21st Sep 2015 08:22
LONDON (Alliance News) - SpaceandPeople PLC Monday said its pretax loss narrowed in the first half of the year and announced its entrance into the French market after securing a pilot contract to operate kiosks in shopping centres until the end of 2016.
The retail, promotional and brand specialist currently operating in the UK and in Germany reported a GBP23,000 pretax loss in the first six months of 2015, narrowing from the GBP249,000 loss a year earlier despite revenue falling to GBP6.0 million from GBP7.1 million. Revenue was lower because a GBP1.8 million one-off contract last year was not repeated.
The loss narrowed after administrative expenses fell and because a GBP163,000 non-recurring cost booked a year earlier was not repeated.
"The first half of 2015 has been a period of stability, consolidation and progression for the group in response to the challenges of 2014. Each division has traded in line with our expectations and the restructuring process carried out during 2014 has been successful, delivering significant cost savings and operational efficiencies," said Chief Executive Matthew Bending.
In a separate statement Monday, the company said it has also won a pilot contract to operate mobile promotion kiosks in three French shopping centres.
Under the contract, SpaceandPeople will operate its "unique" mobile promotion kiosks, which allows local promoters and brands to engage with consumers in high footfall locations.
"We are delighted to be working with one of the largest retail owners in the French market with this exciting new product. The system brings quality control of displays, professional management of mall spaces and potentially strong revenues," said Chief Executive Matthew Bending.
SpaceandPeople has won the pilot contract with Immochan, a subsidiary of Groupe Auchan, which manages shopping centres in France. Under the contract, SpaceandPeople will operate mobile promotion kiosks in the centres until the end of 2016.
"The pilot is significant as it provides SpaceandPeople entry into the previously untapped French market utilising its new mobile promotion kiosks offer," said the company.
The company is hoping a successful pilot would lead to an "expanded working relationship" in France and potentially other European countries.
Prior to the new deal, SpaceandPeople operate 37 kiosks in the UK and Germany and said it plans on having 50 kiosks up and running before the end of 2015, followed by further expansion in 2016.
"The autumn months of each year are a very important time for our business. Both retail and promotional customers increase activity in the lead up to the Christmas period and along with the continued roll-out of mobile promotion kiosks in the UK and Germany and the seamless delivery of business on our new contracts, is our primary focus," said the company.
SpaceandPeople shares were trading down 5.1% to 83.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SpaceandPeople