SpaceandPeople PLC Trading update (3986T)
25 March 2021 - 6:00PM
UK Regulatory
TIDMSAL
RNS Number : 3986T
SpaceandPeople PLC
25 March 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
SpaceandPeople plc
(the "Group" or "SpaceandPeople")
Trading Update
SpaceandPeople, (AIM:SAL) the retail, promotional and brand
experience specialist, today issues a pre-close trading update
ahead of its results for the year ended 31 December 2020
("FY20").
Trading during the second half of 2020 remained extremely
challenging as further lockdowns in the UK and Germany affected the
Group's ability to operate during what is normally the more
profitable period of the year.
The continued closure of venues led to the Group having to
credit and refund a significant amount of revenue that had already
been recognised in previous years and which would not ordinarily
have been refundable were it not for the unprecedented closure of
venues due to Covid. It has also led to the need for substantial
credits in relation to revenue recognised for bookings that were
anticipated to continue past the year end date. As a result, the
audit committee has recommended, and the Board agreed, to change
the Group's revenue recognition policy in relation to promotional
bookings, where revenue will now only be recognised in the period
in which the activity related to the booking takes place.
Historically, promotional revenue was recognised at the point at
which a booking was contracted. This change brings the policy for
promotional bookings in line with the revenue recognition policy
applied by the retail segments of the Group.
Under this revised revenue recognition policy, the unaudited
consolidated loss before taxation for FY20 is expected to be in the
region of GBP2.5 million (FY19: profit of GBP0.1 million). The
change of revenue recognition policy had the effect of reducing the
loss before taxation by GBP0.6 million, due to the exclusion of
post year end revenue being more than offset by the corresponding
adjustment made to include bookings that had previously been
recognised in the prior year.
As at 31 December 2020, the Group had cash of GBP0.8 million
with GBP1.8 million of drawn bank facilities and undrawn bank
facilities of GBP0.5 million. Since the year end, and as previously
reported 29 January 2021, Group borrowings were refinanced and an
additional GBP0.5 million of bank facilities agreed.
With lockdowns in both the UK and Germany extending beyond our
year end, trading has continued to be severely affected through the
first quarter. However, the Group has made good progress in
securing a number of prestigious new venues in the last six months,
increasing the range of venues and enhancing SpaceandPeople's
position in the market. The announcement of proposed reopening
dates for non-essential retail in the UK in April has allowed the
Group to start planning for a return to trading and new bookings
are again being made. Given the level of enquiries and proposals
the Group is currently seeing, the Board is optimistic that
SpaceandPeople will recover quickly, both in terms of the Group's
pre-existing portfolio of venues and the new venues added to the
portfolio during the past six months.
- Ends -
Contact details:
SpaceandPeople Plc 033 33 401 500
Nancy Cullen, Gregor Dunlay
Zeus Capital Limited (Nominated Adviser and Broker) 020 3829 5000
David Foreman, Jamie Peel, Rishi Majithia
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