SpaceandPeople Regulatory News (SAL)

SpaceandPeople PLC

Company Registration Number SC212277

25 June 2009

INTERIM RESULTS FOR THE 6 MONTHS TO 30 APRIL 2009

SpaceandPeople PLC ("SpaceandPeople"), which facilitates and manages the sale of promotional space in shopping centres and other high footfall venues, announces interim results for the six months ended 30 April 2009.

Highlights

- Total billings up 2% to £6,453k (2008: £6,348k)

- Revenue up 10% to £1,311k (2008: £1,188k)

- UK operating costs down by 5%

- UK operating profits (before license fees) up 52% to £272k (2008: £178k)

- First sales achieved in India and 25 venues signed up

- 41 venues signed up in Hong Kong

- Sales pipeline strong in both UK and Germany

Operating Statement

SpaceandPeople has continued to attract new business despite the difficult economic climate. A key strength of the company is the diversified nature of its customer base. This provides some protection against the recession and, as a result, revenues are up 10%. However, whilst the UK has increased operating profits (before license fees) by 52%, there was a loss of £63k in Germany which is still in its start up phase and new business did not materialise as rapidly as expected. This, the absence of license fees (£50k in 2008), and lower interest rates resulted in a decline in profit after tax of 29% to £167k in the half year.

The UK has had an excellent start to the year, increasing revenues by 6% and gaining a number of new venues. Maximizing revenues has been higher up the agendas of the mall owners as they seek to sweat their assets and we have demonstrated that we are best placed to help them achieve this. The restructuring of UK operations has been successful in improving effectiveness and reducing costs by 5%, enabling a 52% increase in operating profits before license fees.

The German business, which only commenced operations in November 2007, has been harder hit by the recession than the UK. Although revenues are up 31%, this was below expectations and having geared up for a greater increase, after an encouraging start to the year we have seen losses of £63k. We have now negotiated a relaxation in the exclusivity clause in our contract with ECE and have taken on a number of other venues. The pipeline of sales is currently strong and we expect to continue to acquire other new business. We remain very positive about Germany. 

Our overseas associates in Hong Kong and India, which commenced operations last year, continue to make strong progress. In Hong Kong we are now working with 41 venues and expect to sign a number of contracts with advertisers shortly.  India has made an excellent start. It currently represents 25 venues and has attracted a number of major advertisers. There have been no new licensing agreements in the half but we continue to review potential opportunities as they arise.

We now represent 230 venues in the UK and 65 in Germany with a combined footfall of over 40 million people per week. This is a compelling statistic for both mall owners and advertisers, the effect of which is reflected in our healthy order book. Also, we are seeing an increase in cross border enquiries as advertisers see our network of venues in Europe combined with those of our associates in Hong Kong and India. However, we expect profits in the short term to be under pressure due to the expansion of Germany.

Matthew Bending

Chief Executive Officer

25 June 2009

Contact details

David Henderson-Williams  Chairman Tel: 0207 1821840

Matthew Bending   Chief Executive Officer Tel: 07872 666418

Matthew Robinson FinnCap Tel: 020 7600 1658

Ed Frisby

AIM Dealing Code    SAL

Website www.spaceandpeople.com

INDEPENDENT REVIEW REPORT TO SPACEANDPEOPLE PLC

Introduction We have been engaged by the company to review the financial statements in the interim financial report for the six months ended 30 April 2009 which comprises the income statement, balance sheet, cash flow statement and the related notes. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility Our responsibility is to express to the Company a conclusion on the financial statements in the half-yearly financial report based on our review.

This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules of the London Stock Exchange and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the financial statements in the interim financial report for the six months ended 30 April 2009 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

Campbell Dallas LLP, Chartered Accountants

7 Glasgow Road, Paisley

25 June 2009

Notes

(a) The maintenance and integrity of the SpaceandPeople PLC website is the responsibility of the Directors; the work carried out by Campbell Dallas LLP, Chartered Accountants does not involve consideration of these matters and, accordingly, Campbell Dallas LLP, Chartered Accountants accept no responsibility for any changes that may have occurred to the interim report since it was initially presented on the website.

(b) Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

SpaceandPeople PLC

Income Statement

For the six months to 30 April 2009

6 Months to

6 Months to

Year to

30 April 2009

30 April 2008

31 October 2008

(Unaudited)

(Unaudited)

(Audited)

£

£

£

REVENUE

1,310,793

1,187,552

2,547,833

Administrative expenses

1,101,911

978,819

2,089,474

208,882

208,733

458,359

Other operating income

-

50,000

107,000

OPERATING PROFIT

208,882

258,733

565,359

Finance income

12,472

28,676

55,152

PROFIT BEFORE TAXATION

221,354

287,409

620,511

Taxation

(54,367)

(71,852)

(154,435)

PROFIT FOR THE PERIOD AFTER TAXATION

166,987

215,557

466,076

EARNINGS PER SHARE

Basic

1.43p

1.85p

4.01p

Diluted

1.42p

1.83p

3.96p

SpaceandPeople PLC

Statement of Changes in Equity

For the six months to 30 April 2009

Share Capital

Share Premium

Special Reserve

Retained Profits

Total Equity

£

£

£

£

£

Six months to 30 April 2009

(Unaudited)

At 1 November 2008

116,566

265,890

232,809

1,020,925

1,636,190

Shares issued 

-

-

-

-

-

Foreign currency translation

-

-

-

(19,624)

(19,624)

Profit for the period

-

-

-

166,987

166,987

Dividends paid

-

-

-

(233,131)

(233,131)

At 30 April 2009

116,566

265,890

232,809

935,157

1,550,422

Six months to 30 April 2008

(Unaudited)

At 1 November 2007

114,620

13,630

232,809

751,488

1,112,547

Shares issued 

1,946

252,260

-

-

254,206

Foreign currency translation

-

-

-

21,369

21,369

Profit for the period

-

-

-

215,557

215,557

Dividends paid

-

-

-

(215,647)

(215,647)

At 30 April 2008

116,566

265,890

232,809

772,767

1,388,032

Year to 31 October 2008

(Audited)

At 1 November 2007

114,620

13,630

232,809

751,488

1,112,547

Shares issued 

1,946

252,260

-

-

254,206

Foreign currency translation

-

-

-

19,008

19,008

Profit for the year

-

-

-

466,076

466,076

Dividends paid

-

-

-

(215,647)

(215,647)

At 31 October 2008

116,566

265,890

232,809

1,020,925

1,636,190

SpaceandPeople PLC

Balance Sheet

30 April 2009

30 April 

2009

30 April 

2008

31 October 2008

(Unaudited)

(Unaudited)

(Audited)

£

£

£

ASSETS

Non-current assets:

Intangible assets

196,276

221,896

228,131

Property, plant and equipment

69,153

115,758

90,630

Fixed asset investment

117,382

22,536

95,027

382,811

360,190

413,788

Current assets:

Trade and other receivables

1,184,776

1,035,399

1,104,570

Cash and cash equivalents

1,253,368

1,215,421

1,543,320

2,438,144

2,250,820

2,647,890

Total Assets

2,820,955

2,611,010

3,061,678

LIABILITIES

Current liabilities

Trade and other payables

1,061,403

1,001,126

1,261,053

Current tax payable

209,130

221,852

164,435

Total Liabilities

1,270,533

1,222,978

1,425,488

Net assets

1,550,422

1,388,032

1,636,190

EQUITY

Called up share capital 

116,566

116,566

116,566

Share premium 

265,890

265,890

265,890

Special reserve

232,809

232,809

232,809

Retained earnings

935,157

772,767

1,020,925

Shareholders equity

1,550,422

1,388,032

1,636,190

SpaceandPeople PLC

Cashflow Statement

For the six months to 30 April 2009

6 Months to

6 Months to

Year to

30 April 2009

30 April 2008

31 October 2008

(Unaudited)

(Unaudited)

(Audited)

£

£

£

Cash flows from operating activities

Cash generated from operations

(10,804)

210,793

642,658

Taxation

(9,672)

-

(140,000)

Net cash flow from operating activities

(20,476)

210,793

502,658

Cash flows from investing activities

Interest received

12,472

28,676

55,152

Purchase of intangible assets

(4,300)

(13,630)

(52,557)

Purchase of  property, plant and equipment

(1,098)

(55,902)

(61,962)

Investment in associate

(22,355)

(22,536)

(95,027)

Net cash outflow from investing activities

(15,281)

(71,588)

(154,394)

Cash flows from financing activities

Proceeds from issue of shares

-

254,116

254,206

Cash received on behalf of associate

97,686

-

118,750

Cash paid on behalf of associate

(118,750)

-

-

Dividends paid

(233,131)

(215,647)

(215,647)

Net cash flow from financing activities

(254,195)

38,469

157,309

Increase/(decrease) of cash and cash equivalents

(289,952)

177,674

505,573

Cash at beginning of period

1,543,320

1,037,747

1,037,747

Cash at end of period

1,253,368

1,215,421

1,543,320

Reconciliation of operating profit to net cash inflow from operating activities

Operating profit

208,882

258,733

565,359

Amortisation of intangible assets

36,170

37,720

70,411

Depreciation of property, plant & equipment

22,560

21,485

44,478

Effect of foreign exchange rate changes

(19,624)

21,458

19,008

(Increase)/decrease in trade and other receivables

(80,206)

(203,128)

(272,299)

Increase/(decrease) in trade and other payables

(178,586)

74,525

215,701

Cash flows from operating activities

(10,804)

210,793

642,658

SpaceandPeople PLC

Notes to the Interim Report and Accounts 

For the 6 months to 30 April 2009

The Interim Report and Accounts were approved by the Board on 25 June 2009

1. Basis of preparation

These interim financial statements for the 6 months to 30 April 2009 are prepared using accounting policies in accordance with IFRS and International Financial Reporting Interpretations Committee interpretations. The accounting policies used in the preparation of these financial statements are set out in the financial statements for the year ended 31 October 2008.

The interim financial statements are not audited but have been reviewed by the auditors and their independent review report is set out on page 3. They do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. The financial information for the year to 31 October 2008 has been extracted from the statutory accounts for the Company for that period These published accounts were reported on by the auditors without qualification or an emphasis matter reference, and did not include a statement under section 237(2) or (3) of the Companies Act 1985, and have been delivered to the Registrar of Companies. 

2. Accounting policies

The interim statement has been prepared in accordance with the accounting policies set out in the Company's Annual Report and Accounts for the year ended 31 October, 2008.

3. Segmental reporting

The Company maintains two offices, Glasgow and Hamburg, Germany, and these are reported separately. The French business is currently not material and dealt with in the Glasgow office. Its results are therefore included in the UK results. 

4. Earnings per share

Earnings per share has been calculated using profit after taxation for the period and the weighted  average number of shares in issue.

5. Investments in associate

During the period, SpaceandPeople (Hong Kong) undertook a further share placement. SpaceandPeople PLC participated in this offering by converting a trade receivable of £22,355 into shares. As a result, SpaceandPeople PLC's stake in the company fell from 47.5% to 35.3%.

6. Distribution of this report

Copies of these results are being sent to all shareholders and additional copies are available from the Company's registered office at 141 St James Road, Glasgow G4 0LT.