REG - SpaceandPeople PLC - Final results for the year ended 31 December 2024
14/04/2025 07:00
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RNS Number : 7743E SpaceandPeople PLC 14 April 2025
SpaceandPeople plc
("SpaceandPeople" or the "Group")
Final results for the year ended 31 December 2024
Financial highlights
· Revenue increased by 15% to £6.7 million (2023: £5.8 million)
· Operating profit up 33% to £0.3million (2023: profit of £0.2
million)
· Basic Earnings per Share of 14.1p up 81% (2023: 7.8p)
· Cash at the year-end of £1.9 million (2023: £1.9 million) after
further reduction in debt of £322k - net cash up 46% to £1.04 million (2023:
£0.71 million)
Operational highlights
· New 5-year Network Rail contract won in a competitive tender,
giving the Group a significant USP through the exclusive right to access to
many of the highest footfall venues across the UK
· Retail contract with ECE, Germany's largest shopping centre owner
and manager, extended for a further 5 years allowing us to continue to grow
and accelerate our European presence
· Continued strong growth in business transacted in both the UK and
Germany, particularly in UK Brand Experience, up 36% compared with 2023
· Rock Up and Pop Up ("RUPU") kiosk programme continues to grow
well with 26 kiosks trading in 14 venues by the end of 2024, with further
expansion being delivered in 2025
Chair's Statement
The Group performed very well operationally in 2024 with strong revenue and
profit growth as well as continued net debt reduction. There has also been
very good strategic progress with the major Network Rail 5 year contract
renewal after a robust competitive tendering process in the UK and the ECE
contract renewal, also for 5 years, in Germany. There has been steady progress
on other strategic objectives, such as new product growth and wider European
expansion, but more remains to be achieved. These areas will be a major focus
in 2025 as the significant management resource devoted to the contract renewal
processes in 2024 is realigned and targeted to deliver these key strategic
objectives.
Key business developments and the 2024 financial performance of the Group are
covered in more detail in Nancy Cullen's CEO Report and Gregor Dunlay's
Operating and Financial Review so as usual I will not duplicate these here.
The strategic growth opportunities in the UK and Europe are clear and there is
an intense internal focus on achieving these. In addition, implementing new
technology tools to assist with this expansion and to drive efficiency savings
from the existing cost base is another key objective and one which your Board
has prioritised for the coming year.
SpaceandPeople remains a strongly cash generative business which has limited
capital expenditure needs and, as I have noted previously, we will look to
return to paying dividends at a suitably prudent time when distributable
reserves permit.
I would again like to thank all colleagues across the business and my fellow
Board members for their hard work, support and input throughout a year of
strong performance and achievement. I am excited about the growth
opportunities being pursued and the potential for another year of strong
results delivery in 2025.
George Watt
Chair
Chief Executive Officer's Review
It is said that the more we connect digitally, the more we crave human
interaction and as SpaceandPeople enters its 25th year of trading, this
statement is holding true. We are pleased to announce that 2024 continued to
demonstrate the robust nature of our business, the strength of our
relationships with both venues and space buyers, our ability to develop new
businesses that meet market needs and the incredible quality and talent of our
teams who continue to grow the revenues generated by the business.
Our business has evolved over the last few years and will continue to do so.
We are the longest established business in our market, but we are also
increasingly focused on flexible solutions to enable new products and services
to make use of the spaces that we have in some of the highest footfall venues
across the UK and Germany.
2024 was, however, about consolidation, as we cemented our relationships with
key clients and continued growth in two important areas of the business. In
terms of our key relationships, the retention of the Network Rail contract
enables us to continue to market and sell some of the highest profile sites in
the UK including London Waterloo, London King's Cross and London Victoria. We
also announced an extension to our relationship with ECE in Germany, which is
a long standing agreement that has continued to prosper and develop and gives
us exclusive access to installing retail units into a total of 59 ECE owned
and managed shopping centres in Germany.
Overall, Group revenue increase by £0.88 million (15%) to £6.72 million,
with the UK recording revenue growth of 17% in promotions to £4.08 million
and German retail recording revenue growth of £0.29 million (16%) to £2.12
million.
UK Promotions
Our brand department enjoyed a very strong year and we continued to be
impressed and excited about the quality and range of activity that we managed
on behalf of brand agencies. There is a move towards less traditional
campaigns with more ambitious large scale builds and during the year our
venues hosted events timed to coincide with major sporting occasions such as
Nike taking space at Olympic Park and Manchester city centre with hand painted
shipping containers celebrating athletes from the Diamond League as well as
Heineken taking events space during the Champions League final. We also booked
the façade of the iconic Battersea Power Station Towers for an animated Lego
display.
We are seeing a big increase in both the variety of venues booked and a mix of
indoor and outdoor locations, as well as growth from specific sectors, such as
cosmetic and beauty brands, booking spaces extensively nationwide. During the
year, as an example, we hosted activity for over 40 major UK beauty brands
utilising our most high-profile spaces for brand awareness and direct sales
including for Dior, Chanel, Charlotte Tilbury, Estee Lauder and MAC.
Food and drink companies have typically used experiential for brand awareness,
sampling, promoting product extension and innovation. In 2024 this continued
to hold true, with food sampling accounting for 10% of booked activity and
confectionary and snack brands being especially prominent. Australian
chocolate biscuit brand Tim Tam launched in the UK market and distributed
2,000 samples at London King's Cross Station to boost visibility and brand
recognition during the launch period. Other food brands, including Chupa
Chups, Kettle Chips, Fridge Raiders and Bonne Maman, also utilised sampling
campaigns to raise brand awareness and connect with their target audience
nationwide.
Following market research amongst our buyers that revealed their desire for
better data to inform their venue decisions, we launched our CORE insights
database, a real time database of results, emanating from venues across the
UK, enabling promoters and retailers to assess the results that they can
expect from a campaign, be it the number of samples they can expect to
distribute at any location or the sales that their product category typically
achieves in a venue. This CORE database is unique and market leading which
alongside extensive demographic and footfall data, collated by us, provides
space buyers with absolute intelligence about the quality of our sites.
During the year we also continued to work on our brand database,
www.experientialspace.co.uk, and new facilities and mechanisms for contacting
us are proving important channels for our space buyers, giving them mobile
enabled access to our service via live chat and now WhatsApp messaging.
UK Retail
The UK mall retail business continued to deliver strong revenue and the team
is focused on driving this further in 2025, both at indoor and outdoor venues.
As we are all aware, retail in all its forms is having to adapt to new
purchasing behaviours both on and offline, including the use of pop up retail
by major brands in the run up to Christmas.
Our Rock Up solution for brands works equally as well for major brands as it
does for those companies who have never trialled physical retail before. Our
service assists the growth of new business and also meets demands from our
client venues, who want vitality and interest on their malls. Our end to end
Rock Up service expanded further in 2024 and by the end of the year we had 26
kiosks trading in 14 venues. During the year, we created pop ups for new
brands such as Diso (recently on Dragons Den) and Iris Art in Westfield
London, existing retailers looking to expand such as Beard Surgeon and Candles
& Oud and major brands looking to reinforce in store sales. A good example
of this is Lush, who used our service to sell their gifting packages in the
run up to Christmas, to help manage store capacity issues over this period and
to test out new centre locations.
We have ambitious plans for this product moving forward and we will continue
to expand our network of prestigious venues to facilitate further product
growth, venue trials, incremental sales and face to face engagement for brands
across the UK and in Europe.
An important part of this service is our ability to design, install and
maintain multiple retail kiosks across the UK and we have recently taken the
decision to relocate our warehouse to Daventry to a higher quality, bigger
unit which will become the hub of our operations division moving forward. This
move signifies our intent to continue to grow our business by offering end to
end solutions and support packages to any brand that wishes to trial
retailing, sampling or acquiring new customers.
Germany
Our German business continued to grow revenue by installing more units at a
higher average price into shopping centres and we are delighted to be
continuing to represent our major customer ECE in respect of their on mall
retail. The 16% growth in revenue to £2.12 million has led to a 48% increase
in profit before taxation to £0.18 million.
There is also potential for growth using this team's specific skills and
expertise to expand our retail presence in other countries and in 2024, we
introduced retail units into O'Parinor shopping centre in Paris, Novy Smichov
in Prague and Hoog Catherijne in Utrecht. Although growth is granular, at the
moment, for this aspect of our business we anticipate entering into further
agreements in Europe during 2025.
We also strengthened our Brand Experience presence in Europe in 2024 by
employing an Account Manager working from our Hamburg office to support the
work of our UK brand team to fulfil international requests from brands and
agencies and to develop the brand business in Germany. We have had some
immediate success in this ambition with Playmobil booking in Paris, Shein
booking in Mulheim and Sum Up in Berlin.
Outlook
I am delighted with the year's results and specifically with our renewed
contracts with two key clients. These two contract wins consolidate our market
positioning both in the UK and across Europe providing us with an ideal
platform to continue to grow our brand and retail businesses.
2025 is a year for development and change in the business. In addition to
moving our operational base, to be more centrally located in the UK, we are
looking at a product launch aimed to stimulate demand from new space buyers,
increased international development beyond Germany, widening our portfolio of
venues and ambitious use of new technologies and digital outreach to
streamline and grow the business moving forward. This is all being carried out
against the backdrop of ensuring that we meet the business targets and sales
goals that we have identified to meet our profit goals in 2025. It is an
exciting time for SpaceandPeople and, as ever, I would like to thank everyone
who works in the business for their passion and commitment to achieving our
goals.
Nancy Cullen
Chief Executive Officer
Operating and Financial Review
During 2024, the Group continued to deliver increasing revenue and
profitability across the business. Following on from a strong H1, revenue in
H2 continued to track above the high levels of H2 2023. All revenue streams
showed good year on year growth and increased their contribution to overall
profitability, with the Group delivering a profit before tax of £0.22 million
(2023: £0.10 million) and finishing the year with a strong cash position
while continuing to repay debt.
Revenue
Net revenue* generated in 2024 was £5.45 million, which was £0.68 million
(14%) higher than in the previous year. This was made up as follows:
2024 2023
£ million £ million Movement
UK promotions 4.08 3.49 +17%
UK retail 0.52 0.52 +1%
German retail (net of cost of sales)* 0.85 0.76 +12%
Total 5.45 4.77 +14%
*Note: In line with IFRS 15, UK revenue is recognised on a net basis, with
German revenue recognised gross, due to its performance conditions. For the
purpose of the table above, German revenue has been presented on a net basis
to provide a direct comparison between divisions. German revenue on a gross
basis amounted to £2.12 million for FY24 (FY23: £1.83 million), as detailed
in note 4 to the financial statements.
Net UK promotional revenue was up 17% to £4.08 million compared with the
previous year, with consistent revenue across the year, where previously it
has been heavily focused on H2.
In the UK retail division, the continuing roll out of our RUPU business has
led to increased revenue, with 26 kiosks in operation at the end of 2024
compared with 17 at the end of 2023. These kiosks are attractive to both venue
owners and retailers and, as a result, we are able to place innovative and
appealing products into desirable locations with impressive results.
The German retail business continued to grow well during 2024 with net revenue
increasing by 12% to £0.85 million. Following the 42% growth in kiosks in
operation during 2023, the business grew more modestly to 118 kiosks and
spaces from 111, an increase of 6%, however, this growth in revenue led to a
48% increase in profit before taxation.
Administrative Expenses
Administrative costs including depreciation increased by £0.64 million (14%)
from the previous year to £5.42 million. This was driven almost entirely by
increased staff costs in both the UK and Germany, with further new staff
recruitment (average headcount increased from 57 to 62) and commission and
bonus targets being met as revenue exceeded targets as well as ongoing wage
inflation.
Other Operating Income
Other operating income in relation to fees generated by the business increased
by 17% to £0.28 million (2023: £0.24 million). This income is generated by
the German retail division and grew in line with the increase in revenue in
this division.
Operating Results
As a result of the increase in revenue in 2024, the improvement in Group
operating profit continued with profit of £0.32 million, compared with £0.24
million achieved in 2023.
Earnings Per Share
In 2023, Basic Earnings per Share was 14.1p (2023: 7.8p) and Diluted Earnings
per Share was 12.8p (2022: 7.1p).
Cash Flow
The Group cash inflow from operations was £0.76 million (2023: £0.70
million). This was as a result of positive EBITDA of £0.62 million with the
remainder being due to movements in working capital. As at the end of 2024,
the Group had outstanding term loans of £0.84 million (2023: £1.16 million).
With the gross cash position at the end of 2024 being the same as at the
previous year end at £1.87 million (2023: £1.87 million), net cash was
£1.04 million (2023: £0.71 million).
Gregor Dunlay
Chief Financial Officer
Strategic Report
Key Performance Indicators
The main financial key performance indicators are profit before taxation,
EBITDA and available cash. During the year, the profit before taxation was
£0.2 million (2023: £0.1 million) and net cash at 31 December 2024 was
£1.04 million (2023: £0.71 million). This is comprised of gross cash of
£1.87 million less outstanding term loans of £0.84 million. Basic EPS was
14.1p (2023: 7.8p).
The Group continually monitors several key areas:
· revenue against target and prior period;
· profitability against target and prior period;
· venue acquisition, performance and attrition;
· promoter and operator types compared with historic bookings; and
· commission and occupancy rates.
2024 2023
Revenue (£ million) 6.7 5.8
Operating profit (£ million) 0.3 0.2
Basic earnings per share (p) 14.1 7.8
Contact details:
SpaceandPeople Plc 0845 241 8215
Nancy Cullen, Gregor Dunlay
Zeus (Nominated Adviser and Broker) 0203 829 5000
David Foreman, Ed Beddows
Consolidated Statement of Comprehensive Income
Notes
12 months to 12 months to
31 December 2024 31 December 2023
£'000 £'000
Continuing Operations
Revenue 4 6,723 5,840
Cost of sales 4 (1,270) (1,071)
Gross profit 5,453 4,769
Administration expenses 4 (5,416) (4,771)
Other operating income 5 282 241
Operating profit 6 319 239
Finance income 8 15 -
Finance costs 8 (109) (136)
Profit before taxation 225 103
Taxation 9 44 45
Profit after taxation 269 148
Other comprehensive income
Foreign exchange differences on translation of foreign operations (10) 2
Total comprehensive income for the period 259 150
Earnings per share
Basic 22 14.1p 7.8p
Diluted 22 12.8p 7.1p
Consolidated Statement of Financial Position
At 31 December 2024
Notes 31 December 2024 31 December 2023
£'000 £'000
Assets
Non-current assets:
Goodwill 11 5,381 5,381
Property, plant & equipment 12 613 560
Deferred tax asset 14 294 250
6,288 6,191
Current assets:
Trade & other receivables 13 1,804 1,799
Cash & cash equivalents 15 1,872 1,872
3,676 3,671
Total assets 9,964 9,862
Liabilities
Current liabilities:
Trade & other payables 16 5,417 5,144
Borrowings repayable within one year 17 211 322
Lease liabilities 18 128 204
5,756 5,670
Non-current liabilities:
Borrowings repayable after one year 17 625 836
Lease liabilities 18 114 149
739 985
Total liabilities 6,495 6,655
Net assets 3,469 3,207
Equity
Share capital 20 195 195
Share premium 4,868 4,868
Special reserve 233 233
Own shares held 24 (50) (50)
Retained earnings (1,777) (2,039)
Total equity 3,469 3,207
Consolidated Statement of Cash Flows
For the 12 months ended 31 December 2024
Notes 12 months to 12 months to
31 December 2024 31 December 2023
£'000 £'000
Cash flows from operating activities
Cash generated from operations 874 828
Interest paid 8 (109) (136)
Taxation - 3
Net cash inflow from operating activities 765 695
Cash flows from investing activities
Purchase of property, plant & equipment 12 (226) (214)
Interest received 8 15 -
Net cash outflow from investing (211) (214)
activities
Cash flows from financing activities
Bank facility payments (322) (322)
Payment of lease obligations 18 (232) (172)
Net cash outflow from (554) (494)
financing activities
(Decrease) / increase in cash and cash equivalents - (13)
Cash and cash equivalents at beginning of 1,872 1,885
Period
Cash and cash equivalents at end of 15 1,872 1,872
period
Reconciliation of operating profit to net
cash flow from operating activities
Operating profit 319 239
Depreciation of property, plant & 12 297 309
Equipment
Effect of foreign exchange rate moves (10) 2
Decrease / (increase) in receivables (5) 725
(Decrease) / increase in payables 273 (447)
Cash inflow from operating activities 874 828
Consolidated Statement of Changes in Equity
For the 12 months ended 31 December 2024
Share Share Special Own Retained Total
capital premium reserve Shares held Earnings equity
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2022 195 4,868 233 (50) (2,194) 3,052
Comprehensive
income:
Foreign currency
translation - - - - 2 2
Profit for the period - - - - 148 148
Total comprehensive - - - - 150 150
Income
Equity settled share-based payment - - - - 5 5
At 31 December 2023 195 4,868 233 (50) (2,039) 3,207
Comprehensive
income:
Foreign currency
translation - - - - (10) (10)
Profit for the period - - - - 269 269
Total comprehensive - - - 259 259
income
Equity settled share-based payment - - - - 3 3
At 31 December 2024 195 4,868 233 (50) (1,777) 3,469
Notes to the Financial Statements
4. Segmental reporting
The Group splits its operating activities into two main areas, being
promotions and retail. Retail is further sub-divided into both UK and German
territories. The Group maintains its head office in Glasgow and has a
subsidiary office in Hamburg, Germany. The Group has determined that these,
along with head office functions, are the principal operating segments as the
performance of these segments is monitored separately and reviewed by the
Board.
The following tables present revenues and results regarding the Group's two
core business segments - Promotional Sales and Retail, split by geographic
area, after licence fees and management charges made between Group companies.
Segment revenues and
Promotion Retail Retail Head Group
Results UK UK Germany Office
for 12 months to £'000 £'000 £'000 £'000 £'000
31 December 2024
Segment Revenue:
- Agent 4,076 344 - - 4,420
- Principal - 179 2,124 - 2,303
4,076 523 2,124 - 6,723
Cost of sales - - (1,270) - (1,270)
Administrative expenses (3,211) - (923) (985) (5,119)
Other revenue - - 282 - 282
Depreciation (69) - (29) (199) (297)
Segment operating profit / (loss) 796 523 184 (1,184) 319
Finance costs - - - (94) (94)
Segment profit / (loss) before taxation 796 523 184 (1,278) 225
Segment revenues and Promotion Retail Retail Head Group
Results UK UK Germany Office
for 12 months to £'000 £'000 £'000 £'000 £'000
31 December 2023
Segment Revenue:
- Agent 3,490 289 - - 3,779
- Principal - 231 1,830 - 2,061
3,490 520 1,830 - 5,840
Cost of sales - - (1,071) - (1,071)
Administrative expenses (2628) - (849) (985) (4,462)
Other revenue - - 241 - 241
Depreciation (107) - (27) (175) (309)
Segment operating profit / (loss) 755 520 124 (1,160) 239
Finance costs - - - (136) (136)
Segment profit / (loss) before taxation 755 520 124 (1,296) 103
Management reviews and manages assets and liabilities on a geographic /
corporate entity and head office basis. Segment assets include goodwill,
property, plant and equipment, receivables and operating cash. Head office
assets include deferred tax and head office right of use assets. Segment
liabilities comprise operating liabilities. Head office liabilities include
corporate borrowings.
Segment assets and UK Germany Head Group
liabilities Office
as at 31 December 2024 £'000 £'000 £'000 £'000
Total segment assets 8,450 992 522 9,964
Total segment liabilities (4,908) (623) (964) (6,495)
Total segment net assets 3,542 369 (442) 3,469
Segment assets and UK Germany Head Group
liabilities Office
as at 31 December 2023 £'000 £'000 £'000 £'000
Total segment assets 8,453 833 576 9,862
Total segment liabilities (4,653) (491) (1,511) (6,655)
Total segment net assets 3,800 342 (935) 3,207
5. Other operating income
Other operating income is comprised:
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Ancillary charges 282 241
282 241
6. Operating profit
The operating profit is stated after charging:
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Depreciation of property, plant and equipment 98 133
Depreciation of right of use assets 199 176
Auditor's remuneration:
Fees payable for:
Audit of Company 57 57
Audit of subsidiary undertakings 9 9
Audit related services 11 9
Tax compliance 4 10
Other tax services 2 3
Other services 2 5
85 93
Directors' remuneration 931 747
7. Staff costs
The average number of employees in the Group during the period was as follows:
12 months to 12 months to
December 2024 December 2023
Executive Directors 3 3
Non-executive Directors 3 3
Administration 18 19
Sales 23 21
Commercial 8 6
Maintenance 7 5
62 57
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Wages and salaries 3,213 2,786
Social Security costs 432 330
Pensions 204 159
3,849 3,275
Details of Directors' emoluments, including details of share option schemes,
are given in the remuneration report on pages 22and 23. These disclosures form
part of the audited financial statements of the Group.
8. Finance income / costs
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Finance income (15) -
Interest payable on borrowings 88 110
Interest payable on lease obligations 21 26
94 136
9. Taxation
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Current tax expense:
Current tax on profits for the year - -
Adjustment for under/(over) provision in prior periods - 2
Total current tax - 2
Deferred tax:
Credit in respect of temporary timing differences (44) (47)
Total deferred tax (44) (47)
Income tax credit as reported in the income statement (44) (45)
The tax assessed for the period differs to the standard rate of corporation
tax in the UK. The differences are explained below:
12 months to 12 months to
December 2024 December 2023
£'000 £'000
Profit on ordinary activities before tax 225 103
Profit on ordinary activities at the standard rate of corporation tax in the
UK of 25% (2023: 25%)
56 26
Tax effect of:
- Adjustment for under provision in prior periods - 2
- Other timing differences (23) -
- Use of tax losses previously not recognised - (13)
- Change in unrecognised deferred tax assets (77) (60)
Income tax credit as reported in the Income Statement (44) (45)
10. Dividends
No dividends were paid during the current or prior year. The Directors do not
recommend a final dividend for 2024 (2023: £nil).
11. Goodwill
Cost £'000
At 31 December 2022 8,225
Additions -
At 31 December 2023 8,225
Additions -
At 31 December 2024 8,225
Accumulated impairment losses
At 31 December 2022 2,844
Charge for the period -
At 31 December 2023 2,844
Charge for the period -
At 31 December 2024 2,844
Net book value
At 31 December 2022 5,381
At 31 December 2023 5,381
At 31 December 2024 5,381
Goodwill acquired in a business combination is allocated at acquisition to the
cash-generating units (CGUs) that are expected to benefit from that business
combination. The Directors consider that the businesses of the UK Retail
sub-group are an identifiable CGU and the carrying amount of Goodwill is
allocated against this CGU.
The recoverable amount of the cash generating unit was determined based on
value-in-use calculations, covering a detailed forecast, followed by an
extrapolation of expected cash flows based on the targeted and expected growth
rate over the next five years followed by a terminal factor determined by
management.
The present value of the future cash flows is then calculated using a discount
rate of 13.23% (2023: 13.06%).
This discount rate includes appropriate adjustments to reflect, in the
Directors' judgement, the market risk and specific risk of the CGU. It is
derived from the Group's weighted average cost of capital. Changes in the
discount rate compared to the prior year reflect the latest market assumptions
for the risk-free rate, equity risk premium and the cost of debt.
The growth rate utilised in calculation of the terminal factor is based on
expected inflationary growth in the UK beyond the period of forecasting. The
growth rate used was 1.44% (2023: 1.85%).
Cash flow projections during the budget period are based on the group's
approved budget for 2025. Future years growth in EBITDA is set at an average
rate other than the RUPU ("Rock up and Pop up") revenue stream which is in an
early-stage growth phase. Forecast revenue during the budget period for RUPU
is set to a grow at rate greater than the average growth rate.
Overall, the Directors consider the forecasts to be conservative given the
plans for the businesses and the potential increased returns particularly in
relation to the pipeline of new business opportunities.
The estimate of recoverable amount for the CGU is sensitive to the discount
rate, the cash flow projections and the growth rate.
Critical sensitivity Point at which impairment would occur
Discount rate 14.20%
Growth rate 0.42%
RUPU forecast revenue A reduction in annual RUPU forecast revenue by more than 6%
12. Property, plant and equipment
The Group movement in property, plant & equipment assets was:
Cost Plant & equipment Fixture & fittings Computer equipment Right of use assets property Right of use assets plant & equipment Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2022 3,142 312 889 711 198 5,252
Additions 182 6 26 - 110 324
Disposals (12) - - (31) (146) (189)
At 31 December 2023 3,312 318 915 680 162 5,387
Additions 200 3 48 70 29 350
Disposals (1,757) (254) (59) - - (2,070)
Transfers 62 (67) 5 -
At 31 December 2024 1,817 - 909 750 191 3,667
Depreciation Plant & equipment Fixture & fittings Computer equipment Right of use assets property Right of use assets plant & equipment Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2022 3,050 296 843 376 142 4,707
Charge for the period 95 9 29 134 42 309
Depreciation on disposals (12) - - (31) (146) (189)
At 31 December 2023 3,133 305 872 479 38 4,827
Charge for the period 64 3 31 146 53 297
Depreciation on disposals (1,757) (254) (59) - - (2,070)
Transfers 54 (54)
At 31 December 2024 1,494 - 844 625 91 3,054
Net book value Plant & equipment Fixture & fittings Computer equipment Right of use assets property Right of use assets plant & equipment Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2022 92 16 46 335 56 545
At 31 December 2023 179 13 43 201 124 560
At 31 December 2024 323 - 65 125 100 613
The right of use lease liabilities are secured against the right of use
assets.
13. Trade and other receivables
31 December 2024 31 December 2023
£'000 £'000
Net trade debtors 1,411 1,359
Other debtors 280 300
Prepayments 113 140
Total 1,804 1,799
Amounts falling due after more than one year included above are: 248 79
The maximum exposure to credit risk at the balance sheet date is the carrying
amount of receivables detailed above. The Group does not hold any collateral
as security. No interest is charged on outstanding trade receivables. The
carrying amount of trade and other receivables approximates the fair value.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses on trade receivables which applies a credit risk percentage based upon
historical risk of default adjusted for forward looking estimates against
receivables that are grouped into age brackets. To measure the expected credit
losses, trade receivables were considered on a days past due basis.
Trade receivables are written off where there is no reasonable expectation of
recovery. Indicators that there is no reasonable expectation of recovery
include the failure of a debtor to enter into a repayment plan with the Group
and a failure to make agreed contractual payments. Impairment losses on trade
receivables are presented as net impairment losses within operating profit.
Subsequent recoveries of any amounts are credited against the same line item.
31 December 2024 31 December 2023
£'000 £'000
Trade debtors 1,943 1,910
Loss allowance (532) (551)
Net trade debtors 1,411 1,359
Movement in loss allowance:
31 December 2024 31 December 2023
£'000 £'000
1 January 551 771
Additional provisions 143 97
Utilised or released (162) (317)
31 December 532 551
The Directors do not believe that there is a significant concentration of
credit risk within the trade receivables balance on customers or geographical
location.
As of 31 December 2024, trade receivables of £0.9 million (2023: £0.9
million) were past due, but not impaired. The ageing analysis of those debtors
is as follows:
0 - 30 Days 31 - 60 Days 61 Days + Total
£'000 £'000 £'000 £'000
Net amount at 31 December 2024 185 150 563 898
Net amount at 31 December 2023 199 86 571 856
14. Deferred tax
31 December 2024 31 December 2023
£'000 £'000
Deferred tax asset 294 250
Split as follows:
Fixed asset timing differences (13) 22
Tax losses 303 226
Other 4 2
Deferred tax asset 294 250
Movement in the year:
At 1 January 250 208
Adjustment in respect of losses 77 77
Charge in respect of temporary timing differences on property, plant and
equipment
(35) (28)
Other movements
2 (7)
At 31 December 294 250
Deferred tax is not recognised in respect of tax losses in the UK and Germany
that are not expected to be recovered over a forecast period of 5 years
against the reversal of deferred tax liabilities or future taxable profits.
This amounts to an unrecognised tax asset of £87k (2023: £240k).
15. Cash and cash equivalents
31 December 2024 31 December 2023
£'000 £'000
Cash at bank and on hand 1,872 1,872
1,872 1,872
16. Trade and other payables
31 December 2024 31 December 2023
Amounts payable within one year £'000 £'000
Trade creditors 341 314
Other creditors 3,456 3,089
Social Security and other taxes 248 424
Accrued expenses 764 760
Deferred income 608 557
Total 5,417 5,144
All trade and other payables are short term. The carrying values of trade and
other payables are considered to be a reasonable approximation of fair value.
17. Other borrowings
31 December 2024 31 December 2023
£'000 £'000
Bank facilities:
Payable within one year 211 322
Payable after one year 625 836
836 1,158
As at 31 December 2024, SpaceandPeople plc had £0.84 million (2023: £1.16
million) of CBILS term loans, £0.11 million of which expire in April 2025 and
£0.73 million expire in January 2027. SpaceandPeople plc also had £0.75
million of overdraft facilities of which £nil was used as at 31 December 2024
(2023: £nil). These overdraft facilities lapsed in January 2025 and were not
renewed as they were no longer required. The bank facilities are secured by
floating charge over the Group's assets and are subject to interest between
3.25% and 3.8% plus base. The Group's CBILs term loans are subject to annual
and quarterly rolling covenant tests based on EBITDA performance and the right
to defer settlement of the balances disclosed as payable after one year is
subject to compliance with these covenants.
18. Leases
Amounts recognised in the balance sheet:
The balance sheet shows the following amounts relating to leases:
31 December 2024 31 December 2023
£'000 £'000
Right of use assets
Property 55 201
Plant and equipment 170 124
225 325
Lease liabilities
Current 128 205
Non-current 114 149
Total 242 354
Amounts recognised in the statement of profit or loss:
The statement of profit or loss shows the following amounts relating to
leases:
12 months to December 2024 12 months to December 2023
£'000 £'000
Depreciation charge of right of use assets
Property 146 134
Plant and equipment 53 42
199 176
Interest expense on lease liabilities 21 26
Below is a reconciliation of changes in liabilities arising from financing
activities:
1 January Cash New Other 31 December 2024
2024 flows Leases
£'000 £'000 £'000 £'000 £'000
Current lease liabilities 205 (232) 27 128 128
Non-current lease liabilities 149 - 72 (107) 114
Total liabilities from financing activities 354 (232) 99 21 242
The "Other" column includes the effect of reclassification of non-current
leases to current due to the passage of time, the effect of the disposal of
lease assets with their related creditors and the effect of the unwinding of
the discounted ROU creditors over time.
The company does not face a significant liquidity risk with regard to its
lease liabilities and these are monitored as part of the overall process of
managing cash flows. There are no leases subject to variable lease payment
terms.
19. Financial instruments and risk management
The Group has no material financial instruments other than cash, current
receivables and liabilities, in both this and the prior period, all of which
arise directly from its operations. The net fair value of its financial assets
and liabilities is equivalent to their carrying value as detailed in the
balance sheet and related notes.
Credit risk - The Group's credit risk relates to its receivables and is
managed by undertaking regular credit evaluations of its customers. The Group
is aware that customers' financial strength may be adversely affected by
current economic circumstances and endeavours to work with them and our venue
partners to provide appropriate discounts and payment plans to enable them to
continue to trade and repay any amounts owed in an agreed manner. The Group
does not routinely offer extended credit terms to the majority of customers.
Liquidity risk - The Group usually operates a cash-generative business and has
significant available cash. The Directors consider the funding structure to be
adequate for the Group's current funding requirements and this is expected to
strengthen during future years. The following tables outline the Group's
contractual maturity of its financial liabilities:
Carrying amount On Demand/within one year Within 1-2 years Within 2-5 years Over 5 years
2024 £'000 £'000 £'000 £'000 £'000
Borrowings 836 211 100 525 -
Lease liabilities 242 127 87 28 -
Trade and other payables 5,417 5,417 - - -
Total 6,495 5,755 187 553 -
Carrying amount On Demand/within one year Within 1-2 years Within 2-5 years Over 5 years
2023 £'000 £'000 £'000 £'000 £'000
Borrowings 1,158 322 322 514 -
Lease liabilities 353 204 84 65 -
Trade and other payables 5,144 5,144 - - -
Total 6,655 5,670 406 579 -
Borrowing facilities - As at the balance sheet date, the Group had agreed
facilities of £1.57 million, of which £0.84 million was utilised at the year
end. These facilities are secured by a floating charge.
Financial assets - These comprise cash at bank and in hand. All bank deposits
are floating rate.
Financial liabilities - These include short-term creditors and CBILS term
loans of £0.84 million. All financial liabilities will be financed from
existing cash reserves and operating cash flows.
Interest rate risk - The Group is exposed to interest rate risk through the
impact of rate changes on interest-bearing borrowings. The interest rates and
terms of repayment are disclosed in note 17 to the financial statements.
Except as outlined above, the company has no significant interest-bearing
assets and liabilities. The company does not use any derivative instruments to
reduce its economic exposure to changes in interest rates. An increase or
decrease of 1% in interest rate during the year would have resulted in
movement of £9k to the Income Statement.
Foreign currency risk - The Group is exposed to moderate foreign exchange risk
primarily from Euros due to its German operation and Euro denominated
licensing income as detailed in note 4 - Segmental Reporting. The Group
monitors its foreign currency exposure and manages the position where
appropriate. A 5% change in the Euro rate at the year-end would have resulted
in an additional gain or loss of £10k.
20. Called up share capital
Allotted, issued and fully paid 31 December 2024 31 December 2023
Class Nominal value
Ordinary 10p £ 195,196 195,196
Number 1,951,957 1,951,957
21. Related party transactions
Compensation of key management personnel
Key management personnel of the Group are defined as those persons having
authority and responsibility for the planning, directing and controlling the
activities of the Group, directly or indirectly. Key management of the Group
are therefore considered to be the Directors of SpaceandPeople plc. There were
no transactions with the key management, other than their emoluments, which
are set out in the remuneration report on pages 22 and 23.
22. Earnings per share
12 months to 12 months to
31 December 2024 31 December 2023
Pence per share Pence per share
Basic earnings per share 14.1p 7.8p
12.8p 7.1p
Diluted earnings per share
12 months to 12 months to
31 December 2024 31 December 2023
£'000 £'000
Profit after taxation 269 148
Weighted average number of shares 31 December 2024 31 December 2023
'000 '000
Weighted average number of ordinary shares for the purpose of basic 1,903 1,903
earnings per share
Weighted average number of ordinary shares for the purpose of diluted 2,098 2,085
earnings per share
The weighted average number of shares is calculated as follows:
12 months to 12 months to
31 December 2024 31 December 2023
'000 '000
Weighted average number of shares in issue during the period 1,903 1,903
Weighted average number of ordinary shares used in the calculation of basic 195 182
earnings per share deemed to be
issued for no consideration in respect
of employee options
Weighted average number of ordinary shares used in the calculation of 2,098 2,085
diluted earnings per share
23. Share options
The Group has established a share option scheme that senior executives and
certain eligible employees are entitled to participate in at the discretion of
the Board which is advised on such matters by the Remuneration Committee.
In aggregate, share options have been granted under the share option scheme
over 193,000 ordinary shares exercisable within the dates and at the exercise
prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
30 June 2021 80,000 30 June 2024 - 30 June 2031 125p
24 August 2022 76,000 24 August 2025 - 24 August 2032 102.5p
21 December 2023 37,000 21 December 2026 - 21 December 2033 60p
The movement in the number of options outstanding under the scheme over the
period is as follows:
12 months to 12 months to
31 December 2024 31 December 2023
Number of options outstanding as at the beginning of the period 195,000 183,350
Granted - 37,000
Lapsed / surrendered - (24,350)
Forfeited (2,000) (1,000)
Number of options outstanding as at the end of the period 193,000 195,000
Weighted average exercise price 104p 104p
The total share-based payment charge for the year, calculated in accordance
with IFRS2 on share-based payments, was £3k (2023: £5k). The Black Scholes
model was used to obtain the fair value of share options. Further information
in respect of the calculation of fair values has not been presented as the
fair values are not material to the financial statements.
24. Own shares held
The Group has shares held by the SpaceandPeople plc Employee Benefit Trust for
the purpose of issuing shares under the company's share option scheme. The
total amount held is £50k (2023: £50k).
25. Commitments
As at the date of this report, the Group has entered into two new lease
commitments that began in 2025. The lease in relation to the Glasgow office
was varied to extend it for a further 10 years until January 2035, with a
break in January 2030 and a new ten year lease was also entered into for a
warehouse facility in Daventry and this lease runs until December 2034 with a
break in January 2030. The combined annual commitment in relation to these
leases is £127k.
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