Spaceandpeople Share Discussion Threads

[robbothered] 29/1/2019 13:13

The news for SAL just keeps on getting worse! We're now at 15p per share with a market cap of £2.83m - I can remember when it was £10m+

I'll be interested to hear what "big business wins" they hope for this year as they have stated in their press release, word is that there maybe a couple of losses but strangely we never hear too much about those!

Tbf it is a tough, tough market out there, its a worry on accounts where they may well have guarantees in place and how they could extricate themselves from any onerous terms.

[25october1969] 08/10/2018 12:31

All in it sounds very good news but it would have been very helpful if they had included some financial data even if it is their wild estimate of what they think the potential income/cost in year 1 and 2 might be ie can we expect a contribution or a hit to bottom line.

I am also struggling the bones of the agreement.....The RNS states:

"SpaceandPeople plc ("S&P") has entered into an exclusive agreement with MG Malls, Inc. ("MG"), in the USA, to introduce and market S&P's unique Mobile Promotions Kiosk ("MPK") platform to high footfall venues in the USA and Canada ("Agreement")"


It is not clear if SAL are doing the Marketing or if this will be done by MG Malls. If this is for SAL then no doubt heavy costs of flights/ accommodation and entertaining potential clients. Are MG Malls sharing the "risk"?

Russia, India, France, Germany.....share price is less than half what it was at the float..... now the USA, it could be a great deal....hopefully

[robbothered] 08/10/2018 10:32

The agreement with MG Malls is slightly different than their UK business insofar as they will not be selling the space at the mall, just supplying the kiosk and software. Not sure what margins are involved in this and the will need to be careful to protect their IP otherwise it would be easily replicated.

[michaelmouse] 08/10/2018 08:27

Given the lowly market cap. and solid balance sheet I'd suggest that at worst the downside from here is minimal.

[cerrito] 08/10/2018 08:22

Call me a Monday morning party pooper but my reaction was to remember France, concern about the cost and wonder where we are with India.
I hope my negativity is misplaced.

[topvest] 08/10/2018 08:08

Yes, it does show that they have something to offer. May or may not be profitable I guess.

[michaelmouse] 08/10/2018 07:43

Yes a major stroke of luck on his part ;)

Wasn't expecting such good news so soon after disappointing interims.

A move into the USA and Canada looks pretty significant potentially with "one of the world's largest mall media solution specialists"

[arthur_lame_stocks] 08/10/2018 07:14

Didn't the Chairman time his purchase well!

[topvest] 28/9/2018 18:21

At least the Chairman has bought a few. I think its a bit harsh to knock management too much. Results are always H2 weighted and they were presumably hoping for stronger H2 trading than has actually materialised. This has certainly turned into a bit of a dog, but they do normally bounce back. Matthew Bending is a good salesmen and so we will just have to hope that he climbs more ladders in H2!

[topvest] 28/9/2018 15:04

Yes, disappointing. Its been a case of up one ladder and down two snakes for the last few years. I will keep my few as there is no doubt some value and the company has some good shareholders. To be fair to management they are probably trying very hard, but the market they are in has gone ex-growth and they are just not winning the contracts they were 10 years ago. The company needs to be reinvented with more of an online offering or do something. In the meantime, its another bad year of break-even profitability with the prospect of some recovery next year on a lower cost base. Not worth selling and not worth buying in my view.

[eastbourne1982] 28/9/2018 08:48

Sold today for a hefty loss, the results were dire and there was no prior warning, last update was OK, a prior warning would have smashed the share price anyway however to just bring out results like those leaves a very sour taste in my mouth.

[impvesta] 28/9/2018 08:46

I've also sold on the back of this morning's results. First held these in 2013 then sold out at a loss in 2016. Bought back in early this year and have now crystallised my second loss!

You do wonder how they could avoid issuing an earlier profit warning as they must surely have known for some time that the results would come out massively below market expectations.

[eentweedrie] 28/9/2018 08:43

ouch - had this on my watchlist. v. disappointing

[ntv] 28/9/2018 08:21

Very poor results and I'm out
Management could have flagged this a lot earlier
The large shareholders should get together and vote the management team out when they are due for re- election at the next AGM
Lots of questions to be asked but not my worry now

[oriental oracle] 18/9/2018 07:55

Thank you all ! Great to have a community and hear other people's thoughts

[25october1969] 14/9/2018 09:16

The reasons to do a share buyback, are:

My understanding is that there is a constant overhang of shares in the market ie sellers who are unable to sell in volume, this depresses the price

Based on fundamentals it can be argued that at the moment the shares are cheap. The reason they are cheap is the overhang and the lack of confidence the market has in the company. The lack of confidence due to passing on the dividend in 2017, this is not quickly forgotten.

However if the company management are confident in the current and future performance of the company, they will know that the shares are currently cheap and to buy now at current prices wil increase eps ie fewer shares in issue and growing profits

[dangersimpson2] 11/9/2018 22:34

Ok, do you think receivables 60 days + past due are highly likely to be unrecoverable?

How much they would actually get in a buyback may be limited but assuming the broker/RNS costs are not excessive on really small amounts then it would be a good use of capital. Maybe they do have capital investments with an IRR higher than 33% then they should pursue these but if not buying their own business on an adjusted EV/EBITDA of 3 and a known risk profile makes sense. If the worst case is the share price moves up rapidly to an average market rating and they get no shares in the buyback then you won't see any complaints from me.

[pireric] 11/9/2018 19:39

My mistake - that'll teach me to recollect off the top of my head! Had actually meant to exclude receivables 60 days+ past due, so c. £650k but clearly that's not zero :0)

Surely they wouldn't do a share buyback; the shares are thinly enough traded as it is and surely the better use of capital would be to try and diversify the business further? Revenue base still pretty small and so some customer concentration in there

[dangersimpson2] 11/9/2018 12:17

Net cash minus net working capital isn't quite zero but £900k. This is still 16% of the market cap so not insignificant but agree not as significant as the £2.2m might look on the surface. If the business is flat or growing there should be no problem with negative NWC but I expect them to hold a reasonable amount of cash to protect against any short-term weakness that may cause working capital outflow.

We should get interim results before the end of the month. Assuming they have continued to generate strong operating cash flow I would like to see them use some of the excess capital to buyback shares. One of the reasons that the company is so lowly rated is that it is a small niche player and it's not clear if they could scale up their business any further. Buying back shares at an EV/EBITDA of 3 (EV adjusted for £900k net cash instead of £2.2m) in a stable business generates shareholder value even without any growth prospects.

[pireric] 11/9/2018 10:46

Finances flattered by the trade payables position. Net cash essentially goes to zero when you match the two and so is a bit of a red herring

[oriental oracle] 11/9/2018 07:42

Recently took a position here, seems to be have solid finances, good business and industry, and way too cheap. Have I missed something?

[tole] 03/9/2018 16:04

Anyone. What's level2 looking like on these? How many mm's trade this. Thx