- SpaceandPeople, the retail, promotional and brand experience specialist, has experienced a cumulative 12% shortfall in revenues compared with management's forecast.

It is anticipated that this trend will continue for the remainder of the year within the core UK and German promotions and retail businesses. Revenue for these businesses will be £1.7m (13%) lower than budget.

Overall, forecast revenue for the company for the year end 31 December 2014 has been revised down to £18.2m from £18.6m.

As a result, pre-tax profits for the full year are now expected to be £1.4m lower than previously forecast and will be £1.5m after one off costs of £150,000.

The company says that its financial position remains strong with forecast net cash at 31 December 2014 being in excess of £1m and with long-term borrowing facilities of £2m in place. The company's ability to pay the proposed dividend on 25 April 2014 is unaffected as is the required capital expenditure plan going forward.

The Board is confident that growth in revenue in the core business will resume towards the end of 2014 as new business wins gain traction and for 2015 it is forecasting modest revenue growth, along with the reorganisation and cost reduction plan that the company has already implemented.

It is expected that this will deliver a forecast pre-tax profit for 2015 of £2m to £2.5m.

At 12:15pm: [LON:SAL] SpaceandPeople PLC share price was -32.5p at 100p

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