SpaceandPeople PLC (AIM:SAL) shares were softer in Wednesday morning's trade despite financial results that, on primary metrics, gave a relatively upbeat read - with revenue and profit climbing in 2025 as the promotions and retail-space specialist benefited from stronger UK brand activity, growth in pop-up retail and continued momentum in Germany.
Revenue rose 20% to £8 million in the year to 31 December 2025 from £6.7 million, while operating profit increased 74% to £0.6 million. Profit before tax advanced to £0.49 million from £0.22 million and basic earnings per share rose 53% to 21.6p.
The group also strengthened its balance sheet, generating £1.3 million of cash from operations and ending the year with £1.6 million of net cash, up from £1 million, after repaying all remaining bank borrowings.
Operationally, SpaceandPeople said UK brand activity delivered more than 3,000 days of live activations across more than 300 venues, while the Rock Up and Pop Up retail offering expanded to 34 kiosks from 26 a year earlier. SpaceandPeople also secured an exclusive contract with Gropius Passagen, Berlin’s largest shopping centre.
The company added that its digital transformation programme remains on track for completion in the second half of 2026, including a new consumer-facing website, venue search and booking interface, wider booking-process automation and a brand refresh.
It did caution, however, that it "is continuing to operate against a backdrop of increasingly severe economic headwinds, including inflationary pressures, higher interest rates and cautious consumer sentiment." Moreover, it noted cost pressures and more conservative purchasing across the broader brand market in the first quarter of 2026.
In London, SpaceandPeople shares moved up 22p or 11.5%, changing hands at 168p.