SpaceandPeople Regulatory News (SAL)

SpaceandPeople PLC

Company Registration Number SC212277

27 June 2008

INTERIM RESULTS FOR THE 6 MONTHS TO 30 APRIL 2008

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 2008

Highlights

- Total billings up 23% to £6,441,000 (2007: £5,251,000)

- Revenue up 24% to £1,188,000 (2007: £954,000)

- Profit Before Tax up 19% to £287,000 (2007: £241,000)

- EPS up16% to 1.85p (2007: 1.59p)

- Germany profitable in first 6 months of trading

- Entry into Hong Kong market

Operating Statement

SpaceandPeople has had another successful half year and, despite the slowdown in the economy, has increased profit before tax by 19% over the same period last year and continued to invest in the future.

It was a subdued first quarter - the UK business had a slower than anticipated start to the new financial year - and, whilst business levels are now back up to forecast levels, this caused a drag on our results. However the growth in our business overseas has supported the UK results and has enabled us to increase billings, turnover and profits for the SpaceandPeople group.

The challenging first quarter made us look at core aims and focus on streamlining costs and refocusing our UK based sales teams. The results over the second quarter have been very pleasing with a plethora of new brands booking (Chevrolet, Kia, Nokia, Nintendo via their respective agencies to name a few) and new UK venues joining the service (amongst others, Festival Place in Basingstoke and British Land's retail park portfolio). The number of UK venues represented grew by 20% to 218. The challenge for SpaceandPeople, which we face with confidence, is to maintain and increase the rate of sales growth and to ensure that the second half of the year delivers as strongly as last year.

The German office is thriving and must be commended for achieving so much in such a short space of time. It commenced taking bookings on 1st January 2008 and has already moved into profit, producing an operating profit for the period of £30,000 from the 55 venues we manage. Our success in Germany is due to a combination of a well motivated team and total support from the property owners. We have not as yet completed a full year operationally in Germany so comparing the sales cycle to the UK is premature. However, the current sales pipeline is very encouraging, we are taking on more venues and we are very optimistic about the future prospects for the German business.

The rate of development of the French business has been more limited. However, I am pleased to announce it moved into profitability in the second quarter and the team is working hard at maintaining this momentum.

SpaceandPeople is an exportable business as proved by the German and French operations and I am pleased to announce the signing of a license to provide SpaceandPeople's services in Hong Kong and Macau. The past year has seen a lot of development work in the Hong Kong market and the meetings held with property owners were sufficiently positive for us to seek candidates to operate and manage the venture which will start taking bookings in September 2008. SpaceandPeople (Hong Kong) Ltd was established in April and we retain a 47.5% interest in the Company.

This and similar ventures should enable us to fast track our international expansion and to continue our drive to take the SpaceandPeople concept to other overseas territories, whilst using local expertise and limiting SpaceandPeople's financial exposure.

The first six months have seen many positive developments for SpaceandPeople. The 218 UK venues represented and 55 in Germany have a combined footfall of 41 million people per week. Advertisers recognize the strength of this and the order book is healthy. Cash flow remains strong with £1.2 million of cash on the balance sheet at the half year end. We continue to review possible ventures aimed at exporting the SpaceandPeople formula elsewhere in Asia and Eastern Europe. The Board is confident of the future prospects of the Company. 

Matthew Bending

Chief Executive Officer

27 June 2008

Contact details

INDEPENDENT REVIEW REPORT TO SPACEANDPEOPLE PLC

Introduction We have been instructed by the company to review the financial information for the six months ended 30 April 2008 which comprises the income statement, the balance sheet, the cash flow statement and the related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of and has been approved by the Directors. The AIM Rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of company management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.

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.

Review conclusion On the basis of our review, we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 April 2008.

Campbell Dallas LLP, Chartered Accountants

7 Glasgow Road, Paisley

27 June 2008

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 2008

6 Months to

6 Months to

Year to

30 April 2008

30 April 2007

31 October 2007

(Unaudited)

(Unaudited)

(Audited)

£

£

£

REVENUE

1,187,552

 954,329 

2,103,627 

Administrative expenses

971,053

 746,403 

1,457,035

Foreign market set up costs

7,766

-

152,609

208,733

 207,926 

493,983

Other operating income

50,000

6,961 

14,632 

OPERATING PROFIT

258,733

214,887 

508,615 

Finance income

28,676

26,756

55,279

PROFIT BEFORE TAXATION

287,409

241,643

563,894 

Underlying profit on ordinary activities

295,175

241,643

716,503

Foreign market set up costs

(7,766)

-

(152,609)

287,409

241,643

563,894

Taxation

(71,852)

 (60,410) 

  (151,931) 

PROFIT FOR THE PERIOD AFTER TAXATION

215,557

 181,233 

411,963 

EARNINGS PER SHARE

Basic

1.85p

1.59p

3.59p

Diluted

1.83p

1.56p

3.55p

SpaceandPeople PLC

Statement of Changes in Equity

For the six months to 30 April 2008

Share Capital

Share Premium

Special Reserve

Retained Profits

Total Equity

£

£

£

£

£

Six months to 30 April 2008

(Unaudited)

At 1 November 2007

114,620

13,630

232,809

751,488

1,112,547

Shares issued 

1,930

252,276

-

-

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

116,550

265,906

232,809

772,767

1,388,032

Six months to 30 April 2007

(Unaudited)

At 1 November 2006

114,000

-

232,809

510,525

857,334

Shares issued 

120

1,380

-

-

1,500

Profit for the period

-

-

-

181,233

181,233

Dividends paid

-

-

-

(171,000)

(171,000)

At 30 April 2007

114,120

1,380

232,809

520,758

869,067

Year to 31 October 2007

(Audited)

At 1 November 2006

114,000

-

232,809

510,525

857,334

Shares issued 

620

13,630

-

-

14,250

Profit for the year

-

-

-

411,963

411,963

Dividends paid

-

-

-

(171,000)

(171,000)

At 31 October 2007

114,620

13,630

232,809

751,488

1,112,547

SpaceandPeople PLC

Balance Sheet

30 April 2008

30 April 

2008

30 April 

2007

31 October 2007

(Unaudited)

(Unaudited)

(Audited)

£

£

£

ASSETS

Non-current assets:

Intangible assets

119,161

-

136,534

Property, plant and equipment

218,493

88,440

182,597

Investment in associate

22,536

-

-

360,190

88,440

319,131

Current assets:

Trade and other receivables

1,035,399

654,083

832,271

Cash and cash equivalents

1,215,421

916,873

1,037,747

2,250,820

1,570,956

1,870,018

Total Assets

2,611,010

1,659,396

2,189,149

LIABILITIES

Current liabilities

Trade and other payables

1,001,126

680,822

926,602

Current tax payable

221,852

109,507

150,000

Total Liabilities

1,222,978

790,329

1,076,602

Net assets

1,388,032

869,067

1,112,547

EQUITY

Called up share capital 

116,550

114,120

114,620

Share premium 

265,906

1,380

13,630

Special reserve

232,809

232,809

232,809

Profit and loss account

772,767

520,758

751,488

Shareholders equity

1,388,032

869,067

1,112,547

SpaceandPeople PLC

Cashflow Statement

For the six months to 30 April 2008

6 Months to

6 Months to

Year to

30 April 2008

30 April 2007

31 October 2007

(Unaudited)

(Unaudited)

(Audited)

£

£

£

Cash flows from operating activities

Cash generated from operations

210,793

83,521

529,259

Taxation

-

-

(109,930)

Net cash inflow from operating activities

210,793

83,521

419,329

Cash flows from investing activities

Interest received

28,676

26,756

55,279

Purchase of  property, plant and equipment

(7,728)

(35,501)

(291,708)

Investment in associate

(22,536)

-

-

Net cash outflow from investing activities

(71,986)

(8,745)

(236,429)

Cash flows from financing activities

Proceeds from issue of shares

254,116

1,500

14,250

Dividends paid

(215,647)

(171,000)

(171,000)

Net cash flow from financing activities

38,469

(169,500)

(156,750)

Increase/(decrease) of cash and cash equivalents

177,674

(94,724)

26,150

Cash at beginning of period

1,037,747

1,011,597

1,011,597

Cash at end of period

1,215,421

916,873

1,037,747

Reconciliation of operating profit to net cash inflow from operating activities

Operating profit

258,733

214,887

508,615

Depreciation

59,205

15,323

40,840

Effect of foreign exchange rate changes

21,458

-

-

(Increase)/decrease in trade and other receivables

(203,128)

74,656

(103,532)

Increase/(decrease) in trade and other payables

74,525

(221,345)

83,336

Cash flows from operating activities

210,793

83,521

529,259

SpaceandPeople PLC

Notes to the Interim Report and Accounts 

For the 6 months to 30 April 2008

The Interim Report and Accounts were approved by the Board on 27 June 2008

1. Basis of preparation

The AIM Rules require that the next annual financial statements of the Company for the year ending 31 October 2008 be prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Therefore, these interim financial statements for the 6 months to 30 April 2008 are prepared using accounting policies in accordance with IFRS and International Financial Reporting Interpretations Committee interpretations that are expected to be applicable to the financial statements for the year ended 31 October 2008. The conversion to IFRS involved no impact on the income statement, balance sheet and cash flow of the Company nor on the Company's existing accounting policies as set out in the Annual Report and Accounts for the year ended 31 October 2007 which were prepared in accordance with UK accounting standards (UK GAAP).

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 240 of the Companies Act 1985. The financial information for the year to 31 October 2007 has been extracted from the statutory accounts for the Company for that period now presented to comply with the IFRS accounting policies expected to be applied in the financial statements for the year ended 31 October 2008. These published accounts in a form consistent with UK GAAP 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. The interim financial information for the six months ended 30 April 2007 has been presented in accordance with IFRS.

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 31st October, 2007.

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. Their results are therefore included in the UK results. The German office opened in October 2007 and started taking bookings in January 2008.

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. Investment in associate

During the period, the Company signed a licensing agreement with SpaceandPeople (Hong Kong) Ltd for them to provide SpaceandPeople's services in Hong Kong and Macau. The Company retain a 47.5% interest in SpaceandPeople (Hong Kong) Ltd. 

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.