REG - Aeorema Comms Plc - Half Yearly Report <Origin Href="QuoteRef">AEO.L</Origin>
RNS Number : 8126EAeorema Communications Plc12 February 2015Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media
13 February 2015
Aeorema Communications plc ('Aeorema' or 'the Company')
Interim Results
Aeorema Communications plc, the AIM-traded live events agency, announces its results for the six months ended 31 December 2014.
Overview
Pre-tax profits of 101, 316 on a turnover of 1,658,315
Stronger second half anticipated with new client wins and repeat work
Strong cash position of 1,219,527 after payment in the period of a dividend and special dividend totalling 452,500
Chairman's Statement
The Company remains strong as it continues to build its position as a provider of live events under one brand, Cheerful 21st.
We have a robust balance sheet with 1,219,527 cash in the bank (2014: 1,466,352) and good revenue generation of 1,658,315 (2014: 1,812,493), slightly down due to a project being cancelled although we remain ahead of our budget. We anticipate a stronger second half and are pleased to have added some new clients along with confirmation of our larger summer projects. During the six months we achieved a pre-tax profit of 105,316 (2014: 225,941). Operational costs were 702,238 (2014: 700,102).
The Board has continued to focus upon the Company's strategy, which brings innovative live event products and solutions to a range of highly sophisticated customers including senior leaders and partners in global professional and engineering services, technology and telecoms firms. We have made good progress in supporting these clients resulting in excellent feedback and considerable repeat work.
Over the past six months we were rewarded with nominations and wins at the EVCOM awards, the official industry body for the visual communications sector, for the work we are doing under our new single brand.
It is imperative that we remain cautious and keep a tight rein on costs as there is still volatility in the market. However, whilst keeping this in mind, we see great opportunities ahead, as we build on the creative capabilities of our team and deliver unique products to create growth under strong leadership. I want to thank all our colleagues at for their hard work, and our shareholders for their continued support.
M Hale
Chairman
13 February 2015
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2014
Unaudited
6 Months to 31 December 2014
Unaudited
6 Months to 31 December 2013
Audited
Year to
30 June
2014
Notes
Continuing Operations
Revenue
1,658,315
1,812,493
4,764,584
Cost of sales
(855,113)
(886,630)
(2,794,629)
Gross profit
803,202
925,863
1,969,955
Administrative expenses
(702,238)
(700,102)
(1,465,520)
Operating profit
100,964
225,761
504,435
Finance income
352
180
406
Profit before taxation
101,316
225,941
504,841
Taxation
5
(6,664)
(23,132)
(89,145)
Profit for the period from continuing operations
94,652
202,809
415,696
Basic and diluted earnings per share from continuing operations
Basic (pence)
6
1.10675
2.50772
5.02290
Diluted (pence)
6
1.01227
2.27585
4.55487
There are no other comprehensive income items
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2014
Unaudited
6 Months to 31 December 2014
Unaudited
6 Months to 31 December 2013
Audited
Year to
30 June
2014
Notes
Non-current assets
Intangible assets
365,154
365,154
365,154
Property, plant and equipment
57,008
88,776
67,449
Deferred taxation
17,481
8,277
24,145
439,643
462,207
456,748
Current assets
Inventories
2,674
2,675
2,674
Trade and other receivables
939,962
569,131
1,475,921
Cash and cash equivalents
1,219,527
1,466,352
1,620,895
2,162,163
2,038,158
3,099,490
Total assets
2,601,806
2,500,365
3,556,238
Current liabilities
Trade and other payables
(945,796)
(872,057)
(1,589,007)
(945,796)
(872,057)
(1,589,007)
Net assets
1,656,010
1,628,308
1,967,231
Equity attributable to equity holder:
Share capital
8
1,131,313
1,042,188
1,079,688
Merger reserve
23,712
16,650
16,650
Other reserve
-
-
19,500
Share based payment reserve
118,412
103,529
110,972
Capital contribution reserve
257,812
257,812
257,812
Retained earnings
124,761
208,129
482,609
Total equity
1,656,010
1,628,308
1,967,231
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2014
Share capital
Merger reserve
Other reserve
Share-based payment reserve
Capital contribution reserve
Retained earnings
Total equity
At 1 July 2013
1,004,688
16,650
-
96,083
257,812
125,883
1,501,116
Issue of shares
37,500
-
-
-
-
-
37,500
Payment of dividends
-
-
-
-
-
(120,563)
(120,563)
Comprehensive income for the period
-
-
-
-
-
202,809
202,809
Share based payment
-
-
-
7,446
-
-
7,446
At 31 December 2013
1,042,188
16,650
-
103,529
257,812
208,129
1,628,308
At 1 January 2014
1,042,188
16,650
-
103,529
257,812
208,129
1,628,308
Issue of shares
37,500
-
19,500
-
-
-
57,000
Comprehensive income for the period
-
-
-
-
-
212,886
212,886
Share based payment
-
-
-
7,443
-
-
7,443
Tax credit relating to share option scheme
-
-
-
-
-
61,594
61,594
At 30 June 2014
1,079,688
16,650
19,500
110,972
257,812
482,609
1,967,231
At 1 July 2014
1,079,688
16,650
19,500
110,972
257,812
482,609
1,967,231
Issue of shares
32,125
7,062
-
-
-
-
39,187
Payment of dividends
-
-
-
-
-
(452,500)
(452,500)
Comprehensive income for the period
-
-
-
-
-
94,652
94,652
Share based payment
-
-
-
7,440
-
-
7,440
Transfer
19,500
-
(19,500)
-
-
-
-
At 31 December 2014
1,131,313
23,712
-
118,412
257,812
124,761
1,656,010
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2014
Unaudited
6 Months to 31 December 2014
Unaudited
6 Months to 31 December 2013
Audited
Year to
30 June
2014
Cash flow from operating activities
Profit before taxation
101,316
225,941
504,841
Adjustments for:
Depreciation of property, plant and equipment
18,625
18,360
51,579
Loss on disposal of property, plant and equipment
5,390
-
-
Share based payment expense
7,440
7,446
14,889
Finance income
(352)
(180)
(406)
Operating cash flow before movement in working capital
132,419
251,567
570,903
Increase/(decrease) in trade and other payables
(643,211)
(291,453)
448,630
(Increase)/decrease in trade and other receivables
535,959
37,426
(869,364)
Cash generated / (used) in operating activities
25,167
(2,460)
150,169
Taxation paid
-
-
(43,418)
Cash flow from investing activities
Finance income
352
180
406
Purchase of property, plant and equipment
(23,574)
(30,095)
(41,988)
Proceeds from the sale of property, plant and equipment
10,000
-
-
Net cash used in investing activities
(13,222)
(29,915)
(41,582)
Cash flow from financing activities
Income from share issue
39,187
37,500
94,500
Dividends paid
(452,500)
(120,563)
(120,564)
Net cash used in financing activities
(413,313)
(83,063)
(26,064)
Net increase / (decrease) in cash and cash equivalents
(401,368)
(115,438)
39,105
Cash and cash equivalents at beginning of period
1,620,895
1,581,790
1,581,790
Cash and cash equivalents at end of period
1,219,527
1,466,352
1,620,895
AEOREMA COMMUNICATIONS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2014
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 23-31 Great Titchfield Street, London, W1W 7PA. The Company's ordinary shares are traded on AIM market of the London Stock Exchange.
These condensed consolidated interim financial statements for the period ending 31 December 2014 (including comparatives for the periods ended 31 December 2013 and 30 June 2014) were approved by the board of directors on 12 February 2015.
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 2014, 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 2014 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: 64 New Cavendish Street, London, W1G 8TB.
2. Basis of preparation
These condensed consolidated interim financial statements for the period ended 31 December 2014 have been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union. The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2014, which have been prepared in accordance with IFRS as adopted by the European Union
3. Summary of significant accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2014, as described in those annual financial statements. There has been no impact on the Group's financial position or performance from new and amended IFRS and IFRIC interpretations mandatory as of 1 July 2014.
4. 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, have determined that for the period ended 31 December 2014 there is only one reportable operating segment.
5. Income tax charge
Income period tax is accrued based on the estimated average annual effective income tax rate of 21 percent (2013: 21 percent).
6. 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 in ordinary shares.
The following reflects the income and share data used and dilutive earnings per share computations:
Unaudited 6 Months to 31 December 2014
Unaudited 6 Months to 31 December 2013
Audited Year to 30 June 2014
Earnings per share attributable to owners of parent
94,652
202,809
415,696
Number of shares
Basic weighted average number of shares
8,866,598
8,087,500
8,276,021
Effect of dilutive share options
483,902
823,993
850,380
Diluted weighted average number of shares
9,350,500
8,911,493
9,126,401
7. Dividends
During the interim period a dividend of 5 pence (2013: 1.5 pence) per share was paid to holders of the Company's ordinary shares.
8. Issued capital
Issued capital as at 31 December 2014 amounted to 1,131,313 (2013: 1,042,188). 104,000 shares were issued on 2 July 2014, 9,000 shares were issued on 7 July 2014 and 300,000 shares were issued on 21 October 2014. In the prior period 300,000 shares were issued on 28 November 2013.
9. 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 2014
Unaudited 6 months to 31 December 2013
Subsidiaries
Amounts owed by/(to) subsidiaries
317,743
154,653
Amounts owed by/(to) subsidiaries
317,743
154,653
Aeorema Communications plc is a guarantor for a lease entered into by Aeorema Limited, its subsidiary undertaking.
Harris & Trotter LLP is a firm in which S Garbutta is a member. The following was charged to the Group in respect of professional services.
Unaudited 6 Months to 31 December 2014
Unaudited 6 Months to 31 December 2013
Harris & Trotter LLP
Aeorema Communications plc
12,160
7,500
Aeorema Limited
23,435
7,825
35,595
15,325
The compensation of key management (including directors) of the Group is as follows:
Unaudited 6 Months to 31 December 2014
Unaudited 6 Months to 31 December 2013
Short-term employee benefits
156,131
135,339
Post-employment benefits
43,494
41,178
199,625
176,517
ENDS
For further information visit www.aeorema.comor contact:
Gary Fitzpatrick Aeorema Communications plc 020 7291 0444
Mark Percy Cantor Fitzgerald Europe 020 7894 7000
Catherine Leftley Cantor Fitzgerald Europe 020 7894 7000
Elisabeth Cowell St Brides Partners 020 7236 1177
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR FLLLFELFEBBK
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