("WMC" or "the Company") Financial Statements for the year ended 31st December 2014 Chairman's Statement As was indicated in our cautionary Trading Statement last month 2014 has been in reality a tale of two markets - Old Spitalfields and Cornish Market World. Dealing firstly with Old Spitalfields (OSM), here we were operating under a five- year agreement which ended in January of this year. Our team made a considerable success of it, in particular developing a range of additional activities and events, but unfortunately the market changed hands and its new American owners decided to manage "in house". I referred to this in my statement accompanying the Interim Results. This change inevitably resulted in some insecurity amongst traders etc., resulting in revenue fall-off towards the end of our tenure. OSM was generating significant profitability for us which will not be easy to replace. Cornish Market World (CMW) regrettably continued its downward drift despite all best efforts, although our associated "Kidzworld" attraction demonstrated further growth. We are now working closely with our landlord to reconfigure the market and there are some early promising signs of an improvement. Parallel to this we have been successful in obtaining planning permission for expanded retailing on site with considerable interest being shown by a number of new prospective tenants; further planning applications at CMW are also underway. Elsewhere our other core markets performed reasonably in a difficult trading environment. As shareholders will know, we now operate under our new name WMC Retail Partners Plc. This reflects the changing nature of our activities in that we are now increasingly involved in managing markets for others on some form of partnership basis; markets at Shepherds Bush and Watford are now operating under our management, Derby City Council has appointed us for a consultancy project and there are a number of other contracts at an advanced state of negotiation. All this augurs well for the future. Turning to other matters, a combination of modest profit, lower than we would have hoped for but reflecting the above, together with very tight control of working capital and costs and the sale of the Wellington Market Annexe, has enabled us to further reduce bank debt. I am pleased to say that we have operated within our banking covenants and that relations with our bank remain cordial. Our significant Property Investment Portfolio has been virtually fully let throughout the year providing very useful income and also acting as part security for our borrowings. Finally I would like to pay tribute to our small executive team and indeed to all our employees who have worked very hard during a difficult year of considerable change. Lord Lee of Trafford DL FCA Chairman 23 April 2015 Consolidated Profit and Loss Account at 31 December 2014 2014 2013 £'000 £'000 Turnover - continuing operations 6,080 6,200 Cost of sales (4,989) (5,077) ------ ------ Gross profit 1,091 1,123 Administrative expenses - other administrative expenses (730) (730) - other income - 34 ------- ------- (730) (696) Operating Profit 361 427 Loss on sale of business and fixed assets (2) (24) Interest receivable 2 97 Interest payable (182) (224) ------- ------- Profit on ordinary activities before taxation 179 276 Tax on profit on ordinary activities (50) (14) ------- -------- Profit on ordinary activities after taxation 129 262 Minority interests 8 (14) ------- ------ Profit for the financial year 137 248 ======== ======== Profit per ordinary share 2.15p 4.37p ======== ======== Diluted earnings profit per ordinary share 2.15p 4.37p ======== ======== All of the activities of the Group are classified as continuing. Consolidated Balance Sheet at 31 December 2014 2014 2013 £'000 £'000 Fixed assets Intangible assets - positive goodwill and other intangible assets 179 126 - negative goodwill - (55) Tangible assets 7,904 8,274 -------- -------- 8,083 8,345 -------- -------- Current assets Stocks 11 9 Debtors: amounts falling due within one year 691 920 Debtors: amounts falling due after more than one year 19 31 Cash at bank and in hand 51 20 -------- -------- 772 980 Creditors: amounts falling due within one year (1,331) (1,801) -------- -------- Net current liabilities (559) (821) -------- -------- Total assets less current liabilities 7,524 7,524 Creditors: amounts falling due after more than one year (3,562) (3,893) Provisions for liabilities (186) (180) ------- ------- Net assets 3,776 3,451 ========= ========= Capital and reserves Called up share capital 3,000 3,000 Share premium account 250 250 Revaluation reserve 1,072 882 Share based payment reserve 79 73 Profit and loss account (662) (799) ------- ------- Equity shareholders' funds 3,739 3,406 Equity minority interest 37 45 ------- ------- Total shareholders' funds 3,776 3,451 ========= ========= NOTES 1. The calculation of earnings per share for the 12 months to 31 December 2014 is based on the weighted average number of shares throughout the period of 5,999,449 (2013:5,999,449). 2. A preference share dividend of 1.5875 pence per share was paid on each of 30 June 2014 and 31t December 2014. 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 £150k overdraft facility was recently renewed on 26 March 2015, until 31 March 2016. The Group has prepared forecasts to 31 March 2016 which shows that the Group will be able to operate within its bank facilities. 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 31 December 2013 and 31 December 2014 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 4th May 2015 and will also be available then on the Company's website www.WMC-retail.com The directors of the issuer (WMC Retail Partners plc) accept responsibility for this announcement.