Retail promotion

SpaceandPeople back in profit in return to growth

SpaceandPeople has set growth goals

Retail space promoter SpaceandPeople has returned to profit after the “difficult” Covid period of the last three years.

The stock market quoted company, based in Glasgow, said that while economic headwinds persisted, the business has seen strong top line revenue growth in the UK and Germany.

This has positively impacted into both operating profit and profit before tax and the board believes that there is further sustainable profit growth to come in future years as it executes on the strategic growth goals for the group.

Chairman George Watt said management is clear on the strategic growth opportunities in the UK and Europe and is backed by the required capital, resource, skills and ambition.

“A major focus during 2024 will be on retaining the group’s contract to provide services to Network Rail, where a tendering process has now commenced,” he said.

“The business remains strongly cash generative which has limited capital expenditure needs and, as I have noted previously, we will look to return to paying dividends at a suitably prudent time when distributable reserves permit.

Chief executive Nancy Cullen said it has been “a good year for SpaceandPeople and one in which we have regained momentum and confidence across the UK and Germany.

“We are also delighted to be reporting a return to profitability, without Government support, for the first time since 2019. These results have been achieved through the incredible hard work, resilience and determination.”

Group revenue was £5.8 million, an increase of 24% from 2022, with the UK recording revenue growth of 16% in promotions and 27% in retail and German retail recording revenue growth of 43%.

EBITDA came in at £548,000 (2022: £323,000 before non-recurring charges). Operating profit was £239,000 (2022: loss of £9,000 before non-recurring charges).

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