Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Last year was 11 July , already passed one month delay as of now. I think it’s about to land this week.
Any way, 20 to 30% increase from last year + Tiny profits will be good to send us over 120p + wining the rail contract again would be good and send us to 150+
I don’t see risk here mcap already collapsed
For 30/6 this was on 11th July last year. I suspect the illness that delayed the YE results may have also had an impact here, but it would be good to see the numbers and hopefully see some steady progress.
£3m would be nice - a 20% uplift on last year.
The reaction is more across the board for Aim shares and most being tarred with that same brush.
We have seen DVRG suspend today and they have likely taken MSYS with them.
Cine calling it a day likely also so the Aim market is a mess.
But - there are hidden gems and SAL continue to grow out the business both by new brands and bookings - highly cash generative business...
Best they stay nicely under the radar imo and just keep growing revenues and post that profit for the current year.
Disproportionate reaction imo
Looks extremely positive and just one that's been hit by Justin Waite and his club selling out.
Revenue guidance is around £6.5m
Operational profit forecast at £200k
Our DCF-based valuation is unchanged at 220p.
Cash should be around £500k plus with an undrawn facility adding a further £750k available
All for tonight's valuation of £1.75m
Part II
Outlook and growth plans - With activity normalising, the Group has now started to consider
growth plans in the UK, Germany and now Austria. Space has started to rebuild the business,
hiring additional marketing and sales employees. Capacity is in place to support significant
expansion. Rock Up and Pop Up provides a flexible solution to early-stage retailers wanting to test
demand; the service includes a fully designed and installed kiosk at leading UK shopping centres.
The Group’s bespoke website experientialspace is an online planning tool enabling media buyers
and agencies to view Space’s venues, promotional sites, and prices. Feedback from users is
positive. Management believe Germany and now Austria also offer strong prospects for
expansion at shopping centres, working in partnership with leading local operator ECE.
Management will also work on the retendering of the Network Rail contract expected during 2023.
Zeus estimates: healthy sales growth and profitability – We forecast further progress in 2023e.
Group revenue is expected to increase by up to 20%, with UK retail and Germany leading, and UK
promotions lagging slightly. Admin expenses will rise (c.6%) reflecting hires and inflation, and
clearly COVID-related support has now ended. Nonetheless, we expect a return to an operating
profit of £200k (2022a LFL £69k loss, adjusted). On cash, the payables position with Network Rail
will unwind and we forecast a year-end gross position of c.£500k (2022a: £1.9m). This may look
tight, but Space has an undrawn £750k banking facility and we do not consider that the business
is particularly cash intensive. Our DCF-based valuation is unchanged at 220p.
Shandy, the broker Zeus put out their broker note on SAL this morning at the same time as the accounts.
SpaceandPeople
SAL LN - Media
Focus turns to growth
UK and European consumer demand is weak for well reported reasons, and the outlook
for the sector is quite negative. That said, Space is trading well, offering flexible and low
risk promotional services for retailers, and utilising vacant retail space for property
owners. 2022a results were resilient and, overall, in-line with our estimates. The
outlook, even in these difficult times, is encouraging for Space’s flexible offering, and
trading has continued to recover in both the UK and Germany. The Group has built back
marketing and sales teams and made good new Board hires. We forecast a near 20%
uplift in sales in 2023e and a healthy COVID support free profit. Operational gearing is
high for when activity picks up further. As ever, we keep an eye on cash, but the Group
has good access to liquidity if needed. Our DCF-derived valuation remains 220p,
indicating good potential upside to the current share price.
Positive full year update and a Board refresh – Trading continued to recover through H2 as
shoppers returned to malls in the UK and Germany, and train stations in the UK. Full year revenue
was up 38% at £5.5m (Zeus estimate £5.5m). Notably, UK promotional revenue was up 43% to
£3m with activity almost back to pre-pandemic levels. Within the UK retail division, the new Rock
Up and Pop Up concept delivered £41k of revenue from a standing start and is proving to be
popular with early-stage retailers. Germany also recovered well, with revenue of £1.3m (2021a
£0.9m). Gross profit was £3.9m (2021a £2.8m; Zeus estimate £3.2m), the major variance was
due to mix effect. Further down the proforma, Space was loss-making with an adjusted LBT of
£125k, slightly short of our predicted breakeven position. These results were achieved despite the
phasing out of government COVID support. Year-end gross cash was in line at £1.9m but flattered
by working capital timing differences. A £1.5m goodwill impairment was recorded against the UK
retail business mainly reflecting higher borrowing costs and the discount rate applied to the cash
modelling of this unit. The Board is strengthened with John Scott and Michael Brown joining as
NEDs, both bring extensive experience in the retail and marketing sectors. The Group showed
good resilience in 2022a, laying the foundations for future growth.
I can see a few issues with the accounts.
Firstly the £1.5m writedown is clearly not a positive. Ok, there is no cash impact, but it is a concern.
Secondly, cash. The cashflow statement is good but looking at the balance sheet whilst there is a healthy cash balance of c£1.8m account receivables are c£2m whilst accounts payable are c£5m. Therefore, the net current liabilities are greater than the net assets, never a positive.
Finally, the current bank borrowing of c£1.5m is secured at base rate plus c3%. As the base rate keeps increasing this is becoming more expensive.
So whilst none of these alone are a big issue, combined these probably account for the 10% SP decline today.
However, whilst i'm still positive on SAL maybe the biggest factor today was no trading update for 2023. Positive words but no figures. As H1 is almost 5 months in this is a little disappointing. H1 last year was a c£300k loss so i'm hoping this is considerably lower this year. Breakeven would be an excellent performance IMHO, as H2 is the big earner.
Reviewing the accounts high level - looking at more detail today/tomorrow - then the shares look extremely cheap at a valuation of £1.7m with solid cash and revenues of £5.5m and a conservative guidance for 2023 of £6.5m...
Even with profitability at £200k and likely higher this company is undervalued...
Terry - how are you coming to that conclusion? Would be interesting to see how you value this. Looks cheap to me
Real price is
101 bid for 10,000 with more behind
105 offered in 400 shares
Yep, looking good Roley, trading should only be improving since last year, shares price will improve accordingly.
MM’s want shares and certainly not selling any…
Just 500 shares offered at 99.5p
Bidding for size. 10,000 bid at 90.5p with more behind…
Numbers coming and could that forward looking statement be positive?
Hi Barnacle - I would expect the 2022 numbers to be as expected
Revenue around £5.5m
Loss hopefully negligible?
Would be an amazing achievement if they got close to break even?
The key to any share price increase has to be the guidance for 2023, and being effectively 5 months in, I am hoping for a positive statement similar to what the company have posted on social media recently...
Looking forward to the Investor Meet Presentation next week, expecting a positive update on H1. At a market cap of only £1.8M there is plenty of room for the share price to climb back to it's pre-covid levels. Expecting a steady climb from these levels.
That is very good news, a substancial addition to their portfolio. Was this published today, and if so, why no RNS?
https://www.spaceandpeople.co.uk/retail-and-promotional-space-at-welsh-train-stations/
Great announcement
Fantastic news adding 240 new railway stations to the portfolio...
Looks like we have a few sellers at the psycological £1 mark, but should push on. Some encouraging larger buys as well...
broken through £1 now. This was over 140p last summer so with a decent H1 performance i think the 150p area is very achievable
It will be interesting to see how Rock Up and Pop Up is contributing to revenue streams. Germany is now fully up and running, post Covid, so we should see an increase in revenues from here.
From Interims:
Operational
o Recovery in brand experience and strong recovery in retail markets as pandemic lockdowns ended in quarter one in the UK
o New and unique, full-service, kiosk retailing programme "Rock Up and Pop Up" launched in UK shopping centres to encourage and enable new retailers into venues
o Launched "Experiential Space" website(www.experientialspace.co.uk), giving promoters enhanced online access to venue information and chat function to allow comparison of sites on offer and facilitate faster bookings
o German business fully operational since April 2022 following the end of Covid-19 restrictions
"With the launch of and investment in Rock Up and Pop Up as well as our new experiential website, www.experientialspace.co.uk, we have developed innovative new services that support our two key revenue streams; Brand Experience and Pop-up Retail, and we are aiming for these to contribute to and stimulate our growth over the coming years. SpaceandPeople has the ability to deliver the most comprehensive portfolio of spaces for brands and retailers to research, launch and showcase their products. By developing new marketing platforms to promote our venues, combined with new retail delivery options, we will continue to expand and dominate this sector."
Don't see why not, previous Trading Update was positive, so expecting share price momentum to continue...
"Trading momentum has continued in early 2023 in both the UK and Germany despite rail strikes and the Board looks forward to continued increases in revenue and profitability for the year."
That's a decent enough holding in a nano cap company and we all start somewhere.
Bring on 150p next week?
No, only 10k shares, not quite in your league Roley!
Are you a big holder Barnacle?