Interim Results

RNS Number : 6177X

SpaceandPeople PLC

27 June 2008

 



SpaceandPeople PLC

Company Registration Number SC212277

27 June 2008

INTERIM RESULTS FOR THE 6 MONTHS TO 30 APRIL 2008

SpaceandPeople PLC ('SpaceandPeople'), which facilitates and manages the sale of promotional space in shopping centres and other high footfall venues, announces interim results for the six months ended 30 April 2008

Highlights - Total billings up 23% to £6,441,000 (2007: £5,251,000) - Revenue up 24% to £1,188,000 (2007: £954,000) - Profit Before Tax up 19% to £287,000 (2007: £241,000) - EPS up16% to 1.85p (2007: 1.59p) - Germany profitable in first 6 months of trading - Entry into Hong Kong market Operating Statement SpaceandPeople has had another successful half year and, despite the slowdown in the economy, has increased profit before tax by 19% over the same period last year and continued to invest in the future. It was a subdued first quarter - the UK business had a slower than anticipated start to the new financial year - and, whilst business levels are now back up to forecast levels, this caused a drag on our results. However the growth in our business overseas has supported the UK results and has enabled us to increase billings, turnover and profits for the SpaceandPeople group. The challenging first quarter made us look at core aims and focus on streamlining costs and refocusing our UK based sales teams. The results over the second quarter have been very pleasing with a plethora of new brands booking (Chevrolet, Kia, Nokia, Nintendo via their respective agencies to name a few) and new UK venues joining the service (amongst others, Festival Place in Basingstoke and British Land's retail park portfolio). The number of UK venues represented grew by 20% to 218. The challenge for SpaceandPeople, which we face with confidence, is to maintain and increase the rate of sales growth and to ensure that the second half of the year delivers as strongly as last year. The German office is thriving and must be commended for achieving so much in such a short space of time. It commenced taking bookings on 1st January 2008 and has already moved into profit, producing an operating profit for the period of £30,000 from the 55 venues we manage. Our success in Germany is due to a combination of a well motivated team and total support from the property owners. We have not as yet completed a full year operationally in Germany so comparing the sales cycle to the UK is premature. However, the current sales pipeline is very encouraging, we are taking on more venues and we are very optimistic about the future prospects for the German business. The rate of development of the French business has been more limited. However, I am pleased to announce it moved into profitability in the second quarter and the team is working hard at maintaining this momentum. SpaceandPeople is an exportable business as proved by the German and French operations and I am pleased to announce the signing of a license to provide SpaceandPeople's services in Hong Kong and Macau. The past year has seen a lot of development work in the Hong Kong market and the meetings held with property owners were sufficiently positive for us to seek candidates to operate and manage the venture which will start taking bookings in September 2008. SpaceandPeople (Hong Kong) Ltd was established in April and we retain a 47.5% interest in the Company. This and similar ventures should enable us to fast track our international expansion and to continue our drive to take the SpaceandPeople concept to other overseas territories, whilst using local expertise and limiting SpaceandPeople's financial exposure. The first six months have seen many positive developments for SpaceandPeople. The 218 UK venues represented and 55 in Germany have a combined footfall of 41 million people per week. Advertisers recognize the strength of this and the order book is healthy. Cash flow remains strong with £1.2 million of cash on the balance sheet at the half year end. We continue to review possible ventures aimed at exporting the SpaceandPeople formula elsewhere in Asia and Eastern Europe. The Board is confident of the future prospects of the Company.  Matthew Bending Chief Executive Officer 27 June 2008

Contact details

Matthew Bending  Chief Executive Officer Tel: [phone]   Matthew Robinson/Edward Frisby FinnCap Tel: [phone]       AIM Dealing Code Stock Exchange Code: SAL   Website www.spaceandpeople.com

INDEPENDENT REVIEW REPORT TO SPACEANDPEOPLE PLC Introduction We have been instructed by the company to review the financial information for the six months ended 30 April 2008 which comprises the income statement, the balance sheet, the cash flow statement and the related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of and has been approved by the Directors. The AIM Rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of company management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.   This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules of the London Stock Exchange and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Review conclusion On the basis of our review, we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 April 2008. Campbell Dallas LLP, Chartered Accountants 7 Glasgow Road, Paisley 27 June 2008 Notes (a)The maintenance and integrity of the SpaceandPeople PLC website is the responsibility of the Directors; the work carried out by Campbell Dallas LLP, Chartered Accountants does not involve consideration of these matters and, accordingly, Campbell Dallas LLP, Chartered Accountants accept no responsibility for any changes that may have occurred to the interim report since it was initially presented on the website. (b)Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

SpaceandPeople PLC
Income Statement
For the six months to 30 April 2008
		6 Months to		6 Months to		Year to
		30 April 2008		30 April 2007		31 October 2007
		(Unaudited)		(Unaudited)		(Audited)
		£		£		£
REVENUE		1,187,552		954,329		2,103,627
Administrative expenses		971,053		746,403		1,457,035
Foreign market set up costs		7,766		-		152,609
		208,733		207,926		493,983
Other operating income		50,000		6,961		14,632
OPERATING PROFIT		258,733		214,887		508,615
Finance income		28,676		26,756		55,279
PROFIT BEFORE TAXATION		287,409		241,643		563,894
Underlying profit on ordinary activities	295,175		241,643		716,503
Foreign market set up costs	(7,766)		-		(152,609)
	287,409		241,643		563,894
Taxation		(71,852)		(60,410)		(151,931)
PROFIT FOR THE PERIOD AFTER TAXATION		215,557		181,233		411,963
EARNINGS PER SHARE
Basic		1.85p		1.59p		3.59p
Diluted		1.83p		1.56p		3.55p

All items dealt with in arriving at the profit stated above relate to continuing activities.

SpaceandPeople PLC
Statement of Changes in Equity
For the six months to 30 April 2008
	Share Capital	Share Premium	Special Reserve	Retained Profits	Total Equity
	£	£	£	£	£
Six months to 30 April 2008
(Unaudited)
At 1 November 2007	114,620	13,630	232,809	751,488	1,112,547
Shares issued	1,930	252,276	-	-	254,206
Foreign currency translation				21,369	21,369
Profit for the period			-	215,557	215,557
Dividends paid			-	(215,647)	(215,647)
At 30 April 2008	116,550	265,906	232,809	772,767	1,388,032
Six months to 30 April 2007
(Unaudited)
At 1 November 2006	114,000	-	232,809	510,525	857,334
Shares issued	120	1,380	-	-	1,500
Profit for the period	-	-	-	181,233	181,233
Dividends paid	-	-	-	(171,000)	(171,000)
At 30 April 2007	114,120	1,380	232,809	520,758	869,067
Year to 31 October 2007
(Audited)
At 1 November 2006	114,000	-	232,809	510,525	857,334
Shares issued	620	13,630	-	-	14,250
Profit for the year	-	-	-	411,963	411,963
Dividends paid	-	-	-	(171,000)	(171,000)
At 31 October 2007	114,620	13,630	232,809	751,488	1,112,547

Statement of Total Recognised Gains or Losses
For the six months to 30 April 2008
	6 Months to		6 Months to		Year to
	30 April 2008		30 April 2007		31 October 2007
	(Unaudited)		(Unaudited)		(Audited)
	£		£		£
Profit for the period	215,557		181,233		411,963
Foreign exchange translation differences	21,369		-		-
Total recognised gains for the period	236,926		181,233		411,963

SpaceandPeople PLC
Balance Sheet
30 April 2008
	30 April  2008		30 April  2007		31 October 2007
	(Unaudited)		(Unaudited)		(Audited)
	£		£		£
ASSETS
Non-current assets:
Intangible assets	119,161		-		136,534
Property, plant and equipment	218,493		88,440		182,597
Investment in associate	22,536		-		-
	360,190		88,440		319,131
Current assets:
Trade and other receivables	1,035,399		654,083		832,271
Cash and cash equivalents	1,215,421		916,873		1,037,747
	2,250,820		1,570,956		1,870,018
Total Assets	2,611,010		1,659,396		2,189,149
LIABILITIES
Current liabilities
Trade and other payables	1,001,126		680,822		926,602
Current tax payable	221,852		109,507		150,000
Total Liabilities	1,222,978		790,329		1,076,602
Net assets	1,388,032		869,067		1,112,547
EQUITY
Called up share capital	116,550		114,120		114,620
Share premium	265,906		1,380		13,630
Special reserve	232,809		232,809		232,809
Profit and loss account	772,767		520,758		751,488
Shareholders equity	1,388,032		869,067		1,112,547

SpaceandPeople PLC
Cashflow Statement
For the six months to 30 April 2008
	6 Months to		6 Months to		Year to
	30 April 2008		30 April 2007		31 October 2007
	(Unaudited)		(Unaudited)		(Audited)
	£		£		£
Cash flows from operating activities
Cash generated from operations	210,793		83,521		529,259
Taxation	-		-		(109,930)
Net cash inflow from operating activities	210,793		83,521		419,329
Cash flows from investing activities
Interest received	28,676		26,756		55,279
Purchase of  property, plant and equipment	(7,728)		(35,501)		(291,708)
Investment in associate	(22,536)		-		-
Net cash outflow from investing activities	(71,986)		(8,745)		(236,429)
Cash flows from financing activities
Proceeds from issue of shares	254,116		1,500		14,250
Dividends paid	(215,647)		(171,000)		(171,000)
Net cash flow from financing activities	38,469		(169,500)		(156,750)
Increase/(decrease) of cash and cash equivalents	177,674		(94,724)		26,150
Cash at beginning of period	1,037,747		1,011,597		1,011,597
Cash at end of period	1,215,421		916,873		1,037,747
Reconciliation of operating profit to net cash inflow from operating activities
Operating profit	258,733		214,887		508,615
Depreciation	59,205		15,323		40,840
Effect of foreign exchange rate changes	21,458		-		-
(Increase)/decrease in trade and other receivables	(203,128)		74,656		(103,532)
Increase/(decrease) in trade and other payables	74,525		(221,345)		83,336
Cash flows from operating activities	210,793		83,521		529,259

SpaceandPeople PLC

Notes to the Interim Report and Accounts  For the 6 months to 30 April 2008

The Interim Report and Accounts were approved by the Board on 27 June 2008

1. Basis of preparation The AIM Rules require that the next annual financial statements of the Company for the year ending 31 October 2008 be prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Therefore, these interim financial statements for the 6 months to 30 April 2008 are prepared using accounting policies in accordance with IFRS and International Financial Reporting Interpretations Committee interpretations that are expected to be applicable to the financial statements for the year ended 31 October 2008. The conversion to IFRS involved no impact on the income statement, balance sheet and cash flow of the Company nor on the Company's existing accounting policies as set out in the Annual Report and Accounts for the year ended 31 October 2007 which were prepared in accordance with UK accounting standards (UK GAAP). The interim financial statements are not audited but have been reviewed by the auditors and their independent review report is set out on page 3. They do not constitute statutory accounts as defined by Section 240 of the Companies Act 1985. The financial information for the year to 31 October 2007 has been extracted from the statutory accounts for the Company for that period now presented to comply with the IFRS accounting policies expected to be applied in the financial statements for the year ended 31 October 2008. These published accounts in a form consistent with UK GAAP were reported on by the auditors without qualification or an emphasis matter reference, and did not include a statement under section 237(2) or (3) of the Companies Act 1985, and have been delivered to the Registrar of Companies. The interim financial information for the six months ended 30 April 2007 has been presented in accordance with IFRS.

2. Accounting policies The interim statement has been prepared in accordance with the accounting policies set out in the Company's Annual Report and Accounts for the year ended 31st October, 2007.

3. Segmental reporting The Company maintains two offices, Glasgow and Hamburg, Germany, and these are reported separately. The French business is currently not material and dealt with in the Glasgow office. Their results are therefore included in the UK results. The German office opened in October 2007 and started taking bookings in January 2008.   6 Months to   6 Months to   Year to   30 April 2008   30 April 2007   31 October 2007   (Unaudited)   (Unaudited)   (Audited)   £   £   £ Revenue           UK and France 958,286   954,329   2,103,627 Germany 229,266   -   - Total revenue 1,187,552   954,329   2,103,627             Operating profit/(loss)           UK and France 228,451   214,887   581,266 Germany 30,282   -   (72,651) Total operating profit/(loss) 258,733   214,887   508,615

4. Earnings per share Earnings per share has been calculated using profit after taxation for the period and the weighted average number of shares in issue.   6 Months to   6 Months to   Year to   30 April 2008   30 April 2007   31 October 2007   (Unaudited)   (Unaudited)   (Audited) Weighted average number of shares in issue during the period           1p ordinary shares 11,633,750   11,412,000   11,462,000             Share options: 130,579   211,000   141,000             Diluted ordinary shares 11,764,329   11,623,000   11,603,000

5. Investment in associate During the period, the Company signed a licensing agreement with SpaceandPeople (Hong Kong) Ltd for them to provide SpaceandPeople's services in Hong Kong and Macau. The Company retain a 47.5% interest in SpaceandPeople (Hong Kong) Ltd.

6. Distribution of this report Copies of these results are being sent to all shareholders and additional copies are available from the Company's registered office at 141 St James Road, Glasgow G4 0LT.

 

END

 

 

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