Source - SMW
SpaceandPeople has swung to an H1 pretax loss of £174,000, from a year-earlier profit of £62,000. Revenue was lower at £4.6m, from £4.8m.

"As we entered 2016 we were aware that a number of significant revenue streams that we had benefitted from in the past had either ended or were going to end during 2016," the company said in a statement. 

"The development of the Pop Up kiosk concept along with the continued roll-out of MPKs and the new contracts with Network Rail and British Land means that our business has replaced the old revenue streams with new products that are attractive to both existing and new venues and customers alike.

"The results for the first half year are in line with the results of the previous year excluding the costs associated with the closure of S&P+ and the running of the MPK pilot programme in France.

"The continuing development of the MPK and Pop Up kiosk programmes in the UK as well as continuing to source and develop new products that are attractive to our clients is key to the growth in the second half of 2016.

"The UK promotions division has a strong pipeline of business for the second half of this year. We have put new sales management in place and combined with a focused programme of staff incentives this should help this business develop further.

"The Pop Up kiosk offer could see between 60 and 80 units trading this Christmas. This division's results are crucial to our achieving forecasts. There is a strong pipeline of business, but again transactions in October are historically when this business is done.

"The German promotions division is currently negotiating a contract extension beyond 2016 with its key client. While this negotiation has been going on we have encountered a block on long term promotions being accepted. Hopefully once the contract is agreed we will be able to transact this business which is important to our second half year income.

"In common with many retail related businesses, trading across the Group in the period since the half year end has been more subdued than we had anticipated. We will need to perform strongly over the remainder of the year in order to meet our expectations. We have a good team led by experienced managers who are all focused on delivering our objectives.

"As a result of the one off costs of closing S&P+ and the need to invest further in the growth of the MPK programme next year, for the first time since being admitted to AIM in 2005, we do not intend to propose a dividend during the 2016 financial period. This is intended to be a one year pause with dividends recommencing during the 2017 financial period."

At 9:09am: (LON:SAL) SpaceandPeople PLC share price was -12p at 27.5p

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