German growth boosts profit at SpaceandPeople

SHARES in SpaceandPeople climbed yesterday after half-year profits at the Glasgow-based advertising firm jumped by 60 per cent thanks to growth in its German business.

The group – which uses space in shopping centres to promote products for clients such as Nivea, Rimmel and Tango – also began to enjoy the first benefits from deals signed with Intu, formerly Capital Shopping Centres, and Land Securities.

Profits rose by 60 per cent to £613,000, with revenues up 29 per cent to £6.7 million.

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Chief executive Matthew Bending said: “This has been a strong and successful start to 2013 and I am confident that we have continued this momentum into the second half of the year.”

Bending also hailed the roll-out of mobile kiosks in Germany, but warned: “Further growth in the second half of 2013 will be slower as we expand into new areas of the country that are more remote from our main office and where logistics and local government approval processes are creating delays as we come into the important Christmas trading period.”

Bending also said some shopping centres in the UK were instigating “clear mall” policies, but added SpaceandPeople had been aware of such moves and was working with the centre owners to introduce bespoke kiosks and pop-up shops. Shares closed up 4.5p at 132.5p.