Six-figure loss for Shropshire markets firm

WMC Retail Partners, which has its base in Wellington, operates about 20 markets around the UK, including the historic Wellington Market and an outdoor Sunday market in Battlefield, Shrewsbury.

Bosses now say they are putting in place plans to improve its performance in Shropshire. It comes as the industry faces a crisis. The group's turnover for the first six months of the year dropped by 25 per cent to £2.15 million, while pre-tax losses widened from £2,000 to £226,000.

A combination of falling trade, despite occupancy levels remaining steady, and the loss in January of a contract to operate Old Spitalfields Market in London contributed to the poor performance.

WMC said it sees the bulk of its trading from June onwards, a period which is also more profitable, but admitted that even this was unlikely to prevent a negative result when it reports full-year figures.

Chief executive Malcolm Ball said: "Our industry generally continues to struggle – albeit with a few exceptions where the market sites are in perfect locations. As to our Shropshire-based sites, Wellington and Shrewsbury, for the last few years the trader occupancy levels have continued to run at about 80 to 85 per cent, which compares favourably to the wider industry.

"In Wellington, we are looking at ways to invigorate the market and broaden its appeal. In order to do this, we'll need to adopt a partnership approach with the local council and of course garner the continued support of the local shoppers."

Lord Lee of Trafford, the company's chairman, added: "Trading at our core markets has been difficult – while occupancy levels have remained reasonably constant costs have increased, including very necessary repairs and renewals, and we have not been able to generate compensating revenue increases."

"In addition, performance at out smaller market operations, in particular Brighton Racecourse and Rushmoore – both now terminated – have been well below expectations."

More positive has been the company's diversification into retail consultancy at Shepherd's Bush Market in London, and it is tendering for similar deals with Preston and Wolverhampton's councils. It is also to launch a new training arm for market traders.

But the business has taken a loan from one shareholder, and is mulling property sales in a bid to shore up its cash position.