Wellington Market Company plc
("Wellington" or "the Company")
Unaudited interim results for the six months ended 30 June 2014
While trading for the six months to 30 June 2014 has been very similar to the
first half of 2013, resulting in an approximate break-even position, the
outlook for the full year is more encouraging given our usual seasonal pattern
of trading. Thus I happily repeat what I said last year, "I am hopeful that we
will be reporting a positive result for the year as a whole". During 2014 we
have continued our debt reduction programme through further property sales,
relations with our bankers remain cordial, and we continue to operate within
our facility limits. Given the steadily expanding nature of our activities,
particularly now that we increasingly operate and manage markets for third
parties, your Directors consider that a change of company name might better
reflect and project our current trading mix. In February we took over the
management of Shepherds Bush Market under a "management fee contract" and in
the Autumn we will begin operating the newly relocated Watford covered market
for the local authority. Thus we intend a change from our current "Wellington
Market Company PLC" to "WMC Retail Partners PLC", further details of which will
be announced in due course.
We continue to maximise revenues from all our trading markets, and to contain
costs, but the steady decline in the number of market traders nationally
remains a major challenge. As shareholders will know we have been operating Old
Spitalfields Market ("OSM") from 2010 under a five year contract originally
from the Ballymore Group - due to expire early in 2015. During our tenure we
have substantially increased footfall, activities and income, with new niche
market days and promotions, and I would particularly like to congratulate and
thank Andrew Sparrow and his team for making such a success of OSM. I am
delighted that Andrew has recently been appointed a Wellington main Board
Director. However Ballymore have sold their property including the market site
and the new American owners have now confirmed their intention to take the
management "in house" when our current lease expires. This will obviously
result in us having to replace OSM's significant contribution in 2015 and
beyond and we will do everything possible to do achieve this.
Lord Lee of Trafford
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months Six months Year ended
ended ended 31
30 June 30 June December
2014 2013 2013
Unaudited Unaudited Audited
£'000 £'000 £'000
Turnover 2,888 2,926 6,200
Cost of sales (2,442) (2,468) (5,077)
Gross profit 446 458 1,123
Administrative expenses (346) (342) (730)
Other income - - 34
(346) (342) (696)
Operating profit 100 116 427
Profit/(loss) on sale of business and fixed 7 9 (24)
assets
Interest receivable 1 1 97
Interest payable (99) (116) (224)
Profit on ordinary activities before taxation 9 10 276
Tax on profit on ordinary activities (3) (6) (14)
Profit on ordinary activities after taxation 6 4 262
Minority interest 1 3 (14)
Profit for the financial period 7 7 248
Basic earnings per share in pence 0.1 0.1 4.37
CONSOLIDATED BALANCE SHEET
30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
£'000 £'000 £'000
Fixed assets
Intangible
- positive goodwill and other 143 139 126
intangible assets
- negative goodwill (26) (84) (55)
Tangible assets 7,852 8,603 8,274
7,969 8,658 8,345
Current assets
Stocks 10 13 9
Debtors: amounts falling due within one 1,155 921 920
year
Debtors: amounts falling due after one 31 31 31
year
Cash at bank and in hand 3 22 20
1,199 987 980
Creditors: amounts falling due within (1,819) (2,160) (1,801)
one year
Net current liabilities (620) (1,173) (821)
Total assets less current liabilities 7,349 7,485 7,524
Creditors: amounts falling due after (3,713) (4,039) (3,893)
more than one year
Provisions for liabilities and charges (180) (231) (180)
Net assets 3,456 3,215 3,451
Capital and reserves
Called up share capital 3,000 3,000 3,000
Share premium account 250 250 250
Revaluation reserve 882 920 882
Share based payment reserve 73 57 73
Profit and loss account (793) (1,040) (799)
Equity shareholders' funds 3,412 3,187 3,406
Equity minority interest 44 28 45
Total shareholders' funds 3,456 3,215 3,451
Notes to the Interim Results
1 Accounting policies
The interim results have been prepared on the same basis and using the same
accounting policies as those used in the preparation of the statutory accounts
for the year ended 31 December 2013.
2 Going concern
In common with the majority of other companies, the current economic conditions
create uncertainty.
The Group is funded by an overdraft facility and bank loans, which have been
substantially reduced over the past couple of years, primarily through property
sales. The overdraft was recently renewed on 7 March 2014, being £100k until 31
until 31 March 2015.
The Group has prepared forecasts to 30 September 2015 which shows that the
Group will be able to operate within its bank facilities.
Accordingly, after making enquiries, including the preparation of forecasts and
discussions with the Group's bankers regarding the renewal of the overdraft and
extension of the loan facilities, the directors have formed a judgement that,
at the time of approving the financial statements, there is a reasonable
expectation that the Company and the Group have adequate resources to continue
in operational existence for a period of 12 months following the date the
financial statements are approved. For this reason, the directors continue to
prepare the financial statements on a going concern basis
3 Earnings per share
The calculation of earnings per share is based on the result for the period
divided by the weighted average number of shares in issue, being 5,999,449 (30
June 2013: 5,999,449 and 31 December 2013: 5,999,449) ordinary shares of 50p
each.
4 Interim dividend
The Directors have declared no interim ordinary dividend (2013: Nil) per share.
A preference dividend of 1.5875p per share was paid on 1 July 2014.
5 Accounting
The results for the half year ended 30 June 2013 and 2014 are unaudited and do
not constitute statutory accounts within the meaning of section 434 Companies
Act 2006.
The financial information for the period ended 31 December 2013 has been
extracted from the statutory accounts for that year and has been filed with the
Registrar of Companies and the auditors have given an unqualified audit
opinion.
For further information please contact:
Wellington Market Company Plc.
Paul Fice, Company Secretary Tel: +44 (0) 1952 242019
Grant Thornton UK LLP (Corporate Adviser)
Colin Aaronson/Melanie Frean Tel: +44 (0) 207 383 5100
