SpaceandPeople (AIM: SAL) – signature of Network Rail contract heralds a new beginning
Following the announcement of preferred bidder status on 26th June 2015, the retail, promotional and brand experience specialist, has now announced the signing of a contract with Network Rail giving the AIM listed group exclusive rights to promote brands across all Network Rail stations in the UK for five years. This looks a cracking deal, but what’s it really worth to the business?
We appreciate management’s comments on this that rail passengers do indeed have a longer dwell time than many other venues and are a receptive audience for a wide range of media and promotional activity and retail options. Across the portfolio the annual footfall of over one billion and rising should offer significant rewards. There is lots of comment on how this is a “significant win” for the Group but it’s hard to assess what it really means in terms of the numbers. Current consensus estimates suggest earnings per share of 5.6p for the current year ending December 2015. For 2016…