REG - SpaceandPeople PLC - Preliminary Results

SpaceandpeopleAnnouncement

26/03/2018 07:05

RNS Number : 7939I
SpaceandPeople PLC
26 March 2018
 

SpaceandPeople plc
 
("SpaceandPeople" and the "Company")
 
Preliminary Results
 
SpaceandPeople, the retail, promotional and brand experience specialist, is pleased to announce its preliminary results for the 12 months ended 31 December 2017.
 
Financial Highlights
 
·      Gross revenue of £22.4 million (2016: £22.9 million)
 
·      Net revenue of £10.0 million (2016: £9.7million)
 
·      Profit from before taxation attributable to shareholders of £1.2 million (2016: £60k)
 
·      Basic Earnings per Share before non-recurring costs of 4.8p (2016: 0.3p)
 
·      Net cash at year end of £2.7 million (2016: £0.4 million) and all bank borrowings now repaid
 
·      Dividend resumed with proposed payment of 1.5p per share (2016: nil)
 
Operational Highlights
 
·      Focus on core UK and German markets
 
·      Growth in UK promotional and MPK revenue and profitability
 
·      Increase in average MPK selling price and occupancy led to an increase in revenue of 24%
 
·      Prestigious Broadgate Estates contract win and Landsec contract renewal
 
·      Costs reduced and senior team strengthened
 
·      Successful renegotiation of terms with ECE in relation to the German RMU business for a one year contract extension in 2018
 
·      Majority of UK revenue driven by venues other than shopping centres for the first time
 
Contact details:




SpaceandPeople Plc


0845 241 8215




Matthew Bending, Gregor Dunlay
 








Cantor Fitzgerald Europe


020 7894 7000




David Foreman, Will Goode (Corporate Finance)








Alexander Pollen (Sales)








 
 
Chairman's Statement
 
I am pleased to report that the measures we took to meet the challenges faced by the Group in 2016 have resulted in an improved and more sustainable trading and financial performance in 2017.
 
Our focus on the core UK market and the effectiveness of our sales function delivered growth in both our UK Promotional and Retail revenues and profitability. The financial performance of our existing MPKs improved, and we succeeded in restructuring and extending our main contract in Germany with ECE, with lower costs and overheads, returning it to profitability.
 
The Group continues to be successful in retaining and winning new contracts with large scale venue and retail owners, such as Landsec and our improved effectiveness and performance in sales and venue optimisation has allowed us to create more revenue opportunities with long term clients such as Network Rail.
 
To complement this, we have recently strengthened the sales and venue teams with two senior appointments.
 
From a financial perspective, it is encouraging to see the Group strengthen its net cash position and resume dividend payments to shareholders.
 
Our strategy is to focus on our core markets of the UK and Germany, continue to win good quality contracts and diversify our revenue generation to deliver solid sustainable and growing returns for our shareholders.
 
Although there are many challenges in the retail sector, with a stronger and more focused senior team delivering our strategy, we look forward to the future with confidence.
 
 
Charles G. Hammond
Chairman
23 March 2018
 
Strategic Report
 
Principal Activities
 
The principal activity of the Group is the marketing and selling of promotional and retail licensing space on behalf of shopping centres and other venues throughout the UK and Germany and also in India.
 
Review of Business and Future Developments
 
The results for the period and the financial position of the Group are shown in the financial statements.
 
The review of the business and a summary of future developments are included in the Chairman's Statement, the Chief Executive Officer's Review and the Operating and Financial Review.
 
Principal Risks and Uncertainties
 
The principal risks identified in the business are:
 
Loss of client - Each year a number of the Group's contracts with clients come to an end. At this point, some are renewed, some are not renewed and others are renegotiated. When the amount of business that we transact with an established client reduces, it can take time to replace this income with business from new clients. The Group is not overly reliant on any single client and the loss of a significant client, although unwelcome, would not put the viability of the business at risk.
 
Loss of key personnel - The unexpected loss of a member of our senior management team could have a negative effect on the business in the short term, however, we have a management team of nine members who are encouraged and required to engage with and assist their colleagues in other areas of the business to ensure that understanding and exchange of ideas is a core element of their roles. This ensures that the business is not at risk while we seek to replace the member or conduct a reorganisation of the team.
 
System failure - Whilst no guarantees can be given that all possible eventualities are covered, the Group has comprehensive and strict policies and contingency plans concerning power outages, telecommunications failure, virus protection, hardware and software failure, frequent and full offsite backup of all data and disaster recovery. Contracts and service level agreements are in place with reputable suppliers to ensure that any disruption and risk to the business is kept to an absolute minimum. The adequacy and appropriateness of these policies and plans are reviewed on a regular basis. A significant hardware upgrade has been completed during 2017 and early 2018 and the Group has implemented a new CRM system during 2017 that is now fully operational.
 
Legal claims - The Group constantly reviews its exposure to possible legal claims and takes appropriate advice and action to protect both itself and its clients where any avoidable risk is identified, for example, by amending terms and conditions, service agreements, licences and risk assessments.
 
Key Performance Indicators
 
The key performance indicators are:
 








2017


2016


















Gross revenue (£ million)


22.4


22.9




Net revenue (£ million)


10.0


9.7




Profit before taxation and non-recurring costs attributable to shareholders (£ million)


1.17


0.06




Basic earnings per share before non-recurring costs (p)


4.8


0.3




Proposed dividend (p)


1.5


-




Average number of Retail Merchandising Units (RMUs)


185


220




Average number of Mobile Promotions Kiosks (MPKs)


75


74




 
 
By order of the Board
 
 
 
 
Gregor Dunlay
Company Secretary
23 March 2018
 
 
Chief Executive Officer's Review
 
I am pleased that 2017 saw the Group recover from the issues it faced in 2016. Profit before tax attributable to shareholders rebounded to £1.2 million (2016 £0.1m before non-recurring costs). This was achieved through increased focus on our core businesses in the UK and Germany with strong performance in the UK brand experience and MPK divisions along with the German RMU business.
The key aims for the year were to ensure that growth in revenue and profit were sustainable and that more diverse revenue streams would help insulate us from overexposure to any one large market or client. To achieve this, we restructured the UK management team bringing in additional management resource during the year. We also developed and implemented a new CRM system which has recently gone live and will improve productivity. The post year end contract renewal with Landsec has expanded and enhanced our relationship with them and reinforces our ability to improve revenues and diversity with a complex and multi-use property portfolio.
 
The fact we have driven profits, repaid all bank debt and generated strong cashflow in the year has enabled us to resume dividend payments and also invest in new staff and systems.
 
UK
Promotions
 
The very visible experiential campaigns which the Company facilitates rose by 30% in 2017 driven by an increase in locations such as Broadgate Estates in The City and the development of the Network Rail portfolio. Over 270 brands utilised our network of national locations with Johnnie Walker/McLaren F1 and the Fast and Furious movie franchise using London venues in particular for their high-profile launches. Lucozade, Coca Cola and The Economist engaged with us for sampling direct to consumers, and others including Porsche and Nespresso created pop up shops to sell direct to the public.
 
One of our key aims has been to increase the volume of business we transact in non-shopping centre, high footfall venues as this creates a greater balance of locations for brands to select. As a result, and for the first time, 2017 saw more revenue generated from these locations than traditional shopping centres.
 
Retail
 
Revenue in the UK retail division increased to £3.4 million (2016: £3.2 million) driven by a £400k increase in MPK revenue.  Whilst the average number or MPKs in operation remained the same, increases in both occupancy and selling price had a positive effect. This demonstrates the traditional temporary retailer wants to be more temporary than ever and that local and national brands appreciate the added value an installed MPK delivers in the form of higher responses and visibility. As expected, the number of RMUs declined from 110 to 91 in the year, however, Just-in-Time RMUs around the Christmas trading period grew revenue from this activity to £250k from £150k in the previous year, again, representative of the temporary trends described above.
 
New Venues
 
The Company has been negotiating an expanded contract for Landsec throughout 2017 which was formally announced post year end. The other notable win was Broadgate Estates' portfolio of outdoor venues in London. New venue growth, as well as offering new services to a greater and more diverse venue type, is a priority of the Group.  Accordingly, we have created a New Venues Director position, working with Nancy Cullen who remains in charge of existing venue management. This new role should give us more bandwidth to develop these new contracts going forward.
 
Germany
 
Trading in Germany was mixed, with the retail division performing well under the revised contract with ECE, while the promotions business struggled with the ending of the ECE contract in the previous year and a reduction in business transacted with MEC in 2017. Despite this uncertainty, both businesses still produced creditable efforts and remain core parts of the Group.
 
German Promotions
 
Revenue from this division declined by 12% from £0.9 million to £0.8 million due to the reduced opportunities with existing clients. Overheads have been reduced by moving to smaller accommodation and reducing headcount. The team must be given credit for their professionalism and loyalty during this difficult period.
 
German Retail
 
Post year end, we announced an extension of the ECE retail contract for a further year until January 2019. This is based on a smaller number of RMUs with a decrease from 94 units at the start of 2018 to 55 units in January 2019.  However, we are optimistic that we could increase "Just-in-Time" units into ECE and expand our services to other property groups.
 
Germany remains a core territory for the Group. It has contributed much to revenue, profit and business development over the years and its sheer potential market size means it remains attractive for us to continue trying to grow these divisions in the future. I believe the contribution our German operations have made to the Group in 2017, despite the difficulties during the year, validate this. Post year end contract extensions at ECE for the "pop up shop" retail division as well as a strong new venues pipeline developing for both divisions and the fact that we have experienced management and staff gives us encouragement that the German businesses can perform well going forward.
 
Outlook for 2018
 
We entered 2018 in a good position on the back of the 2017 results. It is a challenge to forecast the macro business environment at this time, however the investment in staff along with the diversity of products and venues we now have does give me confidence the business will continue to perform well in 2018.  I am hopeful that Germany will win some new contracts in both businesses which will enable them to grow their revenue and profits again in the future. I am also optimistic we can extend our Just-in-Time concept to more venues during 2018.
 
The UK experiential campaign team has had a slightly slower than expected start to in 2018, due to timing differences on repeat bookings, however, these delayed bookings are currently being worked on. Retail, MPK and regional sales are all performing ahead of this time last year and in line with management expectations.
 
The new roles of UK New Venues Director and appointments in the Client Services team mean we have the resources and capacity to reach and gain new venues, and access more spend from agencies and brands that we have not previously accessed.
 
 
 
 
 
Matthew Bending
Chief Executive Officer
23 March 2018
 
 
Operating and Financial Review
 
The principal focus of the Group during 2017 was to ensure that concentration of efforts on the core business units continued from the previous year. Coupled with the benefits that would come from the overhead rationalisation that had taken place, the Group has returned to profitability and performing better than had been anticipated at the start of 2017.
 
The UK divisions performed particularly strongly in 2017. Promotional revenue increased by 16% and operating profit increased by 44% compared with the previous year. All major contracts performed well, especially the Network Rail agreement. Retail revenue increased by 6% and operating profit of £0.4 million in this division was a significant improvement from the loss of £0.2 million in 2016. Improvements in MPK selling rates more than compensated for the reduction in the number of RMUs in operation where some unproductive agreements had been terminated.
 
German retail revenue fell by 10% due to a planned decrease in the number of RMUs in operation. However, due to the significant reduction in centre rent payable following the renegotiation of the contract with ECE, this division generated an operating profit of £0.2 million compared with an operating loss of £0.3 million in the previous year. Revenue in the German promotional division fell by 12% as the full effect of the termination of their contract with ECE during 2016 was felt for the first time. As a result of this reduction in the volume of business transacted, overheads have been reduced and the division made a small operating loss of £0.02 million in 2017 compared with a loss of £0.2 million the previous year.
 
Revenue
 
Gross revenue generated on behalf of our clients was £22.4 million in 2017, which was £0.5 million (2%) lower than like for like gross revenue in the previous year. This was mainly due to reductions in German promotional and retail revenue. Despite gross revenue falling by 2%, net revenue increased by 3% to £10.0 million as both the UK and German promotional divisions achieved higher blended commission income than in the previous year.
 
The strong performance of the UK promotional division was across all business types with Brand Experience revenue being 27% higher than in the previous year and retail and regional business also performing particularly strongly.
 
UK retail revenue increased by £0.2 million to £3.4 million in 2017. This was due to an increase in MPK revenue of £0.4 million being partially offset by a decline in RMU revenue of £0.2 million. The increase of 24% in MPK revenue was achieved even though the average number of units in operation during the year remained the same as in 2016 at 68 units. This was due to an increase in the average selling price of 15% and an increase in the occupancy rate of 7%. The decline in RMU revenue of 12% was due to a reduction of the average number of units in operation by 17%.
 
Administrative Expenses
 
The gross profit of the Group was 20% higher than in 2016 at £6.6 million (2016: £5.5 million). This was achieved without any significant increase in administrative costs, with the savings made in 2016 being maintained in 2017.
 
The average number of people employed in the business fell by 19 to 99 in 2017. This was due to a reduction in the number of telesales and commercial staff with there being 6 fewer in India, 5 fewer in German retail and 4 fewer due to the closure of S&P+ during 2016.
 
Profit
 
Operating profit of £1.2 million was an increase of £1.4 million on the previous year (2016: loss of £0.2million). £0.3 million of this was due to non-recurring costs in the previous year and the other £1.1 million being on a like-for-like basis.  The improvement is due to the operational gearing of the Group, with administration costs maintained so improved revenue and gross profit flowed down directly to operating profit.
 
Basic Earnings per Share ("EPS") increased to 4.8p (2016: negative 3.38p). Fully diluted EPS increased to 4.3p (2016: negative 3.12p). Basic EPS is calculated as profit after tax attributable to the owners of the Company divided by the weighted average number of shares in issue during the year which was 19,519,563 (2016: 19,519,563). Fully diluted EPS also takes into account the number of shares that would be issued on the exercise of outstanding share options. The weighted average number of shares used to calculate the diluted EPS was 21,840,060 (2016: 21,168,724).
 
Cash Flow
 
The Group generated £2.4 million of net cash flow from operating activities during the year (2016: £0.4 million). This was achieved due to strong operating profit before depreciation and amortisation. During the year £0.1 million was spent on fixed assets as the UK divisions implemented a new bespoke CRM system. No dividend was paid during the year and the £1.2 million bank facility drawn down at the beginning of the year was repaid in full. Consequently, the gross cash position was £1.1 million higher at the end of 2017 than 2016 and the net cash position was £2.3 million higher.
 
Dividends
 
As a result of the return to profitability in 2017 and strong balance sheet position, the Board is proposing a final dividend of 1.5p per share at the Annual General Meeting on 24 April 2018. If approved, this will be paid on 25 April 2018. This dividend will represent a distribution to shareholders of 31% of the basic EPS in 2017.
 
 
 
 
Gregor Dunlay
Chief Financial Officer
23 March 2018
 
Consolidated Statement of Comprehensive Income
For the 12 months ended 31 December 2017
 




           


Notes


 
12 months to


 
12 months to












31 December '17


31 December '16












£'000


£'000






















Revenue


4


9,995


9,661






















Cost of Sales


4


(3,389)


(4,133)






















Gross Profit






6,606


5,528






















Administration expenses






(5,640)


(5,618)




Other operating income






210


194






















Operating Profit before non-recurring costs






1,176


104






















Non-recurring costs


7


-


(289)






















Operating Profit / (Loss)






1,176


(185)






















Finance income






12


-




Finance costs


8


(35)


(40)






















Profit / (Loss) before taxation






1,153


(225)






















Taxation


9


(237)


(44)






















Profit / (Loss) after taxation from continuing operations






916


(269)




 




Discontinued Operations


10


-


(543)






















Profit / (Loss) after taxation






916


(812)






















Other Comprehensive income
Foreign exchange differences on
translation of foreign operations






 
3


 
104






















Total comprehensive income for the






919


(708)
 




Period


































Profit / (Loss) for the year attributable to:


































Owners of the Company






933


(660)




Non-controlling interests






(14)


(152)












919


(812)




Total comprehensive income for the
















period attributable to:


































Owners of the Company






933


(556)




Non-controlling interests






(14)


(152)




Total comprehensive income for the






919


(708)




Period
















 
Earnings per share


 
25












Basic - Before non-recurring costs






4.8p


0.3p




Basic - After non-recurring costs






4.8p


(3.4p)




Diluted - Before non-recurring costs






4.3p


0.3p




Diluted - After non-recurring costs






4.3p


(3.1p)












 
 
Consolidated Statement of Financial Position
At 31 December 2017
 
Company number SC212277








Notes


31 December '17


31 December '16












£'000


£'000




Assets
















Non-current assets:
















Goodwill


13


8,225


8,225




Other intangible assets


14


15


21




Property, plant & equipment


15


1,147


1,558












9,387


9,804




Current assets:
















Trade & other receivables


17


3,367


3,350




Cash & cash equivalents


18


2,661


1,584












6,028


4,934






















Total assets






15,415


14,738






















Liabilities
















Current liabilities:
















Trade & other payables


19


5,120


4,266




Current tax payable


19


(46)


(146)




Other borrowings


20


-


1,000












5,074


5,120




Non-current liabilities:
















Deferred tax liabilities


16


91


90




Long-term loan


20


-


200












91


290






















Total liabilities






5,165


5,410




 
 
















Net assets






10,250


9,328






















Equity
















Share capital


23


195


195




Share premium






4,868


4,868




Special reserve






233


233




Retained earnings






4,698


3,762






















Equity attributable to owners of the






9,994


9,058




Company
















Non-controlling interest






256


270




Total equity






10,250


9,328




 
The financial statements were approved by the Board of Directors and authorised for issue on 23 March 2018.
 
Signed on behalf of the Board of Directors by:
 
 
 
M J Bending - Director
 
Consolidated Statement of Cash Flows
For the 12 months ended 31 December 2017
 








Notes


12 months to


12 months to












31 December '17


31 December '16












£'000


£'000




Cash flows from operating activities
















Cash generated from operations






2,559


335




Interest received






12


-




Interest paid


8


(35)


(40)




Taxation






(136)


128




Net cash inflow from operating






2,400


423




activities


































Cash flows from investing activities
















Purchase of intangible assets


14


(12)


(25)




Purchase of property, plant & equipment


15


(111)


(308)




Net cash (outflow) from investing






(123)


(333)




activities


































Cash flows from financing activities
















Bank facility (repaid) / received 






(1,200)


200




Dividends paid


12


-


(429)




Net cash (outflow) from






(1,200)


(229)




Financing activities


































Increase / (Decrease) in cash and cash equivalents






1,077


(139)




Cash and cash equivalents at beginning of






1,584


1,723




period
















Cash and cash equivalents at end of


18


2,661


1,584




period
















 
 




Reconciliation of operating profit to net
















cash flow from operating activities
















Operating profit / (loss)






1,176


(185)




Operating profit / (loss) from discontinued operation
Amortisation of intangible assets


10
 
14


-
 
18


(543)
 
16




Depreciation of property, plant &


15


522


328




equipment
















Effect of foreign exchange rate moves






6


104




(Increase) / Decrease in receivables






(17)


855




Increase / (Decrease) in payables






854


(240)




Cash flow from operating activities






2,559


335




 
 
Consolidated Statement of Changes in Equity
For the 12 months ended 31 December 2017
 












Share






Share






Special 






Retained






Non-






Total












capital






premium






reserve






earnings






controlling






equity












£'000






£'000






£'000






£'000






interest






£'000












































£'000


































































At 31 December 2015






195






4,868






233






4,747






170






10,213


























































Comprehensive




















































income:




















































Foreign currency




















































Translation






-






-






-






104






-






104




(Loss) for the period






-






-






-






(660)






(152)






(812)




Total comprehensive






-






-






-






(556)






(152)






(708)




Income










































































































Transactions with




















































owners:




















































Elimination of non- controlling interest in S&P+






 
-






 
-






 
-






 
-






 
252






 
252




Dividends paid






-






-






-






(429)






-






(429)




Total transactions with






-






-






-






(429)






252






(177)




Owners










































































































At 31 December 2016






195






4,868






233






3,762






270






9,328




 




Comprehensive




















































income:




















































Foreign currency




















































Translation






-






-






-






3






-






3




Profit / (Loss) for the period






-






-






-






933






(14)






919




Total comprehensive






-






-






-






936






(14)






922




Income










































































































Transactions with




















































owners:




















































Dividends paid






-






-






-






-






-






-




Total transactions with






-






-






-






-






-






-




Owners










































































































At 31 December 2017






195






4,868






233






4,698






256






10,250




           
                                                                                                           
 
Notes to the Financial Statements
 
1.       General information
 
SpaceandPeople plc is a public limited company incorporated and domiciled in Scotland (registered number SC212277) which is listed on AIM (dealing code SAL).
 
2.       Basis of preparation
 
The Group's financial statements for the period ended 31 December 2017 and for the comparative period ended 31 December 2016 have been prepared on a going concern basis under the historical cost convention in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and International Financial Reporting Interpretations Committee (IFRIC) interpretations, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
 
The Directors have, at the time of approving the financial statements, a reasonable expectation that SpaceandPeople has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
 
Future accounting developments
 
New and revised IFRSs applied with no material effect on the consolidated financial statements
 




Title
 


Implementation


Effect on Group




IAS 12 - Amendments to "Recognition of Deferred Tax Assets for Unrealised Losses"


Annual periods beginning on or after 1 January 2017


None




IAS 7 - Amendments to "Disclosure Initiative"


Annual periods beginning on or after 1 January 2017


None




 
The following standard will be introduced in future periods
 




Title


Implementation


Effect on Group




IFRS 15 - "Revenue from Contracts with Customers"


Annual periods beginning on or after 1 January 2018


None




IFRS 9 - "Financial Instruments"


Annual periods beginning on or after 1 January 2018


None




IFRS 16 - "Leases"


Annual periods beginning on or after 1 January 2019


This standard is likely to have implications to the Statement of Financial Position with an increase in both assets and liabilities recognised. A full impact assessment will be carried out during 2018.




 
Management anticipates that the standards and interpretations in issue, but not yet effective will be adopted in the financial statements when they become effective and foresee currently no material impact by the adoptions on the financial statements of the Group in the period of initial application. However, this will be assessed further upon implementation.
 
3.       Accounting policies
 
Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.
 
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries).  Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate.  Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
 
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
 
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.
 
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired.  If the recoverable amount of the cash-generating unit is less than its carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.  Any impairment loss of goodwill is recognised directly in the consolidated statement of comprehensive income.  An impairment loss recognised for goodwill is not reversed in subsequent periods.
 
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
 
The Group's policy for goodwill arising on the acquisition of an associate is described below.
 
Investments in subsidiaries
The parent Company's investments in subsidiary undertakings are included in the Company statement of financial position at cost, less provision for any impairment in value.
 
Revenue
Revenue is measured at the fair value of consideration received or receivable. Revenue is shown net of value-added tax, rebates and discounts and after eliminating intergroup sales.  Revenue is recognised when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Group and when any specific delivery criteria have been met.
 
Commission
Revenue from commission receivable while acting as agent is recognised when the following conditions are satisfied;
-       Contract is agreed with promoter / merchant
-       Venue acceptance of contract
-       Invoice issued and no further input anticipated
 
Acting as principal
Revenue from agreements where we act as principal i.e. renting space from venues and reselling to promoters and operators, is recognised as gross revenue receivable by us, with the corresponding amount payable to the venue owner being recognised in cost of sales.
 
 
Leasing Income
Revenue from leasing activities is recognised on a straight-line basis over the term of the lease.
 
Licence Fees
Licence fee revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement. 
 
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount on initial recognition.
 
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
 
Property, plant & equipment
Depreciation is provided at the annual rates below in order to write off each asset over its estimated useful life.
 




Plant & equipment


- 


12.5% of cost




Fixtures & fittings


-


25% of cost




Computer equipment
Computer software


-
-


25% of cost
33% of cost
 




Property, plant & equipment is stated at cost less accumulated depreciation to date.
 
Intangible assets
 
Website development costs
The Group capitalises all costs directly attributable to further developing its websites, while costs which relate to on-going maintenance are expensed as they arise. The capitalised costs are depreciated over three years.
 
Patents and trademarks
The costs of obtaining patents and trademarks are capitalised and written off over the economic life of the asset acquired.
 
Impairment of non-current assets
The need for any non-current asset impairment is assessed by comparison of the carrying value of the asset against the higher of realisable value and the value in use or, in the case of intangible assets, the anticipated future cash flows arising from the asset.
 
Leasing commitments
Rentals paid under operating leases are charged against profit as incurred. The Group has no finance leases.
 
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis over the term of the relevant lease.
 
Taxation
The tax expense represents the sum of tax currently payable and deferred tax. Tax currently payable is based on the taxable profit for the period. The Group's liability for current tax is calculated using rates that have been enacted or substantially enacted at the balance sheet date.
 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profits and is accounted for using the liability method. Deferred tax liabilities are recognised for all temporary timing differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition, other than in a business combination, of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
 
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
 
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.
 
Foreign exchange
Items included in the Group's financial statements are measured using Pounds Sterling, which is the currency of the primary economic environment in which the Group operates and is also the Group's presentational currency.
 
Transactions denominated in foreign currencies are translated into Sterling at the rates ruling at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates at that date.  These translation differences are dealt with in the profit and loss account.
 
The income and expenditure of overseas operations are translated at the average rates of exchange during the period. Monetary items on the balance sheet are translated into Sterling at the rate of exchange ruling on the balance sheet date and fixed assets at historical rates. Exchange difference arising are treated as a movement in reserves.
 
Financial instruments
Financial assets and liabilities are recognised in the Group's balance sheet when it becomes a party to the contractual provisions of the instrument.
 
Trade and other receivables
Trade and other receivables are carried at original invoice value less an allowance for any uncollectable amounts. An allowance for bad debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off in the income statement when identified.
 
Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost and comprise cash in hand, cash at bank and deposits with banks.
 
Trade and other payables
Trade and other payables are carried at amortised costs and represent liabilities for goods or services provided to the Group prior to the period end that are unpaid and arise when the Group becomes obliged to make future payments in respect of these goods and services.
 
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
 
Share based payments
The Group operates a number of equity settled share-based payment schemes under which share options are issued to certain employees. The fair value determined at the grant date of the equity settled share-based payment, where material, is expensed on a straight-line basis over the vesting period. For schemes with only market-based performance conditions, those conditions are taken into account in arriving at the fair value at grant date.  
 
Pensions
The Group pays contributions to the personal pension schemes of certain employees. Contributions are charged to the income statement in the period in which they fall due.
 
Critical accounting judgements and estimates
The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the period. Although these estimates are based on management's best knowledge of current events and actions, actual results may differ from those estimates. IFRS also requires management to exercise its judgement in the process of applying the Group's accounting policies.
 
The areas where significant judgements and estimates have been made in the preparation of these financial statements are the useful lives and impairment of non-current and intangible assets, impairment of the value of investment in associates and taxation. Explanations of the methodology and the resultant assumptions are detailed in the relevant accounting policies above and the respective notes to the financial statements. 
 
Borrowing costs
Borrowing costs are amortised over the duration of the loan and recognised throughout the term of the loan.
 
4.       Segmental reporting
The Group maintains its head office in Glasgow and a subsidiary office in Hamburg, Germany. These are reported separately. In addition, the retail business, now trading as POP retail, has an office in London and a subsidiary in Germany. The Group has determined that these are the principal operating segments as the performance of these segments is monitored separately and reviewed by the Board.
 
The following tables present revenues, results and asset and liability information 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. The Other segment incorporates SpaceandPeople India.




 
Segment revenues and


 
Promotion


 
Promotion


 
Retail


 
Retail


 
Head


 
Other


 
Group




results


UK


Germany


UK


Germany


Office












for 12 months to


£'000


£'000


£'000


£'000


£'000


£'000


£'000




31 December '17


































































Continuing operations


3,695


807


3,438


1,993


-


62


9,995




Revenue


































































Cost of sales


-


-


(2,648)


(741)


-


-


(3,389)




Administrative expenses


(1,710)


(895)


(389)


(1,230)


(1,307)


(109)


(5,640)




Other revenue


-


69


-


141


-


-


210






































Segment operating profit


1,985


(19)


401


163


(1,307)


(47)


1,176




/ (loss)


































































Finance income


-


-


-


-


-


12


12




Finance costs


(35)


-


-


-


-


-


(35)






































Segment profit / (loss)


1,950


(19)


401


163


(1,307)


(35)


(1,153)




before taxation
































 




Segment assets and


Promotion


Promotion


Retail


Retail


Other


Group




liabilities


UK


Germany


UK


Germany












as at 31 December '17


£'000


£'000


£'000


£'000


£'000


£'000


































Total segment assets


7,486


725


5,386


1,077


741


15,415


































Total segment liabilities


(2,882)


(493)


(1,336)


(383)


(71)


(5,165)


































Total net assets


4,604


232


4,050


694


670


10,250




 
 




Segment revenues and


Promotion


Promotion


Retail


Retail


Head


Other


Group




results


UK


Germany


UK


Germany


Office












for 12 months to


£'000


£'000


£'000


£'000


£'000


£'000


£'000




31 December '16


































































Continuing operations


3,185


917


3,244


2,226


-


89


9,661




revenue


































































Cost of sales


-


-


(2,829)


(1,304)


-


-


(4,133)




Administrative expenses


(1,718)


(1,162)


(504)


(1,294)


(832)


(108)


(5,618)




Other revenue


-


90


-


100


-


4


194




Non-recurring costs


(87)


-


(126)


-


(76)


-


(289)






































Segment operating profit


1,380


(155)


(215)


(272)


(908)


(15)


(185)




/ (loss)


































































Finance costs


(40)


-


-


-


-


-


(40)






































Segment profit / (loss)


1,340


(155)


(215)


(272)


(908)


(15)


(225)




before taxation
































 




Segment assets and


Promotion


Promotion


Retail


Retail


Other


Group




liabilities


UK


Germany


UK


Germany












as at 31 December '16


£'000


£'000


£'000


£'000


£'000


£'000


































Total segment assets


7,130


1,002


4,819


995


792


14,738


































Total segment liabilities


(3,334)


(694)


(964)


(352)


(66)


(5,410)


































Total net assets


3,796


308


3,855


643


726


9,328




 
 5.      Operating profit
The operating profit is stated after charging:








12 months to


12 months to








December '17


December '16








£'000


£'000


















Motor vehicle leasing


78


93




Property leases


347


369




Amortisation of intangible assets


18


16




Depreciation of property, plant and equipment


532


328








975


806




Auditor's remuneration:












Fees payable for:












Audit of Company


22


19




Audit of subsidiary undertakings


19


22




Tax services


8


4




Other services


1


3








50


48


















Directors' remuneration


741


539




 
 
6.       Staff costs
The average number of employees in the Group during the period was as follows:








12 months to


12 months to








December '17


December '16


















Executive Directors
Non-executive Directors


3
3


3
3




Administration


32


30




Telesales


42


60




Commercial


10


15




Maintenance


9


7








99


118




 








12 months to


12 months to








December '17


December '16








£'000


£'000


















Wages and salaries


3,782


4,149




Social Security costs


425


481




Pensions


189


50








4,396


4,680




 
Details of Directors' emoluments, including details of share option schemes, are given in the remuneration report. These disclosures form part of the audited financial statements of the Group.
 
7.       Non-recurring costs
During the period, the Group did not incur any one-off costs (2016: £289k in relation to restructuring costs and MPK France pilot costs).
 
8.       Finance income and costs








12 months to


12 months to








December '17


December '16








£'000


£'000




Finance income:












Interest receivable


12


-


















Finance costs:












Interest payable


(35)


(40)




 
 
9.       Taxation








12 months to


12 months to








December '17


December '16








£'000


£'000


















Current tax expense:












Current tax on profits for the year


243


70




Adjustment for (over) provision in prior periods


(1)


(62)




Total current tax
 


242


8




Foreign tax:












Current tax on foreign income for the period


52


-




Adjustment for (over) / under provision in prior periods


(57)


4




Total foreign tax


(5)


4


















Deferred tax:












Charge / credit in respect of tax losses


-


37




Charge in respect of temporary timing differences
Charge in relation to prior period


-
-


(18)
13




Total deferred tax


-


32


















 
Income tax expense as reported in the Income Statement


 
237


 
44




 
 
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The differences are explained below:








12 months to


12 months to








December '17


December '16








£'000


£'000


















Profit on ordinary activities before tax


1,153


(768)




Profit on ordinary activities at the standard rate of corporation tax in












the UK of 19% (2016: 20%)                                                              












Jan - Dec 2016: 20%


-


(154)




Jan - Mar 2017: 20%


57


-




                                                                Apr - Dec 2017: 19%


165


-




                                                               












Tax effect of:












-       Prior period adjustment


(57)


(59)




-       Difference due to foreign taxation rates
-       Tax losses
-       Disallowable items


18
4
50


-
(17)
274


















Income tax expense as reported in the Income Statement


237


44




 
10.     Discontinued operations
During the prior period, the Group took decision to close its S&P+ business of which it owned 51%. The combined results of the discontinued operations included in the loss for the previous year are set out below. The comparative loss / profit from discontinued operations have been represented to include those operations classified as discontinuing in the prior year.
 








12 months to


12 months to








December '17


December '16




Profit / (Loss) for the year from discontinued operations


£'000


£'000




Revenue


-


487




Cost of Sales


-


(343)




Gross Profit


-


144




Administration expenses


-


(435)


















Results from Operating activities (Net of Tax)


-


(291)


















Non-controlling interest eliminated


-


(252)


















(Loss) / profit for period from Discontinued operations


-


(543)




 
11.     Profit for the period
The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements. The Group profit for the period includes a Company profit after tax and before dividends of £570k after the incorporation of all UK head office costs (2016 loss: £73k) which is dealt with in the financial statements of the parent Company.
 
12.     Dividends








12 months to


12 months to








December '17


December '16








£'000


£'000


















Paid during the period


-


429




Recommended final dividend


293


-




 
Equity - A final dividend of 1.50p per ordinary share is recommended for 2017 (no final dividend for 2016)
 
13.     Goodwill




Cost


£'000














At 31 December 2015


8,225




Additions


-




At 31 December 2016


8,225




Additions


-




At 31 December 2017


8,225




 




Accumulated impairment losses








At 31 December 2015


-




Charge for the period


-




At 31 December 2016


-




Charge for the period


-




At 31 December 2017


-




 




Net book value








At 31 December 2015


8,225




At 31 December 2016


8,225




At 31 December 2017


8,225




 
 
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 and SpaceandPeople India Pvt Limited are identifiable CGUs and the carrying amount of Goodwill is allocated against these CGUs. No amortisation of the carrying value has been occurred at the financial statement review date. Goodwill for the UK Retail sub group remains unchanged at £7,981,000 and goodwill for SpaceandPeople India Pvt Limited remains unchanged at £244,000.
 
The recoverable amounts of the cash generating units are determined on value in use calculations which use cash flow projections based on financial budgets approved by the Board covering a five-year period followed by a terminal factor at a discount rate of 3% per annum. Cash flow projections during the budget period are based on an average growth in EBITDA which the Directors consider to be conservative given the plans for the businesses and the potential increased returns. As a result of the sensitivity analysis carried out, the Directors believe that any reasonable possible change in the key assumptions on which the recoverable amounts are based would not cause the aggregate carrying amounts to exceed the aggregate recoverable amounts of the cash generating units and that cash flows from these units will continue in line with expectations for the foreseeable future.
 
14. Other intangible assets
 
 




Cost


Website


Product


Patents &


Total








development


development


trademarks












£'000


£'000


£'000


£'000


























At 31 December 2015


284


137


86


507




Additions


-


-


25


25




Elimination of S&P+


-


-


(8)


(8)




At 31 December 2016


284


137


103


524




Additions


-


-


12


12




At 31 December 2017


284


137


115


536




 
 




Amortisation


Website


Product


Patents &


Total








Development


development


Trademarks












£'000


£'000


£'000


£'000


























At 31 December 2015


284


137


69


490




Charge for the period


-


-


16


16




Elimination of S&P+


-


-


(3)


(3)




At 31 December 2016


284


137


82


503




Charge for the period


-


-


18


18




At 31 December 2017


284


137


100


521




 
 




Net book value


Website


Product


Patents &


Total








development


Development


trademarks












£'000


£'000


£'000


£'000


























At 31 December 2015


-


-


17


17




At 31 December 2016


-


-


21


21




At 31 December 2017


-


-


15


15




15.     Property, plant and equipment
The Group movement in property, plant & equipment assets was:
 




Cost


Plant &


Fixture &


Computer


Total








equipment


fittings


equipment












£'000


£'000


£'000


£'000


























At 31 December 2015


2,907


258


542


3,707




Additions


151


16


159


326




Disposals


(18)


-


-


(18)




Elimination of S&P+


-


-


(127)


(127)




At 31 December 2016


3,040


274


574


3,888




Additions


8


3


100


111




At 31 December 2017


3,048


277


674


3,999




 




Depreciation


Plant &


Fixture &


Computer


Total








Equipment


Fittings


Equipment












£'000


£'000


£'000


£'000


























At 31 December 2015


1,408


246


428


2,082




Charge for the period


235


3


90


328




Elimination of S&P+


-


-


(80)


(80)




At 31 December 2016


1,643


249


438


2,330




Charge for the period


418


4


100


522




At 31 December 2017


2,061


253


538


2,852




 




Net book value


Plant &


Fixture &


Computer


Total








equipment


Fittings


Equipment












£'000


£'000


£'000


£'000


























At 31 December 2015


1,499


12


114


1,625




At 31 December 2016


1,397


25


136


1,558




At 31 December 2017


987


24


136


1,147




 
 
16.     Deferred tax












31 December '17






31 December '16












£'000






£'000


























Deferred tax liability:
Deferred tax liability to be recognised after more than 12 months
 
Deferred tax assets:
Deferred tax asset to be recognised after less than 12 months
 






 
 
91
 
 
 
-






 
 
90
 
 
 
-




Deferred tax liability (net)






91






90






































































At 1 January 2017
Debit / (Credit) in respect of losses
Charge in respect of temporary timing differences on property, plant and equipment






90
 
1






58
37
(5)




At 31 December 2017






91






90




 
   
 
17. Trade and other receivables
 












31 December '17






31 December '16












£'000






£'000


























Trade debtors






2,626






2,530




Other debtors






458






469




Prepayments






283






351




Total






3,367






3,350




 




Amounts falling due after more than one year included above are:






424






424




 
 
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.
 
The Directors do not believe that there is a significant concentration of credit risk within the trade receivables balance. As of 31 December 2017, trade receivables of £784k (2016: £345k) were past due but not impaired.
 
The ageing of trade debtors:
 








Current






0 - 30 Days






31 - 60 Days






61 Days +






Total








£'000






£'000






£'000






£'000






£'000














































31 December '17


1,842






277






244






263






2,626














































31 December '16


2,185






96






72






177






2,530




 
 
18. Cash and cash equivalents












31 December '17






31 December '16












£'000






£'000


























Cash at bank and on hand






2,661






1,584












2,661






1,584




 
 
19.     Trade and other payables












31 December '17






31 December '16












£'000






£'000


























Trade creditors






568






514




Other creditors






1,767






1,625




Social Security and other taxes






489






395




Accrued expenses






2,003






1,404




Deferred income






293






328




Trade and other payables






5,120






4,266


























Corporation tax






(46)






(146)




Total






5,074






4,120




 
 
20.   Other borrowings












31 December '17






31 December '16












£'000






£'000




Bank loan:




















Less than one year






-






1,000




Greater than one year






-






200


































-






1,200




 
As at 31 December 2017, SpaceandPeople plc had drawn down £nil (2016: £1.2 million) of its agreed bank facility of £1.25 million (2016: £2.0 million), £0.25 million of which expires in July 2018 and the other £1.0 million expires in July 2019. As at 31 December 2016, the Group was in technical breach of its covenants in relation to its facilities. This breach has now been resolved and there are no restrictions on the Groups ability to utilise its bank facilities.
 
21.     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 the same as 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.
 
Liquidity risk - The Group operates a cash-generative business and holds net funds. The Directors consider the funding structure to be adequate for the Group's current funding requirements and this is expected to strengthen further during 2018.
 
Borrowing facilities - The Group has agreed facilities of £1.25 million, of which £nil was utilised at the year end.
These facilities are secured by an omnibus guarantee and set off agreement, secured by an unlimited debenture incorporating a bond and 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 a revolving credit facility of £1million, of which £nil was utilised at the year end. All financial liabilities will be financed from existing cash reserves and operating cash flows.
 
Foreign currency risk - The Group is exposed to foreign exchange risk primarily from Euros due to its German operations 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. In addition, the Group has investments in a subsidiary in India.
 
 
22.     Operating lease commitments
At the period end date, SpaceandPeople plc had outstanding commitments for future lease payments which fall due as follows:












31 December '17






31 December '16












£'000






£'000


























Within 1 year






357






863




Between 2 and 5 years inclusive






358






499




 
 
23.     Called up share capital
 




Allotted, issued and fully paid


31 December '17






31 December '16




Class


Nominal value




















Ordinary


1p


£


195,196






195,196












Number


19,519,563






19,519,563




 
24.     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.
 
25.     Earnings per share                      








12 months to


12 months to








31 December '17


31 December '16








Pence per share


Pence per share


















Basic earnings per share


























Before non-recurring costs


4.8p


0.3p


















After non-recurring costs


4.8p


(3.38p)


















Diluted earnings per share


























Before non-recurring costs


4.3p


0.3p


















After non-recurring costs


4.3p


(3.12p)




 
 
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
Basic earnings per share
 
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
 








12 months to


12 months to








31 December '17


31 December '16








£'000


£'000


















Profit after tax for the period attributable to


933


(660)




owners of the Company












 
 
Profit after tax for the period before non-recurring costs attributable to owners of the company
 


 
 
933


 
 
67








12 months to


12 months to








31 December '17


31 December '16








'000


'000


















Weighted average number of ordinary shares


19,520


19,520




for the purposes of basic earnings per share












 
 
Diluted earnings per share
 
The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
 








12 months to


12 months to








31 December '17


31 December '16








£'000


£'000


















Profit after tax for the period attributable to


933


(660)




owners of the Company












 
 
Profit after tax for the period before non-recurring costs attributable to owners of the company
 


 
 
933


 
 
67
 
 
 








12 months to


12 months to








31 December '17


31 December '16








'000


'000


















Weighted average number of ordinary shares


21,840


21,169




for the purposes of diluted earnings per share












 
 
The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows.
 








12 months to


12 months to








31 December '17


31 December '16








'000


'00


















Weighted average number of shares in issue


19,520


19,520




during the period


























Weighted average number of ordinary shares


2,320


1,649




used in the calculation of basic earnings per












share deemed to be issued for no












consideration in respect of employee options


























Weighted average number of ordinary shares


21,840


21,169




 used in the calculation of diluted earnings per












share












 
26.     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 1,885,522 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
 






















12 January 2015
31 March 2016
27 March 2017


838,650
646,872
400,000


12 January 2018 - 12 January 2025
31 March 2019 - 31 March 2026
29 March 2020 - 27 March 2027


47.4p
61.0p
22.0p




 
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 '17


31 December '16
































Number of options outstanding as at the beginning of the period


1,557,235


985,307


















Granted


400,000


700,000




Lapsed
Forfeited


-
(71,713)


(20,307)
(107,765)




Number of options outstanding as at the end of the period


1,885,522


1,557,235




 
In total, 1,885,522 options were outstanding at 31 December 2017 (1,557,235 at 31 December 2016) with a weighted average exercise price of 46.7p (53.1p at 31 December 2016). 
 
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share-based payments, was £8,400 (2016: £nil).
 
27.     Save As You Earn Scheme
The Group has two Save As You Earn ("SAYE") schemes that all UK based employees are entitled to participate in. The schemes both run for three years. The first scheme runs from 1 June 2015 and at the end of the term, participants will have the opportunity to buy shares in the Company at a price of 46p, which is a 20 percent discount on the closing share price on 2 April 2015. The second scheme runs from 1 July 2017 with the opportunity to buy shares at a price of 19.5p, a 20% discount on the average closing share price on the three working days from 20 to 24 April 2017.
 
In aggregate, share options have been granted under the SAYE scheme over 675,200 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
 




28 April 2015


21,677


1 June 2018 - 30 November 2018


46.0p




18 May 2017


653,523


1 July 2020 - 31 December 2020


19.5p




 
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 '17


31 December '16
































Number of options outstanding as at the beginning of the period


147,284


257,863


















Granted


688,783


-




Forfeited


(160,867)


(110,579)




Number of options outstanding as at the end of the period


675,200


147,284




 
In total, 675,200 options were outstanding at 31 December 2017 (147,284 at 31 December 2016) with an average exercise price of 20.5p (46.0p at 31 December 2016).
 
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share-based payments, was £42,016 (2016: £nil).
 
 



This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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