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:
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SpaceandPeople Plc
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0845 241 8215
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Nancy Cullen, Gregor
Dunlay
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Zeus (Nominated Adviser and
Broker)
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0203 829 5000
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David Foreman, Jamie Peel, Ed
Beddows
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