SpaceandPeople’s H1 2025: Back to Profit, Strong UK Promotions, and Digital Upside
SpaceandPeople has posted a profitable first half for the first time since 2017. Revenue rose 26% to £3,697k, gross profit climbed 29% to £3,023k, and profit before tax came in at £44k. It is a small profit, but symbolically important after several loss-making first halves.
What drove it? A standout performance from UK promotions, improving brand activity, and firmer control of costs. The company has also been busy behind the scenes – moving its operations hub to the Midlands and kicking off a group-wide digital transformation. Both should support scale without ballooning overheads.
Key numbers investors should know
| Metric | H1 2025 | H1 2024 |
|---|---|---|
| Revenue | £3,697k | £2,929k |
| Gross profit | £3,023k | £2,350k |
| Operating profit/(loss) | £82k | £(151)k |
| Profit before tax (PBT) | £44k | £(210)k |
| Profit after tax | £33k | £(185)k |
| Basic EPS | 1.7p | (9.7)p |
| Operating cash flow | £16k inflow | £939k outflow |
| Cash at period end | £1,475k | £595k |
| Net cash/(debt) | £800k net cash | £402k net debt |
Gross margin – the share of revenue left after direct costs – sits at roughly 82% in H1 2025, reflecting the fee-based model and better mix within promotions.
Where the growth came from: promotions, brands and changing buyer mix
UK promotions surged and carried the half
UK promotions revenue rose 38% to £2,460k. On the segment view, UK promotions delivered £640k of profit before tax, more than offsetting losses in Germany and the head office drag. This is the engine room of the group and it ran hot in H1.
Brand activations hit a new gear
The brand department had an exceptional period, with revenue up 55% to £1.30m. Demand came from agencies and a clutch of one-off high-profile campaigns, plus a noticeable push from nicotine replacement brands. Activations ranged from a 25-stop Ford Electric tour to Call of Duty Warzone 3 launches in the UK and Paris, and Hotel Chocolat sampling in centres and stations.
Management notes increasing momentum from tech and wellness names – think Samsung, Audible, Liquid I.V., Moju, Vital Proteins, Lipton and Kombucha Remedy. If this broadens the booking pattern beyond the usual Q4 skew, H2 could be more evenly weighted than normal.
Other UK divisions: steady to improving
- Promotions & Acquisition revenue: £0.30m, up 33% from £0.23m, with a buyer base shifting away from charities towards subscription food, pet, and aesthetics/dental – a healthier mix in my view.
- Mid Mall Retail: up 3% despite some retailers converting to permanent leases.
- Outdoor Retail: up 14%, supported by rising footfall at big-box retail parks.
- UK kiosks: revenue was flat in H1, but the Rock Up pipeline is “significant” into H2 and management expects this to be the fastest-growing division by year end.
Rock Up kiosks – why the model matters
Rock Up is a turnkey in-mall pop-up offer for brands and online sellers: SpaceandPeople supplies a branded kiosk, business planning, merchandising support, staffing and ongoing commercial guidance. For retailers, it is low-commitment market entry. For venues, it is curated, flexible occupancy. That is attractive in an environment that wants variety and speed.
Names like Thomas Sabo, Saku Korean Skincare Superstore and V Style Jewellery featured in H1. The move of the logistics and operations centre to Daventry, Northamptonshire has created a larger, centralised hub to accelerate this rollout. In short, the operational foundation now matches the growth ambition.
Europe steady, with early expansion steps
Germany delivered on-target revenue from the existing estate, though the segment posted a £83k loss in H1. SpaceandPeople is working with incoming German centre owners and has started deploying units in France, alongside existing activity in the Czech Republic and the Netherlands. Europe is still a build-out story – sensible to expect a lag between footprint growth and profitability.
Cash, balance sheet and covenants
The balance sheet is in better shape. Net cash at 30 June 2025 was £800k, a £1,202k swing from £402k net debt a year ago. Cash at bank stood at £1,475k. Operating cash flow was modest at £16k after a £341k increase in receivables and a £176k increase in payables – typical working capital movements for a growing sales line, but worth watching.
Borrowings were £675k, all under a CBILS term loan maturing in January 2027, at 3.8% plus base. Covenants are linked to EBITDA and tested quarterly and annually. The auditor’s review raised no concerns and nothing to suggest the going concern basis is inappropriate.
Digital transformation and the Midlands hub – operational leverage ahead
The new Midlands operational hub is already delivering efficiency gains and should support a faster Rock Up rollout. Meanwhile, the digital transformation project – a new web-based booking platform with CRM and accounting integration – aims to improve speed and reduce friction in booking space. If executed well, that is classic operating leverage: more throughput without proportionate cost.
Another tick: the appointment of a Group Head of Marketing to drive product-level plans and sharpen positioning. It complements the data-led CORE Insights database, which logs activation outcomes and strengthens sales conversion with real market evidence.
Outlook upgraded: what to watch in H2 2025
Management has upgraded full year 2025 profit before tax expectations to £0.5 million and guides to further profitability growth in 2026. The tone is confident, underpinned by strong H1 trading, a bigger sales team, and operational improvements.
My watchlist for H2:
- Conversion of the Rock Up pipeline into revenue and profit.
- Whether brand and tech/wellness demand smooths the usual Q4 seasonality.
- German kiosks narrowing losses as European expansion progresses.
- Cash discipline – particularly receivables collection as sales grow.
Josh’s take: why this inflection matters
This is a quality inflection. A profitable first half, stronger cash, and the right kind of growth in UK promotions and brand activations. It shows that the strategy – more client-facing firepower, a scalable logistics base, and a smarter digital backbone – is gaining traction.
Risks remain. The profit is slender, H2 is still important for retail-linked businesses, and European expansion can be lumpy. But the direction of travel is clear and positive. If SpaceandPeople sustains UK momentum and converts Rock Up demand at pace, the upgraded £0.5 million PBT target looks reasonable.
Join the investor presentation
Management will present these results on 23 September 2025 at 3.00pm via Investor Meet Company. You can register here: Investor Meet Company – SpaceandPeople.
