Shopping mall contract
British Land deal for SpaceandPeople
SpaceandPeople, the Glasgow-based promotions group, has signed a multi-year contract to manage space at BL’s Drake Circus Shopping Centre in Plymouth.
The company expects the contract to cover the majority of British Land’s retail portfolio in due course.
The Aim-quoted company manages promotions in high footfall venues such as shopping malls and rail stations. Its portfolio includes Meadowhall, Sheffield; Ealing Broadway, London; Old Market, Hereford; Glasgow Fort, Glasgow; Fort Kinnaird, Edinburgh; Teesside, Stockton-on-Tees; Broughton, Chester; and New Mersey, Speke.
Speaking about the deal with British Land, Matthew Bending, chief executive, said: “This is a significant win for SpaceandPeople, and will complement our existing business.”
The company also announced a trading update in which it said the second half of 2015 was in line with management expectations.
Profit before tax attributable to shareholders for the year is forecast to be about £1 million.
Whilst this is slightly below current market expectations, the principal reason for this is due to a delay in one element of its promotional revenue which means the deferral of £150,000 from 2015 to 2016.
The company said: “The decision to account for revenue in this manner gives management better sight of future revenue and will be the standard accounting treatment applied to this type of revenue going forward.”
During the period the company decided to accelerate its investment in France.
Despite these decisions, basic EPS is expected to be in line with market expectations at 4.3p and as a result, the board intends to propose a final dividend of 2.2p per share. This is a 10% increase on the 2p dividend paid in April last year.
Net cash as at 31 December was £750,000 plus an additional £400,000 held in escrow (2014: £1.6m).
Mr Bending said 2015 has been a transitional year for the business. “The Company continues to progress and with the announcement of a new relationship with British Land we have had a positive start to 2016.”
Final results for the year ended 31 December 2015 will be released on 29 March with the Annual General Meeting being held on 28 April.