Wellington Market Company plc
("Wellington" or "the Company")
Financial Statements for the year ended 31st December 2013
Chairman's Statement
After some years of disappointing results I am very pleased to report a
considerable improvement in our fortunes for the year to 31st December 2013,
with an after tax profit of £262,000 giving earnings of 4.37p per ordinary
share.
There were four main reasons for this better performance: relative stability in
our core markets, successful renegotiations with a number of our landlords/JV
partners, a useful reduction in administrative expenses, and a significant
reduction in net bank interest following the offsetting receipt of Hedging
Redress compensation from our bank.
During 2013 we continued the process of closing small unprofitable markets and
selling certain investment properties thus further reducing our bank
borrowings. I am pleased to say that relationships with our bankers remain
cordial and we continue to operate within our agreed facilities.
As was recently announced we have signed a facilities management contract for
us to operate Shepherd's Bush Market on behalf of owners Orion; this is an area
of our activities which we very much hope to develop. On behalf of your Board
I would like to congratulate our Executive team and indeed all our employees
for this much improved picture and performance.
Lord Lee of Trafford DL FCA
Chairman
28 March 2014
Consolidated Profit and Loss Account
at 31 December 2013
2013 2012
£'000 £'000
Turnover - continuing operations 6,200 6,932
Cost of sales (5,077) (5,729)
--------- ---------
Gross profit 1,123 1,203
Administrative expenses
- impairment of tangible fixed assets - (167)
- other administrative expenses (730) (803)
- other income 34 -
---------- ----------
(696) (970)
Operating profit
Operating profit before impairment of 427 400
tangible and intangible fixed assets
Impairment of tangible and intangible fixed - (167)
assets
Operating Profit 427 233
(Loss)/profit on sale of business and fixed (24) 27
assets
Interest receivable 97 2
Interest payable (224) (273)
---------- ----------
Profit/(loss)on ordinary activities before 276 (11)
taxation
Tax on profit/(loss) on ordinary activities (14) (29)
---------- -----------
Profit/(loss)on ordinary activities after 262 (40)
taxation
Minority interests (14) (11)
---------- -----------
Profit/(loss) for the financial year 248 (51)
========= =========
Profit/(loss)per ordinary share 4.37p (0.67)p
========= ==========
Diluted earningsprofit/(loss)per ordinary share 4.37p (0.67)p
========= =========
All of the activities of the Group are classified as continuing.
Consolidated Balance Sheet
at 31 December 2013
2013 2012
£'000 £'000
Fixed assets
Intangible assets
- positive goodwill and other intangible 126 151
assets
- negative goodwill (55) (112)
Tangible assets 8,274 9,378
----------- -----------
8,345 9,417
----------- -----------
Current assets
Stocks 9 9
Debtors: amounts falling due within one 920 640
year
Debtors: amounts falling due after more 31 33
than one year
Cash at bank and in hand 20 97
----------- -----------
980 779
Creditors: amounts falling due within (1,801) (2,513)
one year
----------- -----------
Net current liabilities (821) (1,734)
----------- -----------
Total assets less current liabilities 7,524 7,683
Creditors: amounts falling due after more (3,893) (4,241)
than one year
Provisions for liabilities (180) (231)
----------- -----------
Net assets 3,451 3,211
============ ============
Capital and reserves
Called up share capital 3,000 3,000
Share premium account 250 250
Revaluation reserve 882 920
Share based payment reserve 73 57
Profit and loss account (799) (1,047)
---------- ----------
Equity shareholders' funds 3,406 3,180
Equity minority interest 45 31
---------- ----------
Total shareholders' funds 3,451 3,211
============ ============
NOTES
1. The calculation of earnings per share for the 12 months to 31st December
2013 is based on the weighted average number of shares throughout the
period of 5,999,449 (2012:5,999,449).
2. A preference share dividend of 1.5875 pence per share was paid on the 30th
June 2013 and the 31st December 2013.
3. In common with many companies, the current economic conditions create
uncertainty with regards to trading, cashflows and the availability of
finance.
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 £300k until 31
May 2014 and then reducing to £100k thereafter until 31 March 2015. In
addition, the group have secured an additional 12 month loan of £200k from
April 2014.
The Group has prepared forecasts to 31 March 2015 which show that the Group
will be able to operate within its bank facilities. The directors aim to repay
the overdraft through further property sales which are not reflected in the
forecasts.
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.
4. The financial information set out above does not constitute the Group's nor
Company's statutory accounts for the years ended 31st December 2012 and
31st December 2013 but is derived from them. The auditors have reported on
the statutory accounts for both financial years. Their reports were
unqualified and did not contain a statement under section 498(1) to (4) of
the Companies Act 2006.
5. The annual report to shareholders will be sent to all shareholders during
the week commencing 21st April 2014 and will also be available then on the
Company's website www.wellingtonmarkets.co.uk.
The directors of the issuer (Wellington Market Company plc) accept
responsibility for this announcement.