Preliminary Results

RNS Number : 5317A
SpaceandPeople PLC
27 March 2017
 

SpaceandPeople plc

 

 ("SpaceandPeople" and the "Company")

 

Preliminary Results

 

SpaceandPeople, the retail, promotional and brand experience specialist, is pleased to announce its preliminary results for the 12 months ended 31 December 2015.

 

Financial Highlights

 

·      Gross revenue of £22.9 million

·      Net revenue of £9.7 million

·      Profit from continuing operations before taxation and non-recurring costs attributable to shareholders of £60k

·      Basic Earnings per Share before non-recurring costs of 0.3p

·      Net cash at year end of £384k

 

Operational Highlights

 

·      British Land contract won

·      Successful first year of Network Rail relationship

·      86 Mobile Promotions Kiosks in operation by the year end

·      Cost reduction programme completed

 

Contact details:

 

SpaceandPeople Plc

0845 241 8215

Matthew Bending, Gregor Dunlay


 

Cantor Fitzgerald Europe

 

020 7894 7000

David Foreman, Will Goode (Corporate Finance)


David Banks, Alex Pollen (Sales)


 

 

Chairman's Statement

 

2016 proved to be a challenging year for SpaceandPeople in a number of respects. Your Board has endeavoured to meet these challenges, and more importantly has taken action to ensure that the Group has a more focused and sustainable business model for the future.

 

Overall, the Group made a loss before taxation, attributable to the shareholders of the business of just over £0.6 million for the year ended 31 December 2016; the underlying trading position was break even with a number of non-recurring costs contributing to the loss. 

 

We experienced challenges in the retail environment in both the UK and Germany, with the RMU business trading at a significantly lower level than expected. Promotional business also suffered in Germany with the loss of long term ECE income. Our response in the UK has been to implement both overhead cost reductions and efficiencies which should allow us to trade profitably on a sustainable but lower revenue base. In Germany, the RMU contract with ECE has been restructured, to ensure that revenue sharing and costs are both realistic for the lower business base for 2017. 

 

We also took the decision in June 2016 to close S&P+, due to a poorer level of performance than forecast from this joint venture, and to ensure that there would be no further cash outflows from this business. A major part of the discontinued costs of £0.5 million were non-cash in nature. A similar decision was taken regarding the French pilot venture where we were offered insufficient opportunity to cover any further roll-out costs.

 

These decisions will allow the executive team to focus on the core UK business where there are promising signs of early growth in 2017. The MPK roll-out programme has continued and profits from this in the UK are increasing and growing. The Network Rail contract has offered us further opportunities to grow our revenue base and venue space, within the framework of a secure long term contract. Earlier this year, we announced a contract win with Primesight, which will deliver airport commercialisation space and complements the rail venues we operate from. We have also gained a new contract from British Land which includes space in retail parks as well as shopping centres, and our range of products including MPKs and food units continues to grow in popularity. We are in ongoing negotiations in respect of a number of good quality venues.

 

Overall, with a clearer focus, a better integrated venues and sales teams, a lower cost base and good quality business opportunities, we expect to be able to return the Group to a sustainable level of profitability in 2017, and trading for the first two months of the year has been ahead of management expectations.

 

We look forward to the future with greater confidence.

 

 

Charles G. Hammond

Chairman

24 March 2017

 

 

Strategic Report

 

Principal Activities

 

The principal activity of the Group is the marketing and selling of promotional and retail licensing space on behalf of shopping centres and other venues throughout the UK and Germany and also in India.

 

Review of Business and Future Developments

 

The results for the period and the financial position of the Group are shown in the financial statements.

 

The review of the business and a summary of future developments are included in the Chairman's Statement, the Chief Executive Officer's Review and the Operating and Financial Review.

 

Principal Risks and Uncertainties

 

The principal risks identified in the business are:

 

Loss of client - Each year a number of the Group's contracts with clients come to an end. At this point, some are renewed, some are not renewed and others are renegotiated. When the amount of business that we transact with an established client reduces, it can take time to replace this income with business from new clients. The Group is not overly reliant on any single client and the loss of a significant client, although unwelcome, would not put the viability of the business at risk.

 

Loss of key personnel - The unexpected loss of a member of our senior management team could have a negative effect on the business in the short term, however, we have a management team of six members who are encouraged and required to engage with and assist their colleagues in other areas of the business to ensure that understanding and exchange of ideas is a core element of their roles. This ensures that the business is not at risk while we seek to replace the member or conduct a reorganisation of the team.

 

System failure - Whilst no guarantees can be given that all possible eventualities are covered, the Group has comprehensive and strict policies and contingency plans concerning power outages, telecommunications failure, virus protection, hardware and software failure, frequent and full offsite backup of all data and disaster recovery. Contracts and service level agreements are in place with reputable suppliers to ensure that any disruption and risk to the business is kept to an absolute minimum. The adequacy and appropriateness of these policies and plans are reviewed on a regular basis. A significant hardware upgrade has been completed in early 2017 and the Group is currently implementing a new CRM system that should be fully operational during 2017.

 

Legal claims - The Group constantly reviews its exposure to possible legal claims and takes appropriate advice and action to protect both itself and its clients where any avoidable risk is identified, for example, by amending terms and conditions, service agreements, licences and risk assessments.

 

Key Performance Indicators

 

The key performance indicators are:

 


2016

Restated

2015




Gross revenue (£ million)

22.9

24.0

Net revenue (£ million)

9.7

11.4

Profit before taxation and non-recurring costs attributable to shareholders (£ million)

0.06

1.0

Basic earnings per share before non-recurring costs (p)

0.3

4.26

Proposed dividend (p)

-

2.2

Average number of Retail Merchandising Units (RMUs)

220

267

Average number of Mobile Promotions Kiosks (MPKs)

74

32

 

By order of the Board

 

 

Gregor Dunlay

Company Secretary

24 March 2017

 

 

Chief Executive Officer's Review

 

In 2016 SpaceandPeople refocussed its business on its core offering to property clients, removing unprofitable ventures and halting pilot projects overseas. A renewed focus on the UK, significant cost cutting and restructuring in our retail divisions and new proprietary software designed to speed up management information, sales processing and forecasting is now in place and I am pleased to report that 2017 has started strongly.

 

UK

 

Retail

 

The retail team faced the biggest challenges in 2016 and poor sales traction during this period led to a reorganisation of this department. The dedicated, client-facing team reduced from six to two members and is now supported by the new automated sales and management system. We do not anticipate for these significant changes to affect 2017 sales as the new systems provide a much more efficient process. The retail team have had a good start to 2017 and have already contracted over 50% of their 2017 budget.

 

Promotions

 

In 2016 we saw the Network Rail contract gain traction with the Brand Experience department, in particular, seeing significant revenue growth. The post year end addition of Primesight's MAG airport portfolio will, in our opinion, boost the team's ability to control the significant proportion of UK experiential campaigns.

 

MPKs

 

The UK MPK programme grew from 49 to 75 units during 2016 with revenue up 139% to £1.6 million. 2017 has started strongly and we anticipate having up to 100 kiosks in operation by the end of the year. The MPK and its delivery of promotional sales in a more professional manner combined with our ability to purchase, maintain, and move units is an important facet of our service delivery.

 

New Venues

 

The UK venues team delivered new venues in the form of Bromley Glades, Kirkgate Bradford and the Land Securities Leisure portfolio.

Post year end, we have announced a three-year contract with Primesight to manage all experiential activity within the Manchester Airport Group (MAG) portfolio of Manchester, Gatwick, Stanstead and three other airports. This contract combined with the Network Rail portfolio which added London Bridge, and Paddington in 2016 gives us the largest network of UK transit hubs in addition to the largest retail property estate and has potential for significant development.

 

Germany

 

Promotions

 

German promotional revenue was significantly lower at £0.9 million (2015: £2.4 million). This was due to the rundown of the ECE long term contracts, the majority of which ended in 2015 and were not renewed. We renewed our contract with MEC for a further year and this continues to perform strongly. Unlike in the UK, the team in Germany has not been able to establish the MPK programme effectively. This is due to a lack of suitable central locations due to poor centre layouts. These units will be redeployed in the UK.

 

Retail

 

The German retail business encountered a difficult year in 2016 with lower occupancy and a lower number of units in operation. This resulted in revenue falling from £2.6 million in 2015 to £2.2 million. However, with overhead reductions, the utilisation of the UK software platform and reduced rental costs of circa 50% for 2017, we anticipate a return to profitability in 2017.

 

France

 

The one year pilot programme with Immochan ended in October 2016. We were encouraged that this had proven the efficacy of the MPK system in the French marketplace, however, the management priorities of our French partner shifted and we did not feel the horizon for growth and partnership were strong enough to invest further. The units will be deployed back into the UK and the costs of £0.1 million incurred in running this pilot project will not be repeated in 2017.

 

S&P+ Ltd

 

As I noted in the 2016 Interim Results, during 2016 it was decided to close S&P+. Despite its early promise during the first two years of operation, in 2016 it encountered a significant reduction in its revenue generation and future sales potential. This, along with the resulting drag on the profitability of the core business was unsustainable and was also a significant distraction for senior management. The discontinuation of this business resulted in losses of £0.5 million in 2016 that will not be repeated going forward.

 

Cost Reductions

 

As we announced on 9 January 2017, during 2016 we took major steps to reduce the running costs of the Group and to ensure that the cost base was appropriate for the reduced size of the business. These cost reductions removed an annualised cost of £0.6 million through reduced payroll costs in the retail divisions and a reduction in administration positions, and further savings of £0.1 million in IT, travel and logistics. Combined with the £0.7 million non-recurring costs of closing S&P+ and the pilot programme in France I feel the company has the right focus and cost base to return to profitability during 2017.

 

Outlook for 2017

 

The reinforcement of our focus on the core divisions has re-energised the business. Along with the removal of costs and the implementation of new upgraded software systems this has eliminated significant sales inefficiencies and transformed management information.

 

The introduction of important and iconic new venues means we are in a strong and growing position in our market, and there is still considerable scope to grow further. Our UK venues team has a very healthy pipeline of potential new venues they are engaging with and we are hopeful that we will continue to add to the size, diversity and quality of our portfolio.

 

 

Matthew Bending

Chief Executive Officer

24 March 2017

 

 

Operating and Financial Review

 

During 2016, the main aims for the Group were to continue the process of concentrating on the core business units, develop the relationships with the significant new clients, continue the roll-out of the Mobile Promotion Kiosk ("MPK") service and continue the rationalisation of administrative expenses.

 

Progress was made on a number of these fronts with UK promotional revenue growing by 4% and UK retail revenue growing by 3% largely as a result of the Network Rail contract and further MPK roll-out respectively. However, German promotional revenue fell by 62% compared with the previous year due to a number of long-term deals finishing and not being replaced and a reduced volume of business being conducted with ECE. German retail revenue was 15% lower than the previous year as there were fewer RMUs in operation. Overall, net revenue across the Group was 15% lower than the previous year at £9.66 million.

 

By the end of 2016, we had 81 MPKs installed in venues throughout the UK and Germany (2015: 56 MPKs) with a further 5 kiosks in France as part of the Immochan pilot project.

 

The restructuring of overheads continued throughout 2016 with the streamlining of management, headcount reductions in areas of the business that had a structural decline in their revenue, new efficient IT systems and a reduction in travel and logistics costs.

 

Revenue

 

During 2016, gross revenue generated on behalf of our clients was £22.9 million, which was £1.1 million (5%) lower than like for like gross revenue in the previous year. This was due mainly to reductions in German promotional revenue where long-term deals were not renewed. Although gross revenue fell by 5%, net revenue fell by 15% to £9.7 million. Gross German promotional income fell by 35% at a net level this was a 62% reduction.

 

During 2016, UK promotions continued to perform well with Brand Experience promotions increasing by 50% to £1.3million. Regional / Local revenue fell £0.3 million (29%) although an element of this was due to revenue previously recorded as outbound sales being recorded as MPK revenue. UK retail sales were 4% higher than in the previous year. This improvement was due to an increase in outdoor and food retailing business compared with the previous year.

 

UK RMU and MPK revenue in 2016 were £3.2 million which was £0.1million (3%) higher than in 2015. Although there were fewer RMUs in operation during 2016 than in 2015 with an average of 110 compared with 133, the increase in revenue from MPKs where the number of units in operation increased from 49 to 75 more than compensated for this.

 

Administrative Expenses

 

Like for like administrative expenses of the Group fell by £1.1 million (16%) to £5.6 million. This reduction was primarily as a result of the restructuring undertaken during 2015 along with additional savings identified during 2015.

 

The average number of people employed in the business declined by 14 to 118 in 2016 from 132 in 2015 as a result of the reduction in commercial and telesales staff.

 

Profit

 

Operating profit before non-recurring costs fell to £0.1million (2015: £1.1million). As there were non-recurring costs of £0.3million, the loss before taxation from continuing operations was £0.2million (2015: profit of £1.0million).

 

Basic Earnings per Share ("EPS") before non-recurring costs fell by 93% to 0.3p (2015: 4.26p). Fully diluted EPS before non-recurring costs fell by 92% to 0.3p (2015: 3.89p). Basic EPS is calculated as profit after tax attributable to the owners of the Company divided by the weighted average number of shares in issue during the year which was 19,519,563 (2014: 19,519,563). Fully diluted EPS also takes into account the number of shares that would be issued on the exercise of outstanding share options. The weighted average number of shares used to calculate the diluted EPS was 21,168,724 (2015: 21,385,604).

 

Cash Flow

 

The Group generated £0.4 million of net cash flow from operating activities during the year (2015: £0.2 million). This was achieved by reducing the amount owed by debtors by £0.9 million during the year. During the year £0.3 million was spent on fixed assets, the majority of which was again spent on new MPKs, and a dividend of £0.4 million was also paid during the year. An additional £0.2 million was drawn down on the banking facility to part fund the capital expenditure.

 

As a consequence of these 2016 results, the Group is in technical breach of its cumulative net asset growth covenants in relation to its banking facilities. Lloyds has informed the Group that, whilst reserving its rights, it does not intend to exercise its rights in relation to these covenant breaches although no further drawdown of the facilities is permitted until the covenant breaches have been resolved. This is expected to happen when the covenants are tested again at 31 July 2017. This does not have an impact upon the Group's ability to conduct its business in a normal fashion as the current level of drawdown provides a significant level of headroom.

 

Dividends

 

The Company has had a consistent record of paying a dividend each year, however, as a result of the financial performance in 2016 the Board is not proposing a dividend during 2017. It is anticipated that dividends will resume in 2018.

 

 

Gregor Dunlay

Chief Financial Officer

24 March 2017

 

 

Consolidated Statement of Comprehensive Income

 

           

Notes

 

12 months to

Restated -

12 months to



31 December '16

31 December '15



£'000

£'000





Revenue

4

9,661

11,433





Cost of Sales

4

(4,133)

(3,947)





Gross Profit


5,528

7,486





Administration expenses


(5,618)

(6,713)

Other operating income


194

295





Operating Profit before non-recurring costs


104

1,068





Non-recurring costs

7

(289)

-





Operating (Loss) / Profit


(185)

1,068





Finance costs

8

(40)

(28)





(Loss) / Profit before taxation


(225)

1,040





Taxation

9

(44)

(197)





(Loss) / Profit after taxation from continuing operations


(269)

843

 

Discontinued Operations

10

(543)

21





(Loss) / Profit after taxation


(812)

864





Other Comprehensive income

Foreign exchange differences on

translation of foreign operations


 

104

 

(39)





Total comprehensive income for the


(708)

825

 

period








(Loss) / Profit for the year attributable to:








Owners of the Company


(660)

831

Non-controlling interests


(152)

33



(812)

864

Total comprehensive income for the




period attributable to:








Owners of the Company


(556)

792

Non-controlling interests


(152)

33

Total comprehensive income for the


(708)

825

period




 

Earnings per share

 

25



Basic - Before non-recurring costs


0.3p

4.26p

Basic - After non-recurring costs


(3.38p)

4.26p

Diluted - Before non-recurring costs


0.3p

3.89p

Diluted - After non-recurring costs


(3.12p)

3.89p

 

 

Consolidated Statement of Financial Position

 


Notes

31 December '16

31 December '15



£'000

£'000

Assets




Non-current assets:




Goodwill

13

8,225

8,225

Other intangible assets

14

21

17

Property, plant & equipment

15

1,558

1,625



9,804

9,867

Current assets:




Trade & other receivables

17

3,350

4,205

Cash & cash equivalents

18

1,584

1,723



4,934

5,928





Total assets


14,738

15,795





Liabilities




Current liabilities:




Trade & other payables

19

4,266

4,506

Current tax payable

19

(146)

18

Other borrowings

20

1,000

250



5,120

4,774

Non-current liabilities:




Deferred tax liabilities

16

90

58

Long-term loan

20

200

750



290

808





Total liabilities


5,410

5,582

 

 




Net assets


9,328

10,213





Equity




Share capital

23

195

195

Share premium


4,868

4,868

Special reserve


233

233

Retained earnings


3,762

4,747





Equity attributable to owners of the


9,058

10,043

Company




Non-controlling interest


270

170

Total equity


9,328

10,213

 

 

The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2016.

 

Signed on behalf of the Board of Directors by:

 

 

M J Bending - Director

 

Consolidated Statement of Cash Flows

 


Notes

12 months to

12 months to



31 December '16

31 December '15



£'000

£'000

Cash flows from operating activities




Cash generated from operations


335

192

Interest paid

8

(40)

(28)

Taxation


128

39

Net cash inflow from operating


423

203

activities








Cash flows from investing activities




Purchase of intangible assets

14

(25)

(15)

Purchase of property, plant & equipment

15

(308)

(690)

Net cash (outflow) from investing


(333)

(705)

activities








Cash flows from financing activities




Bank facility received 


200

500

Dividends paid

12

(429)

(390)

Net cash inflow / (outflow) from


(229)

110

Financing activities








(Decrease) / Increase in cash and cash equivalents


(139)

(392)

Cash and cash equivalents at beginning of


1,723

2,115

period




Cash and cash equivalents at end of

18

1,584

1,723

period




 

 

 

Reconciliation of operating profit to net




cash flow from operating activities




Operating (loss) / profit


(185)

1,068

Operating (loss) / profit from discontinued operation

Amortisation of intangible assets

10

 

14

(543)

 

16

21

 

16

Depreciation of property, plant &

15

328

439

equipment




Effect of foreign exchange rate moves


104

(39)

Decrease in receivables


855

16

Decrease in payables


(240)

(1,329)

Cash flow from operating activities


335

192

 

 

Consolidated Statement of Changes in Equity

 



Share


Share


Special 


Retained


Non-


Total



capital


premium


reserve


earnings


controlling


equity



£'000


£'000


£'000


£'000


interest


£'000











£'000
















At 31 December 2014


195


4,868


233


4,345


137


9,778














Comprehensive













income:













Foreign currency













translation


-


-


-


(39)


-


(39)

Profit for the period


-


-


-


831


33


864

Total comprehensive


-


-


-


792


33


825

income


























Transactions with













owners:













Dividends paid


-


-


-


(390)


-


(390)

Total transactions with


-


-


-


(390)


-


(390)

owners


























At 31 December 2015


195


4,868


233


4,747


170


10,213

 

 

Comprehensive













income:













Foreign currency













translation


-


-


-


104


-


104

(Loss) / Profit for the period


-


-


-


(660)


(152)


(812)

Total comprehensive


-


-


-


(556)


(152)


(708)

income


























Transactions with













owners:













Elimination of non-controlling interest in S&P+

Dividends paid


 

-

-


 

-

-


 

-

-


 

-

(429)


 

252

-


 

252

(429)

Total transactions with


-


-


-


(429)


252


(177)

owners


























At 31 December 2016


195


4,868


233


3,762


270


9,328

 

 

Notes to the Financial Statements

 

1.       General information

 

SpaceandPeople plc is a public limited company incorporated and domiciled in Scotland (registered number SC212277) which is listed on AIM (dealing code SAL).

 

2.       Basis of preparation

 

The Group's financial statements for the period ended 31 December 2016 and for the comparative period ended 31 December 2015 have been prepared on a going concern basis under the historical cost convention in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and International Financial Reporting Interpretations Committee (IFRIC) interpretations, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The Directors have, at the time of approving the financial statements, a reasonable expectation that SpaceandPeople has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

 

Future accounting developments

 

New and revised IFRSs applied with no material effect on the consolidated financial statements

 

Title

Implementation

Effect on Group




IFRS 14 Regulatory Deferral Accounts

Annual periods beginning on or after 1 January 2016

None




IFRS 11 - Amendments to "Accounting for Acquisitions of Interests in Joint Operations"

Annual periods beginning on or after 1 January 2016

None




IAS 16 and IAS 38 - Amendments to "Clarification of Acceptable Methods of Depreciation and Amortisation"

Annual periods beginning on or after 1 January 2016

None




IAS 27 - Amendments to "Equity Method in Separate Financial Statements"

Annual periods beginning on or after 1 January 2016

None




Annual Improvements to IFRSs (2012 - 2014)

Annual periods beginning on or after 1 January 2016

None




IAS 1 - Amendments to "Disclosure Initiative"

Annual periods beginning on or after 1 January 2016

None

 

 

The following standard will be introduced in future periods

 

Title

Implementation

Effect on Group




IFRS 15 - 'Revenue from Contracts with Customers'

 

IFRS 9 - 'Financial Instruments (2014)'

 

 

IFRS 16 - 'Leases'

 

 

IAS 12 - Amendments to 'Recognition of Deferred Tax Assets for Unrealised Losses'

 

IAS 7 - Amendments to 'Disclosure Initiative'

 

IFRS 2 - Amendments to 'Classification and Measurement of share-based payment transactions'

Annual periods beginning on or after 1 January 2018

 

Annual periods beginning on or after 1 January 2018

 

Annual periods beginning on or after 1 January 2019

 

Annual periods beginning on or after 1 January 2017

 

 

Annual periods beginning on or after 1 January 2017

 

Annual periods beginning on or after 1 January 2018

None

 

 

None

 

 

None

 

 

None

 

 

 

None

 

 

None

 

 

Management anticipates that the standards and interpretations in issue, but not yet effective will be adopted in the financial statements when they become effective and foresee currently no material impact by the adoptions on the financial statements of the Group in the period of initial application. However, this will be assessed further upon implementation.

 

3.       Accounting policies

 

Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries).  Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate.  Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired.  If the recoverable amount of the cash-generating unit is less than its carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.  Any impairment loss of goodwill is recognised directly in the consolidated statement of comprehensive income.  An impairment loss recognised for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

The Group's policy for goodwill arising on the acquisition of an associate is described below.

Investments in subsidiaries

The parent Company's investments in subsidiary undertakings are included in the Company statement of financial position at cost, less provision for any impairment in value.

Revenue

 

Revenue is measured at the fair value of consideration received or receivable. Revenue is shown net of value-added tax, rebates and discounts and after eliminating intergroup sales.  Revenue is recognised when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Group and when any specific delivery criteria have been met.

 

Commission

Revenue from commission receivable while acting as agent is recognised when the following conditions are satisfied;

-       Contract is agreed with promoter / merchant

-       Venue acceptance of contract

-       Invoice issued and no further input anticipated

 

Acting as principal

Revenue from agreements where we act as principal i.e. renting space from venues and reselling to promoters and operators, is recognised as gross revenue receivable by us, with the corresponding amount payable to the venue owner being recognised in administrative expenses.

 

Leasing Income

Revenue from leasing activities is recognised on a straight-line basis over the term of the lease.

 

Licence Fees

Licence fee revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement. 

 

Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount on initial recognition.

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Property, plant & equipment

 

Depreciation is provided at the annual rates below in order to write off each asset over its estimated useful life.

 

Plant & equipment

12.5% of cost

Fixtures & fittings

-

25% of cost

Computer equipment

Computer software

-

-

25% of cost

33% of cost

 

Property, plant & equipment is stated at cost less accumulated depreciation to date.

 

Intangible assets

 

Website development costs

The Group capitalises all costs directly attributable to further developing its websites, while costs which relate to on-going maintenance are expensed as they arise. The capitalised costs are depreciated over three years.

 

Patents and trademarks

The costs of obtaining patents and trademarks are capitalised and written off over the economic life of the asset acquired.

 

Impairment of non-current assets

The need for any non-current asset impairment is assessed by comparison of the carrying value of the asset against the higher of realisable value and the value in use or, in the case of intangible assets, the anticipated future cash flows arising from the asset.

 

Leasing commitments

Rentals paid under operating leases are charged against profit as incurred. The Group has no finance leases.

 

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis over the term of the relevant lease.

 

Taxation

 

The tax expense represents the sum of tax currently payable and deferred tax. Tax currently payable is based on the taxable profit for the period. The Group's liability for current tax is calculated using rates that have been enacted or substantially enacted at the balance sheet date.

 

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profits, and is accounted for using the liability method. Deferred tax liabilities are recognised for all temporary timing differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition, other than in a business combination, of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

Foreign exchange

 

Items included in the Group's financial statements are measured using Pounds Sterling, which is the currency of the primary economic environment in which the Group operates, and is also the Group's presentational currency.

 

Transactions denominated in foreign currencies are translated into Sterling at the rates ruling at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates at that date.  These translation differences are dealt with in the profit and loss account.

 

The income and expenditure of overseas operations are translated at the average rates of exchange during the period. Monetary items on the balance sheet are translated into Sterling at the rate of exchange ruling on the balance sheet date and fixed assets at historical rates. Exchange difference arising are treated as a movement in reserves.

 

Financial instruments

 

Financial assets and liabilities are recognised in the Group's balance sheet when it becomes a party to the contractual provisions of the instrument.

 

Trade and other receivables

 

Trade and other receivables are carried at original invoice value less an allowance for any uncollectable amounts. An allowance for bad debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off in the income statement when identified.

 

Cash and cash equivalents

 

Cash and cash equivalents are carried in the balance sheet at cost and comprise cash in hand, cash at bank and deposits with banks.

 

 

Trade and other payables

 

Trade and other payables are carried at amortised costs and represent liabilities for goods or services provided to the Group prior to the period end that are unpaid and arise when the Group becomes obliged to make future payments in respect of these goods and services.

 

Equity instruments

 

Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

 

 

Share based payments

 

The Group operates a number of equity settled share based payment schemes under which share options are issued to certain employees. The fair value determined at the grant date of the equity settled share based payment, where material, is expensed on a straight-line basis over the vesting period. For schemes with only market based performance conditions, those conditions are taken into account in arriving at the fair value at grant date.  

 

Pensions

 

The Group pays contributions to the personal pension schemes of certain employees. Contributions are charged to the income statement in the period in which they fall due.

 

Critical accounting judgements and estimates

 

The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the period. Although these estimates are based on management's best knowledge of current events and actions, actual results may differ from those estimates. IFRS also requires management to exercise its judgement in the process of applying the Group's accounting policies.

 

The areas where significant judgements and estimates have been made in the preparation of these financial statements are the useful lives and impairment of non-current and intangible assets, impairment of the value of investment in associates and taxation. Explanations of the methodology and the resultant assumptions are detailed in the relevant accounting policies above and the respective notes to the financial statements. 

 

Borrowing costs

 

Borrowing costs are amortised over the duration of the loan and recognised throughout the term of the loan.

 

4.       Segmental reporting

 

The Group maintains its head office in Glasgow and a subsidiary office in Hamburg, Germany. These are reported separately. In addition, the retail business, now trading as POP retail, has an office in London and a subsidiary in Germany. The Group has determined that these are the principal operating segments as the performance of these segments is monitored separately and reviewed by the Board.

 

The following tables present revenues, results and asset and liability information regarding the Group's two core business segments - Promotional Sales and Retail, split by geographic area, after licence fees and management charges made between Group companies, the Other segment incorporates SpaceandPeople India. The comparative figures have been updated to reflect the closure of S&P+ and have now been included in Note 10 Discontinued operations.

 

Segment revenues and

 

Promotion

 

Promotion

 

Retail

 

Retail

 

Head

 

Other

 

Group

results

UK

Germany

UK

Germany

Office



for 12 months to

£'000

£'000

£'000

£'000

£'000

£'000

£'000

31 December '16
















Continuing operations

3,185

917

3,244

2,226

-

89

9,661

revenue
















Cost of sales

-

-

(2,829)

(1,304)

-

-

(4,133)

Administrative expenses

(1,718)

(1,162)

(504)

(1,294)

(832)

(108)

(5,618)

Other revenue

-

90

-

100

-

4

194

Non-recurring costs

(87)

-

(126)

-

(76)

-

(289)









Segment operating profit

1,380

(155)

(215)

(272)

(908)

(15)

(185)

/ (loss)
















Finance costs

(40)

-

-

-

-

-

(40)









Segment profit / (loss)

1,340

(155)

(215)

(272)

(908)

(15)

(225)

before taxation








 

Segment assets and

Promotion

Promotion

Retail

Retail

Other

Group

liabilities

UK

Germany

UK

Germany



as at 31 December '16

£'000

£'000

£'000

£'000

£'000

£'000








Total segment assets

7,130

1,002

4,819

995

792

14,738








Total segment liabilities

(3,334)

(694)

(964)

(352)

(66)

(5,410)








Total net assets

3,796

308

3,855

643

726

9,328

 

 

Segment revenues and

Promotion

Promotion

Retail

Retail

Head

Other

Group

results

UK

Germany

UK

Germany

Office



for 12 months to

£'000

£'000

£'000

£'000

£'000

£'000

£'000

31 December '15
















Continuing operations

3,063

2,438

3,151

2,632

-

149

11,433

revenue
















Cost of sales

-

-

(2,540)

(1,445)

-

38

(3,947)

Administrative expenses

(1,351)

(2,444)

(405)

(1,317)

(1,039)

(157)

(6,713)

Other revenue

-

59

-

176

-

60

295

Non-recurring costs

-

-

-

-

-

-

-









Segment operating profit

1,712

53

206

46

(1,039)

90

1,068

/ (loss)
















Finance costs

(28)

-

-

-

-

-

(28)









Segment profit / (loss)

1,684

53

206

46

(1,039)

90

1,040

before taxation








 

Promotion

Promotion

Retail

Retail

Other

Group

UK

Germany

UK

Germany



£'000

£'000

£'000

£'000

£'000

£'000







6,482

1,654

4,781

1,455

1,423

15,795







(2,031)

(802)

(1,214)

(1,101)

(434)

(5,582)







4,451

852

3,567

354

989

10,213

 

 

 5.      Operating profit

The operating profit is stated after charging:


12 months to

12 months to


December '16

December '15


£'000

£'000




Motor vehicle leasing

93

68

Property leases

369

298

Amortisation of intangible assets

16

16

Depreciation of property, plant and equipment

328

439


806

821

Auditor's remuneration:



Fees payable for:



Audit of Company

19

19

Audit of subsidiary undertakings

22

22

Tax services

4

4

Other services

3

2


48

47




Directors' remuneration

539

534

 

6.       Staff costs

The average number of employees in the Group during the period was as follows:


12 months to

12 months to


December '16

December '15




Executive Directors

Non-executive Directors

3

3

3

3

Administration

30

32

Telesales

60

64

Commercial

15

24

Maintenance

7

6


118

132

 


12 months to

12 months to


December '16

December '15


£'000

£'000




Wages and salaries

4,149

4,208

Social Security costs

481

497

Pensions

50

57


4,680

4,762

 

Details of Directors' emoluments, including details of share option schemes, are given in the remuneration report. These disclosures form part of the audited financial statements of the Group.

 

7.       Non-recurring costs

 

During the period, the Group incurred one off costs of £289k (2015: Nil). £163k was incurred relating to restructuring of the UK and German retail divisions and £126k incurred relating to the MPK France pilot.

 

8.       Finance income and costs


12 months to

12 months to


December '16

December '15


£'000

£'000

Finance costs:



Interest payable

(40)

(28)

 

 

9.       Taxation


12 months to

12 months to


December '16

December '15


£'000

£'000




Current tax expense:



Current tax on profits for the year

70

117

Adjustment for (over) / under provision in prior periods

(62)

7

Total current tax

 

8

124

Foreign tax:



Current tax on foreign income for the period

-

25

Adjustment for under provision in prior periods

4

-

Total foreign tax

4

25




Deferred tax:



Charge / credit in respect of tax losses

37

(37)

Charge in respect of temporary timing differences

Charge in relation to prior period

(18)

13

85

-

Total deferred tax

32

48




 

Income tax expense as reported in the Income Statement

 

44

 

197

 

 

The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The differences are explained below:


12 months to

12 months to


December '16

December '15


£'000

£'000




Profit on ordinary activities before tax

(768)

1,061

Profit on ordinary activities at the standard rate of corporation tax in



the UK of 20.25% (2015: 20.25%)                                                              



Jan - Mar 2015: 21%

-

56

                                                                Apr - Dec 2015: 20%

-

159

                                                                Jan - Dec 2016: 20%

(154)

-

                                                               






Tax effect of:



-       Prior period adjustment

(59)

7

-       Difference due to foreign taxation rates

-       Tax losses

-       Disallowable items

-

(17)

274

12

(37)

-




Income tax expense as reported in the Income Statement

44

197

 

 

10.     Discontinued operations

 

During the period, the Group took decision to close its S&P+ business, which operated in a niche sector distinct from SpaceandPeople's core business. SpaceandPeople owned 51% of S&P+ and didn't consider it prudent to continue funding the venture beyond what had already been provided. The combined results of the discontinued operations included in the loss for the year are set out below. The comparative loss / profit from discontinued operations have been represented to include those operations classified as discontinuing in the current year.

 


12 months to

12 months to


December '16

December '15

Profit / (Loss) for the year from discontinued operations

£'000

£'000

Revenue

487

2,381

Cost of Sales

(343)

(1,738)

Gross Profit

144

643

Administration expenses

(435)

(622)




Results from Operating activities (Net of Tax)

(291)

21




Non-controlling interest eliminated

(252)

-




(Loss) / profit for period from Discontinued operations

(543)

21

 

11.     Profit for the period

 

The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements. The Group profit for the period includes a Company loss after tax and before dividends of (£73k) after the incorporation of all UK head office costs (2015 profit: £568k) which is dealt with in the financial statements of the parent Company.

 

 

 

12.     Dividends


12 months to

12 months to


December '16

December '15


£'000

£'000




Paid during the period

429

390

Recommended final dividend

-

429

 

Equity - No final dividend is recommended for 2016 (final dividend for 2015 - 2.20p per ordinary share)

 

 

13.     Goodwill

Cost

£'000



At 31 December 2014

8,225

Additions

-

At 31 December 2015

8,225

Additions

-

At 31 December 2016

8,225

 

Accumulated impairment losses


At 31 December 2014

-

Charge for the period

-

At 31 December 2015

-

Charge for the period

-

At 31 December 2016

-

 

Net book value


At 31 December 2014

8,225

At 31 December 2015

8,225

At 31 December 2016

8,225

 

 

Goodwill acquired in a business combination is allocated at acquisition to the cash-generating units (CGUs) that are expected to benefit from that business combination. The Directors consider that the businesses of the UK Retail sub group and SpaceandPeople India Pvt Limited are identifiable CGUs and the carrying amount of Goodwill is allocated against these CGUs. No amortisation of the carrying value has been occurred at the financial statement review date. Goodwill for the UK Retail sub group remains unchanged at £7,981,000 and goodwill for SpaceandPeople India Pvt Limited remains unchanged at £244,000.

 

The recoverable amounts of the cash generating units are determined on value in use calculations which use cash flow projections based on financial budgets approved by the Board covering a five-year period followed by a terminal factor at a discount rate of 3% per annum. Cash flow projections during the budget period are based on an average growth in EBITDA which the Directors consider to be conservative given the plans for the businesses and the potential increased returns. As a result of the sensitivity analysis carried out, the Directors believe that any reasonable possible change in the key assumptions on which the recoverable amounts are based would not cause the aggregate carrying amounts to exceed the aggregate recoverable amounts of the cash generating units and that cash flows from these units will continue in line with expectations for the foreseeable future.

 

14. Other intangible assets

 

 

Cost

Website

Product

Patents &

Total


development

development

trademarks



£'000

£'000

£'000

£'000






At 31 December 2014

284

137

71

492

Additions

-

-

15

15

At 31 December 2015

284

137

86

507

Additions

Elimination of S&P+

-

-

-

-

25

(8)

25

(8)

At 31 December 2016

284

137

103

524

 

 

Amortisation

Website

Product

Patents &

Total


Development

development

trademarks



£'000

£'000

£'000

£'000






At 31 December 2014

284

137

53

474

Charge for the period

-

-

16

16

At 31 December 2015

284

137

69

490

Charge for the period

Elimination of S&P+

-

-

-

-

16

(3)

16

(3)

At 31 December 2016

284

137

82

503

 

 

Net book value

Website

Product

Patents &

Total


development

Development

trademarks



£'000

£'000

£'000

£'000






At 31 December 2014

-

-

18

18

At 31 December 2015

-

-

17

17

At 31 December 2016

-

-

21

21

 

15.     Property, plant and equipment

The Group movement in property, plant & equipment assets was:

 

Cost

Plant &

Fixture &

Computer

Total


equipment

fittings

equipment



£'000

£'000

£'000

£'000






At 31 December 2014

2,281

258

478

3,017

Additions

626

-

64

690

At 31 December 2015

2,907

258

542

3,707

Additions

Disposals

Elimination of S&P+

151

(18)

-

16

-

-

159

-

(127)

326

(18)

(127)

At 31 December 2016

3,040

274

574

3,888

 

Depreciation

Plant &

Fixture &

Computer

Total


Equipment

Fittings

Equipment



£'000

£'000

£'000

£'000






At 31 December 2014

1,066

233

344

1,643

Charge for the period

342

13

84

439

At 31 December 2015

1,408

246

428

2,082

Charge for the period

Elimination of S&P+

235

-

3

-

90

(80)

328

(80)

At 31 December 2016

1,643

249

438

2,330

 

Net book value

Plant &

Fixture &

Computer

Total


equipment

Fittings

Equipment



£'000

£'000

£'000

£'000






At 31 December 2014

1,215

25

134

1,374

At 31 December 2015

1,499

12

114

1,625

At 31 December 2016

1,397

25

136

1,558

 

 

16.     Deferred tax



31 December '16


31 December '15



£'000


£'000






Deferred tax liability:

Deferred tax liability to be recognised after more than 12 months

 

Deferred tax assets:

Deferred tax asset to be recognised after less than 12 months

 


 

 

90

 

 

 

-


 

 

95

 

 

 

(37)

Deferred tax liability (net)


90


58
















At 1 January 2016

Debit / (Credit) in respect of losses

Charge in respect of temporary timing differences on property, plant and equipment


58

37

(5)


10

(37)

85

At 31 December 2016


90


58

 

   

17. Trade and other receivables

 



31 December '16


31 December '16



£'000


£'000






Trade debtors


2,530


3,516

Other debtors


469


443

Prepayments


351


246

Total


3,350


4,205

 

Amounts falling due after more than one year included above are:


424


400

 

 

The maximum exposure to credit risk at the balance sheet date is the carrying amount of receivables detailed above. The Group does not hold any collateral as security.

 

The Directors do not believe that there is a significant concentration of credit risk within the trade receivables balance. As of 31 December 2016, trade receivables of £345k (2015: £596k) were past due but not impaired.

 

The ageing of trade debtors:

 


Current


0 - 30 Days


31 - 60 Days


61 Days +


Total


£'000


£'000


£'000


£'000


£'000











31 December '16

2,185


96


72


177


2,530











31 December '15

2,920


130


94


372


3,516

 

 

18. Cash and cash equivalents



31 December '16


31 December '15



£'000


£'000






Cash at bank and on hand


1,584


1,723



1,584


1,723

 

 

19.     Trade and other payables



31 December '16


31 December '15



£'000


£'000






Trade creditors


514


628

Other creditors


1,625


1,470

Social Security and other taxes


395


610

Accrued expenses


1,404


1,342

Deferred income


328


456

Trade and other payables


4,266


4,506






Corporation tax


(146)


18

Total


4,120


4,524

 

 

20.   Other borrowings



31 December '16


31 December '15



£'000


£'000

Bank loan:





Less than one year


1,000


250

Greater than one year


200


750








1,200


1,000

 

 

21.     Financial instruments and risk management

The Group has no material financial instruments other than cash, current receivables and liabilities, in both this and the prior period, all of which arise directly from its operations. The net fair value of its financial assets and liabilities is the same as their carrying value as detailed in the balance sheet and related notes.

 

Credit risk - The Group's credit risk relates to its receivables and is managed by undertaking regular credit evaluations of its customers.

 

Liquidity risk - The Group operates a cash-generative business and holds net funds. The Directors consider the funding structure to be adequate for the Group's current funding requirements and this is expected to strengthen further during 2017.

 

Borrowing facilities - The Group has agreed facilities of £2 million, of which £1.2 million was utilised at the year end.

£1 million was drawn down from a £1 million facility, which expires in July 2017, at a rate of 2.99% above base rate. The other £200k was drawn down from the other £1 million facility, which expires in July 2019, at a rate of 2.99% above base rate. Both of these facilities are secured by an omnibus guarantee and set off agreement, secured by an unlimited debenture incorporating a bond and floating charge.

 

Financial assets - These comprise cash at bank and in hand. All bank deposits are floating rate.

                       

Financial liabilities - These include short-term creditors and revolving credit facilities of £2million, of which £1.2 million was utilised at the year end. All financial liabilities will be financed from existing cash reserves and operating cash flows.

 

Foreign currency risk - The Group is exposed to foreign exchange risk primarily from Euros due to its German operations and Euro denominated licensing income as detailed in note 4 Segmental Reporting. The Group monitors its foreign currency exposure and hedges the position where appropriate. In addition, the Group has investments in a subsidiary in India.

 

 

22.     Operating lease commitments

 

At the period end date, SpaceandPeople plc had outstanding commitments for future lease payments which fall due as follows:



31 December '16


31 December '15



£'000


£'000






Within 1 year


863


1,820

Between 2 and 5 years inclusive


499


1,239

 

23.     Called up share capital

 

Allotted, issued and fully paid

31 December '16


31 December '15

Class

Nominal value





Ordinary

1p

£

195,196


195,196



Number

19,519,563


19,519,563

24.     Related party transactions

 

Compensation of key management personnel

Key management personnel of the Group are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Group, directly or indirectly. Key management of the Group are therefore considered to be the directors of SpaceandPeople plc. There were no transactions with the key management, other than their emoluments, which are set out in the remuneration report.

 

25.     Earnings per share                      


12 months to

12 months to


31 December '16

31 December '15


Pence per share

Pence per share




Basic earnings per share






Before non-recurring costs

0.3p

4.26p




After non-recurring costs

(3.38p)

4.26p




Diluted earnings per share






Before non-recurring costs

0.3p

3.89p




After non-recurring costs

(3.12p)

3.89p

 

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

Basic earnings per share

 

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

 


12 months to

12 months to


31 December '16

31 December '15


£'000

£'000




Profit after tax for the period attributable to

(660)

831

owners of the Company



 

 

Profit after tax for the period before non-recurring costs attributable to owners of the company

 

 

 

67

 

 

831


12 months to

12 months to


31 December '16

31 December '15


'000

'000




Weighted average number of ordinary shares

19,520

19,520

for the purposes of basic earnings per share



 

 

Diluted earnings per share

 

The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:

 


12 months to

12 months to


31 December '16

31 December '15


£'000

£'000




Profit after tax for the period attributable to

(660)

831

owners of the Company



 

 

Profit after tax for the period before non-recurring costs attributable to owners of the company

 

 

 

67

 

 

831

 

 

 


12 months to

12 months to


31 December '16

31 December '15


'000

'000




Weighted average number of ordinary shares

21,169

21,386

for the purposes of diluted earnings per share



 

 

 

The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows.

 


12 months to

12 months to


31 December '16

31 December '15


'000

'00




Weighted average number of shares in issue

19,520

19,520

during the period






Weighted average number of ordinary shares

1,649

1,866

used in the calculation of basic earnings per



share deemed to be issued for no



consideration in respect of employee options






Weighted average number of ordinary shares

21,169

21,386

 used in the calculation of diluted earnings per



share



 

 

26.     Share options

 

The Group has established a share option scheme that senior executives and certain eligible employees are entitled to participate in at the discretion of the Board which is advised on such matters by the Remuneration Committee.

 

In aggregate, share options have been granted under the share option scheme over 1,680,000 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.

 

Date of grant      

Number

Option period

Price

 





12 January 2015

31 March 2016

980,000

700,000

12 January 2018 - 12 January 2025

31 March 2019 - 31 March 2027

 

47.4p

61.0p

 

 

The movement in the number of options outstanding under the scheme over the period is as follows:

 


12 months to

12 months to


31 December '16

31 December '15







Number of options outstanding as at the beginning of the period

985,307

1,130,082




Granted

700,000

980,000

Lapsed

Forfeited

(20,307)

(107,765)

(1,109,775)

(15,000)

Number of options outstanding as at the end of the period

1,557,235

985,307

 

In total, 1,557,235 options were outstanding at 31 December 2016 (985,307 at 31 December 2015) with a weighted average exercise price of 53.1p (47.6p at 31 December 2015). 

 

The total share-based payment charge for the year, calculated in accordance with IFRS2 on share based payments, was £nil (2015: £3k).

27.     Save As You Earn Scheme

The Group has established a Save As You Earn ("SAYE") scheme that all UK based employees are entitled to participate in. The scheme will run for three years from 1 June 2015 and at the end of the term, participants will have the opportunity to buy shares in the Company at a price of 46p, which is a 20 percent discount on the closing share price on 2 April 2015.

 

In aggregate, share options have been granted under the SAYE scheme over 273,515 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.

 

Date of grant      

Number

Option period

Price

 

28 April 2015

273,515

1 June 2018 - 30 November 2018

46p

 

The movement in the number of options outstanding under the scheme over the period is as follows:

 


12 months to

12 months to


31 December '16

31 December '15







Number of options outstanding as at the beginning of the period

257,863

-




Granted

-

273,515

Forfeited

(110,579)

(15,652)

Number of options outstanding as at the end of the period

147,284

257,863

 

In total, 147,284 options were outstanding at 31 December 2016 (257,863 at 31 December 2015) with an exercise price of 46p (46p at 31 December 2015).

 

The total share-based payment charge for the year, calculated in accordance with IFRS2 on share based payments, was £nil (2015: £7k).

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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