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AEO Aeorema Communications Plc

60.00
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Aeorema Communications Plc LSE:AEO London Ordinary Share GB00B4QHH456 ORD 12.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 60.00 58.00 62.00 60.00 60.00 60.00 9,500 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Television Broadcast Station 20.23M 757k 0.0794 7.56 5.72M

Aeorema Communications Plc Interim Results and FY Projections

25/03/2024 7:00am

RNS Regulatory News


RNS Number : 0366I
Aeorema Communications Plc
25 March 2024
 

The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.

 

Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media

 

25 March 2024

 

Aeorema Communications plc

("Aeorema", the "Company" or the "Group")

 

Interim Results and FY Projections

 

Aeorema Communications plc (AIM: AEO), a leading strategic communications group, today announces its unaudited interim results for the six months ended 31 December 2023 ("H1 2024").

 

OVERVIEW

 

Revenue of £6,553,779 (H1 2023: £7,121,103)

Loss before taxation of £243,534 (H1 2023 Profit: £326,021)

Cash at date of this release of £3,717,848

Expecting to reaffirm commitment to shareholders by maintaining the dividend policy

Winner of multiple industry awards


Cheerful Twentyfirst named Agency Team of the Year for the first time in the Experience category at industry-leading The Drum Awards Festival and nominated in four other award categories


Post period end, Cheerful Twentyfirst named Creative Team of the Year at the 2024 CN Agency Awards for sixth year running

 

CHAIRMAN'S STATEMENT

As we navigate the dynamic landscape of our 2024 financial year, I present our interim results for the six months ended 31 December 2023 and provide insight into our strategic direction moving forward.

 

We are confident of delivering a full year profit of not less than £400,000, despite the loss in the first half of this financial year. We also expect to have a near record profit of £650,000 in the second half of this financial year. This is based on projecting revenue for the full year of no less than £19 million, and with three months still remaining in the Company's financial year ending 30 June 2024 ("FY2024"), we are confident in achieving this revenue.

 

Having made significant investment in the structure and foundations of our business in FY 2023, during H1 2024 we have focussed on investing in our team, both in the US and UK, which has impacted our profit margin. We are therefore amending our business model to have a better balance in costs between the first half and second halves of our financial year and we are also aggressively chasing business for the first half to improve the balance between first and second half revenue.

 

Like many agencies in its sector, Aeorema's clients are facing a challenging economic landscape which is resulting in delays in the decision-making process on committing spending and, consequently, in some cases, the temporary postponement of events. More particularly for Aeorema, several brands have delayed projects and pushed them into the first half of the 2024 calendar year (the second half of the Company's financial year) or into Aeorema's 2024/25 financial year, which is the case for approximately £2 million of contracted revenue.

 

Despite the disappointing impact of these timing shifts on both our half year and anticipated full year figures, we remain optimistic about the future. We have a robust pipeline of client projects and a resilient blue-chip client base. Importantly, Aeorema has maintained the loyalty of its client base, having not experienced any client losses during this period, which reflects the trust they place in our capabilities to deliver exceptional, world-class, experience events. This, and discussions with clients about future plans, gives us significant comfort in maintaining a positive outlook for the remainder of our 2023/24 financial year and for our 2024/25 financial year as we continue to grow organically and capitalise on an uptick in revenue driven by the realisation of postponed projects.

 

With a focus on adaptability and forward planning, Aeorema is well positioned for the future and is confident in its ability to deliver sustainable growth and value creation over the long term. We also expect to reaffirm our commitment to shareholders by maintaining our dividend policy.

 

While this half year's financial performance reflects the impact of project timing, we are encouraged by the underlying strength of our business and our pipeline. Our focus remains steadfast on delivering creative brilliance for our clients on a global scale, and sustained growth and value to our shareholders.

 

M Hale

Chairman

22 March 2024

 

*ENDS*

Andrew Harvey

Aeorema Communications plc

+44 (0)20 7291 0444

John Depasquale / Liz Kirchner / Lauren Wright

(Corporate Finance)

Kelly Gardiner / Joscelin Pinnington (Sales and Corporate Broking)

Allenby Capital Limited

(Nominated Adviser and Broker)

+44 (0)20 3328 5656

Paul Dulieu / Isabel de Salis

St Brides Partners Ltd
(Financial PR)

aeorema@stbridespartners.co.uk

 

Notes to Editors

Aeorema Communications plc, (AIM: AEO) is a leading strategic communications group with offices in London, New York, and Amsterdam. The Group provides bespoke event services, comprising live, virtual, and hybrid experiences to an established international blue-chip client base spanning a broad range of sectors, including finance, professional services, advertising, IT, gaming, fashion, fintech, and beverages. The Group also provides high level consultancy services to help clients maximise and deliver on their long-term communication strategies over multiple event and film touchpoints.

 

Aeorema delivers these services via its fully owned companies Cheerful Twentyfirst and Cheerful Twentyfirst, Inc. (the North American arm of Cheerful Twentyfirst) (cheerfultwentyfirst.com), two live events agencies with film capabilities that specialise in devising and delivering corporate communication solutions. The Group also operates Eventful Limited (www.eventful.co.uk), which provides consultative, high-touch services including assisting clients with venue sourcing, event management and incentive travel. With more than 56 years of combined operating experience and extensive award wins, Aeorema is a recognised industry thought leader and for the year ended 30 June 2023 reported record revenue and profits (before tax) of £20.2 million and £1.0 million respectively, and also declared a dividend for the year.

 

Central to all that the Group does is its Corporate Social Responsibility charter, which is focussed on ensuring sustainable, inclusive, and ethical business operations. To this end, the Group is a pioneer in delivering innovative strategies and services, including a client carbon measurement programme to establish a formal structure and approach around reducing emissions and offsetting both its own and its clients' carbon footprint.

 



 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2023

 

 

 

 

 


Unaudited

6 Months to 31 December 2023

Unaudited

6 Months to 31 December 2022

Audited

Year to

30 June

2023


£

£

£

Continuing Operations

 

 

 

 

 

 

 

Revenue

6,553,779

7,121,103

20,230,231

Cost of sales

(5,051,024)

(5,595,529)

(15,896,463)





Gross profit

1,502,755

1,525,574

4,333,768





Administrative expenses

(1,724,982)

(1,175,668)

(3,240,848)





Operating (loss) / profit

(222,227)

349,906

1,092,920

 

 

 

 

Finance income

20

80

215





Finance costs

(21,327)

(23,965)

(47,175)





(Loss) / profit before taxation

(243,534)

326,021

1,045,960





Taxation

125,253

(30,553)

(288,780)





(Loss) / profit for the period from continuing operations

 

(118,281)

 

295,468

 

757,180





Other comprehensive income




Items that may be reclassified to profit or loss




 




Exchange differences on translation of foreign entities

56,973

(29,245)

(119,547)





Other comprehensive income for the period

56,973

(29,245)

(119,547)





 

 

 

 

Total comprehensive income for the period

(61,308)

266,223

637,633





Basic and diluted earnings per share from continuing operations




 




Basic (pence)

(1.24010)

3.18118

8.04398

Diluted (pence)

(1.05251)

2.71870

6.83499

 

 

 

 

 

 

 

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2023

 

 



Unaudited

6 Months to 31 December 2023

Unaudited

6 Months to 31 December 2022

Audited

Year to

30 June

2023


£

£

£






Non-current assets





Intangible assets

565,181

567,682

566,431

Property, plant and equipment

379,137

389,668

428,509

Right-to-use assets

633,584

760,388

696,986

Deferred taxation

140,110

-

14,844


1,718,012

1,717,738

1,706,770





Current assets




Trade and other receivables

4,213,279

2,834,446

3,502,522

Cash and cash equivalents

1,342,729

3,676,194

2,444,100

Current tax receivable

-

101,426

-


5,556,008

6,612,066

5,946,622




Total assets

7,274,020

8,329,804

7,653,392





Current liabilities




Trade and other payables

3,584,467

4,713,051

3,882,938

Lease liabilities

109,808

141,278

109,058

Bank loans

69,445

69,445

83,333

Current tax payable

72,510

-

74,736

Provisions

35,000

35,000

35,000


3,871,230

4,958,774

4,185,065





Non-current liabilities




Lease liabilities

594,247

668,006

612,693

Bank loans

-

83,334

27,778

Provisions

18,000

9,000

13,500

Deferred taxation

-

4,629

-


612,247

764,969

653,971





Total liabilities

4,483,477

5,723,743

4,839,036





Net assets

2,790,543

2,606,061

2,814,356









Equity attributable to equity holder:




Share capital

1,192,250

1,192,250

1,192,250

Share premium

21,876

21,876

21,876

Merger reserve

16,650

16,650

16,650

Other reserve

270,870

205,730

233,375

Capital redemption reserve

257,812

257,812

257,812

Foreign translation reserve

(31,271)

2,058

(88,244)

Retained earnings

1,062,356

909,685

1,180,637






Total equity


2,790,543

2,606,061

2,814,356


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2023

 

 

 

Share capital

Share

premium

Merger reserve

Other reserve

Capital redemption reserve

Foreign translation reserve

Retained earnings

Total equity

 

£

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

At 1 July 2022

1,154,750

9,876

16,650

168,956

257,812

31,303

614,217

2,253,564

Comprehensive income for the period

-

-

-

-

-

-

295,468

295,468

Foreign currency translation

-

-

-

-

-

(29,245)

-

(29,245)

Share-based payments

-

-

-

36,774

-

-

-

36,774

Share issue

37,500

12,000

-

-

-

-

-

49,500

 

At 31 December 2022

 

1,192,250

 

21,876

 

16,650

 

205,730

 

257,812

 

2,058

 

909,685

 

2,606,061










At 1 January 2023

1,192,250

21,876

16,650

205,730

257,812

2,058

909,685

2,606,061

Comprehensive income for the period

-

-

-

-

-

-

461,712

461,712

Dividend paid

-

-

-

-

-

-

(190,760)

(190,760)

Foreign currency translation

-

-

-

-

-

(90,302)

-

(90,302)

Share-based payments

-

-

-

27,645

-

-

-

27,645

 

At 30 June 2023

 

1,192,250

 

21,876

 

16,650

 

233,375

 

257,812

 

(88,244)

 

1,180,637

 

2,814,356

 

 









At 1 July 2023

1,192,250

21,876

16,650

233,375

257,812

(88,244)

1,180,637

2,814,356

Comprehensive income for the period

-

-

-

-

-

-

(118,281)

(118,281)

Foreign currency translation

-

-

-

-

-

56,973

-

56,973

Share-based payments

-

-

-

37,495

-

-

-

37,495

Share issue

-

-

-

-

-

-

-

-

 

At 31 December 2023

 

1,192,250

 

21,876

 

16,650

 

270,870

 

257,812

 

(31,271)

 

1,062,356

 

2,790,543

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2023

 

 



Unaudited

6 Months to 31 December 2023

Unaudited

6 Months to 31 December 2022

Audited

Year to

30 June

2023



 

 

 


£

£

£

Cash flow from operating activities





(Loss) / profit before taxation

(243,534)

326,021

1,045,960

Adjustments for:




Depreciation of property, plant and equipment

67,827

48,873

109,764

Depreciation of right-of-use assets

63,402

63,384

126,786

Amortisation of intangible fixed assets

1,250

1,250

2,500

Loss on disposal of fixed assets

-

-

9,141

Share-based payment

37,495

36,774

64,419

Interest on lease liabilities

17,804

20,244

39,212

Finance income

(20)

(80)

(215)

Dilapidations

4,500

4,500

9,000

Exchange rate differences on translation

60,590

(28,902)

(119,455)

Operating cash flow before movement in working capital

9,314

472,064

1,287,112

Increase/(decrease) in trade and other payables

(298,470)

1,752,830

922,716

(Increase)/decrease in trade and other receivables

(710,757)

295,592

(372,487)

Cash (used in) / generated from operating activities

(999,913)

2,520,486

1,837,341





Taxation paid

(2,241)

(279,218)

(380,753)





Cash flow from investing activities




Finance income

20

80

215

Purchase of property, plant and equipment

(22,071)

(216,406)

(325,027)

Repayment of leasing liabilities

(35,500)

(71,000)

(177,500)

Net cash used in investing activities

(57,551)

(287,326)

(502,312)





Cash flow from financing activities




Share issue

-

49,500

49,500

Dividends paid to owners of the company

-

-

(190,760)

Repayment of bank loans

(41,666)

(41,665)

(83,333)

Net cash used in financing activities

(41,666)

7,835

(224,593)





Net increase / (decrease) in cash and cash equivalents

(1,101,371)

1,961,777

729,683





Cash and cash equivalents at beginning of period

2,444,100

1,714,417

1,714,417



Cash and cash equivalents at end of period

1,342,729

3,676,194

2,444,100

 




 

 

 



 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2023

 

1.    General information

 

Aeorema Communications plc is a public limited company incorporated within the United Kingdom. The company is domiciled in the United Kingdom and its principal place of business is 87 New Cavendish Street, London, W1W 6XD. The Company's ordinary shares are traded on the AIM market of the London Stock Exchange.

 

These condensed consolidated interim financial statements for the period ending 31 December 2023 (including comparatives for the periods ended 31 December 2022 and 30 June 2023) were approved by the board of directors on 22 March 2024.

 

The financial information set out in this interim report does not constitute statutory accounts for the purposes of section 434 of the Companies Act (2006). The Group's statutory financial statements for the year ended 30 June 2023, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report for those financial statements was unqualified and did not contain a statement under section 498 (2) or section 498 (3) of the Companies Act (2006).

 

The interim financial statements have been prepared using the accounting policies set out in the Group's 2023 statutory accounts and have not been audited.

 

Copies of the annual statutory financial statements and the interim report can be found on our website at www.aeorema.com or can be requested from the Company Secretary at the Company's registered office: 101 New Cavendish Street, 1st Floor South, London, W1W 6XH.

 

2.    Basis of preparation

 

These condensed consolidated interim financial statements for the period ended 31 December 2023 have been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the United Kingdom. The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2023, which have been prepared in accordance with IFRS as adopted by the United Kingdom.

 

3.    Revenue and segmental results

 

The Company uses several factors in identifying and analysing reportable segments, including the basis of organisation such as differences in products and geographical areas. The Board of Directors, being the chief operating decision makers, has determined that for the period ended 31 December 2023 there is only one reportable operating segment.

 

4.    Income tax charge

 

Income period tax is accrued based on the estimated average annual effective income tax rate of 25 per cent (2022: 19 per cent).

 

5.    Earnings per share

 

Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

 

Diluted earnings per share are calculated by dividing the profit attributable to ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would have been issued on the conversion of all dilutive potential ordinary shares into ordinary shares.

 

The following reflects the income and share data used and dilutive earnings per share computations:

 


Unaudited 6 Months to 31 December 2023

Unaudited 6 Months to 31 December 2022

Audited Year to 30 June 2023

 




(Loss) / profit for the year attributable to owners of the Company

(£118,281)

£295,468

£757,180

 




Number of shares




 

 

 

 

Basic weighted average number of shares

9,538,000

9,288,000

9,413,000

 




Effect of dilutive share options

1,700,000

1,580,000

1,665,000

 




Diluted weighted average number of shares

11,238,000

10,868,000

11,078,000





 

6.    Dividends

 

During the interim period a dividend of 3 pence per share (2022: 2 pence per share) was declared to holders of the Company's ordinary shares in respect of the full year ended 30 June 2023.

 

 



 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the period ended 31 December 2023

 

7.    Related party transactions

 

The Group has a related party relationship with its subsidiaries and its directors. Transactions between Group companies, which are related parties, have been eliminated on consolidation and are therefore not included in these consolidated interim financial statements.

 

Unaudited 6 months to 31 December 2023

Unaudited 6 months to 31 December 2022

£

£

Subsidiaries



Amounts owed by/(to) subsidiaries

503,557

370,342

Amounts owed by/(to) subsidiaries

503,557

370,342

 

 

 

Harris & Trotter LLP is a firm in which S Haffner is a member. The following was charged to the Group in respect of professional services.

 


Unaudited 6 Months to 31 December 2023

Unaudited 6 Months to 31 December 2022

Harris & Trotter LLP

£

£

Aeorema Communications plc

12,950

9,450

Aeorema Limited

7,750

9,500


20,700

18,950

 

Fees charged to Aeorema Communications plc include £10,000 (2022: £7,500) for the services of S Haffner as a non-executive director of that company.

 

The compensation of key management (including directors) of the Group is as follows:

 


Unaudited 6 Months to 31 December 2023

Unaudited 6 Months to 31 December 2022


£

£

Short-term employee benefits

361,004

266,375

Post-employment benefits

10,101

7,496


371,105

273,871

 

 

 

 

 

 

 

For further information visit www.aeorema.com or contact:

 

Andrew Harvey                                             Aeorema Communications plc     Tel : +44 (0) 20 7291 0444

 

John Depasquale / Liz Kirchner /               Allenby Capital Limited                  Tel : +44 (0) 20 3328 5656

Lauren Wright (Corporate Finance)

 

Kelly Gardiner / Joscelin Pinnington

(Sales and Corporate Broking)

 

Paul Dulieu / Isabel de Salis                       St Brides Partners Ltd                       aeorema@stbridespartners.co.uk

 

 

 

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