Yes it needs further explanation. Nonetheless a 60% increase on last years record revenues is impressive and it easy to see further growth as the company is clearly highly rated. I’m assuming wage inflation is an issue at present and if you want to hang on to quality staff ……
Still a company with a market cap of £7.4m backed by cash of £2.4m and making nearly £1m PBT does not look overpriced to me. |
A question to ask at the presentation tomorrow |
At first glance these are a little disappointing as a revenue increase of over 60% has only generated a 12% increase in profitability although clearly plenty of positive words and investment for the future with key hires etc |
Trading Update
Strong revenue & profit growth
Aeorema Communications plc (AIM: AEO), a leading strategic communications group, is pleased to announce an update on trading for the year ended 30 June 2023 ("FY2023") following a strong second half of the year.
HIGHLIGHTS
-- Record revenue: FY2023 revenue expected to be no less than GBP19.8 million* (2022 audited: GBP12.2 million).
-- Increased profitability: FY2023 profit before tax expected to be no less than GBP950,000* (2022 audited: GBP844,000).
-- Strong cash position: Cash balance at year end of GBP2.4 million* (2022: GBP1.7 million).
-- Dividend Payment: Expected increased dividend payment subject to audited results.
-- Outlook: Strong momentum anticipated through 2024 to produce another successful year. |
I assume that's why they announced an Investor Presentation today, to be held this Wednesday morning on Investor meet. Assuming the presentation is positive, it may induce some buying.
Edit apparently a Trading Update on Wednesday too |
Very quiet in here. I am afraid the seller keeps moving this down a slippery slope as there are not many buyers about. |
10k buy soaks up all the lose stock. Now no buy quote for just 1k. |
It does look a tad odd but I struggle to see how you can't buy £10k on the open market as I could get a price this afternoon. Anyhow not complaining on an up day |
Interesting RNS. Looks like the only way NED Hannah Luffman could buy £10k worth of shares was if the CEO agreed to sell that many.
This could get squeezed a lot higher on next release of good news. |
About to break through all time high. |
Yeah really good results. There’s a lot to like here. Revenues have come back strongly post Covid. Traditionally H2 has been stronger than H1. Not seen any forecasts but could be looking at £16m FY23. Looks cheap with £3.6m cash, paying dividends and a mere £6.5m mkt cap.
Having said that, I’m not entirely sure what the business does, but judging by the awards they keep winning, they are clearly well thought of and respected and that can only be a good thing. |
Strong results announced this morning with a 40% increase in revenues offset by a growth in costs as they invest in the business.
Pre-tax profits up 27% and the comment '... We are very confident about the outlook for the remainder of the 2023 financial year.' Something said halfway through H2, means a good full year result is pretty much nailed on.
Net cash has increased as well |
Results will be announced at the end of March and no doubt we will get a bit more regarding H2 and the outlook for the rest of the year.
It's looking good
The pipeline is looking strong as we go into the final few months of FY 2023, and we anticipate this growth in revenue to continue. |
Profit takers clear their decks, so maybe a bounce once they are done. |
You may well be right Daz and they say
"The year continues to be one of major investment in our service offering"
I hope that it pays back with a higher return at some point! |
Revenue growth was 40% but pre-tax profits were only up around 30%, so costs must have increased and being a people business, I think they must be affected by wage inflation. |
If they make £1m-£1.5m profit this year as looks probable, then net cash could finish the year at c2.5m. First half growth at least +43% on a record first half last year. In valuation terms that's a lot of business for only £7m market cap |
They should have really announced it 7.00am.
Trading statement is quite upbeat but as always you get traders that sell on the news good or bad they're not bothered. |
If the 30% increase in profits is repeated in H2, then EPS would be 7.6p, putting the shares on a multiple of 11.5 at the mid-price of 87.
Given the encouraging comment on the pipeline, it still looks good value |
The trading update has just arrived....not sure why it was not 7.00am. Very good it looks too! |
Hi Zico
Did you contact the company to find out why your confident prediction of a trading update last week did not happen? You sounded pretty certain. |
I also keep expecting an Update. Perhaps David is right, they will go straight to Interims next month. However, this is a contrast to last year, when we got a first half trading update in December at the AGM, confirming first half sales of "at least £4.5m" and then a further Trading Update on 18th February confirming the actual sales were £4.9m and PBT at least £235k. As at 21st Feb this year, we have nothing specific...only that the "year has started very well".
I do suspect the news will be very good when we do get to see it. The tone of the last RNS suggests as much. I also wonder how big this Stigwell partnership at Cannes might actually be? They are a $2bn Market Cap company, and this partnership at Cannes was big enough for them to issue an RNS themselves, with Cheerful21st specifically mentioned. Also, having been a holder for many years here, I cannot remember them issuing an RNS on a specific contract/partnership before. |
It's quite normal for a company provide an outlook on the current trading BUT they will announce H1 Trading Update this week and it will be very bullish.
Last year they announced H1 TU on 18/02/2022. |
Z1CO....Maybe because they provided both those updates in the last two months they will not feel the need to further update and will go straight to the interim results next month |
Share price closed at 84p UP 10p (13.5%) with the imminent Trading Update the shares will continue this uptrend in the coming week in anticipation that the TU will be very upbeat.
Outlook for the current year 14/11/2022:
Looking ahead, we remain confident in our strengthened market position, with a strong pipeline of event activity that sees us solidly into 2023. Our diverse service offering, combined with an expanded geographical operating presence, means we are poised to continue a positive growth trajectory.
Another brief update on 19/01/2023:
"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." |
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