SpaceandPeople (AIM:SAL), the AIM-listed group that facilitates promotional and retail merchandising space in shopping centres, railway stations and other high-footfall venues, reported an operating loss of £96,000 for the six months to 30 June, against a £82,000 profit in the same period last year.
Group revenue was broadly maintained at £3.66m, against £3.70m in H1 2025.
German revenue rose to £1.19m from £1.08m on new exclusive venue wins, while UK revenue fell to £2.47m from £2.61m as one-off Brand Experience campaigns delivered in H1 2025, including tobacco replacement product promotions, did not repeat this year.
Gross profit fell to £2.88m from £3.02m, reflecting the lower UK revenue alongside higher debt provision costs in Germany after specific customer payment defaults.
Cash generation improved despite the loss: net cash inflow from operating activities rose to £83,000 from £16,000, and cash net of bank borrowings reached £1.06m at period end, up £264,000 year-on-year, even after the group invested £585,000 in new IT systems over the past 12 months.
New venue wins, including Blue Diamond's garden centre portfolio and shopping centres in Inverness, Leeds, Bracknell and Edinburgh, offset venues that went non-exclusive during the period.
"We anticipate that 2026 will mark our most profitable year of trading as a group since 2017", chief executive Nancy Cullen said.
The company said full-year trading remains in line with management expectations, with a stronger Brand Experience performance expected in the second half and the German business anticipated to return to profitability in H2 2026.