Trading update
​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.
SpaceandPeople is engaged in the marketing and selling of promotional and retail licensing space on behalf of shopping centres and other venues throughout the U.K. and Germany and also in India. Co.'s segments include promotional sales and retail, and other. Through its subsidiaries, Co. is involved in licensing of intellectual property, media, and leasing of retail merchandising units.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.