Good morning!

This list is final:

At the end of the report, I briefly cover updates from Brady (LON:BRY), PZ Cussons (LON:PZC), Crimson Tide (LON:TIDE) and Team 17 (LON:TM17).

Spaceandpeople (LON:SAL)

  • Share price: 14.5p (-15%)
  • No. of shares: 19.5 million
  • Market cap: <£3 million

Pre-Close Trading Update

This retail marketing group, a serial underperformer, is now in "why are you listed?" territory with a market cap of less than £3 mllion.

Up until today, it officially traded at a forecast P/E ratio of only around 4x - a fine example of the danger of buying into so-called "cheap" shares!

December is reported as subdued, "in part due to well documented difficult high street trading conditions".

Spaceandpeople produces "experiential" campaigns for brands, and provides temporarry venues for retailers. To put it as simply as possible, declining footfall reduces the value of what it does.

It is now set to report a small underlying loss for 2018.

2019 will hopefully show an improvement, and the Board is showing confidence by continuing to pay a dividend, albeit at a reduced level.

The problem is that the company has been around for a long time and it's hard to see why it might at last generate consistent profitability at a level which would justify being publicly listed.

And I have to say that this paragraph looks a bit off:

The Board has also taken the decision to write off the carrying value of the goodwill in relation to SpaceandPeople India Pvt Limited of £0.24 million. The Indian business continues to trade at expected levels, however, the level of profitability cannot support the carrying value of this goodwill at the moment.

Goodwill is only impaired when an acquisition fails to justify its expectations at the time of purchase.

So there would be no need to recognise an impairment to the Indian business if its expectations had never…

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