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News announcements placed on Plus Markets.
30 September 2009
Wellington Market Company plc ("Wellington" or "the Company")
Unaudited interim results for the six months ended 30 June 2009
Against a very difficult trading environment, your Chief Executive Officer Malcolm Ball and his team have worked very hard to improve your Company’s fortunes and to sensibly position ourselves for the future. We have continued our policy of divesting ourselves of a number of smaller unprofitable sites, - Portland has been sold, new acquisitions are being continuously examined and a focused diversification policy is underway. On this latter point we have developed and opened in September ‘The Kids Academy’, a childcare facility approved by Ofsted for 108 places, on our Cornish Market World site, and negotiations are at an advanced stage to acquire further activities and development land there with the aim of creating a multi functional innovative visitor attraction. Further announcements will be made as appropriate
Turning to our financial performance, it is disappointing to report an operating loss at the interim stage. From a trading perspective, as noted above, business has been tough, although our core, larger, markets have performed reasonably well, with a notable year on year improvement in contribution from Luton market. However, certain of our smaller markets have been very disappointing, as a consequence of which we continue to look for rationalisation opportunities within our portfolio.
Moreover, our results were negatively impacted by the national downturn in property values, which has led to a professional devaluation of our trading property assets. – The valuation decreases for our property assets at Clydach and Cleethorpes (total £787k) have affecteding ourthe Pprofit and Lloss account and those at Wellington and Morley (total £883k) have affecteding Balance Sheet values.
In respect of this financial year no interim dividend is proposed and, given the outlook, it is very unlikely that any dividend will be paid for this financial year. We clearly need to generate bottom line profitability through the acquisition of additional larger markets and controlled diversification to enable us to rebuild Wellington’s fortunes. This is our aim and clear intention.
Looking ahead to our Annual General Meeting, this will be held on Saturday May 8th at 1:00 pm at the Carlyon Bay Hotel in Cornwall (please go to www.wellingtonmarkets.co.uk for the latest information) to give shareholders the opportunity to visit our very successful and important Cornish Market World and see the other developments on site including Kidzworld and our new Kids Academy; at this time of year Cornish Market World only trades at weekends (we are looking to extend this with the local authority). The market is only a short taxi journey from the main line train station at St Austell. For shareholders who wish to stay the previous evening, or longer, we have arranged special terms at the nearby Carlyon Bay Hotel (e mail: reservations@carlyonbay.com, Tel: (01726) 812304) and the Cliff Head Hotel (email: info@cliffheadhotel.com Tel: (01726) 812345). Please quote Wellington Market AGM when booking. The whole area is very attractive with the Eden Project visitor attraction only a couple of miles away.
I do hope as many shareholders as possible will join us at the AGM, hence the advanced notice.
Chairman
Six months
ended
Year to
30 June
31 December
2009
2008
Unaudited
Audited
£'000
Turnover- Continuing operations
3,144
3,386
6,914
Cost of sales
(2,740)
(2,891)
(5,711)
Gross profit
404
495
1,203
Administration expenses
(1,168)
(364)
(1,254)
Operating profit before impairment of intangible fixed assets
23
131
391
Impairment of intangible fixed asset included in administrative expenses
(787)
-
(442)
Operating (Loss)/profit – continuing operations
(764)
(51)
Net interest payable
(117)
(196)
(374)
Loss on ordinary activities before taxation
(881)
(65)
(425)
Tax on loss on ordinary activities
13
91
68
(Loss)/ profit on ordinary activities after taxation
(868)
26
(357)
Minority interest
(3)
(8)
(10)
(Loss)/profit for the financial period
(871)
18
(367)
Basic & diluted (loss)/ earnings per share (pence)
(14.5)
0.3
(5.9)
Fixed assets
Intangible assets
- positive goodwill and other intangible assets
221
525
229
- negative goodwill
(314)
(386)
(343)
Tangible assets
11,330
14,852
13,002
11,237
14,991
12,888
Current assets
Stocks
46
60
44
Debtors
806
848
516
Cash at bank and in hand
5
852
908
565
Creditors: amounts falling due within one year
(2,169)
(2,763)
(2,536)
Net current liabilities
(1,317)
(1,855)
(1,971)
Total assets less current liabilities
9,920
13,136
10,917
Creditors: amounts falling due after more than one year
(5,445)
(4,888)
(4,720)
Provisions for liabilities and charges
(189)
(199)
Net assets
4,286
8,049
6,008
Capital and reserves
Called up share capital
3,000
Share premium account
250
Revaluation reserve
1,558
3,712
2,383
Share based payment reserve
9
Profit and loss account
(701)
688
199
Equity shareholders' funds
4,125
7,659
5,850
Equity minority interest
161
390
158
Total shareholders' funds
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 2008. As a company listed on PLUS, the company does not have to adopt International Financial Reporting Standards ("IFRS") at this time.
2 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 2008: 5,999,449 and 31 December 2008: 5,999,449) ordinary shares of 50p each.
3 Interim dividend
The Directors have declared no interim ordinary dividend (2008: 1.5p) per share. A preference dividend of 1.5875p per share was paid on 1st July 2009.
4 Accounting
The results for the half year ended 30th June 2008 and 2009 are unaudited and do not constitute statutory audited accounts within the meaning of section 240 companies Act 1985. The financial information for the period ended 31st December 2008 has been extracted from the statutory accounts for that year and ave been filed with the Registrar of Companies and the auditors have given an unqualified audit opinion.