Aeorema Communications Share Discussion Threads

[michaelmouse] 25/7/2018 15:13

Feel free to jump in the water's lovely!! A true "value" share that's gone growth. Still time to buy the "value" and enjoy the growth.

[michaelmouse] 25/7/2018 15:10

They've added nearly £3m in revenue in the second half of the year and around £400,000 in cash. They're already positive about next year and have upped the divi by 50% despite their ambitious growth plans. The company has no debt.

Even after the 6p rise the market cap. is only just over £3m.

The only criticism I have is the trading update could have waited until 7am tomorrow, but heyho I'm not complaining too loudly :).

Never get spooked out of shares where clear value exists, just learn to be very patient and top up when the opportunities arise imo.

[susiebe] 25/7/2018 15:09

Great work been going on here.Excellent outlook and divi

[michaelmouse] 25/7/2018 14:58

Thanks ;). Plenty of time to buy more on the back of that update. Look at the market cap. Not one to take profits too early that's for sure.

Long term investment is about oodles of patience! ;)

Well done AEO!!

[clocktower] 25/7/2018 14:45

Did not see that coming, great RNS, well done anyone that held on.

[ramas] 22/7/2018 20:20

I never understood the calculation behind the 18p sale , they pretty much gave the company away once you deducted the cash or effectively a nil risk punt on Aeoremas future success

[bigfrocks] 16/7/2018 07:16

Ignore clock tower he seriously hasn't got a clue!

[clocktower] 16/7/2018 06:34

A major holding was sold by the former leaders of the business for 18p only last September - why would this be worth even that now?

In November it slashed its dividend with the intention to invest and acquire - will they raise money or issue stock to do this at a huge discount?

Take a deep look at Richard Owen`s background, a director of the company - take a look at the allegations made on the USG thread about him, and what he has done to a major shareholder - and be fearful - because if those allegations are true, it seems he is only to happy to pull off a deal that rewards some and not all, including providing him with more options and mislead investors.

BEWARE! DYOR.

[tiswas] 15/7/2018 18:30

Does anyone else shares the view that waiting until November for June year end results from a company of this size is not good enough? Must have a very small sales, purchase and fixed asset register so no excuse.

If so would you care to drop an email to the board as I have done?

[pj 1] 27/4/2018 19:48

Only a very small position.

Contrarian view, the Chairman Hale still concerns me. Some previous history to bare in mind, he's certainly not the norm which may be a good thing in this creative industry, and is what is needed to think outside of the Box? I wonder if he dines with Duncan Soucoup (THAL)? :-0

Agree though the Presentation was quite dynamic compared to most, undoubted potential.

[bigfrocks] 27/4/2018 14:25

Appreciate the update ghf!

[glasshalfull] 26/4/2018 21:48

Well, AEO provided a very dynamic presention that gave attendees at Mello 2018 a flavour of their creativity.

A great opportunity to gain a better understanding of the business & observe the passion of the team...during and also following the presentation as they had a stall at the event.

Kind regards
GHF

[davidosh] 24/4/2018 23:43

Just a reminder that Aeorema will be presenting and have a stand at our huge Mello2018 event in Derby on 26th April and all shareholders and potential investors are welcome to attend

AEO have never presented at a Mello event before and we are very pleased to welcome them so this is an ideal opportunity to meet the management and hear about their strategy.

Do come and join us at this quality two day event and there will be 45 other companies to meet plus some fabulous keynote speakers

[mark1000] 27/3/2018 09:14

ct right or wrong sold my last shares yesterday - will watch from the sidelines pure gamble at the moment with untried untested folk but hope it goes well for all invested.

[clocktower] 26/3/2018 06:59

So the losses have started, no good talking about operating profits when the bottom line is showing losses, that are not Capital right downs. They are real costs, just the books being juggled imo.

Well overvalued and costs rising.

[phenomenonnick] 04/3/2018 18:28

Thanks both.

[robward] 04/3/2018 13:49

And from the Final results announced in November " Despite a strong operational performance and balance sheet, the proposed dividend is lower compared to the previous year in order to preserve cash balances in anticipation of future development initiatives that the Board intends to undertake in order to build further value for shareholders. This includes considering complementary investment within the business to help capture potential organic growth opportunities and exploring potential acquisition opportunities."

[tiswas] 04/3/2018 13:15

Hinted at quite strongly in 13/9/17 rns.

[phenomenonnick] 04/3/2018 11:00

Any evidence for the statement that “the new joint MDs intend to aggressively grow the business with acquisitions”?

[vilage_idoit] 04/3/2018 10:02

Aeorema Communications (AEO.L)

The company is a United Kingdom based live events agency with film capabilities. Aeorema specialises in the curation and deliverance of corporate communication solutions, specifically senior management conferences, trade shows and large scale B2B events, and corporate videos and brand films. The company£s clients include a healthy list of £blue chip£ multinationals such as Microsoft, Vodafone, MasterCard, HSBC, Inmarsat, Deloitte, EY, Unilever, and more.

- £2.53m market cap @ 28p (9,050,500 shares)
- Cash @ £1.9m as Final Results
- Strip out cash and currently paying ~£600k for a business which generated net cash of £672k from operating activities
- Profit after tax of £211k
- Fully diluted EPS of 2.26p (basic: 2.33p) giving a PE ratio of 12
- Founders left the business this year who have been replaced with Steve Quah (Founder of Twentyfirst in 1987 £ acquired by Aeorema in FY10) and Andrew Harvey (19 years with the business) as joint MDs
- Twentyfirst broke even in year 1 and has continued to trade profitably ever since; merged with Cheerful Scout to become Cheerful Twentyfirst in 2014, which is currently Aeorema£s only operating entity.
- Gross margin of 39% so additional revenue drops heavily onto the bottom line
- Competitors£ margins in 2016 of 30% (Smyle), 17% (Rapier Group), and 13% (WRG)

OPPORTUNITY

With the two founders leaving the company the new joint MDs intend to aggressively grow the business with acquisitions. The marketplace is fragmented with the largest operator only having 8% and 83% of operators predicting growth in 17/18.

Aeorema has invested in the creation of Imaginarium, a digital knowledge bank which stores industry-specific information and giving the company a competitive advantage. This now requires very little opex in an industry where technological advances are becoming more relevant.

These notes are the opinion only of @vilage_idoit and should not taken as (nor are they intended as such) investment advice. Please do your own research before buying shares.

[clocktower] 02/3/2018 10:57

Not a good sign, seeing the interims this late imo.

The website is looking dated as well, and looking at the shareholder/investor pages (which are not clearly available at first sight)there seems to be a fair amount of updating there also needed.

Not major exciting jobs announced of late either, as far as I am aware.

[phenomenonnick] 28/2/2018 10:54

No sign of those interims and we're a whole month along. Hopefully they'll appear in March!

[clocktower] 29/1/2018 15:55

Last year the results for H1 were published 23.01.17 are we about to see them this week, hence the tick up?

If better than expected, then a decent jump could be on the cards as the stock is in short supply I expect.

[dave4545] 16/1/2018 09:53

The mm's just seem to get their kicks out of killing this one off.

In the last few trading days it's gone from 28-31p to 28-32p and now 28-33p but nobody has actually bought any apart from these silly sub 250 trades we see daily.

They are happy to push other stocks to the moon but they do not want to encourage any action here.

Normally the case because they are excellent value, the worse some AIM stocks are the more mm's work together and push them. If we get a bear market I think this will do well because it's stand out value.

[pj 1] 10/1/2018 08:46

Despite it being a small cap and so illiquid, there is definite resistance at 32.5p going back to August 2016.