SpaceandPeople facilitates and manages space for promotional campaigns and retailing in shopping centres and other locations with high footfall, such as theme parks and railway stations. Its core operations are in the UK and Germany, complemented by a small and growing French operation, along with a joint-venture in India.

• Promotional and retail space specialist

  Via contracts with venue owners, SpaceandPeople helps marketers and retailers to rent space within high footfall locations. Clients can currently book space in over 750 venues across the UK and Germany and which have a combined weekly footfall of 70 million people. Recent innovations which are driving growth include the provision of “pop up” retail kiosks and Mobile Promotions Kiosks.

• Recent profits warning announced but underlying trading on track

  On 1st July 2016, SpaceandPeople announced to the market that it would take a one-off hit to the 2016 accounts following the decision to close its 51% owned subsidiary S&P+. However, and perhaps most importantly, the core UK and German businesses are trading in line with expectations. In addition, a recent trio of significant contract wins with major clients provide good growth opportunities for 2016 and beyond.

• Low valuation and bumper dividend yield provide potentially attractive entry point

  At the current price of 38.75p, SpaceandPeople shares trade near all time lows, and even below the 2004 IPO price of 50p. Given the progress made since then, combined with a forecast forward PE multiple of just 7.3 times and an attractive dividend yield of 6.7%, we see a good potential entry point at present. The company is also cash generative and had net cash of £0.72 million as at the last balance sheet date, c.10% of the current market cap.

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