SpaceandPeople

www.spaceandpeople.com TICKER: SAL     EXCHANGE: AIM

SpaceandPeople sells promotional and retail space in high footfall venues in the UK and Germany, and also in India via an associate company. In addition, Retail Profile (a 100% sub of SpaceandPeople) has a licence agreement with Retail Profile Russia who has contracted with shopping centres (owned by IKEA) for retail merchandising units (RMUs) subletting in their Russian shopping centres.

LATEST REPORTS

 
The benefits of experience
Published: Mar 26 2018

The Group provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m).
FY17 results confirmed the anticipated recovery vs FY16, attributed to a strategic focus on core UK and German operations. Appropriately for a business which capitalises upon footfall rather than underlying retail trends, brand experiences were SAL’s largest source of revenues last year. Client wins both during 2017 and post the year end have enhanced its venue portfolio and the potential attractions for major brands. SAL venues now include Network Rail, Broadgate Estates and an extended list of Landsec properties.
Profit before tax attributable to shareholders was £1.2m (FY16 £0.1m before non-recurring costs).  That was driven by stronger performances by UK brand experiences, MPKs and German RMUs. Net revenue was 3% up at £10m, gross margin by 20% to £6.6m, which reflected administrative cost savings secured in FY16, maintained in FY17. 
Operating profit was £1.2m, a £1.1m underlying improvement after non-recurring costs, as inherent operational gearing steered revenue growth to the operating line. There was a parallel improvement in underlying cashflow i.e. £2.4m net cash generated from operating activities (FY16: £0.4m). That enabled SAL to repay all outstanding debt. Year-end net cash was £2.66m, an underlying £1.6m improvement y o y, net of £0.7m due to clients, paid post the year end. A proposed 1.5p/share final dividend is equivalent to a 4.4% prospective yield. 
FY18 should continue to benefit from recent refocus on core UK and German operations, plus ongoing efforts to work existing Retail Merchandising Units (RMU) and Mobile Promotions Kiosk (MPK) installations to improve occupancy and sales rates. The strategy aimed to establish more a diversified, sustainable revenue and profit base, less dependent on any single market or client. Both, combined with significant growth in brand experience revenues are features of the FY17 results and our forecasts.
 
Positive update, dividend resumption
Published: Jan 15 2018

SpaceandPeople (SAL) provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m).
This morning’s pre-close trading update confirmed that SAL’s FY17 finished on a positive note. A strong final quarter meant that both pre-tax profit and cash generation were better than anticipated, and the latter prompted a proposed 1.5p/share final dividend, vs our 1.0p/share forecast.
Although FY17 overall should be broadly in line with expectations, year-end adjusted net cash of £1.9m (FY16: £0.4m net cash) is c £0.2m better than we had forecast. SAL has repaid all outstanding debt over the last 12 months despite a relatively challenging retail environment, but can still access £1.25m of undrawn facilities if required. 
Whilst UK Promotions and German RMUs are likely to have been among the stronger areas in FY17, other components of SAP’s operations in Germany remain weak.  We have reduced our FY18 forecast to reflect possible costs, related to prospective rationalisation and restructuring of that business. As, however, we don’t expect that to materially impact the group’s distribution capacity or indeed appetite, we forecast another 1.5p/share dividend for FY18.
Restoration of the dividend moves the shares onto a prospective 4.5% yield, covered by forecast EPS and cash generation, both of which have been beneficiaries of recent focus on improving individual divisional profitability and productivity, to create sustainable revenues and margins. The results should provide clarity on country and divisional performances, as well as progress on the roll out of Mobile Promotions Kiosks, and Brand Experiences on behalf of significant new clients secured over the last 18 months. The £1.9m year-end net cash represents significant underpinning for the shares at the current price, and reassurance regarding SAP’s ability to deliver its planned strategy.
 
Compelling evidence of recovery
Published: Sep 25 2017

The group provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m).
We think that today’s interims are most reassuring. Last year’s reorganisation cut costs and has improved productivity, a direct result of which is a positive contribution from each division in H1.
More streamlined operations are better placed to profitably deliver services to clients which, based on recent trading, appear to remain highly relevant to retailers and brands. The outlook is underpinned by additions to the client list over the last year, H1 performance and a positive start to the typically stronger second half.
UK promotions (up 20% y-o-y in H1) benefited from reorganised UK sales and progress on the Network Rail contract, and included a 38% increase in Brand Experience activity. German Retail contributed £0.09m profit vs breakeven last year, as it renegotiated rents paid, and achieved higher occupancy rates and average sales.
As recovery continues to take shape and help restore management credibility, it should progressively be matched in the share price and rating. We have held our forecasts from May for now, but regard these as conservative in the context of progress since, and expect to review them as SAL updates on trading. Restoration of the dividend is another important milestone. 
 
Continued turnaround in fortunes
Published: May 12 2017

The group has issued a positive trading statement, which covers the first four months of the current year. It suggests that actions taken by management over the past 12-18 months have progressively steadied the ship. 
UK Promotions made a better than anticipated start to the year, and SAL has renegotiated its German retail division’s contract with ECE, which will reduce rental charges.  That combination of higher revenues and lower costs results in projected FY17 pre-tax profit which is above our previous forecasts, and year-end net cash of c £1.25m. 
SAL has built on the beneficial effect of restructuring during 2016. With a full staff complement and a stronger client list it traded well in January, which has put it back on track after a slower finish to 2016 prompted a more cautious outlook.  
We have upgraded our FY17e pre-tax profit forecast to £1.1m (£0.7m previously), post-tax profit to c £0.8m, and basic EPS to 4.3p. We expect strong cash generation to continue. 
Although the statement expressed confidence that the strong start to 2017 will be maintained throughout the year, we have held our dividend forecast. The projected distribution is comfortably covered, but we expect management to revisit this as the year progresses. Group trading/revenues are weighted towards the second-half, so any decision in that respect will await clarity on H2 trading. 
The update prompted a 45% increase in the share price.  Management is gradually regaining investor confidence, so further positive news regarding sales and margins should generate further outperformance and a commensurate improvement in the rating.
 
Building on solid UK presence
Published: Mar 27 2017

SpaceandPeople (SAL) provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m). It provides a range of strategies and introduces retail and other brands which fit specific opportunities.
FY16 results were in line with the previously advised impact of a volatile trading period, which also included closures (S&P+), cost cuts and the one-off cost of a pilot mobile promotions kiosk (MPK) project in France. Beneath these, however, is evidence of progress vs a shortlist of strategic objectives designed to create a business model which is as robust and sustainable. Recent contract wins should strengthen the group’s competitive positioning and drive the benefits of a renewed focus on activities which fit its skillset, and optimise available management and financial resources. 
Pre-tax losses (attributable to shareholders) were c £0.6m, or breakeven without some substantial one-offs - £0.7m of non-recurring costs - related to actions taken to reduce the cost base, carry out a pilot MPK project in France and close S&P+ in July. Actions taken to cut group running costs sought to bring them in line with the reduced business scale. SAL cut expenses by £0.6m pa, including lower payroll costs in retail and administration positions, and knocked another £0.1m off IT, travel and logistics. There was a 16% fall in like-for-like administrative expenses to £5.6m, which principally reflects restructuring in FY15, with some additional savings. Average employee numbers fell 14 to 118 in FY16 as the commercial and telesales staff complement was cut, mainly related to the S&P+ closure.
The FY17 statement remains relatively cautious, but looks ahead to more positive reports and confirms a strong start to 2017. As the group is emerging from a turbulent period we have taken a conservative view. Our forecasts do not include any material turnaround by weaker parts of the operation in Germany and assume steady performances by the group’s better placed UK segments.
The outlook is, however, underpinned by new venues added to a portfolio which extends to shopping centres, retail parks, leisure assets, major railway stations and airports. The next six months is arguably about restoring credibility and investors’ faith in management ability to deliver the kind of performance which will enable it to resume distributions. Evidence that the worst is behind SAL will be reflected in a higher share price and improved rating. 
 
Deeper foundations post restructuring
Published: Jan 12 2017

SpaceandPeople provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs.
We have trimmed our revenue forecasts to reflect the content of the pre-close update, but still anticipate a £0.7m adjusted profit in FY ‘17. Q4 ‘16 was slower than expected, with some installations delayed into the current year and more non-recurring expenses related to restructuring (which has cut ongoing costs). The result is a £0.7m shortfall in FY ‘16 revenues vs forecasts, pre-tax profit c £0.43m below expectations, but the FY ‘17 bottom line will benefit from materially lower running costs and new venues.
Divisional performances were mixed. Revenues from UK/German promotions and German retail were in line with management expectations, but UK Retail Merchandising Unit (RMU) sales were well below forecast and demand over the important Christmas period particularly weak. MPK revenues were also below budget, although partly due to delays in the scheduled roll out into new venues into 2017 where sites were not yet available. At £1.6m MPK revenues were still 138% up on the prior year. 
The prelims should confirm a more positive FY17 outlook, underpinned by new venues including two shopping centres, leisure assets and three Network Rail stations. SAL renewed its promotional contract with MEC in Germany until December 2017 and reported a pipeline of other potential gains.
Our forecasts take these into account, but assume loss of venues where contracts are due for renewal in FY17, a flat performance by UK retail and lower revenue from German retail during the last year of the existing contract with ECE. That conservative outlook puts the group on track to deliver £0.7m adjusted FY17 pre-tax profit, 2.5p/share EPS and restore distributions at the year end.
 
View the Results Webinar
Published: Sep 30 2016

You can now hear Matthew Bending, Chief Executive Officer, and Gregor Dunlay, Chief Financial Officer, present the interim results for SpaceandPeople and answer investor questions.

To view simply click on the video below.

ARCHIVE

2016
Playing the long game
Published: Sep 26 2016

SpaceandPeople's (SAL) underlying first-half performance was broadly in line with H1'15, excluding costs associated with closing S&P+ and running the MPK pilot project in France. SAL reported a £0.17m adjusted H1'16 pre-tax loss (H1'15: £0.06m profit) from continuing operations. The decline vs the comparable period mainly relates to declines within German operations as contracts fell away, and the c £0.1m upfront costs of the pilot MPK project for Immochan in France. 
Future growth pivots upon the UK MPK and Pop Up kiosk programmes, while SAL will continue to source and develop new products with client appeal. In order to offset a more uncertain retail backdrop the group has decided to step up investment in its MPK programme next year.
The statement referred a more subdued trading period since the half-year end, which SAP believes is in common with the experience of other retail related businesses. We take a cautious view of the short-term UK retailing environment, particularly as Brexit adds uncertainty to the economic outlook. We have cut our FY'16 and FY'17 forecasts which puts the shares on an 11.6x prospective FY'17e EPS. We expect the group to have net cash at the end of the current year, and invest in the acceleration of the UK MPK roll out to underpin prospects for FY17 and beyond.
NB We will be hosting a webinar with the management of SpaceandPeople on Wednesday the 28th September at 12.45pm. In order to register please click here.
Trading update
Published: Jul 01 2016

SpaceandPeople provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m). 
The group confirmed today that its core retail and promotions businesses in UK and Germany are trading in line with expectations. However, FY16 will be affected by closure of the group's 51% owned above-the-line advertising support company S&P+, where cancellation or delay of two substantial deals expected to be booked last month led it to conclude that the subsidiary's outlook did not justify further financial support. 
Although such news is disappointing, it does not affect other areas of group operations. Both the promotions and retail businesses trade in line with management expectations and our forecasts.
We have adjusted our FY16 forecasts for an anticipated £0.2m loss at S&P+ (vs previously a £0.18m forecast profit) and c. £0.28m write-off of SAL's loan to S&P+ and other intercompany debt (net of minorities). Lower revenue forecasts reflect the loss of S&P+'s contribution, but the impact is otherwise non-cash, and mostly one-off.
At 40p/share the valuation currently discounts considerable risk, and should be underpinned by a high prospective yield. We still expect the group to finish FY15 with net cash.    
View the Results Webinar
Published: Mar 31 2016

You can now hear Matthew Bending, CEO, and Gregor Dunlay, CFO, present the FY15 results for SpaceandPeople and answer investor questions.
To view simply click on the video below.
Recent contract wins underpin outlook
Published: Mar 28 2016

The group provides property owners with ways to capitalise upon the full commercial potential of retail assets. It markets, sells and administers free space in venues including shopping malls, garden and city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m).
FY15 profit matched expectations despite a tough retail trading environment for all divisions. Underlying adjusted pre-tax profit was broadly in line y-o-y at £1.1m, excluding £0.4m of non-recurring costs in FY14.
Headline revenues were below forecast, mainly due to the impact of weaker GBP/EUR on German income and lower sales at 50% owned S&P+ relative to a strong FY14 bolstered by one very large contract. Basic EPS was 4.26p (FY14: 3.91p) and the recommended FY15 dividend 2.20p (FY14: 2.00p).
The two new UK clients underpin the outlook. SAL has an exclusive long-term contract to carry out promotional activities in Network Rail's UK stations and recently announced a new contract with British Land which provides access to one of the leading UK shopping centre and retail park portfolios. 
The MPK roll out, from a virtual standing start last year, had 56 operational units at the year-end in UK and Germany, with a target of at least 80-90 by end FY16. In addition, the pilot project in France with Immochan will trial MPKs in five malls this year, and provide a possible expansion route into a valuable new market. 
Overall, we expect this revenue to outweigh business reversals and margins to grow progressively as revenues scale up, due to increased focus on more profitable operations. The shares look attractive on a twice-covered 4% prospective FY16e yield, at 11.3x FY16e PER, falling to 9.7x in FY17e, on relatively cautious predicted earnings growth.   
NB the CEO and FD will host a webinar at 1.15pm tomorrow (Wed 30th): Click here to register

Trading in line, new contract sets up FY 2016
Published: Jan 31 2016

SpaceandPeople provides retail property owners with ways to capitalise upon the full commercial potential of their assets. It markets, sells and administers space in a range of venues including shopping malls, garden centres, city centres, retail parks and travel hubs
A positive pre-close update today has confirmed that underlying FY15 results will be in line with expectations, and significant new business wins are transforming the outlook.
H2 2015 trading was in line with forecasts. FY15 pre-tax profit attributable to shareholders is expected at c. £1m, slightly below prior estimates, although this was not due to lower business volumes. Brokered deals generate commission-based fees, recognised when contracted. This deferred £0.15m of revenues previously expected to be recognised in Nov/Dec into early 2016.
The statement included details of another ''significant win'' for the Group (CEO), and further evidence of how prospects have been transformed over the last 12 months. SAL has secured a new contract with British Land, one of the UK's leading retail shopping centre owners and operators.
Basic EPS is expected to be nearer prior forecasts at 4.3p, due to a lower tax charge and SAL indicated its intention to propose a 2.2p/share final dividend, 10% up y-o-y.
2015
Reset for growth
Published: Sep 20 2015

SpaceandPeople provides property owners with the means to capitalise upon the full commercial potential of their assets. It markets, sells and administers space in a range of venues including shopping malls, garden centres, city centres, retail parks and travel hubs (over 750 venues with a weekly footfall of 70m). 
Yesterday's interim results reveal improved financial stability which provides a good base for an emerging turnaround. Profitability improved as restructuring in 2014 assisted operating margins. Net profit attributable to shareholders was £12,000 for the period vs a £0.29m H1 14 loss, and they say that the FY15 outlook is in line with expectations. 
The Company has four key growth drivers: (a) addition of new venues; (b) selling more to each; (c) increased pricing for sales to promoters and occupiers and (d) higher commission rates for group services. Measured by these criteria the group made progress vs H1 2014.  Network Rail and Auchan are potentially significant new clients, while band experience events for existing clients are well up on prior years.
We think that our forecasts are conservative; assuming contracts due to expire are not renewed and build in no additional new business beyond that announced to date. We have taken into account costs of initiatives such as the French pilot, but no contribution to sales from this source in FY16. Similarly Network Rail makes a modest contribution in Q415 and FY16, but recruitment to manage the contract is absorbed up front. On that basis, the shares at 13.9x FY16 earnings with a well-covered 3.3% prospective FY16 yield, do not discount any positive surprises over the next 12 months.
Building up a head of steam
Published: Sep 04 2015

SpaceandPeople provides property owners with the means to capitalise upon the full commercial potential of their assets. It markets, sells and administers space in a range of venues including shopping malls, garden centres, city centres, retail parks and travel hubs.
Indeed recent share strength has come from confirmation of the group's appointment by Network Rail on an exclusive five year contract from 1 October to promote brands across all UK Network Rail stations. That represents an estimated annual footfall of one billion people and significant potential source of new business for the group.
New business secured this summer provides reassuring revenue visibility. That's not just Network Rail, but also an exclusive one-year agreement in June which covers Brand Experience sales management at thecentre:mk in Milton Keynes.
The strong recovery in the Group's value since April is recognition of the value of management's efforts to streamline operations over the last two years, and provides independent verification of the group's status as a leading provider in its experiential media niche. Looking forward, we regard our forecasts as conservative but still leaving the shares well underpinned at current levels, plus the potential for positive updates if that cautious stance proves too pessimistic.
SpaceandPeople - ED Investor Forum 25th March 2015
Published: Mar 27 2015

Matthew Bending, CEO, presents on behalf of SpaceandPeople.
Back on track
Published: Mar 22 2015

SpaceandPeople helps asset owners commercialise public space within their portfolios. It acts as a middle man between one group, a client base of retail and other commercial property landlords,  and  another being retailers and brand owners.
After a testing start a stronger second half resulted in pre-tax profit at the top end of guidance. H214 saw an underlying pick-up in core businesses and the initial benefit of action taken to streamline operations. The full impact of the latter will be seen this year.
Adjusted operating profit was £1.14m (FY13: £2.28m) excluding non-recurring costs. Profit before tax, adding back non-recurring costs, less minorities was £1.01m (FY13: £2.62m). We expect £1.24m this year, with some improvement in margins from cost cuts, although the y-o-y comparison is skewed by a different sales mix - as in FY14 - due to notably faster growth from S&P+ relative to other components of the group.
We see potential for stepped growth in the rebased dividend over the next two years, well covered by earnings growth even based upon our conservative growth forecasts. Positive newsflow over the next six to 12 months would add to the momentum. 
Amendment - updated note which contains a small upwards amendment to our previously published adjusted profit and EPS forecasts. This does not affect our underlying investment case. 
2014
Cautionary trading update
Published: Apr 21 2014

SpaceandPeople leases, manages and markets space in venues throughout the UK, Germany, India and Russia. The company helps retailers and venue owners place unique merchandise and specialised services in high footfall spaces.
A decline of 39% in SpaceandPeople's value in late trading on Thursday 17th April was triggered by a warning that full year profits were expected to be £1.4m lower than previously forecast, at £1.5m.
The update also reminded us that the balance sheet remains in a healthy state, despite the trading shortfalls. Net cash should be in excess of £1m at the end of 2014, and available long term facilities amount to £2m. 
The core business appears intact, albeit with expected revenues much delayed, and the balance sheet affords the company time to win that business, assisted by further tight cost control that was already a feature of the 2013 results. However, confidence will take time to return to the shares and investors will seek confirmation of contract wins and revenues before affording the rising multiples that had been a feature of recent years. 
Growth, cash flow and dividends
Published: Mar 24 2014

SpaceandPeople leases, manages and markets space in venues throughout the UK, Germany, India and Russia. The company helps retailers and venue owners place unique merchandise and specialised services in high footfall spaces.
They have reported strong FY'13 results, ahead of market consensus on most metrics. Furthermore, FY'14e has started well so we expect double digit revenue and EBIT growth, plus continuing strong cash flow in the year.
Net revenues were ahead +12% at £14.57m, Clean adjusted net profit and Basic EPS, both +19% at £1.97m and 10.11p respectively, plus the company's net cash position some +125% better, at £1.9m. 
During 2013 SAL won a number of new contracts, including St Pancras International, The Garden Centre Group, One New Change and Corio GmbH, such that during FY'13, the company delivered over 14,000 (10,000) unique promotions & kiosks in over 750 (700) venues. The outlook for FY'14 is for further promotional and venue gains.
On 13.8x FY'14e earnings and 8.0x EV/EBITDA, these are undemanding multiples for Europe's leading experiential marketing specialist. Indeed putting the company on 10x EV/EBITDA equates to a share price of 180p, which we see as fair value (trading at 147p currently).
2013
Germany takes the baton
Published: Sep 08 2013

SpaceandPeople is the UK and Germany's leading facilitator of experiential marketing and temporary, in-mall retail sales. It has just released interim results for the 6 months to 30 June 2013, which show strong organic growth.
Revenues are up 29% to £6.66m, EBIT up 50% to £657k, PBT up 60% to £613k and Basic EPS up 74% to 2.45p. H2 is likely to be a lower growth period, but cash flow could be much stronger.
Germany has taken up the growth baton: the divisions there delivered very strong organic revenue and operating profit growth, compensating for the weaker UK retail environment.
Trading on an undemanding 13x FY'13E earnings and yielding over 3%, we believe the shares remain attractively valued versus our 150p target level.
Double digit growth to continue
Published: Apr 09 2013

SpaceandPeople leads the way in developing the concept of space as an advertising and promotional medium, with the primary objective of maximising revenue potential from underutilised, available, floor space, in high footfall consumer situations such as shopping centres and retail parks

Recent 2012 results confirmed our expectations that the Group is growing at a double digit rate and that this is likely to continue for the foreseeable future.

The first quarter of 2013 has traded well, which gives us confidence to publish our updated, full year forecasts. We expect over 20% organic earnings growth, giving adjusted EPS of 10.35p in 2013.

We also expect dividend growth of 15%, highlighting both the Group's on-going requirement to invest in the business, and management's optimism for the future. Thus we reiterate our fair value on the shares of 150p, versus 106p today.
Pulling the crowds in
Published: Jan 25 2013

SpaceandPeople plc is the UK and Germany's leading facilitator of Experiential Marketing and temporary, in-mall retail sales, with businesses also developing in India and Russia. 
Today's update that the Company expects results for the full year to be in line with market expectations is encouraging and a reminder of both their strong market position and the attractive low ratings that the shares still trade on. 
Trading has been strong from existing clients and well regarded new partners such as Land Securities, Capital Shopping Centres and German heavyweights MEC.
In their main markets: UK venue sales rose by 16% to £21.4m and net income rose 5%; German venue sales rose by 52% to EUR10.1m and net income by 70%.
Final results are expected on March 25th and we retain our fair value target for the shares of 150p, versus 94p currently.
2012
The Experiential specialist
Published: Dec 04 2012

SpaceandPeople plc is the UK and Germany's leading facilitator of Experiential Marketing and temporary, in-mall retail sales, with businesses also developing in India and Russia. 
It is exceptionally well placed in the new media arena, occupying the number one position in space bookings for Experiential Marketing campaigns. These allow customers to engage and interact with brands, products and services in sensory ways which other marketing avenues do not allow.
They work mainly on an exclusive basis with large, blue chip, property and venue owners like Land Securities, Capital Shopping centres and today, METRO-ECE.
With a strong growth outlook and firm capital base, yet its undemanding valuation and high, well covered dividend, we attribute a near term value for the shares of 100p. Longer term, we put a fair value on the shares of 150p, representing significant upside from 83p today.
Still on growth path
Published: Mar 26 2012

SpaceandPeople sells promotional and retail space in high footfall venues in the UK and Germany, and also in India via an associate company. Retail Profile (a 100% sub of SpaceandPeople) has a licence agreement with Retail Profile Russia who has contracted with IKEA owned shopping centres for RMU subletting in their Russian shopping centres.
Today they have reported profit after tax of £1.2m despite operating in a tough UK market and experiencing slower than expected roll out in Germany. The proposed dividend, of 2.9p per share, is in line with expectations and represents an 11.5% increase on 2010. 
Our revised forecasts still suggest that the Group can deliver over a third growth in PAT this year and so fund a 12% increase in the dividend while bringing the pay-out ratio back to a more reasonable 35% (versus 60% in 2010 and 47% in 2011). 
Currently the shares yield 4.4% on the proposed 2.9p dividend for 2011. At our unchanged target price of 92p / share the Group would still trade on a multiple of only 10.7x 2013 EPS. 
No news is good news
Published: Feb 07 2012

SpaceandPeople sells promotional and retail space in high footfall venues in the UK, Germany, and India (via an associate company) 
They should report their full year 2011 results in March. As per our earlier notes, we are forecasting post tax profit of £1.3m, fully diluted EPS of 6.4p (27% above the reported 2010 figure) and a 10% increase in dividend to 2.9p per share.In the absence of a post-close trading statement, we believe it fair to assume that full year results are therefore likely to be around market expectations. 
Publication of the results should then focus market attention on the group's growth prospects : at our target price of 92p the shares would trade at a 5% discount to the agency subsector of media and still have a dividend yield of 3.2% 
2011
Visible evidence of success
Published: Sep 19 2011

SpaceandPeople (S&P) sells promotional and retail space in high footfall venues in the UK, Germany, and India (via an associate company). In addition, Retail Profile (a 100% sub of S&P) has a licence agreement with Retail Profile Russia who has contracted with shopping centres (owned by IKEA) for RMU subletting in their Russian shopping centres.

Strong results today saw net revenues rise by 20% in H1 2011 versus H1 2010. Our full year forecasts remain unchanged (diluted EPS of 6.41p) based on a normal seasonal split, continued growth in the UK business and expansion of the German retail operations.

Set fair
Published: Aug 05 2011

SpaceandPeople sells promotional and retail space in high footfall venues in the UK and Germany, and also in India via an associate company. In addition, Retail Profile (a 100% sub of SpaceandPeople) has a licence agreement ) for retail merchandising units (RMUs) subletting in their Russian shopping centres.
 
Over the last 12 months they have successfully delivered the acquisition and integration of Retail Profile, a move of business premises, and won and begun the roll out a new business line in Germany. With most integration now completed, the directors can now focus increasingly on the roll out of the RMU business in Germany and new products to the UK businesses.
 
At 69p the stock currently trades on a PE multiple of 8.5x in 2012 while the agency subsector of media is trading at c.12.5x. Even applying a 10% discount to this mark, given execution risk, that would still imply a significant rerating upside to the shares.
 
We set a short term fair value of 92p per share versus current 69p. It is also worth noting that even at that level there would still be attractive dividend yield support