SpaceandPeople PLC
16 January 2008
SpaceandPeople Plc
('SpaceandPeople')
Preliminary announcement of results for the year ended 31 October 2007
SpaceandPeople, the company which facilitates and manages the sale of
promotional space in shopping centres and other high footfall locations in the
UK and Europe, announces its preliminary results for the year ended 31 October
2007.
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| |
| HIGHLIGHTS |
| |
| • Profit before foreign set up costs up 57% to £716,503 |
| |
| • Profits before tax up 24% from £454,943 to £563,894 |
| |
| • Billings up 16% from £9.6M to £11.13M |
| |
| • Turnover up 9% from £1,933,303 to £2,103,627 |
| |
| • Dividend up 23% from 1.5p per share to 1.85p per share |
| |
| • Earnings per share up 16% from 3.1p to 3.6p |
| |
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For further information please visit www.spaceandpeople.com or contact:
SpaceandPeople Plc
Matthew Bending, Group Chief Executive 0141 303 8360
Nancy Cullen, Group Chief Operating Officer 0141 303 8360
JMFinn Capital Markets Ltd
Matthew Robinson 020 7600 1658
SpaceandPeople plc
Chairman's Statement
For The Year Ended 31 October 2007
Dear Shareholder
I am delighted to present another excellent set of results for the year ended
31st October 2007. The management has continued to generate enhanced revenue
from its core UK portfolio, currently comprising 70 conventional shopping
centres, supplemented by additional high footfall venues such as Madame Tussauds
and Alton Towers, garden centres and retail parks which are ideally suited to
promotional use. The net result is a profit of £717k before tax and set up
costs of the overseas business, an impressive 57% increase on the comparable
figure last year.
Whilst there remains considerable scope for additional growth in the UK,
management has recognised the potential to replicate the domestic success in
selected overseas markets. Their tenacity was rewarded with the signing of an
exclusive contract with ECE, a major German mall owner, to take control of all
mall promotions for an initial portfolio of 55 shopping centres across Germany.
Anticipating that this will be a major source of future revenue, a regional
office has been established in Hamburg. A French sales team has also been
established and successfully concluded its first sales during the year.
In order to operate effectively overseas the management acknowledged the need to
upgrade the IT platform and invested in a new multi-language, multi-currency
website during the year.
The overseas expansion prompted a review of internal management responsibilities
which resulted in Matthew Bending becoming Group Chief Executive Officer and
Nancy Cullen taking on the role of Group Chief Operating Officer. Matthew heads
up the German operation and will spearhead the overseas expansion and Nancy will
focus her efforts on optimising the profitability of the UK business. Your
board is confident that 2008 will be another year of strong growth.
I was honoured to accept the invitation to become Chairman during the year and
subsequently welcomed Richard Chadwick to the board as non-executive finance
director. He brings a wealth of financial experience after a career at J
Sainsbury Plc where he held several senior positions, latterly as Director of
Risk and Audit, and will be a great asset to the Company. Freddie Stirling,
Chairman of Gresham House plc, also joined the board as a non-executive director
during the year.
Dividend
As a result of another successful year the board is proposing a payment on 5
March, 2008 of 1.85p/share, up from 1.5p/ share last year, to shareholders on
the register as at 25 January, 2008.
David Henderson-Williams
Chairman
16 January, 2008
SpaceandPeople plc
Group Chief Executive Officer's Review
For The Year Ended 31 October 2007
2007 has been a significant year for SpaceandPeople not only have we produced a
57% increase in profits (before foreign set up costs) but we have proved that
our business model is exportable with the signing of a contract with ECE to
represent 55 Shopping Centres in Germany and with the opening of offices in
Hamburg.
In the UK, our business continues to thrive, forming the basis for continued
development and profitability. Overall, we are reaping the rewards of staff
retention and development which has lead to synergies within the sales team,
increased cross-marketing to promoters and a resulting increase in profits. We
have identified areas in which we can develop the UK market further and will be
investing in more sales staff to facilitate this growth in the coming year.
We have also invested in a new IT system which was launched in Germany in Oct 07
- the UK launch is planned for 2008 - and will enable us to track and monitor
sales more effectively and will streamline the sales process. The new IT system
is multi language and multi currency and offers great potential for facilitating
our entry into new markets.
With our sales team now fully functioning in Germany and our contacts and sales
capability in France there is considerable scope for selling advertising
campaigns across Europe enabling brands to interact with 40 million consumers in
the three of the largest media markets in Europe - this is currently being
evaluated for a number of EMEA experiential advertising campaigns in 2008.
To accommodate its new international remit the company has reorganised the
structure of operations making management accountability and communication
easier and more recognisable. Nancy has taken overall responsibility for UK
profitability and I have overall group control with an emphasis on spearheading
overseas expansion and operations.
The board reorganisation with David Henderson-Williams as Chairman, and Freddie
Stirling and Richard Chadwick as non-exec directors has created a strong
management team which will allow us to build international business.
These changes were announced as we carried out a successful money raising
exercise in the City for £250,000 to help finance European expansion plans.
2008 will be a period of both consolidation and expansion. We expect to see
further rewards from our investment in new members of staff, new systems and
improved processes - I look forward to the year ahead.
Matthew Bending
Group Chief Executive Officer
16 January, 2008
Profit and Loss Account
For The Year Ended 31 October 2007
2007 2006
£ £
TURNOVER 2,103,627 1,933,303
Administrative expenses 1,457,035 1,519,012
Foreign market set up costs 152,609 -
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493,983 414,291
Other operating income 14,632 11,787
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OPERATING PROFIT 508,615 426,078
Interest receivable and similar income 55,279 28,865
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PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 563,894 454,943
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| Profit on ordinary activities 716,503 454,943 |
| -------- ------- |
| |
| Foreign market set up costs (152,609) - |
| -------- ------- |
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| 563,894 454,943 |
| |
| -------- ------- |
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Tax on profit on ordinary
activities 151,931 106,440
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PROFIT FOR THE FINANCIAL YEAR
AFTER TAXATION 411,963 348,503
========= =========
Earnings per ordinary share 3.6p 3.1p
Diluted earnings per ordinary share 3.5p 3.0p
CONTINUING OPERATIONS
None of the company's activities were acquired or discontinued during the
current and previous years.
TOTAL RECOGNISED GAINS AND LOSSES
The company has no recognised gains or losses other than the profits for the
current and previous years.
Balance Sheet
31 October 2007
2007 2006
£ £ £ £
FIXED ASSETS:
Intangible assets 136,534 -
Tangible assets 182,597 68,263
-------- -------
319,131 68,263
CURRENT ASSETS:
Debtors 832,271 728,739
Cash at bank and in hand 1,037,747 1,011,597
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1,870,018 1,740,336
CREDITORS: Amounts falling
due within one year 1,076,602 951,265
--------- ---------
NET CURRENT ASSETS: 793,416 789,071
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TOTAL ASSETS LESS CURRENT
LIABILITIES: £1,112,547 £857,334
========== =========
CAPITAL AND RESERVES:
Called up share capital 114,620 114,000
Special reserve 232,809 232,809
Share premium 13,630 -
Profit and loss account 751,488 510,525
-------- --------
EQUITY SHAREHOLDERS' FUNDS: £1,112,547 £857,334
========== ========
MJ Bending - Director
Cash Flow Statement
For The Year Ended 31 October 2007
2007 2006
£ £
Net cash inflow
from operating activities 529,259 512,462
Returns on investments and
servicing of finance 55,279 28,865
Taxation (109,930) (35,235)
Capital expenditure
and financial investment (291,708) (52,284)
Equity dividends paid (171,000) (114,000)
--------- --------
11,900 339,808
Financing 14,250 -
--------- --------
Increase in cash in the period £26,150 £339,808
========= ========
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Reconciliation of net cash flow
to movement in net funds
Increase in cash in the period 26,150 339,808
--------- --------
Change in net funds resulting
from cash flows 26,150 339,808
--------- --------
Movement in net funds in the period 26,150 339,808
Net funds at 1 November 1,011,597 671,789
--------- --------
Net funds at 31 October £1,037,747 £1,011,597
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This information is provided by RNS
The company news service from the London Stock Exchange