REG - SpaceandPeople PLC - Trading update

SpaceandpeopleAnnouncement

19/02/2024 07:00

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RNS Number : 5198D  SpaceandPeople PLC  19 February 2024

SpaceandPeople plc

("SpaceandPeople" or the "Group")

 

Trading Update

 

SpaceandPeople (AIM:SAL) the retail, promotional and brand experience
specialist, today issues a pre-close trading update for the year ended 31
December 2023 ("FY23").

The Board is pleased to report a strong performance during the second half of
FY23, with total unaudited revenue for FY23 being slightly above market
expectations, at approximately £5.8 million (2022 restated: £4.7 million),
due to particularly strong Brand Experience revenue, the successful launch of
our Rock Up and Pop Up service and the continued recovery and expansion of our
German retail business.

As the Group's products and services continue to evolve, during FY23, the
Group reassessed its revenue recognition policies in its UK retail division.
Previously, all revenue within the UK retail division was recognised on a
gross basis, as it was deemed to have one performance obligation. Following
this reassessment, it is now considered that there are two separate
performance obligations:

(i)          acting as the promotional space agent which involves the
marketing of space to licensees and entering into and managing licence
agreements on behalf of venues as their agent; and

(ii)           the short-term rental of the Group's own kiosks.

Accordingly, UK retail revenue will now be recognised on a net basis in FY23,
with FY22 comparative figures being restated. Under the new revenue
recognition policy, market expectations for FY23 revenue should therefore be
adjusted from £6.5 million to £5.7 million. The reassessment does not impact
reported profits.

It should be noted that the Group's German retail division will continue to
recognise its revenue on a gross basis as its performance conditions remain
unchanged.

In terms of balance sheet, as at 31 December 2023, the Group had cash of £1.9
million (2022: £1.9 million) with £1.1 million of term loans (2022: £1.5
million) and undrawn bank facilities of £0.7 million (2022: £0.7 million).
Therefore, total cash available as at 31 December 2023 was £2.6 million
(2022: £2.2 million).

The Group expects to announce its FY23 results during the week commencing 29
April 2024.

 

Contact details:

 SpaceandPeople Plc                     0845 241 8215
 Nancy Cullen, Gregor Dunlay

 Zeus (Nominated Adviser and Broker)    0203 829 5000
 David Foreman, Jamie Peel, Ed Beddows

 

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