They will most likely issue the Trading Update next week , the share price is already starting to rise suggesting that the TU could well be very bullish. |
SOS100
Last year they issued the TU on 18/02/2022.
I would assume some times in February. |
Z1CO - is there a date for tu? i scrolled through last few rnss and couldn't see anything |
tiswas
Very interesting we will get a bit more from the company next month when they issue their TU. |
Interesting Zico. Might give them a pot big enough to buy us! |
Cannes Lions International not to be underestimated: |
This contract news has surprised the market judging by the share price reaction and the share transactions.Taking in to account the rns was issued at 2.17pm volume was highest in 12 months.
A few positive comments from the rns:
1) Although no value was given by the company but they did say that it will be one of the largest brand activations in Cannes this year.
2) They are also in discussions regarding more contracts.
3) The year has started very well and we are very optimistic for the months ahead.
Since H1 has already finished on 31/12/2022 this last point has completely derisked the H1 Trading Update which will be announced next month.
Looking forward to a very positive Trading Update next month. |
Revenue up 140% to GBP12.2 million (2021: GBP5.09m)o Profit before tax of GBP843,564 (2021: loss of GBP159,698) |
No value given for the contract but the comments on current trading are probably even more important. |
They're also in discussions regarding more contracts at Cannes Lions 2023. |
They will issue their H1 Trading Update next month. |
 A very quiet board.
Major Contract - Stagwell Cannes Lions Partnership
Cheerful Twentyfirst Cannes Lions Partnership with Stagwell
A Major Contract Win
Aeorema Communications plc, a leading strategic communications group based in London, New York City and Amsterdam, is pleased to share that further to the announcement made by Stagwell (NASDAQ: STGW), the multi-billion-dollar NASDAQ listed challenger marketing network built to transform marketing, the Company is now planning scope of works for the project with Stagwell regarding the Cannes Lions International Festival of Creativity 2023 ("Cannes Lions 2023"). Final commercial terms are being agreed with Stagwell, and on agreement this will be one of the largest brand activations in Cannes this year.
Aeorema's brand experience agency, Cheerful Twentyfirst, will work alongside Stagwell to create a unique and impressive brand activation at Cannes Lions 2023, with the creation of 'Sport Beach', an experience and powerful marketing platform for brands to tap into the cultural zeitgeist of sport and explore the power of fandom.
Sport Beach will bring together the world's most inspirational creatives, brands, marketers, athletes, coaches and leagues to play sport, discuss the future of fandom, and celebrate the impact sport has on shaping global culture. From sporting events for players of all abilities to programming that highlights the power of sport to connect and engage fans emotionally, Sport Beach attendees will have a memorable, meaningful and differentiated experience.
Further details, as appropriate, will be announced in due course.
Steve Quah, CEO of Aeorema, commented : " We are delighted to be working in partnership with Stagwell on delivering Sport Beach, a large-scale experiential event which will showcase the unifying power of sport and the ability of fandom to drive loyalty, affinity, and advocacy around the world. Our shared values and commitment to creativity, alongside the impressive scope of the project, makes this an incredibly exciting opportunity to create something completely new and spectacular for Stagwell.
"Cheerful Twentyfirst's presence at Cannes Lions 2023 is looking extremely positive, and with several additional contracts are under discussion, 2023 has a promising outlook for us to have our biggest presence ever. The year has started very well for Aeorema and we are very optimistic for the months ahead." |
Thanks Rob.
We do not have any forecasts for June 23 so far as I am aware so I would be surprised if the 5 year plan is anything more than an aspiration for world domination! |
I didn't make the AGM today but i popped into the office last week and had a brief chat with Jamie Blackwell and Liz Manning, both very amiable members of the team. Jamie mentioned that the Company would be doing a presentation to clients of Allenby and a seperate one to other shareholders. I asked if he could forward a copy of the presentation to me and he agreed so I'm eager to receieve as I'm keen to learn more about this 5 year plan that Steve Quah alludes to. |
Anyone make the agm today? With no trading update I assume that there was not much in the way of new news? |
No David, just letting them get on with what they do best, winning clients, winning awards and now making money!
If I were to nitpick it would be there are still no forecasts out there which would be handy to know where they think they are going. And although the employee share options have actually fallen on last year there is still nearly 20% potential dilution there already.
Other than that well done Steve, Andrew and team, keep up the great work! |
Did you all miss the results released today or maybe sold out?
I cannot believe there are no comments after a 15% rise
They will be discussed at Mello London in two of the sessions.....dividend is now restored.
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A #MelloLondon sponsor has provided 20 (We have only a handful left) £25 One day tickets & 20 £50 for both day tickets FIRST COME FIRST SERVED👍€512; Use code ML25OFFER or ML50OFFER at checkout to access these special prices |
hxxps://www.allenbycapital.com/our-research/ |
A top notch RNS and well done davidosh & Johnwise one can only hope the expansion in Europe pays off and the growth in profits continue to rise.
If the liquidity were to improve more traders would be attracted and there would be more volatility. |
Bought into this @ 31 pence on good update 3/8/21 .. then updates 18/2/22 and 25/03/22
Will continue to hold
18/08/2022 7:00am
Aeorema Communications Plc Trading Update & Amsterdam Office |
I am currently building a small position again having been a shareholder for nearly eight years. The liquidity is minimal and spread very wide so if anyone wants to sell part or all of their holding do let me know and my broker will arrange a transfer at the mid price |
Good points tiswas, I see now that the directors took pay cuts in 2021, so it's fair they take an increase on their 2020 pay this year and reading previous announcements, there is a mention of the NY operation moving to a larger office, so together they could easily explain the increase in overheads.
I took a look at the option package as well, they seem to be relatively modest, so may not be sufficient to retain the directors in these times, when it is so easy to get a big pay increase by moving jobs.
My stake here is modest, mainly because I couldn't buy many due to the illiquidity and will hold for now as there is a good change of another strong year ahead. |
Daz
Thanks for your numbers.
I would imagine that they have indeed taken on a lot more staff what with NY and Amsterdam so I am not at all surprised by the increase. Also, Quah and Harvey were only paid £139k and £103k last year with Hale at zero. In a good year I would not blame them taking out more, especially what with winning all these awards. Certainly Steve's profile will be getting higher and higher and I would not be surprised if he has better offers every day of the week.
He does though seem to be Cheerful Twentyfirst through and through but one of the risks of investing here is that it is very much a people business and people can walk out the door.
A dividend would indeed be most welcome if they are not seeing any opportunities where they can use that cash to acquire further talent.
Cheers |
I've been doing some calculations based on the trading update and if anything the pretax profit of £700,000 is a little disappointing. If gross margins have remained the same at 23.9%, it means admin costs have increased from £0.92m in H1 to £1.2m in H2 to give that outcome. Other possibilities are a decrease in gross margin or higher finance costs for working capital but I tend to think staff costs are the most likely thing to have gone up, based on extra staff needed and pay rises.
Turning to 2023, I think revenues in H1 should show a useful increase as the period should also benefit from the return of live events mentioned in the announcement and probably a more modest increase for H2
If I model a 30% revenue increase in H1 and 11% for H2 (that could well be too pessimistic), I get revenues of £14m and a pretax profit of £0.96m and assuming no tax credit, that gives diluted earnings of 8.67p for a forward P/E of 8 but that ignores the cash, which will probably rise to around £2m
Also, I'd hope that the company pays a dividend as the cash at the year end of £1.65m equates to 17p per share, so they can easily afford a 2p distribution based on earnings and the cash pile. |
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