.
• Financially, EPRA earnings doubled and NTA rose to £3.51 per share, while pro forma LTV falls to below 21% after the 100 New Bridge Street sale and capital return, giving the company balance sheet flexibility for new opportunities.

Helical Price Performance

Shares of HLCL opened at GBX 192.20 on Friday. Helical has a 12 month low of GBX 172 and a 12 month high of GBX 247. The company has a debt-to-equity ratio of 35.53, a current ratio of 2.23 and a quick ratio of 2.59. The stock has a fifty day moving average price of GBX 186.34 and a 200 day moving average price of GBX 191.59. The company has a market cap of £234.87 million, a P/E ratio of 9.42, a PEG ratio of 0.43 and a beta of 0.93.

Analysts Set New Price Targets

Separately, Berenberg Bank restated a “hold” rating and set a GBX 216 price objective on shares of Helical in a research note on Friday. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of GBX 243.

Helical Company Profile

Helical is a central London development focused real estate business listed on the London Stock Exchange. We create design-led, sustainable and inspiring spaces. We have a dynamic and experienced team with a broad skill set able to deliver optimal solutions and enhanced value through innovative thinking and in depth market knowledge.

Our extensive track record in joint venture structuring and working in partnership underpins our reputation as one of London’s leading development specialists.