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FY2020 Annual Report · WSP Global
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Wynnstay Properties PLC

Annual Report and Financial Statements 
for the year ended 25 March 2020

WYNNSTAY  PROPERTIES  PLC

ANNUAL REPORT

and

FINANCIAL STATEMENTS

YEAR ENDED 25 MARCH 2020

CONTENTS

Directors and Advisers

Summary of Property Portfolio

Chairman’s Statement

Report of the Directors

Strategic Report 

2 

3 

4 

10 

14 

                                            18         Chairman’s Corporate Governance Statement

                                            19         Corporate Governance, Remuneration and Audit Report

24 

28 

29 

30 

31 

33 

49 

50 

53 

Independent Auditor’s Report

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

 – 1 –

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WYNNSTAY PROPERTIES PLC
Company incorporated in England and Wales
Registered number: 00022473

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)

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
Hamilton House, Mabledon Place, London WC1H 9BB

AUDITORS
BDO LLP
55 Baker Street, London W1U 7EU

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

HANDELSBANKEN PLC
5 Welbeck Street, London W1G 9YQ

 – 2 –

WYNNSTAY PROPERTIES PLC

SUMMARY OF PROPERTY PORTFOLIO
AT 25 MARCH 2020

Aldershot

Aylesford

Eastern Road

1 Industrial Unit

Quarry Wood Industrial Estate

19 Industrial Units

Chessington

Oakcroft Business Park

3 Industrial Units/Offices

Cosham

Hailsham

Heathfield

Hertford

Ipswich

Lewes

Lichfield

Liphook

Liphook

Midhurst

Norwich

Petersfield

Petersfield 

Surbiton

Uckfield

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 Warehouse Units

1-4, Prospect Drive

4 Industrial Units

Beaver Industrial Estate

17 Industrial Units

Beaver Industrial Estate

Development Land

North Street

1 Retail Shop

City Trading Estate

6 Industrial Units

Petersfield Trade Park

6 Industrial Units

Bedford Road

St James Street 

Bell Lane

Development Land

Offices

4 Industrial Units

Weston-super-Mare

Phillips Road

1 Retail Warehouse Unit

All the above properties are Freehold.

 – 3 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT

I  am  reporting  to  you  on  the  past  financial  year’s  performance  against  the  background  of  unprecedented  recent 
events.

Having gone through the last three years with the political and economic uncertainty associated with Brexit, like 
most of the commercial property industry we started 2020 with increased optimism following the general election 
in December 2019 and the establishment of a majority government as a result. That optimism was shattered when 
the World Health Organisation declared Covid-19 to be a pandemic on 11 March 2020 and the UK government 
announced the lockdown on 23 March 2020. This was not the best way to end the financial year; and certainly not 
to start the current one.

The Covid-19 pandemic and the measures to tackle it have had a profound impact around the world and across the 
country, including on our businesses, our communities, our economy and our society. At the time of writing, it is 
impossible to forecast what the longer-term effects for all of us may be. I comment below on some of the steps that 
we have taken in Wynnstay’s business.

These unprecedented events apart, the year ended 25 March 2020 produced a good financial outcome at Wynnstay. 
This is reflected in the following overview table.

Overview of financial performance 

•    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

 +2.5%   

 -3.4%

-93.7%

 -21.1%      

 -1.9%

2020

2019

£2,271,000

£2,216,000

£1,155,000

£1,196,000

4.5p

15.0p

792p

36.5%

52.2%

71.1p

19.0p

807p

35.6%

52.7%

Portfolio
Our established policy of continuing to upgrade the portfolio resulted in two disposals of properties that we had 
owned for many years and one significant acquisition during the year. 

Property  rental  income  increased  to  £2.27  million  (2019  -  £2.22  million). This  is  the  sixth  successive  year  of 
rental income growth and the fourth successive year in which it has exceeded £2 million. This has been achieved 
despite the profitable disposal during the year of our three industrial units at Basingstoke and our remaining unit 
at St Neots and the loss of rental income from two units at Chessington as a result of our tenant exercising a break 
option last June. On the other hand, we have benefited this year from a full year’s contribution from Petersfield 
Business  Park  which  we  acquired  in  late  Summer  2018,  as  well  as  a  significant  contribution  from  our  latest 
acquisition at Aylesford of six months rent and the receipt of the uplift from the rent review detailed below.

The level of activity in terms of lease renewals, rent reviews and lettings has been lower than in some previous 
years,  reflecting  in  part  the  mix  of  lease  lengths  and  expiry  dates  and  the  overall  tenant  stability  within  the 
portfolio. We completed two lettings, one at Aylesford and the other at Uckfield, five lease renewals at Norwich, 
Liphook and Heathfield and two rent reviews, one at Lichfield and the other at our latest acquisition in Aylesford.

This acquisition in September 2019 was of a single, self-contained industrial unit with an extensive yard adjoining 
our existing 18 unit industrial estate at Lake Road, Aylesford. The unit is of similar age and specification to our 
estate. The acquired unit is let to and occupied by a longstanding tenant whose lease continues until December 
2023 at a passing rent on acquisition of £76,000 per annum but subject to an outstanding upward only rent review 
effective from 25 December 2018. As part of the purchase it was agreed that we would take over negotiations on 

 – 4 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

the outstanding rent review and would retain the benefit of any increased rent from the rent review date. We have 
now concluded the outstanding rent review at £111,000 per annum and have collected the increased rent due from 
December 2018, which is reflected in property income in the statement of comprehensive income.

At Chessington we have two vacant units where we have successfully concluded negotiations with our previous 
tenant  regarding  dilapidations.  The  units  present  well,  are  in  a  good  location  and  marketing  is  ongoing.  The 
commercial letting market over the last year has been extremely difficult. However, we remain optimistic about 
securing  replacement  tenants.  I  will  update  shareholders  regarding  the  reletting  of  these  units  in  my  interim 
statement in November.

At Petersfield we are very close to finalising agreements for lease with tenants for two of the three units for which 
we  have  planning  consent.  We  are  currently  undertaking  a  construction  tender  process  with  several  potential 
contractors and will then be able to fully assess the viability of the scheme and take decisions on the next steps. As 
regards the vacant site at Liphook, I am pleased to report that while preparing this statement we finally received 
the much delayed planning consent for two single-storey units, with associated landscaping, parking and external 
works.  We are currently reviewing how best we can progress this scheme in the light of current conditions. I will 
update shareholders on both schemes in my interim statement.

Following the changes in the portfolio during the year, as at the year end, the industrial sector within the portfolio 
accounted for approximately 75% by value, with the retail warehouse and office sectors comprising around 6% and 
16% respectively and 1% being in our remaining retail shop together with 2% in development land.

Profits and Costs
The profit before movement in fair value of investment properties, property sales and taxation for the year was 
similar to last year at £1,155,000 (2019: £1,196,000). The net profit of £421,000 from the sale of the one unit at 
St Neots and Basingstoke is also reflected in the accounts for the year. Our policy of exercising tight control over 
property and administrative costs has continued to be effective although we incurred some one-off costs relating to 
the functional changes announced last October and mentioned below. 

Portfolio Valuation
As at 25 March 2020, our Independent Valuers, BNP Paribas Real Estate, have undertaken the annual revaluation 
of the company’s portfolio at £34,260,000 representing a revaluation diminution of £1,145,000 on the valuation 
as at 25 March 2019, adjusted for acquisitions and disposals. Revaluation adjustments, positive or negative, are 
reflected  together  with  property  income  and  profits  or  losses  from  disposals  in  the  statement  of  comprehensive 
income, thus resulting this year in lower earnings per share of 4.5p (2019: 71.1p).  This treatment can result in 
significant variations in earnings per share over the years, as is the case comparing this year with last year.

The  valuation  was  undertaken  on  the  basis  of  Fair Value  in  accordance  with  the  requirements  of  IFRS  13  and 
the  RICS  Valuation  –  Global  Standards  2020.  In  common  with  other  independent  property  valuations  being 
undertaken  at  present  under  these  standards,  the  valuation  was  reported  on  the  basis  of  “material  valuation 
uncertainty”  given  the  unknown  future  impact  of  Covid-19. This  means  that  valuers  can  attach  less  weight  to 
previous  market  evidence  for  comparison  purposes  to  inform  their  opinions  of  value  and  consequently  less 
certainty, and a higher degree of caution, should be attached to their valuation than would normally be the case.  
The valuers state that the material uncertainty declaration is to serve as a precaution and does not invalidate the 
valuation. 

Finance, Borrowings and Gearing
At the year end, we held cash of just under £1.3 million (2019 - £959,000), our borrowings were £12.5 million 
(2019 - £12.5 million) and net gearing was 52.2% (2019 - 52.7%).  Under our existing facility we can drawdown a 
further £1 million to take total borrowings to £13.5 million. We operate well within the financial covenants on asset 
and interest cover set out in our borrowing facilities and have an excellent business relationship with our bankers, 
Handelsbanken, with an arrangement that we can, in principle and without commitment, increase our borrowings 
to a maximum of £15 million. 

 – 5 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

Dividend
Over recent years we have sought to pursue a progressive dividend policy that aims to provide shareholders with a 
rising income commensurate with Wynnstay’s growth and finances. This has resulted in dividends increasing over 
the past eight financial years to 25 March 2019 from 10.5p per share to 19.0p per share, an increase of 81%, far in 
excess of the rate of inflation over the period.

If the Covid-19 pandemic, with its uncertain consequences, had not struck, the Board would have been minded 
to continue to pursue this progressive dividend policy. However, given the present uncertainties that we all face, 
we have concluded that it is vital to be prudent and to ensure that we retain an increased level of earnings in the 
business and thus pay a lower dividend this year.

An interim dividend of 7.5p per share (2019 – 7.0p) was paid in December 2019. The Board announced in mid-
June that it would pay a second interim dividend of 7.5p per share (2019 – final 12.0p) thus making a total dividend 
of  15.0p  per  share  for  the  year. This  second  interim  dividend  was  paid  on  17  July  2020  to  shareholders  on  the 
register on 19 June 2020. As two interim dividends have been paid for the year, no final dividend is being declared. 

The Board will, of course, keep dividend policy under careful review and hopes that when the outlook is more 
certain it will be possible to return to its progressive dividend policy. It is keenly aware how important investment 
income is to many shareholders, especially at a time when interest rates are, and have been for some time, very low 
and when a number of major companies are cancelling their dividends.  A decision on the interim dividend for the 
current year will be taken as usual in November and announced with our interim results at that time..

In  the  meantime,  shareholders  should  recall  that  in Wynnstay’s  case,  the  current  year’s  dividend  of  15.0p  still 
presents a substantial, above inflation, increase over the past eight years.  

Impact of Covid-19 pandemic 
The  Covid-19  pandemic  and  the  government  lockdown  and  other  measures  to  tackle  it,  including  support  for 
business, employees and the economy, have now been with us for over four months.  While it is too early to assess 
the impact on Wynnstay’s business in anything other than the short term, it has clearly had a huge and immediate 
impact on the UK economy, with resulting falls in GDP in April and May far beyond any previously experienced.

The impact of the Covid-19 pandemic on commercial property has been the subject of extensive press coverage, 
with particular focus on the effect of the lockdown on particular sectors of the market - notably retail, hospitality 
and leisure; and on tenants’ anticipated cash flow problems and thus on their ability to pay their rents when due. 
This  has  also  led  to  reports  of  adversarial  positions  and  mutual  distrust  developing  as  between  some  landlords 
and  their  tenants  resulting  in  the  recent  introduction  of  a  voluntary  code  of  practice  for  commercial  property 
relationships during the pandemic.

At Wynnstay, we have only a small exposure to the retail, hospitality and leisure sectors. We have a broad base of 
tenants in the portfolio ranging from the government and substantial quoted or privately owned companies to many 
small and medium sized businesses. We do not depend for our rental income on any one tenant or single business 
sector. As  I  have  also  mentioned  in  previous  statements,  we  have  generally  enjoyed  constructive  and  positive 
relationships with our tenants. This is standing us in good stead in the current conditions. 

Since  the  pandemic  was  declared,  we  have  been  talking  to  most  of  our  tenants,  particularly  those  with  smaller 
businesses facing potential cash flow problems arising from the lockdown, to explore how we might be able to help 
them. The Board considers that it is both in shareholders’ interests and vital for UK economic recovery to support 
our tenants, as far as we reasonably can, so that they are in a position to resume trading following the lifting of 
restrictions. We expect tenants with viable businesses who are suffering short term pressures on cash flow to take 
full advantage of the various reliefs and schemes that have been made available to business by the UK Government 
to assist them. These include business rates suspension, employee cost support, tax payment deferrals, government 
supported loans and business grants to qualifying occupiers. 

– 6 –

– 7 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

Typical support that we have been able to offer to viable businesses is to accept, as a concessionary arrangement 
for a limited period, monthly instead of quarterly in advance rent payments and in some cases to defer a part of 
a  quarter’s  rent,  spreading  its  payment  over  the  remainder  of  our  financial  year. We  have  also  received  a  small 
number  of  requests  from  tenants  for  concessionary  arrangements  in  the  form  of  rent  holidays  or  longer  term 
rent deferrals. These requests have been considered on a case by case basis on their merits, having regard to the 
resources, size and viability of the businesses concerned, the availability and take up of UK Government reliefs 
and schemes. Such requests by tenants create opportunities to vary lease terms in a mutually beneficial way such as 
by extending leases or removing tenant break options. Lease variations of this nature have been agreed with several 
tenants  which  we  consider  will  be  beneficial  to  both  parties  by  providing  some  relief  to  tenants  while  securing 
longer term rental income and a potential increase in capital value for Wynnstay.

Wynnstay is a small investment company to whom cash flow is as important as it is to our tenants and the UK 
Government’s measures are directed in the main to trading, rather than investment, businesses. For our part, we are 
maintaining our regular payments to our suppliers, many of whom are also small businesses, to ensure that their 
cash flow is supported in the challenging conditions that we all face. 

We continue to monitor carefully the receipts of our adjusted rental income, taking account of the concessionary 
arrangements mentioned above. I am pleased to report that as at the date of writing, the Company has received 
all  of  the  rental  income  due  for  the  first  quarter  of  the  current  financial  year  commencing  26  March  2020  and 
over 70% of the rental income due for the second quarter commencing 24 June 2020. For the second quarter, this 
includes all of the rental income due to date comprising both quarterly rents paid in advance and those rents now 
being paid monthly.  

We  will  continue  to  monitor  the  position  very  carefully  and  to  engage  actively  with  our  tenants  to  assist  them 
where practicable.

Outlook
Although the government measures have been relaxed in stages over the past two months and commercial activity 
has begun to return, as already noted, the impact of the pandemic on the UK economy has been dramatic.  For 
Wynnstay,  as  for  many  other  businesses,  the  outlook  will  depend  on  the  shape  and  speed  of  recovery  from  the 
impact of the pandemic.

However, we have noted some encouraging signs. Our tenants are continuing to pay their rents, including those 
due under concessionary arrangements we have made with them.  Generally, our contacts with them suggest that 
they remain positive and determined to build back their businesses – even those very few that we have in the retail 
and  hospitality  sector.  Indeed  the  apparent  resilience  and  determination  among  many  of  our  tenants  provides  a 
refreshing contrast to the gloom amongst economic forecasters and the media.

Within our industrial units, we continue to see demand for units that are available at current rents and we have 
concluded early in the current year one successful lease renewal at an increased rent.  A number of rent reviews 
arise over the remainder of the current year and it will be interesting to see how these are resolved. The interest 
from tenants in lease extensions or new leases and the removal of break clauses is also encouraging as they look 
for security in their existing premises and arrangements with their current landlords, rather than facing the costs 
and disruption of relocation to different premises and landlords. 

We have always taken an active, but conservative, approach to building the portfolio and this has stood Wynnstay 
and  you,  as  shareholders,  in  good  stead  over  many  years,  including  over  some  very  difficult  periods  in  the 
economy  such  as  at  the  time  of  the  banking  crisis.  Our  borrowings  are  conservative  relative  to  our  assets  and 
provide us with good headroom within our facilities with Handelsbanken. 

So while nothing can be certain especially given what we have just been through, and have still to live with for 
some period of time, the Board remains confident about Wynnstay’s portfolio, its business and its future.

– 7 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

Functional changes 
In  my  statement  with  the  interim  results  in  November,  I  reported  in  detail  on  the  functional  changes  that  we 
had  made  in  relation  to  our  finance  and  company  secretarial  services  following  the  decision  of  our  Finance 
Director and Company Secretary, Toby Parker, to retire at the end of October. I am pleased to report that the new 
arrangements  with Alan  Palmer,  our  Director  of  Finance,  and  Susan Wallace  of  Bruce Wallace,  our  Company 
Secretary, are working extremely well in practice in supporting the business and proving to be flexible in the time 
commitment our needs require over the course of the year. The requirement since late March for the whole team to 
work remotely has also been successful. 

Colleagues and advisers
Wynnstay  has  only  one  full-time  employee,  our  Managing  Director  Paul Williams.  I,  and  my  Non-Executive 
Director colleagues, are part-time, as are our new finance and company secretarial colleagues. I would like to thank 
them all, as well as those who work with them and our various advisers, for their contributions over the past year.

In the light of the unprecedented conditions, it has been agreed that there will be no increase in either executive 
salary or Directors’ fees in the current year. 

Shareholder Communications
We have relied for many years principally on paper communications with shareholders, through our regular Interim 
Reports in November and our Annual Reports in June each year. This has been supplemented in recent years by 
information  provided  on  our  website,  and  by  the  dissemination  of  our  regulatory  announcements  both  on  our 
website and through many external sources including online investment news services and platforms. 

Where  it  suits  shareholders’  needs,  we  would  like  to  move  from  paper  to  electronic  communications  as  many 
companies have done over recent years. Shareholders can also improve their ability to manage their shareholding 
in Wynnstay by registering the holding online with our Registrars, Link Asset Services via their share portal www.
signalshares.com. You will find enclosed with this Annual Report a letter that sets out the benefits of moving to 
electronic communications and of registering holdings online and setting out the steps to be taken if you wish to 
participate.

You should note that if you would like to continue to receive shareholder information in hard copy form, 
you have to take the action described in the letter within 28 days.  If you do not reply within that time, you 
will be deemed to have consented to website publication of shareholder information and you will no longer 
automatically receive hard copies in the post.

This  year  we  are  introducing  the  opportunity  described  below  for  shareholders  to  ask  the  questions  in  writing 
that  they  might  have  wished  to  ask  in  person  at  the Annual  General  Meeting.  In  addition  to  this  innovation, 
shareholders may of course raise questions with the Company at any time during the year, whether to me or to 
the Managing Director. Questions about the details of any individual shareholding should be addressed in the first 
instance to Link Asset Services or to the Company Secretary.

Unsolicited Approaches to Shareholders 
For  many  years,  I  have  warned  shareholders  about  “share  scams”,  typically  unsolicited  approaches,  usually  by 
telephone, but now increasingly online, from an obviously overseas location and often using a name which appears 
to carry some substance, about their shareholdings.

As always, I urge all shareholders to continue to be vigilant. 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.  https://www.fca.org.uk/
scamsmart).

 – 8 –

 – 9 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S STATEMENT (continued)

Annual General Meeting 
As  you  know  we  normally  hold  the Annual  General  Meeting  (AGM)  in  London  to  enable  our  shareholders  to 
attend. The AGM provides an important and valued opportunity for the Board to engage with shareholders.

Unfortunately, at the time of making our AGM arrangements, this will not be possible this year. In response to the 
Covid-19 global pandemic, we need to observe the UK Government’s guidance on social distancing, as well as 
help prevent the spread of Covid-19 by not arranging public meetings of significant numbers of people. The UK 
Government has enacted legislation to facilitate the holding of AGMs during this time and the Company’s AGM 
will be held in accordance with these measures.

Mindful of these requirements and the challenges they present, our AGM will be held on Tuesday 15 September, 
the details being set out in the notice of meeting on page 50. The Board will ensure a quorum is present and no 
other shareholders will be able to attend as this would be in contravention of current legal restrictions.

The AGM  this  year  will  therefore  be  purely  functional  and  address  just  the  formal  resolutions  detailed  in  the 
notice of meeting necessary to enable the Board to conduct the business and affairs of the Company. As for all our 
meetings in recent years, the notice of meeting on page 50 includes, in addition to routine business, two further 
resolutions. These resolutions would give the Board authority, limited in both amount (5% of share capital) and 
time (December 2021 at the latest) to issue shares, including shares held in Treasury, and to do so without first 
offering them to existing shareholders.

We are taking this opportunity to provide shareholders with the facility to ask questions in writing that they 
might have wished to ask in person at the AGM. If shareholders have questions, they should be emailed to 
company.secretary@wynnstayproperties.co.uk or by letter to me at the Company’s office in advance of the 
AGM. You will receive a written response and, if there are common themes raised by a number of shareholders, 
we aim to provide a summary for all shareholders, grouping themes and topics together where appropriate, on the 
Company’s website at the time of the Interim Report in November.

Voting on all resolutions at the meeting will be conducted by poll vote and we strongly encourage you to complete 
and return a form of proxy to ensure your votes are included. You will need to appoint the ‘Chairman of the 
meeting’ as your proxy as no other person will be able to attend the AGM on your behalf this year. Please 
follow the instructions on the Form of Proxy and return your vote so as to be received no later than 48 hours before 
the commencement of the meeting.

Wynnstay’s shareholders have always been very diligent in casting their votes at general meetings by proxy. Every 
year a very high proportion of shareholders show their continued interest in their investment in Wynnstay by taking 
the trouble to complete and return their proxy forms. In the circumstances that we face this year it is vital that 
shareholders  exercise  their  rights  by  doing  so.  Shareholders  who  choose  to  register  for  Link  services,  as 
mentioned above, can also benefit from the ability to cast their proxy votes electronically rather than by post 
or email.

Finally, on behalf of the Board, I would like to thank shareholders for their continued support for Wynnstay and to 
convey our good wishes at a time when issues of safety and health have been uppermost in all our minds, leading 
to enforced changes in our lives, including separation from friends and families.

Philip Collins
Chairman
30 July 2020

 – 9 –

WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2020

The  Directors  present  their  One  Hundred  and  Thirty-Fourth Annual  Report,  together  with  the  audited 
Financial Statements of the Company for the year ended 25 March 2020.

Following  the  adoption  by  the  Company  of  the  Quoted  Company Alliance  Corporate  Governance  Code 
(the  Code)  certain  matters  required  by  the  Code  to  be  included  in  the Annual  Report  are  now  addressed  in 
this  report,  the  Strategic  Report  or  the  Corporate  Governance  Report  with  cross-references  provided  where 
appropriate.  The  three  reports  should  be  read  together  with  the  Chairman’s  Statement  and  the  additional 
information required by the Code published on the Company’s website.  

Business and Future Development
As the Code requires a description of the business, strategy and business model promoting long-term value for 
shareholders to be included in the Annual Report and similar information is also required by company law to 
be included in the Strategic Report, these matters are dealt with in the Strategic Report on pages 14 - 17.

Financial Objectives and Risks
As the Code requires a description of effective risk management systems to be included in the Annual Report 
and company law requires a description of financial risk management objectives and policies, information on 
exposure  to  risks  and  a  description  of  the  principal  risks  and  uncertainties  facing  a  company,  these  matters 
are all dealt with in the Strategic Report on pages 14 - 17 as well as in Note 18 of the financial statements on 
pages 44 - 47.

Profit for the Year
The profit for the year after taxation amounted to £123,000 (2019: £1,928,000). Details of movements in reserves 
are set out in the statement of changes in equity on page 31.

Dividends
The Directors have declared the payment of two interim dividends of 7.5p each for the year ended 25 March 2020.  
An interim dividend of 7.5p was paid on 20 December 2020 and a second interim dividend of 7.5p was paid on 17 
July 2020, representing a total for the year of 15.0p (2019: 19.0p).

Statement of Directors’ Responsibilities
The  Directors  are  responsible  for  preparing  the  Strategic  Report,  the  Directors’  Report,  the  Corporate 
Governance 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.  The  Directors 
prepared the Company’s financial statements in accordance with IFRS, as adopted by the EU and applicable 
law.

The  Directors  must  only  approve  the  financial  statements  if  they  are  satisfied  that  they  give  a  true  and  fair 
view of the state of affairs of the Company and of the profit or loss of the Company for the reporting period. 
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; and

•  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 

Company will continue in business.

 – 10 –

WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2020 (continued)

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.

Directors
The Directors holding office during the financial year under review and their interests (including spouses, related 
parties and non-beneficial interests, where applicable) in the ordinary share capital of the Company at 25 March 
2020 and 25 March 2019 are shown below

                                                                                                                                     Ordinary Shares of 25p
25.3.19 

25.3.20 

P.G.H. Collins 
C.P. Williams 
C.H. Delevingne 
T.J.C. Parker (resigned 31 October 2019) 

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

850,836 
11,612 
5,000 
*28,250 

850,836
10,212
5,000
*28,250

* As at 30 October 2019 in the case of T.J.C. Parker, being the date on which he ceased to be a Director. In relation 
to his holding as at that date: (i) 10,000 ordinary shares were held under the terms of a discretionary trust of which 
T.J.C. Parker was both a trustee and a beneficiary (whilst T.J.C. Parker had a beneficial interest in these shares he 
only had a potential or contingent entitlement dependent on the exercise of the Trustees of their discretions in his 
favour); and (ii) 18,250 ordinary shares were held in two SIPPs on behalf of T.J.C. Parker. 

The interests shown above in respect of Mr. P.G.H. Collins include non-beneficial interests of 229,596 shares at 25 
March 2020 and 2019.

Mr.  C.P.  Williams  has  a  service  agreement  with  the  Company  under  which  his  employment  is  subject  to  six 
months’ notice of termination by either party. Mr T.J.C. Parker had a service agreement with the Company with 
the same period of notice. This was terminated when he ceased to be a Director on 30 October 2019.

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

Biographies of each of the Directors appear on page 53.

 – 11 –

 
 
 
WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2020 (continued)

Directors’ Emoluments
Directors’ emoluments for the year ended 25 March 2020 are set out below:-

P.G.H. Collins 
C.P. Williams 
C.H. Delevingne 
T.J.C.Parker (resigned 31 October 2019) 
P. Mather 
C.M. Tolhurst 

Salaries 
– 
129,000 
– 
– 
– 
– 

Fees 
42,500 
15,850 
15,850 
9,246 
15,850 
20,850 

Pension 
– 
12,600 
– 

– 
– 

Benefits 
– 
2,446 
– 
– 
– 
– 

Total 
2020 
42,500 
159,896 
15,850 
9,246 
15,850 
20,850 

Total
2019
41,500
183,727
15,500
15,500
15,500
15,500

Total 2020 

Total 2019 

£129,000 

£120,146 

£12,600 

£2,446 

£264,192 

£151,000 

£119,000 

£12,600 

£4,627 

£287,227

The above figures for 2019 include a discretionary bonus payment of £25,000 to Mr C.P. Williams being the 
amount determined by the Board to reflect his performance during that year. No discretionary bonus payment 
has been determined for the financial year under review.  

A company owned and controlled by Mr T.J.C. Parker, was paid a fee of £27,416 (2019: £46,000) for services 
rendered during part of the year (see note 19).

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

Interests in the Company’s Shares
As at 30 July 2020, the Directors have been notified or are aware of the following interests (including spouses, 
related parties and non-beneficial interests, where applicable, for both financial years), which are in excess of 
three per cent of the issued ordinary share capital of the Company, excluding shares held in treasury:   

No. of Ordinary 
Shares of 25p 

Percentage of 
Issued Share  
Capital 2020 

Percentage of
Issued Share
Capital 2019   

P.G.H. Collins 
G. J. Gibson 
D. N. Gibson 
Dr. G.L.A. Bird 
J.V. Bird 

850,836 
272,192 
121,378 
112,000 
111,750 

31.38% 
10.04% 
4.47% 
4.13% 
4.12% 

31.38% 
10.04%
4.47%
4.13%
4.12%

Going Concern
The  Directors  consider,  as  at  the  date  of  approving  the  financial  statements,  that  there  is  reasonable 
expectation  that  the  Company  has  adequate  financial  resources  to  continue  to  operate,  and  to  meet  its 
liabilities  as  they  fall  due  for  payment,  for  at  least  twelve  months  following  the  approval  of  the  financial 
statements.

Following the declaration by the World Health Organisation of Covid-19 as a global pandemic, governments 
in the UK and elsewhere have taken drastic and unprecedented lockdown and other measures which include 
compulsory business closures and tight restrictions on movement of people and on their activities. This event 
has the potential to impact the Company and its business and is considered further in the Strategic Report on 
pages 14-17 which is expressly incorporated by reference into this report.

– 12 –
12

 
  
 
 
 
 
 
 
    
 
 
 
 
WYNNSTAY PROPERTIES PLC

REPORT OF THE DIRECTORS 2020 (continued)

The Company has performed a series of financial stress tests, described in Note 1.1 to the Financial Statements 
on  page  34  which  is  expressly  incorporated  by  reference  into  this  report,  to  ensure  that  the  Company  has 
sufficient cash resources and bank facilities and sufficient covenant margin to manage the potential financial 
impact of the Covid-19 pandemic on its business under going concern principles.

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.

Auditor
BDO LLP has indicated its willingness to continue in office and a resolution will be proposed at the Annual 
General Meeting to reappoint BDO LLP as auditor for the next financial year. 

Annual General Meeting
The Notice of the Annual General Meeting, to be held on 15 September 2020, is set out on page 50.   

By Order of the Board
Susan Wallace
Secretary

30 July 2020

12

– 13 –

WYNNSTAY PROPERTIES PLC

STRATEGIC REPORT 2020

The Directors present their Strategic Report for the year ended 25 March 2020.

Following the adoption by the Company of the Quoted Company Alliance Corporate Governance Code (the 
Code)  certain  matters  required  by  the  Code  to  be  included  in  the Annual  Report  are  now  addressed  in  this 
report,  the  Directors’  Report  or  the  Corporate  Governance  Report  with  cross-references  provided  where 
appropriate.  The  three  reports  should  be  read  together  with  the  Chairman’s  Statement  and  the  additional 
information required by the Code published on the Company’s website.  

Business, Business Model, Strategy and Future Development
Wynnstay  is  a  long-established,  successful  property  investment  company  focusing  on  acquiring,  managing 
and developing commercial property primarily, but not exclusively, in the south and south-east of England.

Through careful property selection, active direct property management and promoting constructive business 
relationships with tenants, Wynnstay continues to grow and develop a diversified property portfolio. 

Wynnstay’s strategy is to secure growth in net rental income and net asset value to provide shareholders with 
long-term  value,  including  a  progressive  dividend  policy  consistent  with  an  appropriate  level  of  dividend 
cover.

Key challenges in the execution of this strategy are identifying and securing changes to the portfolio, whether 
by acquisition or disposal, and managing the risks of the commercial property market.

A  review  of  the  Company’s  business,  its  development  and  performance  for  the  year,  its  position  at  the  end 
of  the  year  and  its  future  prospects  is  included  in  the  Chairman’s  Statement  on  pages  4  to  9. The  financial 
statements and notes are set out on pages 28 to 49.

Financial Objectives and Performance Indicators 
The  key  financial  objectives  for  the  Company  are  to  grow  the  rental  income  and  the  capital  value  of  the 
property  portfolio  and  thus  the  net  asset  value  per  share.  The  pursuit  of  these  objectives  has  delivered  the 
following results:   

•     Increase in rental income: 2.5% (2019: increase of 1.6%).
•  Decrease in net asset value per share: 1.9% (2019: increase of 7.0%).

The Directors consider the increase in rental income to be a good outcome. The decrease in net asset value 
largely results from the fair value adjustment required following the revaluation of the investment portfolio as 
at 25 March 2020 and reflects the material uncertainty arising from the Covid-19 pandemic.

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.

Risks, Uncertainties and Effective Risk Management
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  contributing  more 
than 2% of total rental income 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  including  interest  rate  risk.  The 
Company’s financial risk management policies can be found at Note 18 of the financial statements. 

– 14 –

WYNNSTAY PROPERTIES PLC

STRATEGIC REPORT 2020 (continued)

In  common  with  all  other  business  activities,  the  Company  is  exposed  to  many  of  the  usual  risks  and 
uncertainties  arising  from  commercial,  economic  and  political  circumstances  and  events  as  well  as  to 
unpredictable external shocks, such as the Covid-19 pandemic.

Following the declaration by the World Health Organisation of Covid-19 as a global pandemic, governments 
in the UK and elsewhere have taken drastic and unprecedented lockdown and other measures which include 
compulsory business closures and tight restrictions on movement of people and on their activities. 

It  is  considered  to  be  too  early  to  assess  the  impact  of  the  Covid-19  pandemic  and  the  UK  Government’s 
lockdown  and  other  measures  on  the  Company  and  its  business.  This  will  depend  on  a  number  of  factors 
including, but not limited to, the length of the lockdown, whether there are any further “waves” resulting in 
new measures, the phasing of the relaxation of the measures, the successes of the UK Government’s reliefs 
and schemes to support business and the overall impact on the UK economy and the shape and speed of the 
recovery.

However,  the  Directors  draw  attention  to  the  fact  that  uncertainty  arising  from  the  Covid-19  pandemic 
has  resulted  in  the  revaluation  of  the  portfolio  as  at  25  March  2020  being  subject  to  a  “material  valuation 
uncertainty” declaration. This declaration is contained in Note 9 to the financial statements on page 39, which 
is expressly incorporated by reference into this report. The potential impact of the Covid-19 pandemic has also 
caused the Directors to consider whether, as at the date of their approval, the adoption of the going concern 
basis  is  appropriate  for  the  financial  statements  for  the  year  ended  25  March  2020.  The  Directors  consider 
that the adoption of the going concern basis is reasonable and appropriate for the reasons set out in Note 1.1 
Basis of Preparation – Going Concern in the notes to the financial statements on page 34, which is expressly 
incorporated by reference into this report.

The main risks the Board have identified together with actions that it has already taken and continues to take 
to ensure the Company manages these risks and emerges from the crisis in a position of continued financial 
strength, are summarised below:

•  Potential  income  reduction  and  bad  debts  as  tenants  have  difficulty  in  maintaining  rent  payments  and 

potential voids within the portfolio arising from tenant failures, resulting in additional costs; 

• 

Impact  on  the  economy  and  market  sentiment  generally  adversely  affecting  the  commercial  property 
market and commercial property values;

•  Disruption to the businesses of letting agents, property professionals and the general services on which the 

business relies;

•  Disruption to the supply chain for raw materials and construction products and restrictions on the labour 

market and level of activity on site on any developments it may undertake;

•  Staff  operating  from  home  or  otherwise  unable  to  work  or  absent  from  work,  and  reliance  on  remote 

working both within the business and with our tenants, agents and suppliers.

The Company carefully vets prospective new tenants from a credit risk perspective. Bad debts are mitigated 
by  close  engagement  with  businesses  within  a  diversified  mix  of  tenants  across  the  portfolio.  In  addition, 
where possible, those tenants with viable businesses are actively assisted and supported, especially small and 
medium sized businesses that are encountering cash flow difficulties arising from the pandemic.

– 15 –

WYNNSTAY PROPERTIES PLC

STRATEGIC REPORT 2020 (continued)

The  Board  monitors  carefully  its  adjusted  rental  income  receipts,  taking  account  of  any  concessionary 
arrangements  agreed  with  tenants.  It  has  received  all  of  the  rental  income  due  for  the  first  quarter  of  the 
current  financial  year  commencing  26  March  2020  and  over  70%  of  the  rental  income  due  for  the  second 
quarter commencing 25 June 2020. For the second quarter, this includes all of the rental income due to date 
comprising  both  quarterly  rents  paid  in  advance  and  those  rents  now  being  paid  monthly.  The  Board  will 
continue this careful monitoring and to take any actions that may be required to support tenants as well as to 
protect  and  recover  income  due. The  Board  has  also  intensified  the  regular  detailed review  of  the  portfolio, 
including feedback from engagement with tenants, in order to assess the risk of tenant failures. 

The Board uses an array of professional services, and to date all these have been effectively working remotely 
under lockdown. It has not experienced any difficulties in service provision to date.

The  Company  has  planning  permission  for  developments  at  Petersfield  and  Liphook.  Decisions  to  proceed 
with  these  developments  have  not  yet  been  made.  They  will  be  assessed  on  various  assumptions  regarding 
costs,  timing,  funding  and  operational  risks. Any  decision  to  proceed  with  one  or  both  of  them  in  the  next 
twelve  months  will  be  taken  following  review  of  revised  cash  flow  forecasts  and  subject  to  any  necessary 
additional external funding being in place. 

Directors’ duty to promote the success of the Company under Section 172 Companies Act 2006
This is a new reporting requirement for public companies for accounting periods commencing after 1 January 
2019. After  that  date,  a  Strategic  Report  is  required  to  include  a  statement  that  describes  how  the  directors 
have had regard to the matters set out in section 172(1) (a) to (f) of the Companies Act 2006 when performing 
their duty under section 172. Some of the matters identified in Section 172(1) are already covered by similar 
provisions in the QCA Corporate Governance Code and have thus been previously reported by the Company 
in  the  Corporate  Governance  Statement,  the  Corporate  Governance  Report  and  the  QCA  Statement  of 
Compliance on our website. In order to avoid unnecessary duplication, the relevant parts of those documents 
are identified below and are to be treated as expressly incorporated by reference into this Strategic Report.

Under section 172 (1) of the Companies Act 2006, each individual Director must act in the way he considers, 
in good faith, would be the most likely to promote the success of the company for benefit of its members as a 
whole, and in doing so have regard (among other matters) to six matters detailed in the section.

In discharging their duties, the Directors seek to promote the success of Wynnstay for the benefit of members 
as a whole and we have regard to all the matters set out in Section 172(1), where applicable and relevant to 
the business, taking account of its size and structure and the nature and scale of its activities in the commercial 
property market. The following paragraphs address each of the six matters in Section 172(1) (a) to (f).

(a) The likely consequences of any decision in the long term: The commercial property market is cyclical by 
nature. Investing in commercial property is a long-term business. The decisions that we take must have regard 
to  long  term  consequences  in  terms  of  success  or  failure  and  managing  risks  and  uncertainties.  We  cannot 
expect that every decision we take will prove, with the benefit of hindsight, to be the best one: external factors 
may  affect  the  market  and  thus  change  conditions  in  the  future,  after  a  decision  has  been  taken.  However, 
we consider that our record of decisions on acquisitions, disposals and active management of the portfolio is 
very strong. This is reflected in the long term performance of Wynnstay over the years in terms of increases in 
rental income, net asset value and dividends paid to shareholders. In the past year, the decisions to dispose of 
two properties and acquire one property were taken with a view to improving the overall quality and long term 
performance of the portfolio and thus the success of Wynnstay for the benefit of its shareholders.

 – 16 –

 – 17 –

WYNNSTAY PROPERTIES PLC

STRATEGIC REPORT 2020 (continued)

(b) The interests of the company’s employees: We have only one full time employee, who is the Managing 
Director.  He sits on the Board with the Non-Executive Directors. There are no other employees.  

(c) The need to foster the company’s business relationships with suppliers, customers and others: We have 
regularly  reported  in  our  annual  reports  on  the  constructive  relationships  that Wynnstay  seeks  to  build  with 
its tenants and the mutual benefits that this brings to both parties; and we have extended this reporting over 
the past two years following Principle 3 of the QCA Code to include suppliers and others. This is therefore 
addressed under Principle 3 in the QCA Compliance Statement. In the past year, it has been vital to foster our 
business relationships with tenants given external factors affecting business and the economy such as such as 
political uncertainty, the general election and latterly the Covid-19 pandemic.

(d) The impact of the company’s operations on the community and the environment: This is also addressed 
under Principle 3 of the QCA Code in the QCA Compliance Statement. Due to its size and structure and the 
nature and scale of its activities, the Board considers that the impact of Wynnstay’s operations as a landlord on 
the community and the environment is low. Wynnstay’s assets are used by its tenants for their own operations 
rather than by Wynnstay itself. In the past year, Wynnstay has not been made aware of any tenant operations 
that have had a significant impact on the community or the environment. In relation to planned developments, 
Wynnstay seeks to ensure that designs and construction comply with all relevant environmental standards and 
with local planning requirements and building regulations so as not to adversely affect the community or the 
environment.

(e) The desirability of the company maintaining a reputation for high standards of business conduct: This 
is  addressed  under  Principle  8  of  the  QCA  Code  in  the  Corporate  Government  Statement  and  in  the  QCA 
Compliance  Statement.  The  Board  considers  that  maintaining  Wynnstay’s  reputation  for  high  standards  of 
business conduct is not just desirable: it is a valuable asset in the competitive commercial property market.

(f) The need to act fairly as between members of the company: Wynnstay has only one class of shares. Thus 
all shareholders have equal rights and, regardless of the size of their holding, every shareholder is, and always 
has  been,  treated  equally  and  fairly.  Relations  with  shareholders  are  further  addressed  under  Principles  2,  3 
and 10 of the QCA Code in the Corporate Governance Report and the QCA Compliance Statement. We have 
been reviewing how we communicate with shareholders and are in the process of encouraging shareholders to 
adopt electronic communications and proxy voting in place of paper documents where this suits them as well 
as to raise questions in writing if they are unable to attend annual general meetings.

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

Philip Collins
Director
30 July 2020

 – 17 –

WYNNSTAY PROPERTIES PLC

CHAIRMAN’S CORPORATE GOVERNANCE STATEMENT

As Chairman, it is my responsibility, working with my fellow Board colleagues, to ensure that good corporate 
governance  arrangements  and  standards  apply  within  the  Company.  Our  corporate  governance  structure 
has  evolved  over  many  years  since  we  became  one  of  the  first  companies  admitted  to AIM  in  1995  and  for 
some  time  now  our Annual  Report  has  described  our  structure.  We  have  adopted  and  adapted  practices  and 
procedures to promote good governance that are considered appropriate for a company of Wynnstay’s size and 
structure and the nature and scale of its activities. We have strived, as the business has grown and changed, for 
continual improvement making changes in recent years, for instance, in management information flows and risk 
management reviews. 

In September 2018, the Company adopted the Quoted Companies Alliance (QCA) Corporate Governance Code 
(the Code). The Code is constructed around ten broad principles which are set out in the Corporate Governance 
Report on pages 19-23.

We prepared and placed our first Statement of Compliance on our website in September 2018 and the statement 
was reviewed and updated in June and November 2019. This is our second Annual Report required to contain a 
Corporate Governance Statement and a Corporate Governance Report. Our Statement of Compliance has been 
reviewed and updated concurrently with the preparation of this Annual Report and will be placed on the website 
together with the index to signpost the location of disclosures required by the Code. 

At Wynnstay, we apply the principles of the QCA Code to the extent reasonable and practicable for a company 
of  our  size  and  structure  and  the  nature  and  scale  of  our  activities,  recognising  the  flexibility  that  lies  within 
the  Code  so  that  it  is  neither  a  bureaucratic,  box-ticking  exercise  nor  results  in  unnecessary,  inappropriate  or 
burdensome processes and procedures. So, for instance, we do not see the need, in a company of this size with 
one  full-time  employee,  the  Managing  Director,  for  separate  remuneration  and  audit  committees,  where  the 
functions undertaken typically by those committees can be fully and properly carried out by the Non-Executive 
Directors working formally as a group to consider remuneration and the audit plan, process and outcome. Nor 
have we undertaken formal external Board and individual performance reviews, relying instead on less formal 
methods  of  individual  and  group  self-examination  and  self-assessment,  which  we  consider  can  be  suitably 
effective, although we will keep this under review. 

The Board acknowledges that a corporate culture based on sound ethical values and behaviours is an asset and 
provides competitive advantages in the commercial property market where competition is intense and prospective 
and existing tenants are seeking good quality premises that are suited to their needs from a considerate, reliable 
landlord.  Wynnstay  aims  to  conduct  its  business  with  a  high  degree  of  professionalism,  to  operate  within 
appropriate professional standards and legal and regulatory requirements and to act with honesty and integrity in 
a manner that gives confidence to those with whom it deals.

I  consider  that Wynnstay’s  governance  structures  and  processes  are  in  line  with  its  corporate  culture,  and  are 
appropriate to its size and structure, the nature and scale of its activities and its capacity, appetite and tolerance for 
risk and thus I consider them to be “fit-for-purpose”. They have evolved over time in parallel with its objectives, 
strategy and business model and are suitable for the Company’s growth plans in the short to medium term and I, 
with my colleagues on the Board, continue to keep them under review and to make changes where required.

Philip Collins
Chairman
30 July 2020

 – 18 –

 – 19 –

WYNNSTAY PROPERTIES PLC

CORPORATE GOVERNANCE, REMUNERATION AND AUDIT REPORTS

Introduction 
This report is presented by reference to each of the ten principles contained in the Quoted Companies Alliance 
(QCA)  Corporate  Governance  Code  (the  Code)  under  a  concise  heading  for  each  principle.  Where  the  QCA 
recommends that a principle should be addressed in the Annual Report, we do so in this report, the Directors’ 
Report  or  the  Strategic  Report  with  cross-references  provided  where  appropriate. The  three  reports  should  be 
read  together  with  the  Chairman’s  Statement  and  the  additional  information  required  by  the  Code  published 
on  the  Company’s  website,  including  the  Statement  of  Compliance.  Where  the  Code  recommends  that  a 
principle should be addressed on the Company’s website, this report refers to the principle only and signposts 
to the website, including to the Statement of Compliance. The index required by the Code to signpost where the 
disclosures required by the Code are located forms part of the Statement of Compliance. For reasons explained 
below this report covers audit and remuneration matters as well as corporate governance.

Principle 1: Establish a strategy and business model which promote long-term value for shareholders
A description of the application of Principle 1 is recommended by the Code to be included in the annual report 
and by company law is required to be included in the Strategic Report. We therefore deal with Principle 1 in that 
report: see page 14.

Principle 2: Seek to understand and meet shareholder needs and expectations
A  description  of  the  application  of  Principle  2  is  recommended  by  the  Code  to  be  included  on  a  company’s 
website. We therefore deal with Principle 2 in the Statement of Compliance on the Company’s website.

Principle 3: Take into account wider stakeholder and social responsibilities and implications for long-
term success
A description of the application of Principle 3 is recommended by the Code to be included on the Company’s 
website. We therefore deal with Principle 3 in the Statement of Compliance on the Company’s website.

Principle 4: Embed effective risk management, considering both opportunities and threats, throughout 
the organisation
A  description  of  the  application  of  Principle  4  is  recommended  by  the  Code  to  be  included  in  the  annual 
report.  Under  company  law,  the  Directors’  Report  must  include  a  description  of  financial  risk  management 
objectives and policies and information on exposure to price risk, credit risk, liquidity risk and cash flow risk 
and the Strategic Report must include a description of the principal risks and uncertainties facing a company. We 
therefore deal with Principle 4 in these reports: see pages 10 to 17.

Principle 5: Maintain the board as a well-functioning, balanced team, led by the Chair
A description of the application of Principle 5 is recommended by the Code to be included in the annual report. 
The information given below should be read together with the additional information required by the Code to be 
given under Principles 6, 7, 8 and 9 provided in this report, elsewhere in this Annual Report and in the Statement 
of Compliance on the Company’s website, as recommended by the Code. 

The Code requires the identification of those directors who are considered to be independent and a description 
of  the  time  commitment  required  from  directors  including  the  number  of  meetings  of  the  Board,  and  of  any 
committees, during the year, together with the attendance record of each Director. 

The  Board  comprises  one  executive,  the  Managing  Director,  and  four  Non-Executive  Directors,  including  the 
Chairman. The Board considers that all the Non-Executive Directors are independent. The biographies of the all 
the Directors are given on page 53.

Philip Collins, the Non-Executive Chairman, has been a Director since 1988 and became Chairman in 1998. He 
has become a significant shareholder, having decided to invest over this period, to demonstrate his confidence 

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WYNNSTAY PROPERTIES PLC

CORPORATE GOVERNANCE, REMUNERATION AND AUDIT REPORTS (continued)

in Wynnstay’s long-term prospects. He has always placed the interests of all shareholders, and Wynnstay’s long 
term  success,  at  the  centre  of  his  chairmanship,  as  evidenced  by  his  actions  and  reports  to  shareholders.  His 
knowledge of the business and of shareholders, and his experience in both the private and public sectors, are all 
valuable to the Board’s deliberations. There is no evidence that his tenure or his shareholding has had any adverse 
impact on his independent judgement. 

Charles  Delevingne  has  served  as  a  Non-Executive  Director  since  June  2002.  Notwithstanding  the  length  of 
his  service,  Mr  Delevingne  continues  to  demonstrate  his  commitment  to  fulfilling  his  role  as  a  Non-Executive 
Director,  providing  direction  on  business  strategy  and  advice  on  business  operations  using  his  skills  and 
experience  in  commercial  property.  He  is  not  involved  in  the  daily  management  of  the  Company,  nor  in  any 
relationships  or  circumstances  that  might  give  rise  to  a  conflict  of  interest  or  interfere  with  his  exercise  of 
independent judgment. In addition, he continues to demonstrate the attributes of an independent non-executive 
director and there is no evidence that his tenure has had any adverse impact on his independent judgment.

Paul Mather and Caroline Tolhurst were appointed to the Board in March 2017 and were deemed independent 
on  appointment  and  remain  so.  They  are  both  Chartered  Surveyors  and  have  many  years  of  experience  in 
commercial  property  and  property  investment  management  as  well  as,  in  the  case  of  Caroline  Tolhurst,  in 
corporate governance through her qualification and experience as a Company Secretary.

The  Non-Executive  Directors  are  expected  to  devote  such  time  as  is  necessary  for  the  proper  performance  of 
their  duties.  Overall  the  Non-Executive  Directors,  other  than  the  Chairman,  are  expected  to  spend  a  minimum 
of 10 working days a year on the Company’s business. In practice, after taking account of 8-9 Board meeting a 
year, preparation time, site visits and other requirements, 12-15 days per annum would be typical. The Chairman 
typically  spends  the  equivalent  of  25-30  working  days  per  annum  on  the  Company’s  business. The  following 
table shows directors’ attendance at scheduled Board meetings in the past financial year ended 25 March 2020.

Director 

Philip Collins 

Paul Williams 

Toby Parker
(Resigned 30 October 2019) 

Charles Delevingne 

Paul Mather 

Caroline Tolhurst 

Board meetings

7/7

7/7

4/4

7/7

7/7 

7/7

In  view  of  the  Company’s  size  and  nature,  the  Board  does  not  consider  that  the  establishment  of  Board 
committees,  such  as  a  Remuneration  Committee,  a  Nomination  Committee  or  an Audit  Committee,  is 
appropriate.  Reports  of  the  Non-Executive  Directors  consideration  of  Remuneration  and Audit  matters  are 
covered under Principle 10 below, as recommended by the Code.

In  relation  to  nominations,  these  are  managed  by  the  Non-Executive  Directors,  or  delegated  to  an  ad  hoc 
committee of them, who report with recommendations to the Board. The approach to succession planning and 
appointments is addressed, as recommended by the Code, under Principle 7 in the Statement of Compliance on 
the Company’s website.

 – 20 –

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WYNNSTAY PROPERTIES PLC

CORPORATE GOVERNANCE, REMUNERATION AND AUDIT REPORTS (continued)

Principle 6: Ensure that between them directors have the necessary up-to-date experience, skills and 
capabilities
The application of Principle 6 is recommended by the Code to be included in the annual report and is therefore 
included  in  this  report,  as  well  as  elsewhere  in  this Annual  Report,  which  should  be  read  together  with  the 
information provided under Principles 5, 7, 8 and 9 in this report and on the Company’s website.

The Code requires disclosure of the identity of each Director; the relevant experience, skills, personal qualities 
that each brings to the Board; how the Board as a whole contains the necessary mix of experience, skills and 
qualities (including gender balance) and capabilities to deliver the strategy over the medium to long-term; how 
each director keeps his/her skill-set up-to-date; where external advisers have been engaged, their role and where 
external advice on significant matters has been obtained; and any internal advisory roles.

The  names  of  the  Directors  and  their  experience,  skills  and  capabilities  is  set  out  on  the  Company’s  website 
and on page 53. Reference is also made to the information on each of the Non-Executive Directors given under 
Principle 5 above.

The  Managing  Director,  Paul  Williams,  has  many  years  of  practical  experience  in  property  investment  and 
management. The Board has engaged experienced professionals to manage accounting, financial and company 
secretarial matters. 

Alan Palmer, the Director of Finance, although not a Board Director, attends all Board meetings and advises the 
Board on accounting and financial matters. He has extensive experience of the commercial property sector, with 
former  senior  roles  in  finance,  treasury  and  corporate  finance  in  quoted  property  companies.  His  services  are 
provided through The FD Centre Limited, a specialist provider of part-time Finance Director services to small 
and medium sized enterprises.

Susan  Wallace  FCIS,  Company  Secretary,  is  a  Chartered  Secretary  and  a  founding  partner  of  Bruce  Wallace 
Associates Limited, a specialist provider of company secretarial and compliance services to SME businesses and 
quoted companies. In her role, she is supported by other professionals in her company.

The  Board  considers  that  the  experience  and  knowledge  of  each  of  the  Directors  and  the  experienced 
professionals  is  appropriate  for  the  Company’s  current  operations  and  strategy  and  gives  them  the  ability  to 
constructively challenge strategy, scrutinise performance and assess risk and to deliver the Company’s strategy 
over the medium to long term. 

Directors keep their skill sets up-to-date with a combination of attendance at industry events, individual reading 
and study and experience gained from other board roles. The Company Secretary is responsible for ensuring the 
Board is aware of any applicable regulatory changes and updates the Board as and when relevant. Directors are 
able  to  take  independent  professional  advice  in  the  furtherance  of  their  duties,  if  necessary,  at  the  Company’s 
expense. 

The Company calls on the services of specialist external advisers in the usual way for its day-to-day business 
needs.

The  Chairman,  Senior  Independent  Director,  Company  Secretary  and  Director  of  Finance,  working  in  their 
respective roles and together, advise and support the Board as a whole, drawing on specialist external advisers 
where necessary.

 – 21 –

WYNNSTAY PROPERTIES PLC

CORPORATE GOVERNANCE, REMUNERATION AND AUDIT REPORTS (continued)

Principle 7: Evaluating board performance based on clear and relevant objectives, seeking continuous 
improvement
The application of Principle 7 is recommended by the Code to be included in part in the annual report and in part 
on a company’s website. The Company considers that it is convenient to deal with most of these matters in one 
place in this report.

After  the  end  of  each  financial  year,  the  Chairman  usually  holds  a  meeting  with  the  Non-Executive  Directors 
individually  and  as  a  group  without  the  Managing  Director. The  Non-Executive  Directors  also  meet  annually 
without  the  Chairman  to  appraise  the  Chairman’s  performance.  These  meetings  are  intended  to  provide  an 
opportunity for open dialogue on individual and collective performance and on any necessary changes required.

Given  the  size  and  nature  of  the  Company’s  business,  the  Board  currently  does  not  consider  it  would  be  an 
appropriate  use  of  cash  resources  to  engage  an  external  firm  to  undertake  a  formal  evaluation.  The  Board 
considers regularly whether to develop further the internal self-evaluation and assessment of its performance.

The  approach  to  succession  planning  and  appointments  is  addressed,  as  recommended  by  the  Code,  under 
Principle 7 in the Statement of Compliance on the Company’s website.

Principle 8: Promote a corporate culture based on ethical values and behaviours
The  application  of  Principle  8  is  recommended  by  the  Code  to  be  addressed  in  the  Chairman’s  Corporate 
Governance Statement: see page 18. Ensuring the means to determine that values and behaviours are recognised 
and respected is addressed, as recommended by the Code, under Principle 8 in the Statement of Compliance on 
the Company’s website.

Principle 9: Maintain governance structures and processes that are fit-for-purpose, and support good 
decision making
A  high-level  explanation  of  the  application  of  Principle  9  is  recommended  by  the  Code  to  be  provided  in  the 
Chairman’s Corporate Governance Statement: see page 18.

The Code recommends that supplementary detail required by the Code (role and responsibilities of Directors, role 
of committees, matters reserved for the Board and plans for evolution of the governance framework) is addressed 
on  the  website  and  it  is  so  addressed  under  Principle  9  in  the  Statement  of  Compliance  on  the  Company’s 
website.

Principle 10: Communicate how the company is governed and is performing by maintaining a dialogue 
with shareholders and other relevant stakeholders
The application of Principle 10 of the Code is recommended by the Code to be included in part in the annual 
report  and  in  part  on  the  website.  The  Company  follows  these  recommendations  and  addresses  the  work  of 
committees,  including  in  relation  to  audit  and  remuneration  and  the  identification  and  reasons  for  any  non-
publication of disclosures under the principles set out in the Code in this report. 

The  other  matters,  being  the  outcome  of  all  general  meeting  votes  and  intended  actions  on  and  reasons  for 
significant  votes  cast  against  resolutions,  will  be  stated  on  the  Company’s  website,  including  under  Principle 
10  of  the  Statement  of  Compliance;  and  historical  annual  reports,  notices  and  general  meetings  and  other 
governance-related material are included on the Company’s website.

Communication  and  dialogue  with  shareholders  and  other  relevant  stakeholders  has  already  been  addressed 
above in this report. The performance of the business during the last financial year is reviewed in detail in the 
Chairman’s Statement, the Directors’ Report and the Strategic Report and elsewhere in the Annual Report. 

The  Board  considers  that  the  existing  communication  and  reporting  structures  allow  open  dialogue  between 
shareholders and the Board and provide shareholders with a good understanding of the business. 

 – 22 –

 – 23 –

WYNNSTAY PROPERTIES PLC

CORPORATE GOVERNANCE, REMUNERATION AND AUDIT REPORTS (continued)

The Code recommends the annual report to describe the work of committees and recommends inclusion in the 
annual report. As already mentioned above, the Board does not have formally constituted committees, with the 
Non-Executive Directors acting as a group in relation to audit and remuneration.

The  following  paragraphs  report  on  the  work  of  the  Non-Executive  Directors  in  relation  to  audit  and 
remuneration matters in the year.

Audit Report
The Senior Independent Director and the Director Finance met and discussed the audit with the external auditor 
before the year-end and a draft Audit Planning Report prepared by the auditors was reviewed subsequently by the 
Board. At the completion of the audit, the auditor presented its Audit Completion Report to the Non-Executive 
Directors before the Financial Statements were presented for Board approval.

The  discussions  enabled  the  auditor  to  explain  the  proposed  work  and  its  outcome  and  the  Non-Executive 
Directors to raise any issues. It is considered that the process worked well and the audit did not raise any material 
issues therefore the auditors were able to issue their audit report in the usual form.

Remuneration Report
The Directors currently determine remuneration, with the Non-Executive Directors determining the remuneration 
of  the  Executive  Director  and  the  Non-Executive  Directors  (other  than  the  Chairman)  determining  the 
Chairman’s  remuneration.  Directors’  fees  are  determined  by  the  whole  Board.  Details  of  the  Directors’ 
remuneration are set out in the Directors’ Report on page 12.

It is the Company’s policy that the remuneration of Directors should be commensurate with the services provided 
by them to the Company and should take account of published data on reasonable market comparables, where 
available.

The Non-Executive Directors meet after the end of the financial year to review the performance of the Managing 
Director and determine the level of his remuneration and any bonus. Remuneration is determined by reference 
to a mixture of publicly available remuneration studies relating to the relevant specialism and role, other AIM 
companies and a few private property companies. Levels of bonus are determined by reference to the assessment 
of performance against objectives for the business. This process is necessarily subjective, but is considered to 
deliver a reasonable result for the individual, the Company and its shareholders. For the year ended 25 March 
2020, it was agreed that the Managing Director’s remuneration should be increased and bonus objectives were 
agreed. Details of the remuneration are disclosed in the Directors’ Report. Following the end of the year after 
discussion with the Managing Director, it was agreed that, particularly in the light of the circumstances arising 
from the Covid-19 pandemic, there would be no increase in remuneration for the current year and that no bonus 
payment was payable for the year ended March 2020.

Directors’ fees are determined primarily by reference to the fees payable in other AIM quoted companies, with 
the level being set towards the lower end of the range.  The Chairman’s remuneration is set having regard to the 
commitment required to carry out the function and its responsibilities and having regard to the level of Directors’ 
fees  and,  to  some  extent,  comparables  among  other AIM  companies.  For  the  year  ended  25  March  2020, 
Directors’  fees  were  increased  as  disclosed  in  the  Directors’  Report.  In  the  light  of  the  circumstances  arising 
from  the  Covid-19  pandemic,  it  was  agreed  that  there  should  be  no  increase  in  Directors’  fees  or  Chairman’s 
remuneration for the current year.

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

Philip Collins
Director
30 July 2020

 – 23 –

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  2020  which  comprise  the  Statement  of  Comprehensive  Income,  the  Statement  of  Financial  Position, 
the  Statement  of  Cash  Flows,  the  Statement  of  Changes  in  Equity  and  the  notes  to  the  financial  statements, 
including  a  summary  of  significant  accounting  policies.  The  financial  reporting  framework  that  has  been 
applied in the preparation of the financial statements 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 at 25 March 2020 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  as  applied  to  listed  entities,  and  we  have  fulfilled  our  other  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 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. 
This matter was 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 this matter.

– 24 –

 – 25 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

Key audit matter

How we addressed the key audit matter in the audit

Valuation of investment properties 

In this area our audit procedures included:

The  Company  holds  investment  properties 
which  comprise  properties  owned  by  the 
Company  held  for  rental  income.  Investment 
properties  are  valued  by  independent  external 
valuers  whose  details  are  disclosed  in  Note 
9.  The  valuation  of  investment  properties 
requires  significant  judgement  in  determining 
the  appropriate  inputs  to  be  used  in  the  model 
and  there  is  therefore  a  risk  that  the  properties 
are  incorrectly  valued.  The  accounting  policies 
relating  to  investment  properties  are  disclosed 
in Note 1.2.

•  We compared the key valuation assumptions, which 
we consider relate to the market yields appropriate 
to the sector and location of the properties, against 
our independently formed market expectations. 
Variances were evaluated through challenge of the 
valuers and accumulated to determine whether they 
supported the overall valuation.

•  We tested the accuracy of key observable valuation 
inputs, primarily passing rental income and lease 
terms, to the information provide to the valuers for 
use in their valuation.  

•  We met with the external valuer to discuss and 
challenge the valuation methodology and key 
assumptions, and to determine whether there were 
any indicators of undue management influence on 
the valuations. 

•  We assessed the competency, qualifications, 
independence and objectivity of the external 
valuers engaged by the company and reviewed the 
instructions provided to the valuer for completeness, 
unusual arrangements and to check that there was no 
evidence of management bias.

Key observations:
We did not identify any indicators to suggest that the 
valuation of the Company’s investment properties was 
materially misstated.

Our application of materiality
We set certain thresholds for materiality. These help 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  consider  materiality  to  be  the  magnitude  by  which  misstatements,  including  omissions,  could 
influence  the  economic  decisions  of  reasonable  users  that  are  taken  on  the  basis  of  the  financial  statements. 
Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take 
into  account  of  the  nature  of  identified  misstatements,  and  the  particular  circumstances  of  their  occurrence, 
when evaluating their effect on the financial statements as a whole.

We  determined  the  materiality  for  the  financial  statements  as  a  whole  to  be  £358,000  (2019  -  £362,000), 
calculated with reference to a benchmark of the Company’s gross assets, which is a typical primary measure 
for users of the financial statements of investment property companies, of which it represents 1%. 

Performance  materiality  is  the  application  of  materiality  at  the  individual  account  or  balance  level  set  at  an 
amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected 
misstatements  exceeds  materiality  for  the  financial  statements  as  a  whole.  The  Company’s  performance 
materiality was set at £268,500 (2019 - £271,000) which represents 75% of the above materiality levels.

 – 25 –

 
INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

We also determined that for items within pre-tax profit, a misstatement of less than materiality for the financial 
statements  as  a  whole,  specific  materiality,  could  influence  the  economic  decisions  of  users. As  a  result,  we 
determined materiality for these items at £86,000 based on 5% of profit before tax adjusted by averaging three 
years results (2019 – £44,000 being 2% of profit before tax for the year). 

We agreed with the Non-Executive Directors that we would report to them all individual audit differences in 
excess  of  £17,900  (2019  -  £18,000)  being  5%  of  the  materiality  for  the  financial statements as  a  whole. We 
also agreed to report differences below these thresholds that, in our view, warranted reporting on qualitative 
grounds.

An overview of the scope of our audit
As  part  of  designing  our  audit,  we  determined  materiality  and  assessed  the  risks  of  material  misstatement 
in  the  financial  statements.  In  particular,  we  looked  at  where  the  Directors  made  subjective  judgements,  for 
example in respect of the valuation of investment properties which have a high level of estimation uncertainty 
involved. 

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

Other information
The  Directors  are  responsible  for  the  other  information.  The  other  information  comprises  the  information 
included  in  the  annual  report  and  financial  statements,  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.

 – 26 –

 – 27 –

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF WYNNSTAY PROPERTIES PLC

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

•  adequate accounting records have not been kept, 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 Statement of Directors’ Responsibilities in the Directors’ Report, 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 BDO LLP
Statutory Auditor 
55 Baker Street 
London WC1U 7EU

30 July 2020

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

 – 27 –

 STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 25 MARCH 2020

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.

2020

£’000

2,271

(116)

(572)

1,583

(1,318)

421

686

2

 (430)

258

(135)

123

2019

£’000

2,216

(81)

(544)

1,591

771

280

2,642

3

(399)

2,246

(318)

1,928

4.5p

71.1p

 – 28 –

 
 
 
 
WYNNSTAY PROPERTIES PLC

 STATEMENT OF FINANCIAL POSITION 25 MARCH 2020

2020
£’000

34,260
3

34,263

244
1,289
1,533

–

1,533

(1,263)
(241)

(1,504)

29

34,292

 (12,500)
(314)
(12,814)

21,478

789
205
1,135
(1,570)
20,919

21,478

2019
£’000

33,695
3

33,698

157
959
1,116

1,400

2,516

(1,178)
(232)

(1,410)

1,106

34,804

 (12,500)
(421)
(12,921)

21,883

789
205
1,135
(1,570)
21,324

21,883

Notes

9
11

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 30 July 2020

Philip Collins 
Director 

Paul Williams
Director

Registered number: 00022473

– 29 –

 
 
 
WYNNSTAY PROPERTIES PLC

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 25 MARCH 2020

2020
£’000

258

1,318
(2)
430
(421)

(88)
    71
1,566

(241)
  (430)

895

2
(2,014)
1,975

(37)

(528)
–
–

(528)

330

959

1,289

2019
£’000

2,246

(771)
(3)
399
(280)

651
102
2,344

(222)
  (399)

1,723

3
(4,924)
950

(3,971)

(488)
3,260
(1,000)

1,772

(476)

1,435

959

Cashflow from operating activities
Income before taxation
Adjusted for:
(Increase) / Decrease 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

Net cash from operating activities

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

Increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

– 30 –

WYNNSTAY PROPERTIES PLC

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 25 MARCH 2020

YEAR ENDED 25 MARCH 2020

Share 
Capital

£ 000

Capital 
Redemption 
Reserve

Share 
Premium 
Account

Treasury
Shares

Retained 
Earnings

£ 000

£ 000

£ 000

£ 000

Total

£ 000

Balance at 26th March 2019
Total comprehensive  
income for the year

Dividends – note 7

Balance at 25 March 2020

789

–

–

789

205

1,135

(1,570)

21,324

21,883

–

–

–

–

–

–

123

(528)

123

(528)

205

1,135

(1,570)

20,919

21,478

YEAR ENDED 25 MARCH 2019

Share 
Capital

£ 000

Capital 
Redemption 
Reserve

Share 
Premium 
Account

Treasury
Shares

Retained 
Earnings

£ 000

£ 000

£ 000

£ 000

Total

£ 000

Balance at 26th March 2018

789

205

1,135

 (1,570)

19,884

20,443

Total comprehensive  
income for the year

Dividends – note 7

–

–

–

–

–

–

–

–

1,928

(488)

1,928

(488)

Balance at 25 March 2019

789

205

1,135

(1,570)

21,324

21,883

FUNDS AVAILABLE FOR DISTRIBUTION

Retained earnings

Less: Cumulative unrealised fair value movement
         Adjustment of Property Investments

          Treasury Shares

Distributable reserves

2020

£ 000

20,919

(7,797)                

2019

£ 000

21,324

(7,606)

(1,570)                

(1,570)

11,552

12,148

– 31 –

 
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

Explanation of Capital and Reserves:

•  Share Capital: This represents the subscription, at par value, of the Ordinary Shares of the Company.

•  Capital Redemption Reserve: This represents money that the Company must retain when it has bought 
back  shares,  and  which  it  cannot  pay  to  shareholders  as  dividends:  It  is  a  non-distributable  reserve  and 
represents paid up share capital.

•  Share  Premium Account:  This  represents  the  subscription  monies  paid  for  Ordinary  Shares  of  the 

Company in excess of their par value.

•  Treasury Shares: This represents the total consideration and costs paid by the Company in March 2010 

when purchasing the 443,650 shares as referred to in Note 17. 

•  Retained  Earnings:  This  represents  the  profits  after  tax  that  can  be  used  to  pay  dividends.  However, 

dividends can only be paid from Distributable Reserves as detailed in the preceding table.

 – 32 –

 – 33 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

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  and  rounded  to  the  nearest  thousand.  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 Operating Income. 

(a) New Interpretations and Revised Standards Effective for the year ended 25 March 2020
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 2019. The adoption 
of  these  interpretations  and  revised  standards  had  the  following  impact  on  the  disclosures  and 
presentation of the financial statements:

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,  are 
required to recognise all leased assets on their Statement of Financial Position as ‘right-of-use assets’ 
with a corresponding lease liability. 

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

An  impact  assessment  of  the  standard  was  carried  out  and,  as  a  lessee,  the  Company  only  has  one 
service agreement with a serviced office provider expiring on 31 May 2022. The IFRS 16 effect of this 
agreement should the rent portion have been adjusted for in the Statement of Financial Position would 
have been to increase both the assets and liabilities of the Company by £15,177.

(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  the  below  revisions  to  existing  standards  or  new 
interpretations  or  new  standards  with  an  effective  date  of  implementation  after  the  period  of  these 
financial statements.

The following new standards, amendments or interpretations applicable in future periods have not been 
early adopted as they are not expected to have a significant impact on the financial statements of the 
Company:
•  Amendments to References to the Conceptual Framework in IFRS Standards (effective 1 January 

2020)

•  Amendments  to  IFRS  3  Business  Combinations  –  Definition  of  a  Business  (effective  1  January 

2020)

•  Definition of Material – Amendments to IAS 1 and IAS 8 (effective 1 January 2020)

 – 33 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

•  Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (effective 1 January 

2020)

•  Amendments to IAS 1: Classification of Liabilities as Current or Non-current (effective 1 January 

2022).

(c) Going concern
The financial statements have been prepared on a going concern basis. This requires the Directors to 
consider, as at the date of approving the financial statements, that there is reasonable expectation that 
the Company has adequate financial resources to continue to operate, and to meet its liabilities as they 
fall due for payment, for at least twelve months following the approval of the financial statements.

The  Company  has  performed  a  series  of  financial  reasonable  and  appropriate  tests  to  ensure  that  the 
Company  has  sufficient  cash  resources  and  bank  facilities  and  with  sufficient  covenant  margin  to 
manage the potential financial impact of the Covid-19 pandemic on its business under going concern 
principles. These tests included the following:

•  Reviewing  and  establishing  that  cash  balances  and  bank  facilities  are  sufficient  to  cover  at  least 
twelve  months  of  operations,  including  financing  costs  and  continuation  of  employment  and 
advisory costs as currently contracted without any reduction for cost saving initiatives;

•  modelling  of  financial  covenant  ratios,  including  tests  of  a  major  hypothetical  diminution  in 

property portfolio valuation and of interest cover ratios; and 

•  Reviewing  a  cash  flow  forecast  scenario  to  test  potential  hypothetical  falls  in  rental  income, 
including  liquidity  for  the  risks  of  vacant  space  when  leases  expire  and  properties  are  not  re-let 
during  the  forecast  period  and  on  various  assumptions  regarding  the  costs,  timing,  funding  and 
operational risks of any developments undertaken. Any decision to proceed with developments in 
the next twelve months will be taken following review of revised cash flow forecasts and subject to 
any necessary additional external funding being in place.

In the light of the results of the financial stress tests described above, the Directors consider that the 
adoption of the going concern basis is reasonable and appropriate.

1.2  ACCOUNTING POLICIES

Investment Properties
All the Company’s investment properties are independently revalued annually and stated at fair value 
at  25  March.  The  aggregate  of  any  resulting  increases  or  decreases  are  taken  to  operating  income 
within  the  Statement  of  Comprehensive  Income.  The  basis  of  independent  valuation  is  described  in 
Note 9.

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

Assets held for sale
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 or fair value less cost to sell.  

 – 34 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

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

The Company has no other plant and equipment.

Disposal of Investments 
The  gains  and  losses  on  the  disposal  of  investment  properties  and  other  investments  are  included  in 
Operating Income in the year of disposal.

Property Income
Property income is recognised on a straight-line basis over the period of the lease and is measured at 
the  fair  value  of  the  consideration  receivable.  Lease  deposits  are  held  in  separate  designated  deposit 
accounts and are thus not treated as assets of the Company in the financial statements. 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 substantively 
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.

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 Income after Taxation, 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 expected credit losses. 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.

 – 35 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

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 employee’s pension plan 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.

Dilapidations
Dilapidations  payments  received  from  tenants  are  held  in  provision  until  such  time  as  they  are 
expended: see Notes 10 and 14.

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 Directors having taken advice from the Company’s independent external valuers, on the basis 
described in Note 9, as well as the judgement taken by the Directors as to whether a property is being 
held for sale.

The Directors have considered the impact of Brexit on the business and do not consider that this will 
have a material effect in the short to medium term on the Company.

The  Directors  consider  that  it  is  too  early  to  assess  the  impact  of  the  Covid-19  pandemic  and  the 
UK Government’s lockdown and other measures on the Company and its business. This will depend 
on  a  number  of  factors  including,  but  not  limited  to,  the  length  of  the  lockdown,  the  phasing  of  the 
relaxation  of  the  measures,  whether  there  are  any  further  “waves”  resulting  in  new  measures,  the 
successes of the UK Government’s reliefs and schemes to support business and the overall impact on 
the UK economy and the speed of the recovery.

The  Covid-19  pandemic  and  the  UK  Government’s  lockdown  and  other  measures  are  considered  in 
the Strategic Report on pages 14 - 17  and have also been considered in relation to the adoption of the 
going  concern  basis  for  these  Financial  Statements  (see  Note  1.1  above).  Each  of  these  passages  is 
expressly incorporated by reference into this note.

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

 – 36 –

 – 37 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

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

2020

£’000

37

20

57

33

26

116

2020

£’000

28

504

36

4

572

2020

£’000

251

33

13

297

2019

£’000

4

44

48

27

6

81

2019

£’000

26

479

35

4

544

2019

£’000

274

28

13 

315

Further details of Directors’ emoluments, totalling £264,192 (2019: £287,227), are shown in the Directors’ 
Report on page 12. 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

2020

No.

5

1

2019

No.

6

1

 – 37 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

5.   FINANCE COSTS (NET)

Interest payable and finance costs on bank loans

Less: Bank interest receivable

6.   TAXATION

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

UK Corporation tax at 19% (2019: 19%)

Under provision 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% (2019 - 19%)

Expenses not deductible for tax purposes

Under provision in prior years

Deferred tax charge arising from tax rate change to 19% (2019: 17%)

Deferred tax adjustments relating to disposals

       Total tax charge for the year 

7.   DIVIDENDS

Final dividend paid in year of 12.0 p per share 

(2019: 11.0p per share)

Interim dividend paid in year of 7.5p per share

(2019: 7.0p per share)

2020

£’000

430

(2)

428

2020

£’000

231

10

241

(106)

135

258

49

13

10

49

14

135

2020

£’000

325

203

528

2019

£’000

399

(3)

396

2019

£’000

236

7

243

75

318

2,247

427

9

7

–

(125)

318

2019

£’000

298

190

488

On  11  June  2020  the  Board  resolved  to  pay  a  second  interim  dividend  of  7.5p  per  share  which  will  be 
recorded in the Financial Statements for the year ending 25 March 2021.

 – 38 –

 
  
 
Interest payable and finance costs on bank loans

Less: Bank interest receivable

6.   TAXATION

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

UK Corporation tax at 19% (2019: 19%)

Under provision 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% (2019 - 19%)

Expenses not deductible for tax purposes

Under provision in prior years

Deferred tax charge arising from tax rate change to 19% (2019: 17%)

Deferred tax adjustments relating to disposals

       Total tax charge for the year 

7.   DIVIDENDS

Final dividend paid in year of 12.0 p per share 

(2019: 11.0p per share)

Interim dividend paid in year of 7.5p per share

(2019: 7.0p per share)

2020

£’000

430

(2)

428

2020

£’000

231

10

241

(106)

135

258

49

13

10

49

14

135

2020

£’000

325

203

528

2019

£’000

399

(3)

396

2019

£’000

236

7

243

75

318

2,247

427

9

7

–

(125)

318

2019

£’000

298

190

488

On  11  June  2020  the  Board  resolved  to  pay  a  second  interim  dividend  of  7.5p  per  share  which  will  be 

recorded in the Financial Statements for the year ending 25 March 2021.

5.   FINANCE COSTS (NET)

8.   EARNINGS PER SHARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

Basic  earnings  per  share  are  calculated  by  dividing  Income  after  Taxation  attributable  to  Ordinary 
Shareholders  of  £123,000  (2019:  £1,928,000)  by  the  weighted  average  number  of  2,711,617  (2019: 
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.   INVESTMENT PROPERTIES

Properties

Balance at beginning of financial period

Additions

Disposals

Revaluation (Diminution) / Surplus 

Assets held for Sale

Balance at end of financial period

2020

£’000

33,695

2,014

(131)

(1,318)

34,260

–

34,260

2019

£’000

30,070

4,924

(670)

771

35,095

(1,400)

33,695

Assets held for sale in 2019 represented a property on which negotiations were progressing in 2019 which 
was sold in 2020.

The Company’s freehold properties were valued as at 25 March 2020 by BNP Paribas Real Estate, Chartered 
Surveyors, acting in the capacity of external valuers. The valuations were undertaken in accordance with the 
requirements of IFRS 13 and the RICS Valuation – Global Standards 2020.

The valuation of each property was on the basis of Fair Value. The valuers reported that the total aggregate 
Fair Value of the properties held by the Company was £34,260,000.

The valuer’s opinions were primarily derived from comparable recent market transactions on arms-length 
terms. 

As a result of the Covid-19 pandemic, the revaluation contains a “material valuation uncertainty” declaration 
in the following terms:

“The  outbreak  of  the  Novel  Coronavirus  (COVID-19),  declared  by  the  World  Health  Organisation  as  a 
“Global Pandemic” on 11th March 2020, has impacted global financial markets. Travel restrictions have 
been implemented by many countries. Market activity is being impacted in many sectors. As at the valuation 
date,  we  consider  that  we  can  attach  less  weight  to  previous  market  evidence  for  comparison  purposes, 
to  inform  opinions  of  value.  Indeed,  the  current  response  to  COVID-19  means  that  we  are  faced  with 
an  unprecedented  set  of  circumstances  on  which  to  base  a  judgement.  Our  valuation(s)  is/are  therefore 
reported on the basis of ‘material valuation uncertainty’ as per VPS 3 and VPGA 10 of the RICS Valuation – 
Global Standards. Consequently, less certainty – and a higher degree of caution – should be attached to our 
valuation than would normally be the case. Given the unknown future impact that COVID-19 might have on 
the real estate market, we recommend that you keep the valuation of the Properties under frequent review. 

 – 39 –

 
  
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

For the avoidance of doubt, the inclusion of the “material valuation uncertainty” declaration above does not 
mean that the valuation cannot be relied upon. Rather, the phrase is used in order to be clear and transparent 
with all parties, in a professional manner that – in the current extraordinary circumstances - less certainty can be 
attached to the valuation than would otherwise be the case.”

The valuers also state that the material uncertainty declaration is to serve as a precaution and does not invalidate 
the valuation. 

In the financial year ending 31 December 2019, the total fees earned by the valuer from Wynnstay Properties 
PLC and connected parties were less than 5% of the valuer’s company turnover.

The  valuation  complies  with  International  Financial  Reporting  Standards.  The  definition  adopted  by  the 
International Accounting Standards Board (IASB) in IFRS 13 is Fair Value, defined as: ‘The price that would 
be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants 
at the measurement date.’

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 equivalent yields which range from 5.25% to 8.64%, 
with an average equivalent yield of 6.97% (2019: 6.38%) and an average weighted equivalent yield of 6.67% 
(2019: 6.5%) 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% decrease in the weighted equivalent yield would result in a corresponding increase of £2.74 million in 
the fair value movement through profit or loss. A 0.5% increase in the same yield would result in a corresponding 
decrease of £2.47 million in the fair value movement through profit or loss. 

The above calculations exclude the development land at Petersfield, which has been assessed on the residual 
method.

 – 40 –

 – 41 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

10.  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

2020

£’000

2,081

2,703

409

5,193

2019

£’000

2,080

4,102

181

6,362

Rental  income  under  operating  leases  recognised  through  profit  or  loss  amounted  to  £2,271,000  (2019: 
£2,216,000).

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.  The  Company  manages  the  services 
provided for a management fee and the service charges are not recognised as income in the accounts of the 
Company as any receipts are netted off against the associated expenditures with any residual balance being 
shown as a liability.

If  the  tenant  does  not  carry  out  its  responsibility  for  repairs  and  the  Company  receives  a  dilapidations 
payment, the resulting cash is held as a provision against the cost of repairs, which becomes the Company’s 
responsibility. The provision for repairs is shown in Note 14.

11.  INVESTMENTS

Quoted investments

12.  SUBSIDIARY COMPANY

2020

£’000

3

2019

        £’000

3

The Company owns 80% of the issued share capital of a dormant subsidiary, Scanreach Limited, which 
the  Directors  consider  immaterial  to,  and  thus  has  not  been  consolidated  into,  the  financial  statements. 
Scanreach  Limited  holds  the  legal  title  to  an  access  road  to  an  investment  property,  the  use  of  which  is 
shared between the Company, its tenants at the property and neighbouring premises and has net assets of 
£4,437 (2019: £4,437).

 – 41 –

 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

13.  ACCOUNTS RECEIVABLE

Trade receivables

Other receivables

2020

£’000

225

20

245

2019

        £’000

150

7

157

Trade receivables include an adjustment for credit losses of £nil (2019: nil). Trade receivables of £nil (2019: 
nil) are considered past due, but not impaired.

14.  ACCOUNTS PAYABLE

Trade payables

Other creditors

Provision for property repairs

Deferred income

Accruals

15.  BANK LOANS PAYABLE 

Non-current loan

2020

£’000

                           21

103

                         344

                         572

                         223

2019

 £’000

38

148

249

582

161

1,263

1,178

2020

£’000

12,500

12,500

2019

 £’000

12,500

12,500

In December 2016, a five-year facility comprising both a Fixed Rate Facility of £10 million and a Revolving 
Credit Facility of £3.5 million was entered into providing a total committed credit facility of £13.5 million. 
Interest on loan amounts drawn down of £10 million (2019: £10 million) for the Fixed Rate Facility was 
charged at 3.35% per annum and on loan amounts drawn down of £2.5 million (2019: £2.5 million) for the 
Revolving Credit Facility was charged at 2.49% over three-month LIBOR.

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.

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 £34,260,000 (2019: £35,095,000). The undrawn 
element of the borrowing facility available at 25 March 2020 was £1,000,000 (2019: £1,000,000). 

 – 42 –

 – 43 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

16.  DEFERRED TAX

A deferred tax liability of £314,000 has been recognised in respect of the investment properties (2019: £420,000).

Deferred Tax brought forward

(Credit)/charge for the year

Deferred Tax carried forward

17.  SHARE CAPITAL

Authorised

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

Allotted, Called Up and Fully Paid

3,155,267 Ordinary shares of 25p each

2020

£’000

420

(106)

314

2020

£’000

2019

£’000

345

75

420

2019

£’000

2,000

2,000

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. As a result, the total number of shares with voting rights is 
2,711,617.

 – 43 –

 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

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 25 March 2020 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. The Company carefully vets prospective new tenants from a credit risk 
perspective. Bad debts are mitigated by close engagement with tenant businesses within a well-diversified 
mix  of  some  80  tenants  across  the  portfolio  and  close  monitoring  of  rental  income  receipts.  In  the  light 
of  the  Covid-19  pandemic  the  Company  has  regularly  reviewed  the  portfolio,  including  feedback  from 
engagement with tenants, in order to assess the risk of tenant failures. 

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. In terms 
of concentration of individual tenant’s rents versus gross annual passing rents the Company has 3 tenants 
whose rent, on an individual basis, is between 5% and 9% of gross annual passing rents.

Funds are invested and loan transactions contracted only with banks and financial institutions with a high 
credit  rating.  Concentration  of  credit  risk  exists  to  the  extent  that  at  25  March  2020  and  2019,  current 
account and short-term deposits were held with two financial institutions, Handelsbanken PLC and C Hoare 
& Co. The combined exposure to credit risk on cash and cash equivalents at 25 March 2020 was £1,289,000 
(2019: £959,000).

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  interest  rate  risk  that  could  affect  cash  flow  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.

 – 44 –

 – 45 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

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:

Impact on interest payable - gain/(loss)

Impact on interest receivable - (loss)/gain

Total impact on pre-tax profit and equity

0.5% decrease 
in interest rates

0.5% increase 
in interest rates

2020

£'000

13

(6)

7

2019

£'000

13

(5)

8

2020

£'000

(13)

6

(7)

2019

£'000

(13)

5

(8)

The calculation of the net exposure to interest rate fluctuations was based on the following as at 25 March: 

Floating rate borrowings (bank loans)

Less: cash and cash equivalents

2020

£'000

(2,500)

1,292

(1,208)

2019

£'000

(2,500)

962

 (1,538)

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)

2020
Book Value
£’000
(12,500)

2020
Fair Value
£’000
(12,500)

2019
Book Value
£’000
(10,240)

2019
Fair Value
£’000
(10,240)

Total

(12,500)

(12,500)

(10,240)

(10,240)

 – 45 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

18.  FINANCIAL INSTRUMENTS (Continued)

Categories of Financial Instruments

Financial assets:

Quoted investments measured at fair value

Loans and receivables measured at amortised cost

Cash and cash equivalents measured at amortised cost

Total financial assets

Non-financial assets

Total assets

Financial liabilities at amortised cost

Total liabilities

Shareholders’ equity

Total shareholders’ equity and liabilities

2020

£’000

3

244

1,289

1,536

34,260

35,796

2019

£’000

3

157

 959

1,119

35,095

36,214

14,318

14,331

14,318

21,478

35,796

14,331

21,883

36,214

The only financial instruments measured subsequent to initial recognition at fair value as at 25 March are 
quoted investments. These are included in level 1 in the IFRS 13 fair value 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 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%.

 – 46 –

 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

18.  FINANCIAL INSTRUMENTS (Continued)

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

2020

£'000

12,500 

(1,289)

11,211

21,478

34,260

36.5%

32.7%

52.2%

2019

£'000

12,500

(959)

11,541

21,883

35,095

35.6%

32.9%

52.7%

19.  RELATED PARTY TRANSACTIONS

The Company had 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 £27,416 (2019: £46,000). The agreement was terminated 
by mutual agreement on 30 October 2019. 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 12.

 – 47 –

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 MARCH 2020

WYNNSTAY PROPERTIES PLC

20.  SEGMENTAL REPORTING

          Industrial

             Retail

              Office

              Total

2020

2019

2020

2019

2020

2019

2020

2019

 £’000

£’000

 £’000

£’000

 £’000

£’000

 £’000

£’000

1,703

(863)

1,671

   681

   168

 (200)

   127

   120

   400

   418

 2,271

2,216

(255)

   (30)

(1,318)

771

Rental Income

Profit /(Loss) on investment 
property at fair value

Total income and gain

  840

2,352

   (32)

   247

  145

   388

953

 2,987

Property expenses

(116)

  (81)

–

–

–

–

  (116)

   (81)

Segment profit/(loss)

   724

2,271

(32)

   247

   145

388

    837

2,906

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

  421

–

–

–

–

–

    421

   280

  (572)

 (544)

    686

2,642

  (430)

 (399)

2

3

258

2,246

Other information

          Industrial

             Retail

              Office

              Total

2020

2019

 2020

2019

 2020

2019

 2020

2019

 £’000

£’000

 £’000

£’000

 £’000

£’000

 £’000

£’000

Segment assets

26,480

24,670

2,490

4,880

5,290

5,545

34,260

35,095

Segment assets held  
as security

26,170   24,670       2,060       4,880       5,290       5,545     33,520     35,095

 – 48 –

 – 49 –

   
  
 
 
WYNNSTAY PROPERTIES PLC

FIVE YEAR FINANCIAL REVIEW

Years Ended 25 March:

2020

£’000

2019

£’000

STATEMENT OF COMPREHENSIVE INCOME

Property Income

Profit before movement in fair value of 
investment properties and taxation

Income before Taxation

Income after Taxation

2,271

1,155

258

123

2,216

1,196

2,247

1,928

IFRS

2018

£’000

2,182

1,150

2,991

2,632

2017

£’000

2016

£’000

2,028

999

3,198

2,797

1,778

878

1,951

1,796

STATEMENT OF FINANCIAL POSITION

Investment Properties

Equity Shareholders’ Funds 

34,260

21,478

35,095

21,883

30,070

20,443

29,515

18,265

25,230

15,839

PER SHARE

Basic earnings

Dividends paid and proposed

Net Asset Value

4.5p

15.0p

792p

71.1p

19.0p

807p

97.1p

17.5p

754p

103.1p

15.75p

674p

66.2p

13.2p

584p

 – 49 –

                                                       
                                    
 
WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

Please note that in light of UK Government guidance on the Covid-19 pandemic, this year’s Annual General 

Meeting will be a closed meeting. The Board will ensure that a quorum is present and no other shareholders 

will be permitted to attend. Given this restricted attendance, all shareholders are encouraged to exercise their 

voting rights in relation to resolutions set out in the Notice of Meeting below by appointing the Chairman of 

the meeting as their proxy. A form of proxy is enclosed on which there are notes for completion and return by 

post.

You can also submit your proxy electronically using the share portal service at www.signalshares.com. If not 

already registered for the share portal, you will need your investor code, which can be found on your share 

certificate or dividend tax voucher.

If  you  need  help  with  voting  online,  please  contact  our  Registrar,  Link  Asset  Services,  on  Tel:  0371  664 

0391. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United 

Kingdom  will  be  charged  at  the  applicable  international  rate.  Lines  are  open  between  09:00  –  17:30, 

Monday to Friday (excluding public holidays in England and Wales). You can also contact them by email at 

shareholderenquiries@linkgroup.co.uk.

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

Members of Wynnstay Properties PLC will be held at 4 Kimbolton Row, Fulham Road, London, SW3 6RQ on 

Tuesday 15 September 2020, at 10.00 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 25 March 2020.

2  To fix the remuneration of the Directors.

3  To  reappoint  BDO  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.

4  To  re-elect  Mr.  P.G.H.  Collins  as  a  Director  of  the  Company,  who  retires  and  offers  himself  for 

re-election.

5  To  re-elect  Miss  C.M.  Tolhurst  as  a  Director  of  the  Company,  who  retires  and  offers  herself  for 

re-election.

6  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  2021  or,  if  earlier,  at  the  conclusion  of  the  annual  general  meeting  of  the 

Company to be held in 2021. 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.

 – 50 –

WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

SPECIAL RESOLUTION

7  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  6  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 

2021 or, if earlier, at the conclusion of the annual general meeting of the Company to be held in 2021. 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:
Hamilton House
London WC1H 9BB 

By Order of the Board
Susan Wallace 
Secretary
30 July 2020

 – 51 –

  
WYNNSTAY PROPERTIES PLC

NOTICE OF ANNUAL GENERAL MEETING

Notes:

1.  A Member entitled to attend and vote at the Annual General Meeting (AGM) may appoint one or more 
proxies to attend, speak and vote in their stead. The proxy need not be a Member of the Company. A form 
of proxy is enclosed. Whilst ordinarily lodging a form proxy does not preclude a member from attending 
and voting at the AGM, due to Covid-19 restrictions, no additional members over and above the quorum 
will be able to attend the Annual General Meeting (‘AGM’) on 15 September 2020.  Members are strongly 
encouraged  to  complete  and  return  a  form  of  proxy  appointing  the  ‘Chairman  of  the  meeting’  as  their 
proxy to ensure their votes are included in the poll vote conducted on all resolutions. 

2.  To be valid, the completed and signed form of proxy must either be returned to the Company’s Registrars, 
Link Asset Services, PXS1 34 Beckenham Road, Beckenham, Kent BR3 4TU; or shareholders can vote 
online at www.signalshares.com for which you will need your investor code which can be found on your 
share  certificate  or  your  dividend  tax  voucher.  Whichever  means  of  return  is  used  this  must  be  done  in 
sufficient time to ensure the form is received by 10.00 a.m. on Friday 11 September 2020, being 48 hours 
before the commencement of the meeting. 
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.

3. 

4.  A corporation which is a shareholder can appoint one or more corporate representatives who may exercise, 
on  its  behalf,  all  its  powers  as  a  shareholder  provided  that  no  more  than  one  corporate  representative 
exercises  powers  over  the  same  share.  As  no  additional  members  of  their  representatives  will  be  able 
to  attend  the  AGM  on  15  September  2020  corporate  members  are  strongly  encouraged  to  complete  and 
return a form of proxy appointing the ‘Chairman of the meeting’ as their proxy to ensure their votes are 
included in the poll vote.

5.  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 10.00 a.m. on 14 
September 2020 shall be entitled to attend or vote at the AGM 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 10.00 
a.m. on 14 September 2020 shall be disregarded in determining the rights of any person to attend or vote at 
the meeting. 

6.  Whilst  copies  of  all  Directors’  Service  Contracts  are  ordinarily  made  available  for  inspection  during 
normal  business  hours  at  the  Company’s  registered  office  up  to  the  date  of  the  AGM  and  at  the  place 
of  the  AGM  from  15  minutes  before  the  start  of  the  meeting  until  conclusion  of  the  meeting,  given  the 
Covid-19  restrictions,  copies  will  be  made  available  to  members  of  the  Company  on  receipt  of  a  valid 
request.

 – 52 –

WYNNSTAY PROPERTIES PLC

BIOGRAPHIES OF THE DIRECTORS

Philip  Collins  (Non-Executive  Chairman)  aged  72,  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  62  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  Delevingne  (Non-Executive)  aged  70. 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.

Paul Mather (Non-Executive) aged 65 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 Tolhurst  (Non-Executive)  aged  58,  is  a  Chartered  Surveyor  and  a  Chartered  Secretary  with  more 
than  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.

 – 53 –

PROXY FOR ANNUAL GENERAL MEETING

WYNNSTAY PROPERTIES PLC

Form of Proxy

PLEASE RETURN THIS FORM OF PROXY IN THE 
BUSINESS REPLY ENVELOPE PROVIDED

Form of Proxy                                     Wynnstay Properties PLC

Annual General Meeting 15th September 2020

I/We, the undersigned, being a member of the above-named Company, hereby appoint the 
Chairman of the Meeting, or failing him, ......................................................................................
of ...................................................................................................................................................
as  my/our  proxy  to  vote  for  me/us  and  on  my/our  behalf  at  the  One  Hundred  and  Thirty 
fourth  Annual  General  Meeting  of  the  Company,  notice  of  which  was  sent  to  Shareholders 
with the Annual Report for the year ended 25 March 2020, and at any adjournment thereof. 
The proxy will vote on the under-mentioned Resolutions, as indicated.

Proxy voting
If the form is signed and returned without any indication as to how the proxy shall vote, he/she 
will exercise his/her discretion both as to how he/she votes and whether or not he/she abstains 
from  voting.  The  proxy  will  also  exercise  his/her  discretion  as  to  how  he/she  votes  (and 
whether or not he/she abstains from voting) on (a) other business transacted at the Meeting, 
and (b) any other Resolution for the election of Directors.

Signed this.............. day of ......................2020   

Signature or Common Seal.........................................................................................................

 Ordinary Resolutions    

1.   To receive the Report of the Directors and the Financial 

Statements for the year ended 25 March 2020.

2.   To fix the remuneration of the Directors.

3.   To reappoint BDO 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.

4.   To re-elect as a Director of the Company Mr PGH Collins,  

who retires and offers himself for re-election.

5.   To re-elect as a Director of the Company Miss CM Tolhurst, 

who retires and offers herself for re-election.

6.   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.

Special Resolution

7.   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 6 above and (ii) pursuant 
to section 573 of the Act to allot equity securities (within the 
meaning of section 560(3) of the Act).

For

Against

Withheld

(BLOCK CAPITALS)

Full Name(s) of Shareholder(s).....................................................................................................

Notes

1.  To be valid, this form of proxy must, in the case of an individual, be signed by the holder 
or  his/her  attorney,  or,  in  the  case  of  a  corporation,  be  either  given  under  its  common 
seal  or  signed  on  its  behalf  by  an  attorney  or  duly  authorised  officer  and  be  received  by 
the  Registrar,  Link  Asset  Services,  not  less  than  48  hours  before  the  time  for  holding  the 
meeting. A reply-paid envelope is provided to return your proxy. If you lose this envelope 
or  do  not  receive  it,  please  post  your  form  of  proxy  to  Link  Asset  Services,  PXS1,  34 
Beckenham Road, Beckenham, Kent BR3 4ZF (stamp required). Any Power of Attorney or 
any other authority under which the proxy form is signed (or a duly certified copy of such 
power or authority) must be included with the proxy form. 

2.  The Annual General Meeting will be held at 4 Kimbolton Row, Fulham Road, London, SW3 

6RQ on Tuesday 15 September 2020, at 10.00 a.m. 

3.  The  ‘Vote  Withheld’  box  is  provided  to  enable  a  shareholder  to  abstain  on  any  particular 
resolution. However, it should be noted that a vote withheld is not a vote in law and will not 
be counted in the calculation of whether a resolution is carried. 

4.  In the case of joint holders, the signature of the first named in the register of members will 

be accepted to the exclusion of all others.

5.  A  proxy  need  not  also  be  a  member  of  the  Company  but  must  attend  the  meeting  in 

person.

6.  Whilst you may appoint more than one proxy to represent you at the meeting provided that 
each  proxy  is  appointed  to  exercise  the  rights  attaching  to  different  shares  held  by  you 
please note that due to Covid-19 attendance is restricted at the AGM this year. 

7.  The  summaries  of  the  resolutions  are  for  guidance  only.  You  are  advised  to  read  the 

accompanying Notice of Meeting carefully.

AGM Attendance
Please note that in light of UK Government guidance on the Covid-19 pandemic, this year’s 
Annual  General  Meeting  will  be  a  closed  meeting.  The  Board  will  ensure  that  a  quorum 
is  present  and  no  other  shareholders  will  be  permitted  to  attend.  Given  this  restricted 
attendance, all shareholders are encouraged to exercise their voting rights in relation to the 
resolutions set out in the Notice of Meeting by appointing the Chairman of the meeting as 
their proxy. Please therefore complete and return this form as soon as possible.

 
                                          
                                          
                                          
WYNNSTAY  PROPERTIES  PLC

5 August 2020

Dear Shareholder

Shareholder Communications, Payment of Dividends and Link Registrars’ Contact Details

I  am  writing  with  important  information  about  how Wynnstay  communicates  with  you,  how  we  pay  dividends  to  you  and  how  to 
contact our registrars with enquires about your shareholding.

Shareholder Communications
Many shareholders in quoted companies now choose to receive Annual Reports and Notices of Meetings electronically. This has a 
number of advantages for the Company and its shareholders. It increases the speed of communication, saves you time and reduces 
print and distribution costs and our impact on the environment.

Company  law  requires  that  the  Company  asks  shareholders  to  consent  to  the  receipt  of  communications  electronically  and 
via  a  website.*  If  you  consent  to  website  publication  you  will  continue  to  be  notified  in  writing  and  through  the  release  of  an 
announcement  on  the  London  Stock  Exchange  each  time  the  Company  places  a  statutory  communication  on  the  website. Annual 
Reports and other documents which are required to be sent to shareholders (‘shareholder information’) are published on our website: 
www.wynnstayproperties.co.uk. If you consent, the website will be the way in which you access all future shareholder information. 

•  If you wish to receive shareholder information by means of our website, you need to take no further action. You will be notified 
by post when shareholder information has been placed on the website. If you wish to receive notification by email, you can either 
register your email address via Link Registrar’s online portal (www.signalshares.com) or by completing and signing the reply 
slip at the foot of this letter, ticking option (a) and return it to FREEPOST SAS, 34 Beckenham Road, BR3 9ZA (This is all you 
need to write on the envelope no stamp or further details required).

•   If you wish to receive shareholder information in hard copy form, you should complete and sign the reply slip at the foot of this 
letter, ticking option (b), and return it to FREEPOST SAS, 34 Beckenham Road, BR3 9ZA (This is all you need to write on the 
envelope, no stamp or further details required).

•   If  you  do  not  reply  within  28  days  from  the  date  of  despatch  of  this  letter,  you  will  be  deemed  to  have  consented  to  website 

publication of shareholder information and you will no longer receive hard copies in the post.

If you sign up to use Signal Shares, Link Registrars’ secure online portal, you can manage your shareholding quickly and easily. You can: 

•   View your holding and get an indicative valuation
•   Change your address
•   Arrange to have dividends paid into your bank account
•   Request to receive shareholder communications by email rather than post
•   View your dividend payment history
•   Make dividend payment choices
•   Buy and sell shares and access a wealth of stock market news and information
•   Register your proxy voting instruction
•   Download a stock transfer form.

To register for Signal Shares just visit www.signalshares.com. All you need is your investor code, which can be found on your share 
certificate or your dividend tax voucher. If you consent to receive communications by email or via the website, you still have the right 
at any time to request hard copies of shareholder information at no charge.

Registered Office: Hamilton House, Mabledon Place, London WC1H 9BB
+44 (0)20 7554 8766 | info@wynnstayproperties.co.uk | wynnstayproperties.co.uk
Company registered in England and Wales. Registered number 00022473

Direct payment of your dividends into your bank account 
We  now  pay  nearly  80%  by  value  of  dividends  directly  into  shareholders’  bank  accounts  rather  than  by  cheque  sent  through  the 
post, which is now a more expensive and less efficient alternative for both the Company and shareholders. Arranging to have your 
dividends paid direct into your bank account means that:
•  Your dividend reaches your bank account on the payment date.
•  It is more secure – cheques can sometimes get lost in the post.
•  You don’t have the inconvenience of depositing a cheque.
•  It helps reduce cheque fraud.
As  already  noted  above,  if  you  have  a  UK  bank  account  you  can  sign  up  for  this  service  on  Signal  Shares,  by  clicking  on  ‘your 
dividend options’ and following the on screen instructions.

You can also request direct payment of dividends to your bank account by completing the dividend mandate form sent to shareholders who 
still receive payment by cheque with each dividend voucher. Simply detach and complete in BLOCK LETTERS the form that accompanies 
the dividend voucher and post it to FREEPOST SAS, 34 Beckenham Road, BR3 9ZA (no stamp or further details required).

Link’s Customer Support Centre
You can contact Link’s Customer Support Centre which is available to answer any queries you have in relation to your shareholding:

By phone: UK – 0371 664 0300 
Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the 
applicable international rate. Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales.

By email: shareholderenquiries@linkgroup.co.uk

By post: Link Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.

I  would  encourage  shareholders  to  read  this  letter  carefully,  consider  their  wishes  and  take  any  actions  necessary  to  meet 
those wishes. 

Thank you for your continued interest in and support for Wynnstay.

Yours faithfully

Philip Collins
Chairman

*Note:  The  Company  reserves  the  right  to  send  hard  copy  documents  to  shareholders  where,  for  example,  overseas  securities  laws  do  not  permit  electronic 
communication or in other circumstances where the Company considers that electronic delivery may not be appropriate.

✁

IMPORTANT: If you do not return this form within 28 days of the despatch of the above letter you will be deemed to have consented to the receipt 
of shareholder information via our website. You will receive notification by post when shareholder information is available.

TICK EITHER (a) or (b) and please complete in BLOCK CAPITALS

(a)  I wish to receive email notifications from Wynnstay Properties PLC.

(b)  I wish to continue to receive paper reports and shareholder information from Wynnstay Properties PLC.

Full Name of Shareholder(s) in BLOCK CAPITALS

Full Address of Shareholder(s) in BLOCK CAPITALS

Email address in BLOCK CAPITALS

Investor Code (as stated on your share certificate or dividend tax voucher)

Please return to:  
FREEPOST SAS, 34 Beckenham Road, BR3 9ZA  
(no stamp or further address detail is required).