Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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.
Toffee, the point you make does not make any sense.
For any sells to be reported under TR1 requirements, then the seller must have notified the market of there TR1 holding...
And only a sale that takes the existing TR1 holder down through a full percentage point (example sale takes holder from 5.01% to 4.98%) need be reported to the company and duly an RNS delivered.
The only TR1 I am aware of is City with 5% plus so hence it is logical to presume you are suggesting that holder is selling shares?
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...
Hi scotty, I totally agree in that football fans tend to stick with there teams regardless of performance and the fact is very few teams are truly successful on a continuous basis…
By a number of factors below is the list of the top 10 Liga MX Clubs
Position Teams Name
10 Atlas F.C.
9 Club León
8 C.F. Pachuca
7 Santos Laguna
6 Club Universidad Nacional
5 C.F. Monterrey
4 Tigres UANL
3 Cruz Azul
2 C.D. Guadalajara
1 Club América
Pumas are the only club signed by Heroes whilst the most NFT’s sold could easily be Necaxa as an example…
What that list also shows is the opportunity in front of Heroes. A significant amount of clubs still potentially to join the Heroes brand…
Https://twitter.com/HeroesNFTClub/status/1662952801419313152
Would suggest another Atlante Ultimate sold also…
Great news as MOS look to further the relationship with Cadiz in delivering a first set of NFT drops in the coming weeks.
Cadiz have secured a vital win today… 1 nil against Celta Vigo taking them to 13th spot with just the one game to go….
Away to bottom and relegated Elche comes next…
And they look safe st teams below them play against each other in the last round…
Generally there are three crosses after the 16.30 close.
- UT is the Uncross trade and generally prints between 16.31 and 16.36 annotated UT
- A closing broker cross again similar between the close and around 16.37 and finally
- A cross between 17.01 and 17.05 which can include MM's and generally flattening books
So, in my opinion that trade was a genuine buyer versus seller so could be considered neutral...
I would add that there has been a seller of around 9m shares resting with a broker this last two weeks and I would fully expect the shares to bounce upwards when the order is completed...
Real price is
101 bid for 10,000 with more behind
105 offered in 400 shares
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?
Justice you suggested… “ You lot don’t think that ME is in Spain just to visit Cadiz FC do you?”…
What is your thinking?
So the MOS team spent the day with Cadiz we are led to understand and we can now presumably expect to see some end of season or pre-season drops.
Cadiz have two games to go to survive and they play-
Celta Vigo at home and
Elche away - bottom club
Good luck to Cadiz...
Https://twitter.com/MobileStreams/status/1661678876974612480?s=20
Spooky... Cadiz content!
Cadiz drops are on there way…
I am expecting the drops in June and who knows a bit of content one day soon?
Https://twitter.com/TST7v7/status/1661410289550491664/photo/1
Https://twitter.com/HeroesNFTClub/status/1660708908506161180?s=20
All starts 1st June…
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...
Just for the record.
That 2m shares was not you Justice Pillar…