Source - PRN

WMC Retail Partners plc
("WMC" or "the Company")

Unaudited interim results for the six months ended 30 June 2016

I welcome the opportunity given by this Interim Report to update shareholders on both our progress and some potentially significant and exciting developments at our Cornish Market World site.  Firstly dealing with our half-yearly results themselves for the six months to June 30th 2016, unaudited figures show a not unexpected loss of £78,000 – a major improvement on the £226,000 loss for the same period last year, even though £42,000 of the improvement relates to the release of earlier provisions.  Once again our traditional markets broadly held their own in a difficult trading environment with occupancy slightly up on last year.  Our move into apprenticeship training has proved disappointingly slow, primarily due to bureaucratic red tape beyond our control.  However our Consulting activities, ably led by Executive Director Andrew Sparrow, have made notable progress with this company being appointed for new projects in, amongst others, Manchester, Chester, Wood Green and Swindon. Pleasingly, in some cases, what started as time limited projects have now developed into either extended pieces of work, or discussions regarding retaining WMC’s involvement over the lifespan of the development project.  These projects see WMC advising on a broad range of issues including market relocations, internal design, retail mix, events strategies and estate management protocols.

Turning to Cornish Market World ("CMW"), shareholders will be aware that this has been loss-making for a number of years - a real drag on overall group results. Unfortunately the market never really recovered from being severely flooded in 2010 and despite our considerable success in building up the adjacent “Kidzworld” Activity Centre, overall results continue negatively although there has been a distinct improvement in market occupancy and optimism. 

In my last Chairman’s report I referred to our continuing dialogue with our landlord, the Council, and prospective tenants to deliver a more profitable and certain future at CMW.  I am now pleased to report that we are close to signing a new agreement on more acceptable and certain terms. A further announcement will be made when this has been completed.

Finally I would like to report to shareholders that Paul Fice, our former Company Secretary and Finance Manager, retired in July after many years of loyal service.  I would like to thank Paul for all he did for us and to wish him well in his new business venture.  We welcome Ken Riley as his replacement.  Ken has settled in well and his wide previous commercial experience should be a very considerable benefit to us as we embark on our new exciting developments. 

Lord Lee of Trafford DL FCA

Chairman

CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six months   Six months Year to
ended ended 31
30 June 30 June December
2016 2015 2015
Unaudited Unaudited Audited
£'000 £'000 £'000
Turnover 2,048 2,149 4,307
Cost of sales (1,687) (1,898) (3,516)
Gross profit 361 251 791
Administration expenses (370) (388) (644)
Operating (loss)/profit (9) (137) 147
(Loss)/profit on sale of business and fixed assets 0 (15) 12
Interest receivable 0 1 1
Interest payable (69) (75) (147)
(Loss)/profit on ordinary activities before taxation (78) (226) 13
 
Tax on (loss)/profit on ordinary activities 4 45 (1)
(Loss)/profit on ordinary activities after taxation (74) (181) 12
Minority interest 4 3 15
(Loss)/profit for the financial period (70) (178) 27
Basic (loss)/earnings per share in pence (1.2) (3.0) 0.45

   

30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
£'000 £'000 £'000
Fixed assets
Intangible
 - positive goodwill and other intangible assets 149 119 157
Tangible assets 7,470 7,889 7,521
7,619 8,008 7,678
Current assets
Stocks 9 8 7
Debtors: amounts falling due within one year 847 751 528
Debtors: amounts falling due after one year - - -
Cash at bank and in hand 26 34 196
882 793 731
Creditors: amounts falling due within one year (1,041) (1,588) (1,080)
Net current liabilities (159) (795) (349)
Total assets less current liabilities 7,460 7,213 7,329
Creditors: amounts falling due after more than one year (3,769) (3,422) (3,330)
Provisions for liabilities and charges (189) (186) (422)
Net assets 3,502 3,605 3,577
Capital and reserves
Called up share capital 3,000 3,000 3,000
Share premium account 250 250 250
Revaluation reserve 386 1,072 388
Share based payment reserve 82 79 82
Profit and loss account (235) (827) (165)
Equity shareholders' funds 3,483 3,574 3,555
Equity minority interest 19 31 22
Total shareholders' funds 3,502 3,605 3,577

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 2015.  

2             Going concern


In common with the majority of other companies, the current economic conditions create uncertainty.

The Group is funded by cash reserves and bank loans, which have been substantially reduced over the past couple of years, primarily through property sales. The loan is currently in negotiation for renewal and extension with business plans and cashflow forecasts until 2020. 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 2015: 5,999,449 and 31 December 2015: 5,999,449) ordinary shares of 50p each.

 4             Interim dividend

  The Directors have declared no interim ordinary dividend (2015: Nil) per share. A preference dividend of 1.5875p per share was paid on 1 July 2016.

5             Accounting

The results for the half year ended 30 June 2015 and 2016 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 2015 has been extracted from the statutory accounts for that year which have been filed with the Registrar of Companies and the auditors have given an unqualified audit opinion.

For further information please contact:

WMC Retail Partners Plc.
Ken Riley, Company Secretary  Tel: +44 (0) 1952 242019

Grant Thornton UK LLP (Corporate Adviser)          
Colin Aaronson/Harrison Clarke  Tel: +44 (0) 207 383 5100