INTERIM REPORT AND ACCOUNTS 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:

Billings up 23% to £6,441,000 (2007: £5,251,000)
Revenue up by 24% to £1,188,000 (2007: £954,000)
Profit before tax up 19% to £287,000 (2007: £241,000)
EPS up 16% to 1.85p (2007: 1.59)
Germany profitable in first six 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 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
Chairman
June 20, 2007

The full results are available on request, anyone interested should write to:

SpacenadPeople
141 St James Road
Glasgow
G4 0LT

David Henderson-Williams	Chairman	Tel: 0207 182 1840
Matthew Bending	Chief Executive Officer	Tel: 07872 666418
AIM Dealing Code	Stock Exchange Code:	SAL

 

© SpaceandPeople plc 2007	Site Usage Conditions	Privacy Policy