A SCOTTISH shopping mall marketing and pop-up retail company has returned to profit and surpassed its 2019 total in its annual results for 2021.
Spaceandpeople, a Glasgow-based company which sells advertising space in European shopping centres, posted an operating profit of around £200,000 for 2021, having made a £3.6 million loss in 2020 amid the coronavirus pandemic restrictions, and a £100,000 profit in 2019.
The “year of recovery” in 2021 came after the majority of its venues were closed for up to four months in 2020 and its train station business footfall plummeted as a result of lockdowns and subsequent working from home advice, Nancy Cullen, chief executive, said.
Revenue reached £4m, against £2.8m the year before, and £7.7m in 2019.
It highlighted a multi-year contract renewal with major client ECE in Germany and the extension of its relationship with Landsec to 2026.
Spaceandpeople also noted the resilience of the business with "successful bounce-back each time restrictions were lifted" and said it had ensured refinancing of banking facilities for a longer period of time.
It also last month announced that its partnership with Network Rail had been extended for a further year, adding that as footfall in stations continues to grow during 2022, “this relationship will be fundamental to the recovery in revenue”.
Along with a “renewed focus on key sectors, a committed and highly motivated management team and vastly reduced overheads” improved operating profitability is expected in 2022 “even given the impact of current general economic factors”.
“For the most part, footfall recovered well in 2021 post the April reopening and until November we were recording strong footfall levels in both the UK and Germany and business across all sectors that we represent was returning,” said Ms Cullen.
“Unfortunately for the business, the publicity surrounding the omicron variant of covid created an immediate slow-down in both demand for space and venue footfall and we received a number of cancellations to pre-planned bookings at a critical time of year.
“Our retail clients who continued to trade throughout this period also reported poor trading figures as a result of low footfall in their venues.”
She said: “During the year we were also delighted to sign a contract extension with Landsec, one of our most important property partners, for the provision of experiential activity and short-term retailing.”
The deal covers 35 shopping centres, retail parks and leisure destinations.
Shares in Spaceandpeople closed down 1.7 per cent, or 0.25p, at 14.25p.
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