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Wynnstay Properties PLC

Annual Report and Financial Statements 
for the year ended 25 March 2018

WYNNSTAY  PROPERTIES  PLC
Registered number: 00022473

ANNUAL REPORT

and

FINANCIAL STATEMENTS

YEAR ENDED 25TH MARCH 2018

CONTENTS

Directors and Advisers

Summary of Property Portfolio

Chairman’s Statement

Report of the Directors

Strategic Report 

Report of the Auditors

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

Notes to the Financial Statements

Five Year Financial Review

Notice of Annual General Meeting

Biographies of the Directors

2 

3 

4 

9 

13 

14 

18 

19 

20 

21 

22 

38 

39 

42 

 – 1 –

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WYNNSTAY PROPERTIES PLC
(Company incorporated in the United Kingdom)

DIRECTORS
P.G.H. COLLINS C.B.E.
(Non-Executive Chairman)

C.P. WILLIAMS, B.Sc., M.B.A., M.R.I.C.S.
(Managing Director)

C.H. DELEVINGNE
(Non-Executive Director)

T. J. C. PARKER A.C.A.
(Finance Director & Secretary)

P. MATHER, B.Sc., F.R.I.C.S.
(Non-Executive Director)

C. M. TOLHURST, B.Sc., M.R.I.C.S., A.C.I.S. 
(Non-Executive Director)

REGISTERED OFFICE
150 Aldersgate Street, London EC1A 4AB

AUDITORS
MOORE STEPHENS LLP
150 Aldersgate Street, London EC1A 4AB

SOLICITORS
FIELDFISHER LLP
Riverbank House, 2 Swan Lane, London EC4R 3TT

NOMINATED ADVISER & BROKER
PANMURE GORDON (UK) LIMITED
One New Change, London EC4M 9AF

VALUERS
BNP PARIBAS REAL ESTATE ADVISORY &  
PROPERTY MANAGEMENT UK LIMITED
5 Aldermanbury Square, London EC2V 7BP

REGISTRARS
LINK ASSET SERVICES
65 Gresham Street, London EC2V 7NQ

BANKERS
C. HOARE & CO.
37 Fleet Street, London EC4P 4DQ

SVENSKA HANDELSBANKEN AB
5 Welbeck Street, London W1G 9YQ

 – 2 –

WYNNSTAY PROPERTIES PLC

SUMMARY OF PROPERTY PORTFOLIO
AT 25TH MARCH 2018

Eastern Road

1 Industrial Unit

Quarry Wood Industrial Estate

18 Industrial Units

Crockford Lane

3 Industrial Units

Oakcroft Business Park

3 Industrial Units/Offices

High Street

Offices

Crown Close Industrial Estate

7 Industrial Units

Station Road

5 Industrial Units

Hertingfordbury Road

1 Industrial Unit

Trinity Street

Brooks Road

5 Industrial Units

2 Retail Units

1-4, Prospect Drive

4 Industrial Units

Beaver Industrial Estate

17 Industrial Units

North Street

1 Retail Unit

City Trading Estate

6 Industrial Units

Huntingdon Road

6 Industrial Units

St James’ Street

Offices

Bell Lane

4 Industrial Units

Aldershot

Aylesford

Basingstoke

Chessington

Cosham

Hailsham

Heathfield

Hertford

Ipswich

Lewes

Lichfield

Liphook

Midhurst

Norwich

St. Neots

Surbiton

Uckfield

Weston-super-Mare

Phillips Road

1 Retail Unit

All the above properties are Freehold.

 – 3 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT

I am delighted to be writing to you to report on another excellent year for Wynnstay.

Overview of financial performance 
Wynnstay’s financial performance for the year may be summarised as follows:

•    Property income

•  Profit before movement in fair value of investment 

properties, property sales and taxation

•    Earnings per share

•  Dividends per share, paid and proposed

•  Net asset value per share

•    Loan to value ratio

•  Gearing ratio

Change

+7.6%

+15.1%

– 5.8%

+11.1%

+11.9%

2018

2017

£2,182,000

£2,028,000

£1,150,000

£999,000

97.1p

17.50p

754p

34.1%

43.1%

103.1p

15.75p

674p

38.4%

56.2%

Portfolio
Wynnstay’s  portfolio  is  spread  principally  within  the  South  and  East  of  England,  with  a  couple  of  recent 
acquisitions located further afield. Following the disposals mentioned later in this statement, we have around 80 
tenants occupying 86 separate properties in 18 locations.

With  the  number  of  disposals  and  the  successful  completion  of  lease  renewals,  rent  reviews  and  new  leases  at 
some of the smaller units in the portfolio, it has been an extremely busy year. Our management continues to focus 
on being approachable and flexible to meet tenants’ needs, upgrading properties often jointly with existing tenants 
or to attract new tenants and ensuring that when tenants vacate properties they are relet as quickly as possible. 

Property  rental  income  rose  to  just  under  £2.2  million  and  was  significantly  higher  than  last  year  (2017  -  £2.0 
million).  This  increase  reflects  a  full  contribution  from  the  office  premises  in  Surbiton  where,  as  previously 
reported,  we  negotiated  a  significant  rent  increase  towards  the  end  of  the  last  financial  year,  together  with  the 
benefit of other good rent increases negotiated during the current year, notably on our estates at Aylesford and 
Liphook where tenant interest and demand remain strong. 

At  both  these  estates,  we  are  planning  to  build  additional  units.  I  have  previously  advised  of  our  successful 
planning  application  to  expand  at  Aylesford.  After  further  investigations  of  the  costs  and  options,  we  are  close 
to finalising our plans which include seeking a variation of the existing planning permission so that we have the 
option, if we wish, to carry out the works in phases. At Liphook, as reported in my interim report in November 
2017, we have recently acquired a small adjacent vacant site and are in the course of preparing and submitting a 
planning application for two new units.

As  envisaged  in  my  statement  last  year,  we  have  taken  advantage  of  the  present  strong  demand  for  smaller 
commercial investments by disposing of high street retail shops in the portfolio with a view to reinvestment of 
the proceeds in larger assets that offer better opportunities for growth. I reported on the sales of our high street 
retail  shops  at  Colchester  and  Gosport  in  the  interim  results  in  November  2017.  Subsequently,  in  March  2018 
we competed the sale of our high street shop at Shirley. These three properties had been in the portfolio for many 
years. Given the attractive prices being realised for such premises, despite the uncertainties about the future of the 

 – 4 –

 
WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

high street, and the anticipated lack of rental and capital growth, we considered that we should seek to invest the 
proceeds elsewhere. 

The net profit from the sale of the three high street premises is £210,000 and this is reflected in the accounts for 
the year.

As  previously  reported,  ownership  of  our  principal  tenants  at  Basingstoke  changed  hands  during  the  year.  The 
new owner has now decided to adopt a different model for distributing the company’s products and to consolidate 
operations on an existing site to the north of London. We are considering various options for refurbishment and 
re-letting and/or sale whether as individual units or as a whole.

In my statement last year, I advised you of our plans, together with the adjoining owner, to sell our estate of five 
industrial units in St Neots, which has been in the portfolio for many years and is located in an area of the town 
that  is  now  becoming  predominantly  residential  in  nature,  to  a  development  company  subject  to  that  company 
securing planning permission for redevelopment of both holdings for housing. I am pleased to say that planning 
permission has now been obtained and the developer is currently concluding formalities. Consequently, we have 
been informed that their option to purchase is likely to be exercised shortly. As previously advised, we will retain, 
at least for the time being, one self-contained unit adjacent to the main entrance to the St Neots’ estate. 

After the end of the financial year, Carpetright plc, one of the two tenants at our Lewes premises, notified us that it 
had entered into a creditors voluntary arrangement, would be surrendering its lease in September 2018 and, in the 
meantime, would be paying a reduced rent. Whilst this news was unwelcome, it was not entirely unexpected given 
the well-publicised difficulties facing certain multiple retail chains. We are already marketing the unit and I hope 
that there will be further news by the time of our interim results in November.  

Our tenants at Chessington recently told us that they intend to transfer their operations to their parent company’s 
site in Crawley and would therefore wish to exercise the break clauses under the leases of two of their three units. 
Following discussions, we have mutually agreed with the tenants to extend formally the date on which the breaks 
will become effective to June 2019 to allow them time to organise vacation and reinstatement of the units. The 
lease of the third unit runs until June 2021. We will begin marketing the units to be vacated early next calendar 
year.

The  disposals  we  have  made,  together  with  the  loss  of  the  tenant  at  Lewes,  may  result  in  our  rental  income 
being lower in the current year than in the prior year. However, we are continually on the look out for attractive 
opportunities to add to the portfolio and have explored a significant number of potential purchases over the course 
of the year in a very competitive commercial property investment market, particularly in the light industrial / trade 
counter sector.

Profits and costs
As a result of the continued tight control of property and administrative costs, profit before fair value movement, 
profits on property sales and taxation for the year rose to just under £1.15m (2017 £1.0m).

Our  property  costs  remained  broadly  at  the  same  level  as  last  year,  although  they  include  a  greater  proportion 
of costs on the upgrading of properties that are generally reflected in better lease terms and increased rents. We 
continue to focus on control of administrative costs, which were lower than in the prior year, partly due to the non-
recurring items arising in that year.

 – 5 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

Portfolio Valuation
As at 25 March 2018, our Independent Valuers, BNP Paribas Real Estate, have undertaken the annual revaluation 
of  the  company’s  portfolio  at  £30,070,000  representing  a  revaluation  surplus  of  £1,631,000.  The  revaluation 
reflects  the  increased  rental  income,  improved  lease  profile  and  enhanced  covenants  achieved  by  our  active 
management as well as positive conditions in the commercial property investment market.

As last year, it is pleasing to note that the increase in values, which has contributed to a 11.8% increase in net asset 
value per share, was spread across most of the portfolio. The greater percentage increases were attributed to our 
larger assets and to those where significant management activity has taken place.

Following the changes in the portfolio during the year, as at the year-end, the industrial sector within the portfolio 
accounted for 66% by value, with the retail warehouse and office sectors comprising 12% and 19% respectively 
and the remaining 3% being in our last remaining high street retail premises.

Finance, Borrowings and Gearing
At the year-end, we held net cash of £1.43 million. When the sale of St Neots is completed, our cash position 
will be further strengthened. This will enable us to finance the developments at Aylesford and Liphook described 
earlier as well as to fund new acquisitions.  

Borrowings  at  the  year-end  were  £10.24  million  (2017  -  £11.34  million)  and  net  gearing  at  the  year-end  was 
43.1% compared to 56.2% last year. 

As previously reported, we have an excellent business relationship with Handelsbanken and they have indicated 
that  if  we  need  additional  borrowing  to  finance  new  acquisitions  they  are  willing,  in  principle  and  without 
commitment, to increase our facility to a maximum of £15 million.

Dividend
In  the  light  of  the  excellent  financial  outcome  of  the  year,  the  Board  is  recommending  a  total  dividend  for  the 
year  of  17.5p  per  share  (2017  –  15.75p),  which  represents  an  increase  of  11.1%.  An  interim  dividend  of  6.5p 
per  share  (2017  –  5.5p)  was  paid  in  December  2017.  Accordingly,  subject  to  approval  of  Shareholders  at  the 
Annual General Meeting, a final dividend of 11.00p per share (2017 – 10.25p) will be paid on 20th July 2018 to 
Shareholders on the register on 22nd June 2018. 

The  Board  is  delighted  that  Wynnstay’s  financial  performance  has  enabled  Shareholders  to  be  rewarded  with 
progressive and substantial dividend increases over the past five years. 

Outlook
The  present  uncertainties  over  the  terms  of  the  UK’s  exit  from  the  European  Union  coupled  with  domestic 
political uncertainties have clouded the economic outlook and led to slowing in domestic growth and consumer 
spending. On the other hand, employment has continued to reach record levels.

After  six  successive  years  of  capital,  income  and  dividend  growth  and  against  a  more  uncertain  political  and 
economic  background,  we  remain  confident  of  Wynnstay’s  future  as  a  niche  property  investment  company. 
However, we feel that it is appropriate to be cautious, avoiding over-expansion or over-paying for acquisitions, 
and to take a measured approach in continuing to develop and build Wynnstay’s portfolio. 

– 6 –

– 7 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

The  continued  growth  of  the  UK  domestic  economy  with  its  many  successful  small  businesses  is  important  to 
the commercial property market. Reform of the present system of business rates and the heavy costs of property 
transactions  arising  from  recent  increases  in  stamp  duty  are  substantial  impediments  to  the  growth  of  small 
businesses and need to be addressed.

Our Executive Management 
The  day-to-day  responsibility  for  Wynnstay’s  business  rests  with  our  experienced  executive  directors  –  Paul 
Williams, our Managing Director, and Toby Parker, our Finance Director.  In the light of the results achieved this 
year, the non-executive Directors decided to award them each a cash bonus: in the case of Paul, £20,000 and in 
the case of Toby, £4,000. The bonuses are reflected in the accounts for the last year. We use discretionary bonuses 
as an additional incentive to align remuneration with shareholders interests. As mentioned in my statement last 
year, Paul and Toby have expressed a wish to consider taking any future bonuses in the form of Wynnstay shares 
and resolutions, in the same terms as those approved at last year’s meeting, to enable this will be proposed at the 
Annual General Meeting.

Colleagues and Advisers
Our  three  non-executive  directors,  Charles  Delevingne,  Paul  Mather  and  Caroline  Tolhurst  provide  the  benefit 
of  their  long  and  diverse  property  and  other  experience.  I  would  like  to  thank  all  the  Directors,  as  well  as  our 
advisers, for their contributions over the past year.

Unsolicited approaches to Shareholders
Every  year  I  warn  shareholders  about  unsolicited  approaches,  usually  by  telephone,  about  their  shareholdings.  
This year I have personally experienced such calls to my family and other shareholders have reported similar calls. 
A recent Financial Conduct Authority report noted that “Even seasoned investors have been caught out, with the 
biggest individual loss recorded by the police being £6m.”

As always, I would urge all shareholders to continue to be cautious. There is nothing that we can do to deter or 
stop  these  approaches,  or  the  use  by  callers  of  Wynnstay’s  name  or  details  of  shareholdings.  On  Wynnstay’s 
website (www.wynnstayproperties.co.uk), shareholders will also find a warning and a link to other information 
about  unsolicited  approaches  regarding  shares  on  the  Financial  Conduct  Authority’s  website  (www.fca.org.uk/
consumers/ scams).

Annual General Meeting 
Our Annual General Meeting will be held on Tuesday 10th July 2018 commencing at 11.30. As last year, it is to 
be held at the company’s registered office which is at our auditors, Moore Stephens LLP, 150 Aldersgate Street, 
London EC1A 4AB. Coffee will be available from 11.00. 

As always, I encourage all Shareholders to take the opportunity to come to London for the meeting so that they 
can meet the Board and other Shareholders informally to discuss the Company’s affairs as well as to take part in 
the formal business. Shareholders are asked to indicate by ticking the appropriate box on the enclosed proxy 
form whether or not they intend to attend the meeting. 

As at last year’s meeting and already noted above, the notice of meeting on page 36 includes, in addition to routine 
business,  two  additional  resolutions.  These  resolutions  would  give  the  Board  authority,  limited  in  both  amount 
(5% of share capital) and time (December 2019 at the latest) to issue shares, including shares held in Treasury, 

– 7 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

and  to  do  so  without  first  offering  them  to  existing  shareholders.  This  authority  is  commonly  sought  in  public 
companies as it is a potentially useful additional way of financing part of the costs of an acquisition if this suits 
the vendor. A specific reason for the authority in our case is that our Managing Director and Finance Director, 
Paul Williams and Toby Parker, have expressed interest in receiving any future bonuses in shares. Although they 
could seek to purchase shares in the market, our shares are often not readily available in the market so it is useful 
for the Board to have the authority to issue shares directly to them. Whilst an acquisition of shares in this way 
will not provide the tax benefits associated with a share incentive scheme, it is a sign of their confidence in and 
commitment to the Company that they have expressed this interest in aligning their financial interests with those 
of the Company and of all other shareholders.

Philip G.H. Collins
Chairman

14 June 2018

 – 8 –

 
 
WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2018

The  Directors  present  their  One  Hundred  and  Thirty  Second  Annual  Report,  together  with  the  audited 
Financial Statements of the Company for the year ended 25th March 2018.

Please  refer  to  the  Strategic  Report  on  page  13  for  the  activities  and  the  likely  future  developments  of  the 
Company and a discussion of the risks and uncertainties. Please refer to note 18 of the financial statements for 
further disclosure of the financial risks.

Profit  for the Year
The  profit  for  the  year  after  taxation  amounted  to  £2,632,000  (2017:  £2,797,000).  Details  of  movements  in 
reserves are set out in the statement of changes in equity on page 21.

Dividends
The Directors have decided to recommend a final dividend of 11.0 pence per share for the year ended 25th March 
2018 payable on 20th July 2018 to those shareholders on the register on 22nd June 2018. This dividend, together 
with the interim dividend of  6.5 pence paid on 23rd December 2017, represents a total for the year of 17.5 pence 
(2017: 15.75 pence).

Statement of Directors’ Responsibilities
The  Directors  are  responsible  for  preparing  the  Strategic  Report,  the  Directors’  Report  and  the  financial 
statements in accordance with applicable law and regulations.

Company  law  requires  the  Directors  to  prepare  financial  statements  for  each  financial  year.  Under  that  law   
the  Directors  have  elected  to  prepare  the  financial  statements  in  accordance  with  IFRS  as  adopted  by  the 
European Union and applicable law. The financial statements must, in accordance with IFRS as adopted by  
the European Union, present fairly the financial position and performance of the Company; such references    
in the UK Companies Act 2006 to such financial statements giving a true and fair view are references to their 
achieving a fair presentation. Under Company law directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view. In preparing these financial statements, the directors are 
required to:

• 
• 
• 

• 

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state  whether  the  financial  statements  have  been  prepared  in  accordance  with  IFRS  as  adopted  by  the 
European Union;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain 
the  Company’s  transactions  and  disclose  with  reasonable  accuracy  at  any  time  the  financial  position  of  the 
Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They 
are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.

The  Directors  are  responsible  for  the  maintenance  and  integrity  of  the  corporate  and  financial  information 
included  on  the  Company’s  website.  Legislation  in  the  United  Kingdom  governing  the  preparation  and 
dissemination of the financial statements may differ from legislation in other jurisdictions.

 – 9 –

WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2018 (continued)

Directors
The  Directors  holding  office  during  the  financial  year  under  review  and  their  beneficial  and  non-beneficial 
interests in the ordinary share capital of the Company at 25th March 2018 and 25th March 2017 are shown below:

                                                                                                                                     Ordinary Shares of 25p
25.3.17 

25.3.18 

P.G.H. Collins 
C.P. Williams 
C.H. Delevingne 
T.J. Nagle (Retired 13.07.2017) 
T.J.C. Parker 

Non-Executive Chairman 
Managing Director 
Non-Executive Director 
Non-Executive Director 
Finance Director and Secretary 

850,836 
10,212 
5,000 
13,000 
17,583 

850,836
10,212
5,000
13,000
15,583

The interests shown above in respect of Mr. P.G.H. Collins include non-beneficial interests of 229,596 shares at 
25th March 2018 and 2017.

Mr. C.P. Williams and Mr T.J.C. Parker each have a service agreement with the Company. Under the respective 
terms thereof, their employment is subject to six months’ notice of termination by either party.

In accordance with the Company’s Articles of Association, Mr C H Delevigne and Mr C P Williams retire by 
rotation and, being eligible, offer themselves for re- election. 

Brief biographies of each of the Directors appear on page 42.

Directors’ Emoluments
Directors’ emoluments for the year ended 25th March 2018 are set out below:-

P.G.H. Collins 
C.P. Williams 
C.H. Delevingne 
T.J. Nagle 
T.J.C.Parker 
P. Mather 
C.M. Tolhurst 

Total 2018 

Total 2017 

Salaries 
– 
142,000 
– 
– 
– 
– 
– 

Fees 
40,000 
15,000 
15,000 
5,000 
15,000 
15,000 
15,000 

Pension 
– 
12,200 
– 
– 
4,000 
– 
– 

Benefits 
– 
3,485 
– 
– 
– 
– 
– 

Total 
2018 
40,000 
172,685 
15,000 
5,000 
19,000 
15,000 
15,000 

Total
2017
40,000
170,144
15,000
15,000
20,000
–
–

£142,000 

£120,000 

£16,200 

£3,485 

£281,685 

£140,360 

£100,000 

£16,536 

£3,248 

£260,144

The  above  figures  include  discretionary  bonus  payments  determined  by  the  Board  to  reflect  performance 
during the year of £20,000 (2017: £25,000) to Mr C.P.Williams and £4,000 (2017: £5,000) Mr T.J.C. Parker.

A company owned and controlled by Mr T.J.C. Parker, was paid a fee of £45,000 (2017: £43,697) for services 
rendered during the year (see note 20).

Directors’ and Officers’ Liability Insurance
The Company has maintained Directors’ and Officers’ insurance as permitted by the Companies Act 2006.

– 10 –
10

 
 
 
 
  
 
 
 
 
 
 
    
WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2018 (continued)

Substantial Interests
As at 13th June 2018, the Directors have been notified or are aware of the following interests, which are in 
excess of three per cent of the issued ordinary share capital of the Company: 

No. of Ordinary 
Shares of 25p 

Percentage of 
Issued Share  
Capital 2018 

Percentage of
Issued Share
Capital 2017 

Mr P.G.H. Collins 

850,836 

Mr D. Gibson 

101,378 

Mr G. Gibson 

243,192 

31.38% 

3.73% 

8.97% 

31.38% 

3.65%

8.97%

Corporate Governance
The  Board  of  Directors  is  accountable  to  Shareholders  for  the  good  corporate  governance  of  the  Company 
under the AIM rules for companies. The Company is not required to comply and therefore does not comply 
with  the  UK  Corporate  Governance  Code.  However,  the  Board  is  aware  of  the  best  practice  defined  by  the 
Code and has adopted procedures to the extent considered appropriate.

•  The Company is headed by an effective Board of Directors.

•  There is a clear division of responsibilities in running the Board and running the Company’s business.

•  In  the  financial  year,  the  Board  comprised  two  executive  and  four  non-executive  Directors,  including  the 

Chairman.

•  The  Board  receives  and  reviews  on  a  regular  basis  financial  and  operating  information  appropriate  to  the 
Directors being able to discharge their duties. An annual budget is approved by the Board and a revised forecast 
is prepared at the half year stage. Cash flow and other financial performance indicators are monitored monthly 
against budget.

•  Directors  submit  themselves  for  re-election  every  three  years  by  rotation  in  accordance  with  the  Articles  of 

Association.

•  The  Board  welcomes  communication  from  the  Company’s  Shareholders  and  positively  encourages  their 

attendance at the Annual General Meeting.

•  The Board has appointed Caroline Tolhurst as Senior Independent Director who is available to shareholders if 
they have concerns which contact through the normal channel of Chairman has failed to resolve or for which 
such contact is inappropriate.

•  In view of the current size of the Company and its Board the establishment of an audit committee or an internal 
audit  department  would  be  inappropriate.  However,  the  auditors  have  direct  access  to  the  non-executive 
Chairman.

Remuneration Committee
The  Board  currently  acts  as  the  remuneration  committee,  with  the  non-executive  Directors  determining  the 
remuneration of the executive Directors, and the details of the Directors’ emoluments being set out on page     
10 of this report. It is the Company’s policy that the remuneration of Directors should be commensurate with 
services provided by them to the Company. 

10

– 11 –

 
 
 
 
WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2018 (continued)

Going Concern
The Directors have a reasonable expectation that the Company has adequate resources to continue in existence 
for  the  foreseeable  future.  For  this  reason  they  continue  to  adopt  the  going  concern  basis  in  preparing  the 
financial statements. 

Internal Control
The  Directors  are  responsible  for  the  Company’s  system  of  internal  financial  control,  which  is  designed           
to  provide  reasonable,  but  not  absolute,  assurance  against  material  misstatement  or  loss.  In  fulfilling  these 
responsibilities,  the  Board  has  reviewed  the  effectiveness  of  the  system  of  internal  financial  control.  The 
Directors have established procedures for planning and budgeting and for monitoring, on a regular basis, the 
performance of the Company. 

Statement as to Disclosure of Information to Auditors
Each of the persons who are Directors at the time when this report is approved has confirmed that: 

•  so far as each Director is aware, there is no relevant audit information of which the Company’s auditors are 

unaware; and

•  each  Director  has  taken  all  the  steps  that  ought  to  have  been  taken  as  a  Director,  including  making 
appropriate enquiries of fellow Directors and the Company’s auditors for that purpose, in order to be aware 
of  any  information  needed  by  the  Company’s  auditors  in  connection  with  preparing  their  report  and  to 
establish that the Company’s auditors are aware of that information.

Annual General Meeting
The Notice of the Annual General Meeting, to be held on Tuesday 10th July 2018, is set out on page 39. 

By Order of the Board,
T.J.C. Parker
Secretary

14th June 2018

– 12 –

WYNNSTAY PROPERTIES PLC

STRATEGIC REPORT 2018

The Directors present their Strategic Report for the year ended 25th March 2018.

Principal Activity
The principal activity of the Company during the year continued to be that of Property Owners, Developers 
and Managers.

Business Review, Performance Indicators and Risks
A  review  of  the  business  for  the  year  and  of  the  future  prospects  of  the  Company  is  included  in  the 
Chairman’s Statement on pages 4 to 8. The financial statements and notes are set out on pages 18 to 37.

The key performance indicators for the Company are those relating to the underlying movement in both rental 
income and in the value of its property investments as set out below:

•     Increase in rental income: 7.6% (2017: increase of 14.9%).

• 

Increase in net asset value per share: 11.9% (2017: increase of 15.4%).

The Directors will continue to search for profitable investment opportunities, and make changes to enhance  
the value of the portfolio as and when such opportunities arise.

The  principal  risks  and  uncertainties  are  those  associated  with  the  commercial  property  market,  which  is 
cyclical  by  its  nature  and  include  changes  in  the  supply  and  demand  for  space  as  well  as  the  inherent  risk 
of  tenant  failure.  In  the  latter  case,  the  Company  seeks  to  reduce  this  risk  by  requiring  the  payment  of  rent 
deposits when considered appropriate and monitoring the income exposure to any tenant on a monthly basis. 
Other risk factors include changes in legislation in respect of taxation and the obtaining of planning consents, 
as  well  as  those  associated  with  financing  and  treasury  management.  The  Company’s  risk  management 
objectives can be found at note 18 of the financial statements.

This Strategic Report was approved by the Board and signed on its behalf by:

T.J.C. Parker
Director

14th June 2018

– 13 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

Opinion
We  have  audited  the  financial  statements  of  Wynnstay  Properties  PLC  (the  “Company”)  for  the  year  ended 
25  March  2018  which  comprise  the  Statement  of  Comprehensive  Income,  Statement  of  Financial  Position, 
Statement  of  Cash  Flows,  Statement  of  Changes  in  Equity  and  notes  to  the  financial  statements,  including 
a  summary  of  significant  accounting  policies.  The  financial  reporting  framework  that  has  been  applied  in 
their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the 
European Union.

In our opinion the financial statements:

•  give a true and fair view of the state of the Company’s affairs as 25 March 2018 and of its profit for the 

year then ended;

•  have been properly prepared in accordance with IFRSs as adopted by the European Union; and
•  have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion 
We  conducted  our  audit  in  accordance  with  International  Standards  on  Auditing  (UK)  (ISAs  (UK))  and 
applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities 
for  the  audit  of  the  financial  statements  section  of  our  report.    We  are  independent  of  the  Company  in 
accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, 
including  the  FRC’s  Ethical  Standard,  and  we  have  fulfilled  our  ethical  responsibilities  in  accordance  with 
these  requirements.    We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and  appropriate  to 
provide a basis for our audit opinion.

Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to 
report to you where:

• 

• 

the directors’ use of the going concern basis of accounting in the preparation of the financial statements is 
not appropriate, or
the  directors  have  not  disclosed  in  the  financial  statements  any  identified  material  uncertainties  that 
may  cast  significant  doubt  about  the  company’s  ability  to  continue  to  adopt  the  going  concern  basis 
of  accounting  for  a  period  of  at  least  twelve  months  from  the  date  when  the  financial  statements  are 
authorised for issue.

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit 
of  the  financial  statements  of  the  current  period  and  include  the  most  significant  assessed  risks  of  material 
misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the 
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. 
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming 
our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of investment properties 
The Company holds investment properties which comprise properties owned by the Company held for rental 
income. The Company’s investment property portfolio is valued at £30m at the end of the reporting period 

– 14 –

 – 15 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

Investment  properties  are  valued  by  independent  external  valuers,  who  were  engaged  by  the  directors.  The 
valuers  performed  their  work  in  accordance  with  the  Royal  Institution  of  Chartered  Surveyors  (“RICS”) 
Valuation – Professional Standards. The valuation of the investment property portfolio is inherently subjective 
due  to,  among  other  factors,  the  individual  nature  of  each  property,  current  tenancy  agreements,  its  location 
and  the  expected  future  rentals  for  that  particular  property  which  are  taken  into  account  by  the  valuers  in 
determining  a  property’s  valuation.  Additionally,  a  number  of  assumptions  were  made  in  regard  to  the  state 
of  the  property,  yields  and  estimated  market  rent  together  with  anticipated  void  periods.  The  valuation  of 
investment  properties  requires  significant  judgement  and  there  is  therefore  a  risk  that  the  properties  are 
incorrectly valued.

In this area our audit procedures were as follows:

•  We  obtained  and  reviewed  the  independent  valuation  reports  and  confirmed  that  the  valuation  approach 

was in accordance with RICS standards.

•  We  compared  investment  yields  and  year  on  year  movements  in  capital  value  by  reference  to  published 

benchmarks.

•  An assessment of the valuers’ qualifications and expertise was performed and we held a discussion with 
the valuers to gain a better understanding of their independence and quality control procedures and their 
approach to valuation.

Revenue recognition
Revenue  of  the  Company  amounting  to  £2m  was  mainly  derived  from  its  principal  activity,  being  the 
management  of  its  property  portfolio.  This  income  includes  rental  income  which  is  based  on  tenancy 
agreements with rentals payable quarterly. There is a risk that revenue is received or earned and not recorded 
which presents a potential risk in terms of the completeness and accuracy of the revenue being recognised.

In  addition,  there  is  a  risk  that  sales  have  completed  prior  to  the  year-end  but  are  not  recognised  in  the 
accounts and also a further risk in terms of the cut off of this revenue.

Our approach to the audit of revenue was as follows:

•  Rental income is based on tenancy agreements with  rentals payable quarterly. We reconciled  total rental 
income to the individual tenancy agreements, including considering the effect of all rent reviews during the 
year and compared the total rental income expected to the rental income recognised.

•  We  reviewed  all  completion  statements  to  gain  assurance  that  revenue  from  sale  of  properties  was 

recognised in the correct period.

Our application of materiality
We  set  certain  thresholds  for  materiality.  These  helped  us  to  determine  the  nature,  timing  and  extent  of  our 
audit procedures and to evaluate the effect of misstatements, both individually and on the financial statements 
as a whole.

We  determined  the  materiality  for  the  financial  statements  as  a  whole  to  be  £310,000,  calculated  with 
reference  to  a  benchmark  of  gross  assets,  which  is  a  typical  primary  measure  for  users  of  the  financial 
statements of investment property companies, of which it represents approximately 1%. In addition, we set a 
specific materiality level of £58,000 for items within underlying pre-tax profit calculated at 5% of profit before 
tax adjusted for fair value movement on non-current assets.

 – 15 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

This  is  the  threshold  above  which  missing  or  incorrect  information  in  financial  statements  is  considered  to 
have an impact on the decision making of users.

We  reported  to  the  Board  all  potential  adjustments  in  excess  of  £16,000  being  approximately  5%  of  the 
materiality for the financial statements as a whole.

An overview of the scope of our audit
We  considered  the  risk  of  the  financial  statements  being  misstated  or  not  prepared  in  accordance  with  the 
underlying legislation or standards. We then directed our work toward areas of the financial statements which 
we assessed as having the highest risk of containing material misstatements. 

We  tested  and  examined  information  using  both  analytical  procedures  and  tests  of  detail,  to  the  extent 
necessary to provide us with a reasonable basis to draw conclusions. These procedures gave us the evidence 
that we need for our opinion on the financial statements as a whole and, in particular, helped mitigate the risks 
of material misstatement mentioned above.

We also documented and reviewed the systems, primarily to confirm that they form an adequate basis for the 
preparation  of  the  financial  statements,  but  also  to  identify  the  controls  operated  to  ensure  the  completeness 
and accuracy of the data.

Other information
The  directors  are  responsible  for  the  other  information.    The  other  information  comprises  the  information 
included in the annual report, other than the financial statements and our auditor’s report thereon.  Our opinion 
on the financial statements does not cover the other information and, except to the extent otherwise explicitly 
stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, 
in  doing  so,  consider  whether  the  other  information  is  materially  inconsistent  with  the  financial  statements 
or our knowledge obtained in the audit or otherwise appears to be materially misstated.  If we identify such 
material inconsistencies or apparent material misstatements, we are required to determine whether there is a 
material misstatement in the financial statements or a material misstatement of the other information.  If, based 
on the work we have performed, we conclude that there is a material misstatement of this other information, 
we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:

• 

• 

the information given in the Strategic Report and the Directors’ Report for the financial year for which the 
financial statements are prepared is consistent with the financial statements; and
the  Strategic  Report  and  the  Directors’  Report  have  been  prepared  in  accordance  with  applicable  legal 
requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of 
the audit, we have not identified material misstatements in the strategic report or the directors’ report.

 – 16 –

 – 17 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to 
report to you if, in our opinion:

•  adequate accounting records have not been kept by the company, or returns adequate for our audit have not 

been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or

• 
•  certain disclosures of directors’ remuneration specified by law are not made; or
•  we have not received all the information and explanations we require for our audit.

Responsibilities of Directors
As  explained  more  fully  in  the  directors’  responsibilities  Statement  set  out  on  page  9,  the  directors  are 
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair 
view, and for such internal control as the directors determine is necessary to enable the preparation of financial 
statements that are free from material misstatement, whether due to fraud or error.

In  preparing  the  financial  statements,  the  directors  are  responsible  for  assessing  the  company’s  ability  to 
continue as a going concern, disclosing,  as applicable, matters related to going concern and using the going 
concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, 
or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 
opinion.  Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with ISAs (UK) will always detect a material misstatement when it exists.  Misstatements can arise 
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial 
Reporting  Council’s  website  at:  www.frc.org.uk/auditorsresponsibilities.  This  description  forms  part  of  our 
auditor’s report.

Use of our report
This  report  is  made  solely  to  the  company’s  members,  as  a  body,  in  accordance  with  Chapter  3  of  Part  16 
of  the  Companies  Act  2006.  Our  audit  work  has  been  undertaken  so  that  we  might  state  to  the  company’s 
members those matters we are required to state to them in an auditor’s report and for no other purpose. To the 
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Fenner (Senior Statutory Auditor)
for and on behalf of Moore Stephens LLP
Statutory Auditor

150 Aldersgate Street
London
EC1A 4AB

14 June 2018

 – 17 –

 
 STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

Property Income

Property Costs

Administrative Costs

Movement in Fair Value of:
Investment Properties

Profit on Sale of Investment Property

Operating Income 

Investment Income

Finance Costs

Income before Taxation

Taxation

Income after Taxation

Basic and diluted earnings per share

Notes

2

3

9

5

5

6

8

The company has no items of other comprehensive income.

2018

£’000

2,182

(148)

(520)

1,514

1,631

210

3,355

1

    (365)

2,991

(359)

2,632

2017

£’000

2,028

(131)

(528)

1,369

2,199

–

3,568

3

(373)

3,198

(401)

2,797

97.1p

103.1p

 – 18 –

 
 
 
 
WYNNSTAY PROPERTIES PLC

 STATEMENT OF FINANCIAL POSITION 25TH MARCH 2018

2018
£’000

28,770
3

28,773

808
1,434
2,242

1,300

3,542

(1,075)
(211)

(1,286)

2,256

31,029

 (10,240)
(346)
(10,586)

20,443

789
205
1,135
(1,570)
19,884

20,443

2017
£’000

29,515
3

29,518

455
1,075
1,530

–

1,530

(1,039)
(195)

(1,234)

296

29,814

 (11,340)
(209)
(11,549)

18,265

789
205
1,135
(1,570)
17,706

18,265

Notes

9
12

13

9

14

15
16

17

Non Current Assets
Investment Properties
Investments

Current Assets
Accounts Receivable
Cash and Cash Equivalents

Non-current assets held for Sale

Current Liabilities
Accounts Payable
Income Taxes Payable

Net Current Assets

Total Assets Less Current Liabilities

Non-Current Liabilities
Bank Loans Payable
Deferred Tax Payable

Net Assets

Capital and Reserves

Share Capital
Capital Redemption Reserve
Share Premium Account
Treasury Shares
Retained Earnings

Approved by the Board and authorised for issue on 14th June 2018

P.G.H. Collins 
Chairman 

T.J.C. Parker
Finance Director

Registered number: 00022473

– 19 –

 
 
 
WYNNSTAY PROPERTIES PLC

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 25TH MARCH 2018

Cashflow from operating activities
Income before taxation
Adjusted for:
Amortisation of deferred finance costs
Increase in fair value of investment properties
Interest income
Interest expense
Profit on disposal of investment properties

Changes in:
Trade and other receivables
Trade and other payables
Cash generated from operations

Income taxes paid
Interest paid

2018
£’000

2,991

–
(1,631)
(1)
365
(210)

(353)
36
1,196

2017
£’000

3,198

28
(2,199)
(3)
373
–

(136)
99
1,360

(294)
      (365)

(181)
       (345)

Net cash from operating activities

537

834

Cashflow from investing activities
Interest and other income received
Purchase of investment properties
Sale of investment properties

Net cash from investing activities

Cashflow from financing activities
Dividends paid
Drawdown on bank loans
Repayment of bank loans

Net cash from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

– 20 –

1
(98)
1,386

1,289

(454)
–
(1,100)

(1,554)

359

1,075

1,434

3
(2,086)
–

(2,083)

(371)
1,312
–

941

(308)

1,383

1,075

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

YEAR ENDED 25TH MARCH 2018

Share 
Capital

£ 000

789

–

–

Capital 
Redemption 
Reserve

Share 
Premium 
Account

Treasury
Shares

Retained 
Earnings

£ 000

£ 000

£ 000

£ 000

Total

£ 000

205

1,135

(1,570)

17,706

18,265

–

–

–

–

–

–

2,632

(454)

2,632

(454)

Balance at 26th March 2017
Total comprehensive  
income for the year

Dividends – note 7

Balance at 25th March 2018

789

205

1,135

(1,570)

19,884

20,443

YEAR ENDED 25TH MARCH 2017

Share 
Capital

£ 000

Capital 
Redemption 
Reserve

Share 
Premium 
Account

Treasury
Shares

Retained 
Earnings

£ 000

£ 000

£ 000

£ 000

Total

£ 000

Balance at 26th March 2016

789

205

1,135

 (1,570)

15,280

15,839

Total comprehensive  
income for the year

Dividends – note 7

–

–

–

–

–

–

–

–

2,797

(371)

2,797

(371)

Balance at 25th March 2017

789

205

1,135

(1,570)

17,706

18,265

– 21 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

1. 

BASIS OF PREPARATION, ACCOUNTING POLICIES AND ESTIMATES

Wynnstay  Properties  Plc  is  a  public  limited  company  incorporated  and  domiciled  in  England  and 
Wales. The principal activity of the Company is property investment, development and management. 
The  Company’s  ordinary  shares  are  traded  on  the  Alternative  Investment  Market.  The  Company’s 
registered number is 00022473.

1.1    Basis of Preparation

The  financial  statements  have  been  prepared  in  accordance  with  International  Financial  Reporting 
Standards  (“IFRS”)  as  adopted  by  the  EU.  The  financial  statements  have  been  presented  in  Pounds 
Sterling  being  the  functional  currency  of  the  Company.  The  financial  statements  have  been  prepared 
under the historical cost basis modified for the revaluation of investment properties and financial assets 
measured at fair value through profit or loss, and investments.

(a) New Interpretations and Revised Standards Effective for the year ended 25th March 2018
The  Directors  have  adopted  all  new  and  revised  standards  and  interpretations  issued  by  the 
International  Accounting  Standards  Board  (“IASB”)  and  the  International  Financial  Reporting 
Interpretations  Committee  (“IFRIC”)  of  the  IASB  and  adopted  by  the  EU  that  are  relevant  to  the 
operations and effective for accounting periods beginning on or after 26th March 2017. The adoption  
of  these  interpretations  and  revised  standards  had  the  following  impact  on  the  disclosures  and 
presentation of the financial statements:

IAS 40 Investment Property
The amendment to the standard clarifies that judgement is required over whether the acquisition of an 
investment property is an acquisition of an asset or a business combination that falls within the scope  
of IFRS 3. The amendment will prospectively impact the accounting treatment for the acquisition of 
investment property which falls under the scope of business combinations.

The  Company  has  evaluated  its  investment  property  acquisitions  during  the  year  ended  25th  March 
2018 and has not identified any transactions which fall within the scope of business combinations. The 
investment properties acquired during the year are disclosed in note 9.

(b) Standards and Interpretations in Issue but not yet Effective
The  International  Accounting  Standards  Board  (“IASB”)  and  International  Financial  Reporting 
Interpretations Committee (“IFRIC”) have issued revisions to a number of existing standards and new 
interpretations as well as a number of new standards with an effective date of implementation after the 
date of these financial statements.

It is not anticipated that the adoption of these revised standards and interpretations will have a material 
impact  on  the  figures  included  in  the  financial  statements  in  the  period  of  initial  application.  The 
following standards may have a minor impact:

 – 22 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

IFRS 9: Financial Instruments 
The standard makes substantial changes to the measurement of financial assets and financial liabilities 
and derecognition of financial assets. There will only be three categories of financial assets whereby 
financial  assets  are  recognised  at  either  fair  value  through  profit  and  loss,  fair  value  through  other 
comprehensive income or measured at amortised cost. On adoption of the standard, the Company will 
have  to  re-determine  the  classification  of  its  financial  assets  based  on  the  business  model  for  each 
category of financial asset.  This is not considered likely to give rise to any significant adjustments.

The principal change to the measurement of financial assets measured at amortised cost or fair value 
through other comprehensive income is that impairments will be recognised on an expected loss basis 
compared to the current incurred loss approach. As such, where there are expected to be credit losses 
these  are  recognised  in  profit  or  loss.  For  financial  assets  measured  at  amortised  cost  the  carrying 
amount  of  the  asset  is  reduced  for  the  loss  allowance.  For  financial  assets  measured  at  fair  value 
through other comprehensive income the loss allowance is recognised in other comprehensive income 
and does not reduce the carrying amount of the financial asset.

Most  financial  liabilities  will  continue  to  be  carried  at  amortised  cost,  however,  some  financial 
liabilities will be required to be measured at fair value through profit or loss, for example derivative 
financial  instruments,  with  changes  in  the  liabilities’  credit  risk  recognised  in  other  comprehensive 
income.

The standard is effective for periods beginning on or after 1 January 2018.

An impact assessment of the standard was carried out and it was concluded that it will have no material 
effect.

IFRS 15 – Revenue from contracts with customers
The standard has been developed to provide a comprehensive set of principles in presenting the nature, 
amount,  timing  and  uncertainty  of  revenue  and  cash  flows  arising  from  a  contract  with  a  customer.   
The standard is based around five steps in recognising revenue:

Identify the contract with the customer
Identify the performance obligations in the contract 
Determine the transaction price
Allocate the transaction price
Recognise revenue when a performance obligation is satisfied

On application of the standard the disclosures are likely to increase. The standard includes principles  
on  disclosing  the  nature,  amount,  timing  and  uncertainty  of  revenue  and  cash  flows  arising  from 
contracts with customers, by providing qualitative and quantitative information.

The Company has carried out an assessment of the impact that the standard will have on its financial 
statements, and concluded the effect is not considered to be material.

The standard is effective for periods beginning on or after 1 January 2018.

An impact assessment of the standard was carried out and it was concluded that it will have no material 
effect.

 – 23 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

IFRS 16 – Leases
The  standard  makes  substantial  changes  to  the  recognition  and  measurement  of  leases  by  lessees.       
On  adoption  of  the  standard,  lessees,  with  certain  exceptions  for  short  term  or  low  value  leases,         
will be required to recognise all leased assets on their Statement of Financial Position as ‘right-of-use 
assets’ with a corresponding lease liability. This is likely to significantly increase the asset and liability 
balances recognised in the Statement of Financial Position.

In addition to the re-measurements required, on application of the standard, the disclosures are likely 
to increase. The standard includes principles on disclosing the nature, amount, timing and variability of 
lease payments and cash flows, by providing qualitative and quantitative information.

The  requirements  for  lessors  are  substantially  unchanged  although  the  disclosures  are  also  likely  to 
increase.

The Company has not as yet evaluated the full extent of the impact that the standard will have on its 
financial statements, however the effect is not considered likely to be material.

The standard is effective for periods beginning on or after 1 January 2019.

An impact assessment of the standard was carried out and it was concluded that it will have no material 
effect.

 – 24 –

 – 25 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

1.2  ACCOUNTING POLICIES

Investment Properties
All the Company’s investment properties are revalued annually and stated at fair value at 25th March. 
The aggregate of any resulting surpluses or deficits are taken to profit or loss.

Non-current  assets  are  classified  as  held  for  sale  if  their  carrying  amount  will  be  recovered  through       
a  sale  transaction  rather  than  through  continuing  use.  This  condition  is  regarded  as  met  only  when     
the  sale  is  highly  probable  and  the  asset  is  available  for  immediate  sale  in  its  present  condition. 
Management must be committed to the sale, which should be expected to qualify for recognition as a 
completed sale within one year from the date of classification. Non-current assets classified as held for 
sale are measured at the lower of the assets’ previous carrying amount and fair value less cost to sell.

Investment  properties  are  recognised  as  acquisitions  or  disposals  based  on  the  date  of  contract 
completion.

Depreciation
In accordance with IAS 40, freehold investment properties are included in the Statement of Financial 
Position at fair value, and are not depreciated.

Other plant and equipment is recognised at cost and depreciated on a straight line basis calculated at 
annual rates estimated to write off each asset over its useful life of 5 years.

Disposal of Investments 
The  gains  and  losses  on  the  disposal  of  investment  properties  and  other  investments  are  included  in 
profit or loss in the year of disposal.

Property Income
Property income is recognised on a straight line basis over the period of the lease. Revenue is measured 
at the fair value of the consideration receivable. All income is derived in the United Kingdom.  

Taxation
The  tax  expense  represents  the  sum  of  the  tax  currently  payable  and  deferred  tax.  Current  tax  is  the 
expected tax payable on the taxable income for the year based on the tax rate enacted or substantially 
enacted at the reporting date, and any adjustment to tax payable in respect of prior years. Taxable profit 
differs from income before tax because it excludes items of income or expense that are deductible in 
other years, and it further excludes items that are never taxable or deductible.

Deferred taxation is the tax expected to be payable or recoverable on differences between the carrying 
amounts  of  assets  and  liabilities  in  the  financial  statements  and  the  corresponding  tax  bases  used 
in  the  computation  of  taxable  profits,  and  is  accounted  for  using  the  statement  of  financial  position 
liability method. Deferred tax liabilities are recognised for all taxable temporary differences (including 
unrealised  gains  on  revaluation  of  investment  properties)  and  deferred  tax  assets  are  recognised  to 
the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised.

 – 25 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

The Company provides for deferred tax on investment properties by reference to the tax that would be 
due on the sale of the investment properties. Deferred tax is calculated at the rates that are  expected 
to apply in the period when the liability is settled, or the asset is realised. Deferred tax is charged or 
credited to profit or loss, including deferred tax on the revaluation of investment property.

Trade and Other Accounts Receivable
Trade and other receivables are initially measured at fair value and subsequently measured at amortised 
cost as reduced by appropriate allowances for estimated irrecoverable amounts. All receivables do not 
carry any interest and are short term in nature. 

Cash and Cash Equivalents
Cash comprises cash at bank and on demand deposits. Cash equivalents are short term (less than three 
months  from  inception),  repayable  on  demand  and  are  subject  to  an  insignificant  risk  of  change  in 
value.

Trade and Other Accounts Payable
Trade and other payables are initially measured at fair value and subsequently measured at amortised 
cost. All trade and other accounts payable are non-interest bearing.

Pensions
Pension contributions towards employees’ pension plans are charged to the statement of comprehensive 
income as incurred. The pension scheme is a defined contribution scheme.

Borrowings
Interest  rate  borrowings  are  recognised  at  fair  value,  being  proceeds  received  less  any  directly 
attributable  transaction  costs.  Borrowings  are  subsequently  stated  at  amortised  cost.  Any  difference 
between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss 
over  the  period  of  the  borrowings  using  the  effective  interest  method.  Borrowings  are  classified  as 
current liabilities unless the Company has an unconditional right to defer settlement of the liability for 
at least 12 months after the reporting date.

1.3 

 Key Sources of Estimation Uncertainty and Judgements
The  preparation  of  the  financial  statements  requires  management  to  make  judgements,  estimates  and 
assumptions that may affect the application of accounting policies and the reported amounts of assets 
and liabilities, income and expenses.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the 
revision affects only that period. The key sources of estimation uncertainty that have a significant risk 
of causing material adjustment to the carrying amounts of assets and liabilities within the next financial 
year  are  those  relating  to  the  fair  value  of  investment  properties  which  are  revalued  annually  by  the 
Company’s independent valuers.

There are no other judgemental areas identified by management that could have a material effect on the 
financial statements at the reporting date.

 – 26 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

2.   PROPERTY COSTS

Empty rates

Property management

Legal fees 

Agents fees

3.   ADMINISTRATIVE COSTS

Rents payable – operating lease rentals

General administration, including staff costs

Auditors’ remuneration:   Audit fees

                                         Tax services

4.   STAFF COSTS

Staff costs, including Directors’ fees, during the year were as follows:

Wages and salaries

Social security costs

Other pension costs

2018

£’000

4

114

118

22

8

148

2018

£’000

26

458

32

4

520

2018

£’000

266

31

16

313

2017

£’000

1

65

66

40

25

131

2017

£’000

25

465

32

6

528

2017

£’000

244

 23

17 

284

Further details of Directors’ emoluments, totaling £281,685 (2017: £260,144), are shown in the Directors’ 
Report on page 10. There are no other key management personnel.

The average number of employees, including Non-Executive Directors, 
engaged wholly in management and administration was: 

The number of Directors for whom the Company paid pension benefits 
during the year was:

2018

No.

6

2

2017

No.

5

2

 – 27 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

5.   FINANCE COSTS (NET)

Interest payable on bank loans

Less: Bank interest receivable

6.   TAXATION

(a) Analysis of the tax charge for the year:

UK Corporation tax at 19% (2017: 20%)

Overprovision in previous year

Total current tax charge

Deferred tax  – temporary differences

Tax charge for the year

(b) Factors affecting the tax charge for the year:

Net Income before taxation

Current Year:

Corporation tax thereon at 19% (2017 - 20%)

Expenses not deductible for tax purposes

Excess of capital allowances over depreciation

Investment gain on fair value not taxable

Investment profit on disposal

Other timing differences

Overprovision in previous year

Current tax charge

7.   DIVIDENDS

Final dividend paid in year of 10.25p per share 

(2017: 8.2p per share)

Interim dividend paid in year of 6.5p per share                                     

(2017: 5.5p per share)

2018

£’000

365

(1)

364

2018

£’000

222

–

222

137

359

2017

£’000

373

(3)

370

2017

£’000

195

–

195

206

401

2,991

3,198

569

3

–

(310)

(40)

–

–

222

2018

£’000

278

176

454

640

14

(2)

(440)

–

(16) 

– 

195

2017

£’000

222

149

371

The Board recommends the payment of a final dividend of 11.0 p per share, which will be recorded in the 
Financial Statements for the year ending 25th March 2019.

 – 28 –

 
  
 
5.   FINANCE COSTS (NET)

Interest payable on bank loans

Less: Bank interest receivable

6.   TAXATION

(a) Analysis of the tax charge for the year:

UK Corporation tax at 19% (2017: 20%)

Overprovision in previous year

Total current tax charge

Deferred tax  – temporary differences

Tax charge for the year

(b) Factors affecting the tax charge for the year:

Net Income before taxation

Current Year:

Corporation tax thereon at 19% (2017 - 20%)

Expenses not deductible for tax purposes

Excess of capital allowances over depreciation

Investment gain on fair value not taxable

Investment profit on disposal

Other timing differences

Overprovision in previous year

Current tax charge

7.   DIVIDENDS

2,991

3,198

2018

£’000

365

(1)

364

2018

£’000

222

–

222

137

359

569

(310)

(40)

3

–

–

–

222

2018

£’000

278

176

454

2017

£’000

373

(3)

370

2017

£’000

195

–

195

206

401

640

14

(2)

(440)

(16) 

–

– 

195

2017

£’000

222

149

371

Final dividend paid in year of 10.25p per share 

(2017: 8.2p per share)

(2017: 5.5p per share)

Interim dividend paid in year of 6.5p per share                                     

The Board recommends the payment of a final dividend of 11.0 p per share, which will be recorded in the 

Financial Statements for the year ending 25th March 2019.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

8.   EARNINGS PER SHARE

Basic  earnings  per  share  are  calculated  by  dividing  Income  after  Taxation  attributable  to  Ordinary 
Shareholders  of  £2,632,000  (2017:  £2,797,000)  by  the  weighted  average  number  of  2,711,617  (2017: 
2,711,617)  ordinary  shares  in  issue  during  the  period  excluding  shares  held  as  treasury.  There  are  no 
instruments in issue that would have the effect of diluting earnings per share.

9.   PROPERTIES

Properties

Balance at 25th March 2017

Additions

Disposals

Revaluation Surplus

Assets held for Sale

Balance at 25th March 2018

2018

£’000

29,515

96

(1,172)

1,631

30,070

(1,300)

28,770

2017

£’000

25,230

2,086

–

2,199

29,515

–

29,515

The Company’s freehold investment properties are carried at fair value as at 25th March 2018. The fair 
value of the properties has been calculated by independent valuers, BNP Paribas Real Estate, on the basis 
of market value, defined as:

“The estimated amount for which a property should exchange on the date of valuation between a willing 
buyer and a willing seller in an arm’s-length transaction, after proper marketing wherein the parties had each 
acted knowledgeably, prudently and without compulsion.”

These recurring fair value measurements for non-financial assets use inputs that are not based on observable 
market data, and therefore fall within level 3 of the fair value hierarchy.

The significant unobservable market data used is property yields which range from 5.51% to 8.02%, with an 
average yield of 6.75% and an average weighted yield of 6.79% for the portfolio.

There have been no transfers between levels of the fair value hierarchy. Movements in the fair value are 
recognised in profit or loss.

A  0.5%  increase  or  decrease  in  the  yield  would  result  in  a  corresponding  decrease  or  increase  of  
£2.23 million in the fair value movement through profit or loss.

 – 29 –

 
  
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

10.  OTHER PROPERTY, PLANT AND EQUIPMENT

Cost

Balance at 25th March 2017 and 25th March 2018 

Depreciation

Balance at 25th March 2017

Charge for the Year

Balance at 25th March 2018

Net Book Values at 25th March 2017
and 25th March 2018

11.  OPERATING LEASES RECEIVABLE

The following are the future minimum lease 
payments receivable under non-cancellable  
operating leases which expire:

Not later than one year

Between 2 and 5 years

Over 5 years

2018
£’000

2017
£’000

–

–

–

–

–

2018

£’000

1,870

3,913

123

5,906

47

47

–

47

–

2017

£’000

2,026

4,061

245

6,332

Rental  income  under  operating  leases  recognised  through  profit  or  loss  amounted  to  £2,182,000  (2017:
£2,028,000).

Typically, the properties were let for a term of between 5 and 10 years at a market rent with rent reviews 
every 5 years. The above maturity analysis reflects future minimum lease payments receivable to the next 
break clause in the operating lease. The properties are generally leased on terms where the tenant has the 
responsibility for repairs and running costs for each individual unit with a service charge payable to cover 
common services provided by the landlord on certain properties.

 – 30 –

 – 31 –

 
              
            
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

12.  INVESTMENTS

Quoted investments

13.  ACCOUNTS RECEIVABLE

Trade receivables

Other receivables

2018

£’000

3

2018

£’000

802

6

808

2017

        £’000

3

2017

        £’000

451

4

455

Trade receivables include an allowance for bad debts of £nil (2017: nil). Trade receivables of
£nil (2017: £10,000) are considered past due but not impaired.

14.  ACCOUNTS PAYABLE

Trade payables

Other creditors

Accruals and deferred income

15.  BANK LOANS PAYABLE 

Non-current loan

2018

£’000

–

140

935

1,075

2018

£’000

10,240

10,240

2017

 £’000

7

134

898

1,039

2017

 £’000

11,340

11,340

In December 2016, a new five year facility comprising both a Fixed Rate Facility and a Revolving Credit 
Facility was entered into providing a total credit facility of £11.34 million. Interest was charged at 3.35% per 
annum for the Fixed Rate Facility of £10 million and 2.49% over 3 month LIBOR for the Revolving Credit 
Facility of £0.24 million (2017: £1.34 million).

The  loan  is  repayable  in  one  instalment  on  18  December  2021.  The  bank  loan  includes  the  following 
financial covenants which were complied with during the year:

• Rental income shall not be less than 2.25 times the interest costs
• The bank loan shall at no time exceed 50% of the market value of the properties secured.

 – 31 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

15.  BANK LOANS PAYABLE (Continued)

The  borrowing  facility  is  secured  by  fixed  charges  over  the  freehold  land  and  buildings  owned  by  the 
Company, which at the year end had a combined value of £30,070,000 (2017: £29,515,000). The undrawn 
element of the borrowing facility available at 25th March 2018 was £1,100,000 (2017: nil). 

16.  DEFERRED TAX 

A deferred tax liability of £346,000 has been recognised in respect of the investment properties (2017: £209,000).

17.  SHARE CAPITAL

Authorised

2018

£’000

2017

£’000

8,000,000 Ordinary Shares of 25p each:

2,000

2,000

Allotted, Called Up and Fully Paid

3,155,267 Ordinary shares of 25p each

789

789

All shares rank equally in respect of Shareholder rights.

In March 2010, the company acquired 443,650 Ordinary shares of Wynnstay Properties Plc from Channel 
Hotels and Properties Ltd at a price of £3.50 per share. These shares, representing in excess of 14% of the 
total shares in issue, are held in Treasury.

 – 32 –

 – 33 –

 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

18.  FINANCIAL INSTRUMENTS

The objective of the Company’s policies is to manage the Company’s financial risk, secure cost effective 
funding  for  the  Company’s  operations  and  minimise  the  adverse  effects  of  fluctuations  in  the  financial 
markets on the value of the Company’s financial assets and liabilities, on reported profitability and on the 
cash flows of the Company.

At 25th March 2018 the Company’s financial instruments comprised borrowings, cash and cash equivalents, 
short term receivables and short term payables. The main purpose of these financial instruments was to raise 
finance for the Company’s operations. Throughout the period under review, the Company has not traded in 
any other financial instruments. The Board reviews and agrees policies for managing each of these risks and 
they are summarised below:

Credit Risk
The  risk  of  financial  loss  due  to  a  counterparty’s  failure  to  honour  its  obligations  arises  principally  in 
connection with property leases and the investment of surplus cash.

Tenant rent payments are monitored regularly and appropriate action is taken to recover monies owed or, if 
necessary, to terminate the lease. Funds are invested and loan transactions contracted only with banks and 
financial institutions with a high credit rating.

The  Company  has  no  significant  concentration  of  credit  risk  associated  with  trading  counterparties 
(considered to be over 5% of net assets) with exposure spread over a large number of tenancies.

Concentration of credit risk exists to the extent that at 25th March 2018 and 2017, current account and short 
term deposits were held with two financial institutions, Svenska Handelsbanken AB and C Hoare & Co. 
Maximum exposure to credit risk on cash and cash equivalents at 25th March 2018 was £1,434,000 (2017: 
£1,075,000).

Currency Risk
As all of the Company’s assets and liabilities are denominated in Pounds Sterling, there is no exposure to 
currency risk.

Interest Rate Risk
The Company is exposed to cash flow interest rate risk as it currently borrows at both floating and fixed 
interest rates. The Company monitors and manages its interest rate exposure on a periodic basis but does 
not  take  out  financial  instruments  to  mitigate  the  risk.  The  Company  finances  its  operations  through  a 
combination of retained profits and bank borrowings.

Liquidity Risk
The Company seeks to manage liquidity risk to ensure sufficient funds are available to meet the requirements 
of the business and to invest cash assets safely and profitably. The Board regularly reviews available cash to 
ensure there are sufficient resources for working capital requirements.

 – 33 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

18.  FINANCIAL INSTRUMENTS (Continued)

Interest Rate Sensitivity
Financial instruments affected by interest rate risk include loan borrowings and cash deposits. The analysis 
below  shows  the  sensitivity  of  the  statement  of  comprehensive  income  and  equity  to  a  0.5%  change  in 
interest rates:

0.5% decrease 
in interest rates

0.5% increase 
in interest rates

Impact on interest payable - gain/(loss)

Impact on interest receivable - (loss)/gain

Total impact on pre tax profit and equity

2018

£'000

1

(7)

(6)

2017

£'000

7

(5)

2

2018

£'000

(1)

7

6

The net exposure of the Company to interest rate fluctuations was as follows:

Floating rate borrowings (bank loans)

Less: cash and cash equivalents

2018

£'000

(240)

1,434

1,194

2017

£'000

(7)

5

(2)

2017

£'000

(1,340)

1,075

 (265)

Fair Value of Financial Instruments
Except as detailed in the following table, management consider the carrying amounts of financial assets and 
financial liabilities recognised at amortised cost approximate to their fair value. 

Interest bearing borrowings (note 15)

2018
Book Value
£’000
(10,240)

2018
Fair Value
£’000
(10,240)

2017
Book Value
£’000
(11,340)

2017
Fair Value
£’000
(11,340)

Total

(10,240)

(10,240)

(11,340)

(11,340)

 – 34 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

18.  FINANCIAL INSTRUMENTS (Continued)

Categories of Financial Instruments

Financial assets:

Quoted investments

Loans and receivables

Cash and cash equivalents

Total financial assets

Non-financial assets

Total assets

Financial liabilities at amortised cost

Total liabilities

Shareholders’ equity

Total shareholders’ equity and liabilities

2018

£’000

3

808

1,434

2,246

30,070

32,316

2017

£’000

3

455

    1,075

1,533

29,515

31,048

11,509

12,574

11,873

20,443

32,316

12,783

18,265

31,048

The only financial instruments measured subsequent to initial recognition at fair value as at 25th March are 
quoted investments. These are included in level 1 in the IFRS 7 hierarchy as they are based on quoted prices 
in active markets.

Capital Management
The primary objectives of the Company’s capital management are:

 • 

 • 

to safeguard the Company’s ability to continue as a going concern, so that it can continue to provide returns 
for shareholders: and
to    enable  the  Company  to  respond  quickly  to  changes  in  market  conditions  and  to  take  advantage  of 
opportunities.

Capital comprises Shareholders’ equity plus net borrowings. The Company monitors capital using loan to value 
and gearing ratios. The former is calculated by reference to total net debt as a percentage of the year end valuation 
of the investment property portfolio. Gearing ratio is the percentage of net borrowings divided by Shareholders’ 
equity. Net borrowings comprise total borrowings less cash and cash equivalents. The Company’s policy is that 
the net loan to value ratio should not exceed 50% and the gearing ratio should not exceed 100%.

Net borrowings and overdraft

Cash and cash equivalents

Net borrowings

Shareholders’ equity

Investment properties

Loan to value ratio

Net borrowings to value ratio

Gearing ratio

 – 35 –

2018

£'000

10,240 

(1,434)

8,806

20,443

30,070

34.1%

29.3%

43.1%

2017

£'000

11,340

(1,075)

10,265

18,265

29,515

38.4%

34.7%

56.2%

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

19.  COMMITMENTS UNDER OPERATING LEASES

Future rental commitments at 25th March 2018 under non-cancellable operating leases are as follows:-

Within one year

Between two to five years

2018

£’000

25

29

54

2017

£’000

28

28

56

20.  RELATED PARTY TRANSACTIONS

The Company has entered into an agreement with T.J.C.P. Consultants Ltd, a company owned and controlled 
by T.J.C. Parker which during the year was paid £45,000 (2017: £43,697). There were no other related party 
transactions other than with the Directors, which have been disclosed under Directors’ Emoluments in the 
Directors’ Report on page 10.

 – 36 –

 – 37 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25TH MARCH 2018

WYNNSTAY PROPERTIES PLC

21.  SEGMENTAL REPORTING

          Industrial

             Retail

              Office

              Total

2018

2017

2018

2017

2018

2017

2018

2017

 £’000

£’000

 £’000

£’000

 £’000

£’000

 £’000

£’000

1,618

1,153

1,298

1,145

162

20

465

24

402

458

265

2,182

1,030

1,631

2,028

2,199

Rental Income

Profit on investment 
property at fair value

Total income and gain

2,771

2,443

182

489

860

1,295

3,813

4,227

Property expenses

(148)

(131)

–

–

–

–

(148)

(131)

Segment profit/(loss)

2,573

2,312

182

489

860

1,295

3,665

4,096

Unallocated corporate 
expenses

Profit on sale of
investment property

Operating income

Interest expense (all relating 
to property loans)

Interest income and  
other income

Income before taxation

–

–

210

–

–

–

210

–

(521)

(528)

3,354

3,568

(365)

(373)

1

3

2,991

3,198

Other information

          Industrial

             Retail

              Office

              Total

2018

2017

2018

2017

2018

2017

2018

2017

 £’000

£’000

 £’000

£’000

 £’000

£’000

 £’000

£’000

Segment assets

19,735

18,483

4,760

5,915

5,575

5,118

30,070

29,515

Segment assets held  
as security

19,735

18,483

4,760

5,915

5,575

5,118

30,070

29,515

 – 37 –

   
 
 
WYNNSTAY PROPERTIES PLC

FIVE YEAR FINANCIAL REVIEW

Years Ended 25th March:

2018

£’000

2017

£’000

STATEMENT OF COMPREHENSIVE INCOME

Property Income

Profit before movement in fair value of 
investment properties and taxation

Income before Taxation

Income after Taxation

2,182

1,150

2,991

2,632

2,028

999

3,198

2,797

IFRS

2016

£’000

1,778

878

1,951

1,796

2015

£’000

2014

£’000

1,663

899

2,429

2,219

1,609

1,011

1,181

946

STATEMENT OF FINANCIAL POSITION

Investment Properties

Equity Shareholders’ Funds 

30,070

20,443

29,515

18,265

25,230

15,839

21,780

14,390

18,515

12,499

PER SHARE

Basic earnings

Dividends paid and proposed

Net Asset Value

97.1p

17.5p

754p

103.1p

15.75p

674p

66.2p

13.2p

584p

81.8p

12.3p

531p

34.9p

11.8p

461p

 – 38 –

                                                       
                                    
 
WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

NOTICE  IS  HEREBY  GIVEN  that  the  one  hundred  and  thirty  second  ANNUAL  GENERAL  MEETING 

of  the  Members  of  Wynnstay  Properties  PLC  will  be  held  at  Moore  Stephens  LLP,  150,  Aldersgate  Street, 

London EC1A 4AB on Tuesday, 10th July 2018, at 11.30 a.m.. The business of the meeting will be to consider 

and, if thought fit, to pass the following ordinary and special resolutions.

ORDINARY RESOLUTIONS

1  To receive the Report of the Directors and the Financial Statements for the year ended 25th March 2018.

2  To declare a final dividend for the year ended 25th March 2018 of 11.0 pence per ordinary share.

3  To fix the remuneration of the Directors.

4  To reappoint Moore Stephens LLP as auditors of the Company, to hold office from the conclusion of the 

annual  general  meeting  until  the  conclusion  of  the  next  annual  general  meeting  of  the  Company  and  to 
authorise the Directors to determine their remuneration.

5  To  re-elect  Charles  Delevingne  as  a  Director  of  the  Company,  who  retires  and  offers  himself  for 

re-election.

6  To re-elect Paul Williams as a Director of the Company, who retires and offers himself for re-election.

7  That  the  Directors  of  the  Company  are  generally  and  unconditionally  authorised  for  the  purposes  of  

section  551  of  the  Companies  Act  2006  (the  “Act”),  in  substitution  for  all  previous  authorisations,  to 

exercise  all  the  powers  of  the  Company  to  allot  shares  in  the  Company  and  to  grant  rights  to  subscribe    

for  or  convert  any  security  into  shares  in  the  Company  (“Rights”)  up  to  an  aggregate  nominal  amount       

of  £39,440.75,  and  this  authorisation  shall,  unless  previously  revoked  by  resolution  of  the  Company, 

expire  on  31  December  2019  or,  if  earlier,  at  the  conclusion  of  the  annual  general  meeting  of  the 

Company to be held in 2019. The Company may, at any time before such expiry, make offers or enter into 

agreements which would or might require shares to be allotted or Rights to be granted after such expiry 

and the Directors may allot shares or grant Rights in pursuance of any such offer or agreement as if this 

authorisation had not expired.

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WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

SPECIAL RESOLUTION

8  That the Directors of the Company are empowered (i) pursuant to section 570 of the Act to allot equity 

securities (within the meaning of section 560 of the Act) for cash pursuant to the authorisation conferred  

by  Resolution  7  above  and  (ii)  pursuant  to  section  573  of  the  Act  to  allot  equity  securities  (within  the 

meaning  of  section  560(3)  of  the  Act),  in  each  case  as  if  section  561  of  the  Act  did  not  apply  to  the 

allotment, provided that this power shall be limited to:

(a)  The  allotment  of  equity  securities  in  connection  with  an  offer  of,  or  invitation  to  apply  for,  equity 

securities  made  (i)  to  holders  of  ordinary  shares  in  the  Company  in  proportion  (as  nearly  as  many       

as practicable) to the respective number of ordinary shares held by them on the record date for such 

offer and (ii) to holders of other equity securities as may be required by the rights attached to those 

securities or, if the Directors consider it desirable, as may be permitted by such rights, but subject in 

each case to such exclusions or other arrangements as the Directors may deem necessary or expedient 
in relation to treasury shares, fractional entitlements, record dates or legal or practical problems in or 

under the laws of any territory or the requirements of any regulatory body or stock exchange; and

(b)  The allotment (otherwise than pursuant to paragraph (a) above) of further equity securities up to any 

aggregate nominal amount of £39,440.75,

and  this  power  shall,  unless  previously  revoked  by  resolution  of  the  Company,  expire  on  31  December 

2019 or, if earlier, at the conclusion of the annual general meeting of the Company to be held in 2019. The 

Company may, at any time before the expiry of this power, make offers or enter into agreements which 

would or might require equity securities to be allotted after such expiry and the Directors may allot equity 

securities in pursuance of any such offer or agreement as if this power had not expired.

Registered Office:
150 Aldersgate Street
London EC1A 4AB

By Order of the Board,
T. J. C. Parker
Secretary
14th June 2018

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WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

Notes:

1.  A Member entitled to attend and vote at the Meeting may appoint one or more proxies to attend, speak and 
vote in their stead. The proxy need not be a Member of the Company. To be effective, completed forms    
of proxy and the power of attorney or other authority (if any) under which they are signed or a copy of   
that power or authority certified notarially or in accordance with the Powers of Attorney Act 1971 must   
be  lodged  at  the  office  of  the  Company’s  registrars,  Link  Asset  Services,  65  Gresham  Street,  London 
EC2V 7NQ at least 48 hours before the time appointed for the Meeting. A form of proxy is enclosed.
2.  Completion and return of a form of proxy will not preclude a member from attending and voting at the 

3. 

meeting in person should he wish to do so.
In the case of joint shareholders, the vote of the senior who tenders a vote, whether in person (including   
by corporate representative) or by proxy, shall be accepted to the exclusion of the votes of the other joint 
shareholders. Seniority is determined by the order in which the names of the joint holders appear in the 
Company’s register of members.

4.  The Company, pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, specifies that 
only those shareholders registered in the register of members of the Company as at 11.30 a.m. on 9th July 
2018 shall be entitled to attend or vote at the Annual General Meeting in respect of the number of ordinary 
shares registered in their name at that time. Changes to entries on the relevant register of securities after 
11.30 a.m. on 9th July 2018 shall be disregarded in determining the rights of any person to attend or vote 
at the meeting. 

5.  Copies of the service agreements under which Directors of the Company are employed by the Company 
will be available for inspection at the Company’s registered office during normal business hours on any 
weekday  from  the  date  of  this  Notice  until  the  date  of  the  Annual  General  Meeting  and  for  15  minutes 
prior to and during the Meeting.

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WYNNSTAY PROPERTIES PLC

BIOGRAPHIES OF THE DIRECTORS

Philip  G.H.  Collins  (Non-Executive  Chairman)  aged  70,  is  a  Solicitor  and  was  Chairman  of  the  Office  of 
Fair Trading from 2005 to 2014. He was formerly a partner in an international firm based in the City where he 
specialised in E.U. law, with particular emphasis on competition issues. Previously, after practising for some 
years in the corporate and commercial field, he was seconded for a period to work as Chief Legal Adviser in 
an industrial group. Appointed a Director of Wynnstay Properties in 1988 and elected Chairman in October 
1998.

Paul  Williams  (Managing  Director)  aged  60  is  a  Chartered  Surveyor  and  holds  a  Degree  in  Land 
Management as well as an MBA. He has spent his entire career in commercial property including a fourteen 
year period with MEPC where he held a number of senior positions. Paul has also worked for Lloyds TSB, 
Legal  &  General,  GE  Pensions  and  Credit  Suisse  Asset  Management  and  joined  Wynnstay  Properties  as 
Managing Director in February 2006.

Charles H. Delevingne (Non-Executive) aged 68. After spending his early career as a partner with prominent 
estate  agencies,  in  1981  he  founded  Harvey  White  Properties  Limited,  a  substantial  private  commercial 
property investment company. Appointed a Director of Wynnstay Properties in June 2002.

Toby J. C. Parker (Finance Director and Company Secretary) aged 63, is a Chartered Accountant who  has 
worked for a number of small and medium sized companies in a varied number of business sectors both in the 
UK and abroad. Appointed a Director of Wynnstay Properties in August 2007.

Paul Mather (Non-Executive) aged 63 is a Chartered Surveyor who has spent his career focused on active 
asset management of commercial portfolios and developments in central London. He was a senior director at 
BNP Paribas Real Estate for 13 years and group portfolio manager for Greycoat PLC for 17 years. Appointed 
a director of Wynnstay Properties in March 2017.

Caroline M. Tolhurst (Non-Executive) aged 56, is a Chartered Surveyor and a Chartered Secretary with 30 
years’ experience in property and investment sectors. She was Company Secretary at Grosvenor Limited and 
NewRiver Retail Limited and compliance officer for Knight Frank LLP’s regulated businesses. She is also a 
Board member and Committee Chair at A2Dominion Housing Group Limited and LocatED Property Limited. 
Appointed a director of Wynnstay Properties in March 2017.

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