LONDON (Alliance News) - SpaceandPeople PLC on Friday said it swung to a loss from a profit in the first half of the year due to a reduced contribution from its promotions division, causing it to substantially reduce its annual profit forecast.
Shares in SpaceandPeople were down 36% at 19.30 pence on Friday.
The company recorded a GBP88,000 loss for the six months to June 30, reversing its GBP173,000 profit the year before due a GBP570,000 drop in UK & German promotions division revenue.
SpaceandPeople sells merchandising space in shopping centres and other venues with high footfall. It operates in both the UK and in Germany, and it has two divisions: promotions and retail. Retail revenue also fell during the period, dropping by GBP380,000, but its pretax contribution increased by GBP90,000 despite this.
Moving forward, SpaceandPeople said it expects the year to be weighted towards the second half, with a minimum annual profit of GBP200,000 expected for the year, a sharp reduction from its previous GBP1.0 million expectation.
The company said that reduced revenue expectations from its "pop-up units" were a factor in this revised prediction.
"We are confident that we can regain sales momentum for next year which combined with the costs savings already identified. Our 2019 forecasts being unchanged despite the lower than anticipated 2018 outturn," said SpaceandPeople Chairman Matthew Bending.
Bending added that the company intends to maintain its dividend policy and reiterated that the year will be profitable.
SpaceandPeople (SAL)