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These news announcements were placed on Plus Markets during 2006 - older news is available from the Plus Markets website.
SIX MONTHS ENDED 30TH JUNE 2006 I have pleasure in writing to shareholders with both our interim results and details of a significant transaction, which adds an established West Country market to our portfolio. The unaudited results can be summarised as follows: -
I am pleased to report that our major refurbishment project at Luton Market, on which we spent GBP 2.6M, was successfully completed early in July 2006. However, as was forecast by my predecessor in our last annual report, the disruption and financial costs were primarily responsible for our interim profits reduction; in addition generally difficult trading conditions in the retail sector have adversely impacted on a number of our markets. We have taken a range of initiatives to improve overall performance including strengthening the management team, renegotiating contracts and weeding out unprofitable markets. In addition the second half of the year should benefit from a completed and enhanced Luton.
I am also very pleased to report that contracts have been exchanged with Markets South West (Holdings) Ltd for a 25 year lease to be granted to your company to takeover the operation of Cornish Market World located on the outskirts of St Austell, Cornwall relatively close to the renowned Eden Project.
This very successful covered market, well supported by locals and tourists alike, has been built up privately over 15 years, with the built site comprising a total area of 80,000 sq ft. of which the market occupies 70,000 sq ft. together with linked activity/amusement centre for young children of around 10,000 sq ft. The latter operation known as Ben's Play World is included in the lease, as is the major adjacent car parking area able to accommodate up to 950 vehicles.
The market is fully occupied with 120 traders and the site employs an average 30 staff. It trades on Saturdays and Sundays throughout the year, plus 10 Wednesdays during the summer. Ben's Play World opens every day from April - September and 5 days per week from October - March.
The building is in good condition, well maintained and has excellent facilities. The combined operation has an annual turnover of over GBP 1,500,000 - Wellington will be taking a lease of GBP 500,000 p.a. net on full repairing terms; completion of the transaction is scheduled for 19th September 2006.
This important and exciting transaction is indicative of our policy of enhancing the size and quality of our portfolio; it should make a positive contribution to this year's annual result and beyond.
Meanwhile our property investments continue to perform well with increases in both rental income and capital values.
Your board has declared a maintained interim ordinary share dividend of 1.5p per ordinary share, which will be paid on the 27th October to shareholders registered on the 6th October. Lee of Trafford Chairman Download full interim report here.