RETAIL promotions firm SpaceandPeople’s shares dropped more than 17 per cent as it swung to a loss.

The Glasgow-based firm said it had been hit by cold weather, swept in with the Beast from the East, early last year and then the long summer and World Cup, which “distracted” some firms, as it reported to the London Stock Exchange.

The shopping centres specialist announced in its preliminary results for the 12 months ended December 31, 2018 that it had a loss before taxation and non-recurring items attributable to shareholders of £100,000 against a £1.2 million profit the year before.

Net revenue was down at £7.9m set against £10m.

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It said trading conditions in its core UK and German markets had been difficult ion in 2018.

The firm is to continue to focus on those markets while furthering a programme of costs reduction. It has also strengthened its senior team, it said.

George Watt, company chairman, said it signed a new agreement with Hammerson plc in the UK, but he added that “as explained during 2018, trading conditions in both the UK and Germany were difficult due to a number of reasons.”

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“Unusual weather conditions with severe snow storms in the first quarter of the year followed by a long, hot summer in both the UK and Germany disrupted normal trade in venues. In addition, the World Cup over the summer distracted brands from focusing on their usual activity with us.

“Although normal conditions returned during the autumn and winter, we were unable to recover from the slow start to the year and a poor period of trading in the key month of December meant that the group delivered a small operating loss on recurring activities for the year as a whole.

"Notwithstanding these disappointing results, the board will propose a dividend of 0.5p per share at the upcoming AGM.

“Despite 2018 having been a difficult year, we look forward to 2019 with confidence following management’s success in securing new agreements and successfully renewing other agreements on good terms,” he said.