SHARES in SpaceandPeople, the Glasgow-based promotions and marketing firm, rose sharply last night after the company announced it had been named as preferred bidder for a significant contract.
The firm, led by chief executive Matthew Bending, said it had been selected by Network Rail as preferred bidder for its concourse exhibitions, events and distribution contract.
SpaceandPeople said it aims to agree a five-year deal commencing 1 October and that the potential value of the contract to the company is expected to be “significant”.
“Further details will be provided should a binding, formal commercial agreement be entered into by Network Rail and SpaceandPeople,” the company said.
The contract is aimed at helping Network Rail maximise income from renting space at stations for promotional activity, pop-up exhibitions and distribution activities.
Fiona Orford-Williams, analyst at Edison Investment Research, described it as a “very prestigious contract” which would be a substantial boost to the group’s portfolio. She said: “There would inevitably be front-end costs associated with setting up the operation, but it gets the group a real step up in accessing above the line marketing budgets of major brands. Getting preferred bidder status in such a high-profile contract is a clear endorsement of the group’s strategy and the effectiveness of events and promotions.”
Earlier this month, Spaceand-People announced a contract renewal with M&G Real Estate and a new win with Hermes Real Estate.
M&G Real Estate owns and operates 11 shopping centres in the UK and is one of SpaceandPeople’s longest established clients. The contract renewal is for a three-year term with Spaceand- People providing promotional activity across its portfolio. Under the Hermes deal, it will work with a shopping centre in Milton Keynes.
Shares in SpaceandPeople closed up 24.8 per cent, or 15.5p, at 78p