SpaceandPeople sold

Share On Facebook
share on Linkedin
Print

SpaceandPeople (LSE:SAL) has been one of my worst investments.  The company works with owners of high footfall spaces such as shopping centres or railway stations to use that space by charging either retailers to set up a stall/unit or promoters to advertise and promote through things like tasting or talking to potential customers.

Naturally, it has been hard hit by the restrictions brought in to combat Covid-19. Its finances were not all that strong at the best of times and so it found itself in the summer with virtually no income, high staff costs, big losses and payables of £3m.

It had drawn down £750,000 of a revolving credit facility (theoretically this could be extended to £1m). It had also drawn down a CBIL loan of £1m.

This is a lot of borrowing for a company making losses of over £260,000 per month and with a market capitalisation of only 4.5p x 19.52m shares = £0.88m

The RCF ends 31 October 2021. I struggle to see how the company might make it through till then without breaching covenants. Even if it made it, I doubt the bank will renew the facility.

They have cut costs, yes, but when they have no income to speak of the challenge is just too great.

I note that the directors were not buying shares in their company even at 4.5p.

A glimmer of light

Last Wednesday (2nd December) the directors announced the company had signed exclusive agreements with the owners of four ………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210303 11:14:00