SHARES in SpaceandPeople have dropped by more than 20 per cent after profits plunged in a "challenging and disappointing" year for the shopping centre marketing specialist.
The business, which sells retail space and promotional advertising in malls for shopping centre owners, saw pre-tax profits slump to £762,000, down from £2.4m in 2013. That came as gross revenues slid to £31.6m from £35m, with sales falling in its retail and promotions divisions in both the UK and in Germany. However net revenue, which reflects turnover after commission is paid to shopping centres, rose by six per cent to £15.4m.
The results come after the company issued two profits warnings during the course of 2014 which saw earnings expectations cut in April and September, before putting in a robust performance in the final four months of the year.
The company launched a review of its management structure during the year and made wholesale changes to its board, leading to a slimmer leadership team and savings of £700,000.
No job were lost in Scotland but there were departures at board level and in operations overseas.
SpaceandPeople, which proposed a final dividend of 2p per share, brought in Forth Ports' chief executive Charles G Hammond as chairman in October, while STV finance director George Watt and Steve Curtis were brought in as non-executive directors.
Chief operating officer Nancy Cullen and chief financial officer Gregor Dunlay are being mentored as they take on greater responsibilities.
Chief executive Matthew Bending said it had not all "ideal" year, but had "taken a lot of positives from the changes made. Mr Bending said: "We have a new board, £1m of profit (before tax and non-recurring costs) and are still paying a dividend. It's not a disaster. It's not where we wanted to be, but we steadied the ship."
Mr Bending said the current year had started well for the company adding: "It was really important to make sure we started the year on a positive note. It's not easy running a business, but I'm happy to say [last year] was a bump in the road, not a structural thing."
Shares closed down 13.5p, or 20.15 per cent, at 53.5p.
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