LONDON (Alliance News) - Retail, promotional and brand specialist SpaceandPeople PLC said on Monday it expects its pretax profit for 2015 to miss management expectations due to a deferral of revenue, as it also announced a contract to manage promotional space at British Land Co PLC's Plymouth shopping centre.
SpaceandPeople said that, whilst its trading for the second half of the year ended December 31 has been in line with expectations, its pretax profit will be GBP1.0 million, which is below market expectations. It said this was due to a "timing difference" following a decision to recognise an element of promotional revenue on the same basis as revenue from retail merchandising units, meaning GBP150,000 has been deferred from 2015 to 2016.
The company said this deferral will give it a better idea of its future revenue, which will be boosted by a new contract with British Land to manage promotional space at the Drake Circus Shopping Centre in Plymouth. SpaceandPeople said it expects to extend this contract across 40 other assets, covering the majority of British Land's multi-let retail portfolio in due course.
It said basic earnings per share for the year is expected to be in line with market expectations, and the board intends to propose a final dividend of 2.20 pence per share at the forthcoming annual general meeting on April 28.
Shares in SpaceandPeople, which will release its results on March 29, were up 15% at 66.00p on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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British Land (BLND)
SpaceandPeople (SAL)