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(Sharecast News) - SpaceandPeople has returned to interim profitability for the first time since 2017, it announced on Monday, as strong UK promotions activity and rising demand for brand experiences drove a sharp uplift in revenue in the first half of 2025.
The AIM-traded retail and brand experience specialist reported a 26% rise in group revenue to 3.7m in the six months ended 30 June, from 2.93m a year earlier, with gross profit up 29% to 3.02m.
Profit before tax was 44,000, compared with a 210,000 loss in the prior first half, while net cash stood at 0.8m at period end against net debt of 0.4m a year earlier.
Net cash inflows from operating activities was 16,000, reversing a 0.94m outflow in the prior period.
The group said the turnaround reflected particularly strong growth in its UK promotions division, where revenue rose 38% to 2.46m, and its brand department, which delivered record results in the traditionally slow first quarter, lifting first-half revenue 55% to 1.30m.
"We are delighted to announce that the group has delivered an exceptional first half of 2025, turning what can be a loss making period into a profitable one for the first time since 2017.
"None of this, of course, would have been achieved without the support and commitment of our staff whose dedication and tenacity has enabled us to refine our market position and to develop a product and service portfolio that is highly attuned to the audiences we serve."
The group said it had capitalised on increased market interest in experiential brand activations, citing campaigns for Ford Electric, Call of Duty Warzone 3, Hotel Chocolat and upcoming bookings from Samsung and Audible.
Other divisions also contributed, with promotions and acquisition revenue up 33% at 0.30m, outdoor retail revenue up 14%, and mid-mall retail revenue up 3%, while UK kiosks were flat year-on-year but set for accelerated growth via the Rock Up pop-up model.
The company said it had relocated its logistics and operations centre from Essex to Daventry to support expansion and launched a digital transformation programme to improve client engagement and operational efficiency.
SpaceandPeople said it was continuing to grow its European footprint, with units operating in Germany, the Czech Republic and the Netherlands, and first deployments now underway in France.
On the back of the strong first half, the company upgraded its full-year profit before tax forecast for 2025 to 0.5m and said it expected further profitability growth in 2026.
At 1132 BST, shares in SpaceandPeople were up 5.15% at 178.75p.
Reporting by Josh White for Sharecast.com.