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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Spaceandpeople Plc | LSE:SAL | London | Ordinary Share | GB00BPQDJM21 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 80.00 | 75.00 | 85.00 | 80.00 | 74.25 | 80.00 | 0.00 | 08:00:19 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Real Estate Agents & Mgrs | 5.53M | -1.71M | -0.8781 | -0.91 | 1.56M |
TIDMSAL
RNS Number : 7530K
SpaceandPeople PLC
26 September 2016
SpaceandPeople plc
("SpaceandPeople" or the "Group")
Interim Results for the 6 months to 30 June 2016
SpaceandPeople (AIM:SAL), the retail, promotional and brand experience specialist which facilitates and manages the sale of promotional and retail merchandising space in shopping centres and other high footfall venues, announces interim results for the six months ended 30 June 2016.
Highlights * Consolidated gross revenue GBP11.1m (2015: GBP11.3m) - 1.8% down * Consolidated net revenue GBP4.65m (2015: GBP4.77m) - 2.5% down o UK promotional net revenue GBP1.50m (2015: GBP1.43m) - 5.4% up o UK retail and MPK net revenue GBP1.46m (2015: GBP1.42m) - 3.2% up o German promotional net revenue GBP544k (2015: GBP612k) - 11.1% down o German retail net revenue GBP1.07m (2015: GBP1.24m) - 13.7% down * Loss before taxation from continuing operations GBP174k (2015: profit GBP62k) - GBP236k down * Basic earnings per share negative 2.96p (2015: positive 0.06p) * Successful start to Network Rail contract won in 2015 * 75 Mobile Promotions Kiosks ("MPKs") in operation in the UK * Commencement of kiosk pilot in France in January 2016 * Closure of S&P+ due to insufficient prospects leading to a one off charge of GBP552k in the period ------------------------------------------------------------------
Contact details:
SpaceandPeople Plc 0845 241 8215 Matthew Bending, Gregor Dunlay Cantor Fitzgerald Europe 020 7894 7000 David Foreman, Will Goode (Corporate Finance) David Banks, Richard Sloss (Sales)
Chief Executive's Interim Operating Statement
Overview
2015 was a year of transition for SpaceandPeople with a focus on gaining new clients and delivering higher value services. The first half of 2016 has been a continuation of this process with the successful expansion of our MPK programme and "Pop Up kiosks" offsetting the termination of some other traditional RMU contracts that were known to be occurring. We have also continued to explore opportunities for geographic expansion of our offer by commencing a pilot project with Immochan in France.
Taking our key divisions in turn:
UK Divisions
MPKs
The expansion of our innovative MPK programme has continued during the first half of 2016 and by the half year end we had 75 kiosks installed in 56 venues throughout the UK including 9 Network Rail stations (2015: 37 kiosks). This area of the business will continue to grow and we anticipate having 80 kiosks in operation by the end of the year. MPK revenue in the first half was GBP661k compared with GBP260k in the same period in 2015. This was as a result of both an increase in the number of kiosks in operation as well as the improved sales performance of each kiosk.
RMUs
Revenue generated by the RMUs decreased in the first half of 2016 compared with the previous period as some contracts came to an end during 2015 and some other clients removed RMUs from their malls. The average number of RMUs trading in the first half year of 2016 was 123 compared with 128 in 2015. The movement away from the long term minimum guarantee business model by some clients has been as a result of them wanting more dynamism on their malls and retailers wanting more flexibility in duration and location for their operations. Our innovative Pop Up kiosk programme, where units can be deployed for shorter periods of time and at short notice, has been refined and should better satisfy the requirements of both venues and operators going forward. This Pop Up kiosk programme, combined with the well-received rebrand of "Retail Profile" as "POP Retail" demonstrates that temporary retailing in malls is vibrant and in demand.
The Pop Up kiosks allow short term trading, particularly at the Christmas period, which allows existing operators to up-sell into more units in different locations as well as removing barriers of entry into the venues for new retailers. In 2015 we deployed around 30 Pop Up kiosks and we aim to double that number this year.
Promotions
The core UK promotions division has performed well during the period with revenue increasing by 5% to GBP1.50 million. Within this division there has been a development of large scale Brand Experience campaigns into Network Rail stations, with high profile campaigns including the launch of the new Ghostbusters movie, the Renault Clio 25(th) Anniversary promotion and a campaign by Dubai Tourism.
German Divisions
Retail
Our retail business in Germany transacts almost exclusively with ECE's portfolio of managed shopping centres. When this contract was renewed at the start of 2016 there was an agreed reduction in the number of kiosks deployed as centres that had proven to be difficult to trade in were removed from the contract. As a result, the average number of kiosks in operation in the first half of this year was 112, down from 136 in the previous year. It had been expected that the reduction in the number of kiosks and their concentration in the more desirable centres from our perspective would lead to higher average prices and higher levels of occupancy. Unfortunately, poor weather during the Spring and an unseasonably hot Summer have not helped retailer demand overall. However, the team are currently building the Christmas pipeline which is the crucial trading period for the division.
Promotions
The German promotions business saw a fall away of long term promotions. These are long term promotions booked over three years and are now coming to an end as we exited from the ECE long term agreement hence the overall reduction of revenue, down 11%. Stripping this revenue out showed the underlying performance of short term promotions growing by 14% which is an excellent performance.
SpaceandPeople Ventures
This is the grouping of our overseas companies and also new businesses that we are developing.
SpaceandPeople India, which is 60% owned by the Company, saw trading in line with expectations despite the effects of a heavier monsoon period than usual which has impacted on some retailers. The overall contribution of this business to the profitability of the group is not significant.
The first half of 2016 saw the commencement of the pilot MPK programme with Immochan in France. This pilot is enabling us to learn a great deal about operating in the French market and the client is very happy with the product and the way it has improved the presentation of promotions within their malls. The costs of running the pilot are not inconsiderable with GBP94k being spent in the first six months of the year which has been fully recognised in these results. The pilot will conclude at the end of this year and a decision will be made in early 2017 on whether or not to continue and expand the roll-out.
In June this year the decision was taken to close S&P+, our London based Above-the-Line ("ATL") advertising support business. Although well received by our clients and despite a promising start in 2013, the company did not develop sales to a level that would enable it to be self-sustaining. In late June a number of contracts they had been working on were either cancelled or postponed. This meant that they required additional funding to be able to continue to trade and with their pipeline of business for the remainder of the year not being as strong as we would have hoped, the Board decided that the business did not have a viable future and that committing further cash was not in the best interests of the Group. The closure of this business caused a release of the non-controlling interest resulting in a GBP252k one-off charge to the Group in the first half of 2016.
Outlook
As we entered 2016 we were aware that a number of significant revenue streams that we had benefitted from in the past had either ended or were going to end during 2016. The development of the Pop Up kiosk concept along with the continued roll-out of MPKs and the new contracts with Network Rail and British Land means that our business has replaced the old revenue streams with new products that are attractive to both existing and new venues and customers alike.
The results for the first half year are in line with the results of the previous year excluding the costs associated with the closure of S&P+ and the running of the MPK pilot programme in France.
The continuing development of the MPK and Pop Up kiosk programmes in the UK as well as continuing to source and develop new products that are attractive to our clients is key to the growth in the second half of 2016.
The UK promotions division has a strong pipeline of business for the second half of this year. We have put new sales management in place and combined with a focused programme of staff incentives this should help this business develop further.
The Pop Up kiosk offer could see between 60 and 80 units trading this Christmas. This division's results are crucial to our achieving forecasts. There is a strong pipeline of business, but again transactions in October are historically when this business is done.
The German promotions division is currently negotiating a contract extension beyond 2016 with its key client. While this negotiation has been going on we have encountered a block on long term promotions being accepted. Hopefully once the contract is agreed we will be able to transact this business which is important to our second half year income.
In common with many retail related businesses, trading across the Group in the period since the half year end has been more subdued than we had anticipated. We will need to perform strongly over the remainder of the year in order to meet our expectations. We have a good team led by experienced managers who are all focused on delivering our objectives.
As a result of the one off costs of closing S&P+ and the need to invest further in the growth of the MPK programme next year, for the first time since being admitted to AIM in 2005, we do not intend to propose a dividend during the 2016 financial period. This is intended to be a one year pause with dividends recommencing during the 2017 financial period.
Matthew Bending
23 September 2016
Independent Review Report to SpaceandPeople plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2016 which comprises, the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this 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 for our review work, for this report, or for the conclusions we have reached.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.
Campbell Dallas LLP
Chartered Accountants
Statutory Auditors
Titanium 1
King's Inch Place
Renfrew
PA4 8WF
Date: 23 September 2016
Consolidated Group Statement of Comprehensive Income
For the 6 months ended 30 June 2016
Notes 6 months Restated Restated to 30 - - June '16 (Unaudited) 6 months 12 months to 30 to 31 June December '15 '15 GBP'000 (Unaudited) (Audited) GBP'000 GBP'000 Revenue 5 4,646 4,766 11,433 Cost of Sales (1,725) (1,637) (3,947) ------------- ------------- ----------- Gross Profit 2,921 3,129 7,486 Administration expenses (3,220) (3,198) (6,713) Other operating income 114 131 295 Operating (loss) / profit (185) 62 1,068 ------------- ------------- ----------- Finance income 31 14 - Finance costs (20) (14) (28) (Loss) / Profit before taxation (174) 62 1,040 ------------- ------------- ----------- Taxation - - (197) (Loss) / Profit after taxation from continuing operations (174) 62 843 ------------- ------------- ----------- Discontinued Operations 6 (552) (85) 21 (Loss) / Profit after taxation Other comprehensive income (726) (23) 864 Foreign exchange differences on translation of foreign operations 143 (10) (39) ------------- ------------- ----------- Total comprehensive income for the period (583) (33) 825 (Loss) / Profit attributable to: Owners of the Company (578) 12 831 Non-controlling interests (148) (35) 33 ------- ------ ---- (726) (23) 864 ------- ------ ---- Total comprehensive income for the period attributable to: Owners of the Company (435) 2 792 Non-controlling interests (148) (35) 33 ------- ------ ---- (583) (33) 825 ------- ------ ---- Earnings per share 14 Basic (2.96p) 0.06p 4.26p Diluted (2.74p) 0.06p 3.89p
Consolidated Group Statement of Financial Position
At 30 June 2016
Notes 30 June 30 June 31 December '16 '15 '15 (Unaudited) (Unaudited) (Audited) GBP'000 GBP'000 GBP'000 Assets Non-current assets: Goodwill 7 8,225 8,225 8,225 Other intangible assets 8 32 28 17 Property, plant & equipment 9 1,702 1,701 1,625 ------------- ------------- ------------ 9,959 9,954 9,867 Current assets: Trade & other receivables 3,685 3,648 4,205 Cash & cash equivalents 10 778 1,028 1,723 ------------- ------------- ------------ 4,463 4,676 5,928 Total assets 14,422 14,630 15,795 ------------- ------------- ------------ Liabilities Current liabilities: Trade & other payables 3,807 4,657 4,506 Current tax payable (96) (142) 18 Other borrowings 11 - 250 250 ------------- ------------- ------------ 3,711 4,765 4,774
Non-current liabilities: Deferred tax liabilities 58 10 58 Long term loan 11 1,200 500 750 ------------- ------------- ------------ 1,258 510 808 Total liabilities 4,969 5,275 5,582 ------------- ------------- ------------ Net assets 9,453 9,355 10,213 ------------- ------------- ------------ Equity Share capital 13 195 195 195 Share premium 4,868 4,868 4,868 Special reserve 233 233 233 Retained earnings 3,883 3,957 4,747 Equity attributable to owners of the Company 9,179 9,253 10,043 ------------- ------------- ------------ Non-controlling Interest 274 102 170 ------------- ------------- ------------ Total equity 9,453 9,355 10,213 ------------- ------------- ------------
Consolidated Group Statement of Cash Flows
For the 6 months ended 30 June 2016
Notes 6 months Restated Restated to 30 - - June '16 (Unaudited) 6 months 12 months to 30 to 31 June '15 December '15 GBP'000 (Unaudited) (Audited) GBP'000 GBP'000 Cash flows from operating activities Cash (outflow) / inflow from operations (290) (448) 192 Interest paid (20) (14) (28) Taxation (114) 28 39 ------------- ------------- ----------- Net cash (outflow) / inflow from operating activities (424) (434) 203 ------------- ------------- ----------- Cash flows from investing activities Interest received 31 14 - Purchase of intangible assets (23) (15) (15) Purchase of property, plant & equipment 9 (300) (512) (690) Net cash outflow from investing activities (292) (513) (705) ------------- ------------- ----------- Cash flows from financing activities Bank facility received 11 200 250 500 Dividends paid 12 (429) (390) (390) ------------- ------------- ----------- Net cash outflow from financing activities (229) (140) 110 ------------- ------------- ----------- (Decrease) in cash and cash equivalents (945) (1,087) (392) Cash at beginning of period 1,723 2,115 2,115 ------------- ------------- ----------- Cash at end of period 10 778 1,028 1,723 ------------- ------------- ----------- Reconciliation of operating profit to net cash flow from operating activities ------ -------- -------- Operating (loss) / profit (185) 62 1,068 ------ -------- -------- Operating (loss) / profit from discontinued 6 (300) (85) 21 Amortisation of intangible assets 8 5 16 Depreciation of property, plant & equipment 223 185 439 Effect of foreign exchange rate moves 143 (10) (39) Decrease in receivables 520 573 16 (Decrease) in payables (699) (1,178) (1,329) ------ -------- -------- Cash flow from operating activities (290) (448) 192 ------ -------- --------
Consolidated Group Statement of Changes in Equity
For the 6 months ended 30 June 2016
Share Share Special Retained Non-controlling Total 6 months to capital premium reserve earnings Interest equity 30 June '16 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January '16 195 4,868 233 4,747 170 10,213 Foreign currency translation - - - 143 - 143 Loss for the period - - - (578) (148) (726) Elimination of non-controlling interest in S&P+ - - - - 252 252 Dividends paid - - - (429) - (429) At 30 June '16 195 4,868 233 3,883 274 9,453 --------- --------- --------- ---------- ---------------- --------- Share Share Special Retained Non-controlling Total 6 months to capital premium reserve earnings Interest equity 30 June '15 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January '15 195 4,868 233 4,345 137 9,778 Foreign currency translation - - - (10) - (10) Profit / (Loss) for the period - - - 12 (35) (23) Dividends paid - - - (390) - (390) At 30 June '15 195 4,868 233 3,957 102 9,355 --------- --------- --------- ---------- ---------------- --------- Share Share Special Retained Non-controlling Total 12 months capital premium reserve earnings Interest equity to 31 December GBP'000 '15 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 January '15 195 4,868 233 4,345 137 9,778 Foreign currency translation - - - (39) - (39) Profit for the period - - - 831 33 864 Dividends paid - - - (390) - (390) At 31 December '15 195 4,868 233 4,747 170 10,213 --------- --------- --------- ---------- ---------------- ---------
Notes to the financial statements
For the 6 months ended 30 June 2016
1. General information
SpaceandPeople plc is a limited liability company incorporated and domiciled in Scotland (registered number SC212277) which is listed on AIM (ticker: SAL).
This condensed consolidated interim financial information has been reviewed, but not audited, by the auditors, and their independent review is set out in this announcement. It does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. The financial information for the 12 months to 31 December 2015 has been extracted from the statutory accounts for that period. These published accounts were reported on by the auditors without qualification or an emphasis of matter reference, and did not include a statement under section 498 of the Companies Act 2006, and have been delivered to the Registrar of Companies.
This condensed consolidated interim financial information was approved by the board on 23 September 2016.
2. Basis of preparation
This condensed consolidated interim financial information for the 6 months ended 30 June 2016 has been prepared in accordance with IAS 34 'Interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the financial statements of the Group for the period ending 31 December 2015 which were prepared on a going concern basis under the historical cost convention in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
3. Accounting policies
The accounting policies adopted in the preparation of the condensed consolidated interim financial information are consistent with those applied in the financial statements of the Group for the year ended 31 December 2015.
4. Seasonality of operations
Due to the seasonal nature of the retail business, higher revenues and operating profits are usually expected in the second half of the year than in the first six months, particularly for subsidiary companies POP Retail Limited and Retail Profile Europe GmbH.
5. Segmental reporting
The Group maintains its head office in Glasgow and an office in Hamburg, Germany. These are reported separately. The Group operates both Promotional Sales and Retail businesses in both the UK and Germany. The Group has determined that these are the principal operating segments as the performance of these segments is monitored separately and reviewed by the board.
The following table presents revenue and profit and loss information regarding the Group's two business segments - Promotional Sales and Retail, split by geographic area. Other segment represents the Groups investments in SpaceandPeople India and Retail Profile France.
Promotions Promotions Retail Retail Head Other Group UK Germany UK Germany Office GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 6 months to 30 June '16 Revenue 1,502 544 1,462 1,068 - 70 4,646 ----------- ----------- --------- --------- --------- --------- --------- Segment operating profit/(loss) 385 145 (169) 1 (456) (80) (174) ----------- ----------- --------- --------- --------- --------- --------- 6 months to 30 June '15 Revenue 1,425 612 1,417 1,237 - 75 4,766 ----------- ----------- --------- --------- --------- --------- --------- Segment operating profit/(loss) 328 279 27 60 (649) (107) (62) ----------- ----------- --------- --------- --------- --------- --------- 12 months to 31 December '15 Revenue 3,063 2,438 3,151 2,632 - 149 11,433 ----------- ----------- --------- --------- --------- --------- --------- Segment operating profit/(loss) 1,684 53 206 46 (1,039) 90 1,040 ----------- ----------- --------- --------- --------- --------- --------- 6. Discontinued operations
During the period, the Group took decision to close its S&P+ business, which operated in a niche sector distinct from SpaceandPeople's core business. SpaceandPeople owned 51% of S&P+ and didn't consider it prudent to continue funding the venture beyond what had already been provided. The combined results of the discontinued operations included in the loss for the year are set out below. The comparative loss / profit from discontinued operations have been represented to include those operations classified as discontinued in the current year.
6 months 6 months 12 months Profit / (Loss) to to to for the year from 30 June 30 June 31 December discontinued operations '16 '15 '15 GBP'000 GBP'000 GBP'000 Revenue 487 997 2,381 Cost of Sales (343) (744) (1,738) Gross Profit 144 253 643 Administration expenses (444) (338) (622) Results from operating activities (net of tax) to date of disposal Non-controlling interest eliminated (300) (85) 21 (Loss) / profit (252) - - for period from discontinued operations (552) (85) 21 7. Goodwill 6 months 6 months 12 months Net book value to to to 30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 Opening Balance 8,225 8,225 8,225 Closing Balance 8,225 8,225 8,225 --------- --------- -------------
8. Other intangible assets
6 months 6 months 12 months Net book value to to to 30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 Opening Balance 17 18 18 Additions 23 15 15 Amortisation (8) (5) (16) --------- --------- ------------- Closing Balance 32 28 17 --------- --------- ------------- 9. Property, plant and equipment 6 months 6 months 12 months Net book value to to to 30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 Opening Balance 1,625 1,374 1,374 Additions 300 512 690 Depreciation (223) (185) (439) --------- --------- ------------- Closing Balance 1,702 1,701 1,625 --------- --------- ------------- 10. Cash & cash equivalents 30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 Cash at Bank and on hand 778 1,028 1,723 778 1,028 1,723 --------- --------- ------------ 11. Non-current liabilities
As at 30 June 2016, SpaceandPeople had drawn down GBP1.2 million (June 2015: GBP750k) of its agreed bank facility of GBP2 million. The amount drawn is part of a revolving credit facility of which GBP1 million is repayable by 31 Jul 2017 and GBP1 million is repayable by 31 July 2019.
12. Dividends 30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 Paid during the period 429 390 390 13. Called up share capital Allotted, issued 30 June 30 June 31 December and fully paid '16 '15 '15 Class Nominal value Ordinary 1p GBP 195,196 195,196 195,196 Number 19,519,563 19,519,563 19,519,563 14. Earnings per share
Earnings per share has been calculated using the (loss) / profit after taxation for the period and the weighted average number of shares in issue.
30 June 30 June 31 December '16 '15 '15 GBP'000 GBP'000 GBP'000 (Loss) / profit after taxation (578) 12 831 Weighted average number of shares '000 '000 '000 in issue during the period * 1p ordinary shares 19,520 19,520 19,520 * Share options 1,562 1,883 1,866 * Diluted ordinary shares 21,082 21,403 21,386
SpaceandPeople plc
2(nd) Floor
100 West Regent Street
Glasgow
G2 2QD
Telephone: 0845 2418215 Email: help@spaceandpeople.com
www.spaceandpeople.com
This information is provided by RNS
The company news service from the London Stock Exchange
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