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LONDON (Alliance News) - SpaceandPeople PLC Monday raised its dividend by 17%, as revenues and profits rose in 2013, driven by an increase in its client base and a strong performance from its German retail business and UK promotions business.
The retail, promotional and brand experience specialist, which markets, sells and administers space in high footfall venues, including shopping centres, said it is confident in the outlook for the business in 2014, with the help of increasing contributions from its expanding overseas portfolio, as well as the acquisition of additional high footfall venues such as garden centres and railway stations.
The group also said that since year-end it has embarked on a significant restructuring to its staff and management, which it said will lead to savings in overheads during 2014, with the full benefits being achieved from 2015 onwards.
Signalling its confidence, the group raised its dividend for the year by 17% to 4.10 pence per share.
The group reported a pretax profit of GBP2.4 million for 2013, marginally higher than the GBP2.3 million reported in 2012.
Revenues for the year increased by 12% to GBP14.6 million, up from GBP13.1 million a year earlier, which it said was primarily driven by the strength of its German retail business and the UK promotions business. However, administrative expenses rose 16% to GBB12.6 million as much of the additional German revenue was recognised gross, rather than net, meaning costs associated with that revenue were charged to administrative expenses.
SpaceandPeople also incurred GBP611,000 in costs associated with S&P+ Ltd, which was launched early in 2013. S&P+ offers the experiential agency sector tools and services to maximise the effectiveness of campaigns.
SpaceandPeople said that although UK retail results were below expectations, the promotions side of the business performed strongly during the year.
It said that its German business continues to perform strongly and is a major contributor to the group's profit. It said the broadening client base is producing impressive growth and the exclusive deals with Corio and MEC have added 38 shopping centres to its German portfolio this year, which together with the continuing roll-out of mobile kiosks, contributed to a 52% increase in German retail revenue.
The group said during the year it booked over 14,000 promotions and retailers into over 750 venues.
It said it won a number of major contracts during the year, including with St Pancras International, the Garden Centre Group, One New Change London and Corio GmbH.
The group said its balance sheet remains strong with GBP1.89 million of net cash at the year end.
SpaceandPeople shares were trading flat before midday Monday at 146.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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