16th Jan 2008 07:01
SpaceandPeople PLC16 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 ofpromotional space in shopping centres and other high footfall locations in theUK and Europe, announces its preliminary results for the year ended 31 October2007. +------------------------------------------------------------------+| || 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 || |+------------------------------------------------------------------+ For further information please visit www.spaceandpeople.com or contact: SpaceandPeople PlcMatthew Bending, Group Chief Executive 0141 303 8360Nancy Cullen, Group Chief Operating Officer 0141 303 8360 JMFinn Capital Markets LtdMatthew 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 ended31st October 2007. The management has continued to generate enhanced revenuefrom its core UK portfolio, currently comprising 70 conventional shoppingcentres, supplemented by additional high footfall venues such as Madame Tussaudsand Alton Towers, garden centres and retail parks which are ideally suited topromotional use. The net result is a profit of £717k before tax and set upcosts of the overseas business, an impressive 57% increase on the comparablefigure last year. Whilst there remains considerable scope for additional growth in the UK,management has recognised the potential to replicate the domestic success inselected overseas markets. Their tenacity was rewarded with the signing of anexclusive contract with ECE, a major German mall owner, to take control of allmall promotions for an initial portfolio of 55 shopping centres across Germany.Anticipating that this will be a major source of future revenue, a regionaloffice has been established in Hamburg. A French sales team has also beenestablished and successfully concluded its first sales during the year. In order to operate effectively overseas the management acknowledged the need toupgrade the IT platform and invested in a new multi-language, multi-currencywebsite during the year. The overseas expansion prompted a review of internal management responsibilitieswhich resulted in Matthew Bending becoming Group Chief Executive Officer andNancy Cullen taking on the role of Group Chief Operating Officer. Matthew headsup the German operation and will spearhead the overseas expansion and Nancy willfocus her efforts on optimising the profitability of the UK business. Yourboard is confident that 2008 will be another year of strong growth. I was honoured to accept the invitation to become Chairman during the year andsubsequently welcomed Richard Chadwick to the board as non-executive financedirector. He brings a wealth of financial experience after a career at JSainsbury Plc where he held several senior positions, latterly as Director ofRisk 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 directorduring the year. Dividend As a result of another successful year the board is proposing a payment on 5March, 2008 of 1.85p/share, up from 1.5p/ share last year, to shareholders onthe register as at 25 January, 2008. David Henderson-WilliamsChairman 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 a57% increase in profits (before foreign set up costs) but we have proved thatour business model is exportable with the signing of a contract with ECE torepresent 55 Shopping Centres in Germany and with the opening of offices inHamburg. In the UK, our business continues to thrive, forming the basis for continueddevelopment and profitability. Overall, we are reaping the rewards of staffretention and development which has lead to synergies within the sales team,increased cross-marketing to promoters and a resulting increase in profits. Wehave identified areas in which we can develop the UK market further and will beinvesting 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 monitorsales more effectively and will streamline the sales process. The new IT systemis multi language and multi currency and offers great potential for facilitatingour entry into new markets. With our sales team now fully functioning in Germany and our contacts and salescapability in France there is considerable scope for selling advertisingcampaigns across Europe enabling brands to interact with 40 million consumers inthe three of the largest media markets in Europe - this is currently beingevaluated for a number of EMEA experiential advertising campaigns in 2008. To accommodate its new international remit the company has reorganised thestructure of operations making management accountability and communicationeasier and more recognisable. Nancy has taken overall responsibility for UKprofitability and I have overall group control with an emphasis on spearheadingoverseas expansion and operations. The board reorganisation with David Henderson-Williams as Chairman, and FreddieStirling and Richard Chadwick as non-exec directors has created a strongmanagement team which will allow us to build international business. These changes were announced as we carried out a successful money raisingexercise 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 seefurther rewards from our investment in new members of staff, new systems andimproved processes - I look forward to the year ahead. Matthew BendingGroup 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 - --------- --------- 493,983 414,291 Other operating income 14,632 11,787 --------- --------- OPERATING PROFIT 508,615 426,078 Interest receivable and similar income 55,279 28,865 --------- --------- PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 563,894 454,943 +---------------------------------------------------------------------+ | Profit on ordinary activities 716,503 454,943 | | -------- ------- | | | | Foreign market set up costs (152,609) - | | -------- ------- | | | | 563,894 454,943 | | | | -------- ------- | | | +---------------------------------------------------------------------+ Tax on profit on ordinaryactivities 151,931 106,440 --------- --------- PROFIT FOR THE FINANCIAL YEARAFTER 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 thecurrent and previous years. TOTAL RECOGNISED GAINS AND LOSSES The company has no recognised gains or losses other than the profits for thecurrent 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 832,271 728,739Cash at bank and in hand 1,037,747 1,011,597 --------- --------- 1,870,018 1,740,336 CREDITORS: Amounts fallingdue within one year 1,076,602 951,265 --------- --------- NET CURRENT ASSETS: 793,416 789,071 -------- -------- TOTAL ASSETS LESS CURRENTLIABILITIES: £1,112,547 £857,334 ========== ========= CAPITAL AND RESERVES:Called up share capital 114,620 114,000Special reserve 232,809 232,809Share 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 inflowfrom operating activities 529,259 512,462 Returns on investments andservicing of finance 55,279 28,865 Taxation (109,930) (35,235) Capital expenditureand 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 ========= ======== ------------------------------------------- Reconciliation of net cash flowto movement in net funds Increase in cash in the period 26,150 339,808 --------- --------Change in net funds resultingfrom cash flows 26,150 339,808 --------- -------- Movement in net funds in the period 26,150 339,808Net funds at 1 November 1,011,597 671,789 --------- -------- Net funds at 31 October £1,037,747 £1,011,597 ========== ========== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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