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DJ Wellington Market Company Plc Final Results

 
TIDMWELL 
 
Wellington Market Company plc 
 
                        ("Wellington" or "the Company") 
 
          Financial Statements for the year ended 31st December 2012 
 
Chairman's Statement 
 
There have been three main strands to our activities in 2012: increasing our 
markets' revenues, reducing debt, and seeking new income streams. Dealing with 
our markets first, against a continuing difficult trading background, our main 
sites have performed well with Old Spitalfields, Luton, Morley and Wellington 
up to expectations; at Cornish Market World trading has been more difficult, 
with further flooding, but trader fall-off has thankfully stabilised. Ideally 
we would like to increase our portfolio of larger indoor markets but these are 
few and far between and not easy to acquire. There has been significant 
progress in our debt reduction programme although this will not become apparent 
until later in 2013; proceeds from the sale of Clydach and Cleethorpes have 
been received post year end. Also heads of terms have been agreed for the sale 
of certain investment properties in Wellington. However while our bank has been 
and is supportive, and we are operating within all covenants, our constrained 
financial position is obviously restrictive. 
 
Malcolm Ball and his team have been particularly active in the search for new 
revenue streams; "events" income is well up at Old Spitalfields particularly 
from a tier one Olympic sponsor and we are hopeful of signing a new important 
markets management consultancy agreement very shortly. Encouragingly, our 
"Kidzworld" attraction adjacent to our Cornish Markets site has seen a 
year-on-year improvement in top line income. 
 
While overall results for 2012 are disappointing, they fail to reflect the 
great commitment and efforts of our small team. We are conscious that they and 
our shareholders deserve better, but sadly there are no easy solutions. We will 
continue to do everything possible to improve our company's fortunes. 
 
Lord Lee of Trafford DL FCA 
Chairman 
16 April 2013 
 
 
 
Consolidated Profit and Loss Account 
at 31 December 2012 
 
                                                             2012          2011 
 
                                                            GBP'000         GBP'000 
 
Turnover - continuing operations                            6,932         6,861 
 
Cost of sales                                             (5,729)       (5,626) 
 
                                                    ------------- ------------- 
 
Gross profit                                                1,203         1,235 
 
Administrative expenses 
 
- impairment of tangible fixed assets                       (100)         (593) 
 
- other administrative expenses                             (870)         (801) 
 
                                                    ------------- ------------- 
 
                                                            (970)       (1,394) 
 
Operating profit 
 
Operating profit before impairment of tangible and            400           434 
intangible fixed assets 
 
Impairment of tangible and intangible fixed assets          (167)         (593) 
 
Operating Profit/(loss)                                       233         (159) 
 
Profit on sale of business                                     27             - 
 
Interest payable                                            (271)         (284) 
 
                                                    ------------- ------------- 
 
Loss on ordinary activities before taxation                  (11)         (443) 
 
Tax on loss on ordinary activities                           (29)            17 
 
                                                    ------------- ------------- 
 
Loss on ordinary activities after taxation                   (40)         (426) 
 
Minority interests                                           (11)            57 
 
                                                    ------------- ------------- 
 
Loss for the financial year                                  (51)         (369) 
 
                                                        =========     ========= 
 
Loss per ordinary share                                   (0.67)p       (7.10)p 
 
                                                        =========     ========= 
 
Diluted earnings loss per ordinary share                  (0.67)p       (7.10)p 
 
                                                        =========     ========= 
 
All of the activities of the Group are classified as continuing. 
 
 
 
Consolidated Balance Sheet 
at 31 December 2012 
 
                                                             2012          2011 
 
                                                            GBP'000         GBP'000 
 
Fixed assets 
 
Intangible assets 
 
- positive goodwill and other intangible assets               151           281 
 
- negative goodwill                                         (112)         (170) 
 
Tangible assets                                             9,378         9,867 
 
                                                      -----------   ----------- 
 
                                                            9,417         9,978 
 
                                                      -----------   ----------- 
 
Current assets 
 
Stocks                                                          9            43 
 
Debtors: amounts falling due within one year                  640           661 
 
Debtors: amounts falling due after more than one               33 
year 
 
Cash at bank and in hand                                       97            19 
 
                                                      -----------   ----------- 
 
                                                              779           723 
 
Creditors: amounts falling due within one year            (2,513)       (6,439) 
 
                                                      -----------   ----------- 
 
Net current liabilities                                   (1,734)       (5,716) 
 
                                                      -----------   ----------- 
 
Total assets less current liabilities                       7,683         4,262 
 
Creditors: amounts falling due after more than one        (4,241)         (509) 
year 
 
Provisions for liabilities                                  (231)         (205) 
 
                                                      -----------   ----------- 
 
Net assets                                                  3,211         3,548 
 
                                                        =========     ========= 
 
Capital and reserves 
 
Called up share capital                                     3,000         3,000 
 
Share premium account                                         250           250 
 
Revaluation reserve                                           920         1,242 
 
Share based payment reserve                                    57            53 
 
Profit and loss account                                   (1,047)       (1,017) 
 
                                                      -----------   ----------- 
 
Equity shareholders' funds                                  3,180         3,528 
 
Equity minority interest                                       31            20 
 
                                                      -----------   ----------- 
 
Total shareholders' funds                                   3,211         3,548 
 
                                                        =========     ========= 
 
NOTES 
 
 1. The calculation of earnings per share for the 12 months to 31st December 
    2012 is based on the weighted average number of shares throughout the 
    period of 5,999,449 (2011: 5,999,449). 
 
 2. A preference share dividend of 1.5875 pence per share was paid on the 30th 
    June 2012 and the 31st December 2012. 
 
 3. In common with the majority of other companies, the current economic 
    conditions create uncertainty. 
 
The Group has prepared forecasts to 31 March 2014 which show that the Group 
will be able to operate within its bank facilities, albeit at times cashflow is 
tight. 
 
The Group is funded by an overdraft facility and bank loans. The overdraft is 
subject to review every 6 months and the bank have recently confirmed that this 
will be rolled over to 31 July 2013. At the current date the Group has repaid GBP 
721k, of the loan which is due for repayment on 1 April 2013, leaving a balance 
of GBP279k. The bank has agreed to extend the repayment date of this loan to 30 
June 2013, to enable the Group to complete the realisation of certain non core 
assets which will enable it to repay this balance. Indeed, the Group is 
currently in discussions to sell another property and heads of terms have been 
agreed. The Directors therefore, are confident that sufficient funds will be 
realised to repay the majority of this loan leaving a balance of GBP75k which 
will need to be refinanced. Based on discussions with the Group's bankers the 
Directors believe that they will continue to extend facilities should there be 
any delay in the timing of these realisations and will provide an additional 
facility of GBP75k from 1 July 2013. Directors have concluded that the above 
factors represent a material uncertainty that may cast significant doubt upon 
the Group's ability to continue as a going concern. 
 
Nevertheless, after 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 at least 12 months following the date the accounts 
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 

(MORE TO FOLLOW) Dow Jones Newswires

April 16, 2013 07:30 ET (11:30 GMT)

DJ Wellington Market Company Plc Final Results -2-

    Company's statutory accounts for the years ended 31st December 2011 and 
    31st December 2012 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 week 
    during the week commencing 22nd April 2013 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

April 16, 2013 07:30 ET (11:30 GMT)