LONDON (Alliance News) - SpaceandPeople PLC Monday said its first-half pretax profits grew 60% after administration expenses increased less than revenues did.
SpaceandPeople, a marketing and media group that facilitates and manages the sale of promotional and retail merchandising space in shopping centres, said it made a GBP613,000 first-half pretax profit on the back of wider profit margins in the six months to June 30, compared with GBP382,000 for the corresponding period the year prior.
SpaceandPeople said it the profit increase came about as a result of its business in Germany, which was a big driver behind its 29% increase in first-half net revenues to GBP6.7 million. The marketing company said it is working to increase its German promotions client-base further and is in negotiations with a number of property groups to do so. However, it expects slower second-half growth in its German retail business because local government approval processes are causing delays in the build-up to the Christmas period.
Despite increasing administration expenses, revenues increased at a faster pace to deliver the increase in pretax profit.
SpaceandPeople said its UK promotions business performed well, with a 33% net sales increase, though its UK retail operations saw a 13% fall in revenue. SpaceandPeople said it will aim to improve its service, and base its new approach to malls on bespoke kiosks and pop-up shops in order to reverse the sales figure.
SpaceandPeople said its S&P+ production brokerage, established in the first-half, has been well-received by media agencies, venue owners and other brands, and contributed to its growth in first-half net revenue.
SpaceandPeople shares were Monday quoted at 138.00 pence, up 10.00 pence, or 7.8%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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SpaceandPeople (SAL)