SpaceandPeople PLC Contract Win and Trading Update (5500N)
01 February 2016 - 6:00PM
UK Regulatory
TIDMSAL
RNS Number : 5500N
SpaceandPeople PLC
01 February 2016
SpaceandPeople plc ("SpaceandPeople")
Contract Win and Trading Update
-- New contract signed with British Land
-- Successful roll out of Mobile Promotions Kiosk ("MPK") concept
-- Earnings in line with expectations
-- Proposed dividend up 10% to 2.2p
-- Positive start to 2016
SpaceandPeople, (AIM:SAL) the retail, promotional and brand
experience specialist, today announces a new portfolio contract win
as well as providing a trading update ahead of its final results
for the year ended 31 December 2015, which will be released on 29
March 2016.
New Contract Signed
SpaceandPeople has signed a multi-year contract, which commenced
on 1st January 2016, to manage promotional space at British Land's
Drake Circus Shopping Centre in Plymouth. SpaceandPeople expects to
extend this contract across 40 other assets, covering the majority
of British Land's multi-let retail portfolio in due course.
With a high quality vision for their venues, British Land has
chosen SpaceandPeople based on the company's track-record in brand
experience and outdoor marketing.
Retail assets in the portfolio include Meadowhall, Sheffield;
Ealing Broadway, London; Old Market, Hereford; Glasgow Fort,
Glasgow; Fort Kinnaird, Edinburgh; Teeside, Stockton-on-Tees;
Broughton, Chester; and New Mersey, Speke.
Matthew Bending, SpaceandPeople CEO, said:
"This is a significant win for SpaceandPeople, and will
complement our existing business. Our team has a wealth of
knowledge and we are looking forward to supporting British Land's
vision of 'Places People Prefer' across the UK."
Trading Update
Trading in the second half of 2015 was in line with management
expectations. Management expects profit before tax attributable to
shareholders for the year to be approximately GBP1.0 million.
Whilst this is slightly below current market expectations, the
principal reason for this is due to a timing difference following a
decision to recognise an element of promotional revenue that is now
derived from Mobile Promotions Kiosks ("MPKs") on the same basis as
we recognise revenue from Retail Merchandising Units. This change
has resulted in the deferral of GBP150k of net promotional revenues
from 2015 to 2016. The decision to account for revenue in this
manner gives management better sight of future revenue and will be
the standard accounting treatment applied to this type of revenue
going forward.
During 2015 the new MPK concept was rolled out as planned with
46 units operational by the end of the year. A decision was also
taken to accelerate our investment in France during the final
quarter of 2015, in advance of the Immochan contract start date of
1 January 2016, which is expected to help drive revenue more
effectively.
Despite these decisions, basic EPS is expected to be in line
with market expectations at 4.3p and as a result, the Board intends
to propose a final dividend of 2.2p per share at the forthcoming
Annual General Meeting. This is a 10% increase on the 2.0p dividend
paid in April 2015.
After the investment of GBP650k in MPKs during 2015, net cash as
at 31 December was GBP0.75 million plus an additional GBP400k held
in escrow (2014: GBP1.6 million).
Matthew Bending commented further:
"2015 has been a transitional year for the business with a major
contract being agreed with Network Rail for the first time, the
successful launch of our MPK programme and the agreement with
Immochan to launch a pilot scheme in France for the first time. The
Company continues to progress and with the announcement of a new
relationship with British Land we have had a positive start to
2016."
Final results for the year ended 31 December 2015 will be
released on 29 March 2016 with the Annual General Meeting being
held on 28 April 2016.
For further information, contact:
SpaceandPeople Plc 0845 241 8215
Matthew Bending, Gregor Dunlay
Cantor Fitzgerald Europe 020 7894 7000
David Foreman, Will Goode (Corporate Finance)
David Banks, Tessa Sillars (Corporate Broking)
About SpaceandPeople
The SpaceandPeople Group is the leading international media
specialist representing 750+ venues with a weekly footfall of over
70 million. The Group markets, sells and administers space in high
footfall venues, including shopping centres, railway stations,
retail parks and city centres. As the media owner of promotional
spaces, we offer consumer brands the opportunity to promote their
products through direct consumer engagement with experiential
marketing events.
This information is provided by RNS
The company news service from the London Stock Exchange
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February 01, 2016 02:00 ET (07:00 GMT)