REG - Aeorema Comms Plc - Interim Results, FY Projections & Change of Y/E
26/03/2025 07:16
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RNS Number : 1469C Aeorema Communications Plc 26 March 2025
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Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media
26 March 2025
Aeorema Communications plc
("Aeorema", the "Company" or the "Group")
Interim Results, FY Projections and Change of Accounting Reference Date
Aeorema Communications plc (AIM: AEO), a leading strategic communications
group, today announces its interim results for the six months ended 31
December 2024 ("H1 2025").
OVERVIEW
· Revenue of £7,200,269 (H1 2024: £6,553,779).
· Loss before taxation of £119,104 (H1 2024 Loss: £243,534).
· Cash at date of this release of £2.75 million.
· Commenced implementation of a cost-reduction and rebalancing programme
to create a more efficient and focused operating model.
· Continued growth at Cannes Lions International Festival of Creativity
2025 ("Cannes Lions"). Expecting exceptional project retention year on year,
net new client wins and further embedding across client and local
partnerships.
· Cheerful Twentyfirst named C&IT Global Agency of the Year Award
for 2024 and winner of Best Outdoor Activation at the 2024 Ex Awards.
· Board of Directors strengthened with the appointment of Alan Charlton as
a Non-Executive Director.
POST PERIOD END
· Secured foothold at the Global Economic Forum in Davos in January
2025, which is expected to open new opportunities and widen access to the
financial and professional service sectors.
CHANGE OF ACCOUNTING REFERENCE DATE
The Company is changing its accounting reference date and financial year end
from 30 June to 31 December. This decision aligns the Company's reporting
cycle with industry norms and ensures that the end of its annual financial
reporting cycle does not coincide with the summer months, which have
traditionally been its busiest operating period. This change is expected to
create a more streamlined and efficient reporting process and therefore the
Board believes that a 31 December year end will be in the best interest of the
Group.
With the new 31 December year end, the Company's current financial year ("FY
2025") will be extended to an 18-month period, running from 1 July 2024 to 31
December 2025. The Company's revised, ongoing, reporting timetable will
therefore be as follows:
· Publication of unaudited interim results for the 12 months ending 30
June 2025 by 30 September 2025;
· Publication of audited annual results for the 18 months ending 31
December 2025 (FY 2025) by 30 June 2026; and
· Publication of unaudited interim results for the 6 months ending 30
June 2026 ("H1 2026") by 30 September 2026.
From then, annual and interim reports will be published each year for the 12
months to 31 December and 6 months to 30 June, respectively.
CHAIRMAN'S STATEMENT
I am pleased to present Aeorema Communications plc's interim results for the
six months ended 31 December 2024 and provide an update on our company's
direction.
For the six month period we reported revenue of £7.2 million (H1 2024:
£6.6million) and a loss before taxation of c. £120k; a significant
improvement on the loss before taxation for the corresponding period last year
(H1 2024 loss: c. £244k). This reflects the initial benefits of the cost
reduction and rebalancing programme we commenced during the period, with the
full benefit expected to materialise by 30 June 2025.
Despite a challenging first six months, marked by a tough trading environment
and ongoing uncertainty from global brands due to political and economic
conditions, our pipeline remains strong, with opportunities weighted towards
the second half of the calendar year.
We currently forecast an underlying profit before tax for the 12 months to 30
June 2025 of no less than £550,000 (FY2024: £437,000), and a reported profit
before tax of no less than £350,000. The underlying profit before tax
excludes one-off costs, which are largely restructuring costs incurred in the
cost-reduction and rebalancing programme referenced above.
The Board remains focused on ensuring the Company's capital markets strategy
supports its long-term ambitions and delivers value to shareholders. We have
taken the decision to change our accounting reference date and year end to 31
December, bringing our reporting cycle in line with industry norms and
ensuring it no longer coincides with our busiest operational period. In line
with our commitment to shareholder returns, it remains the Board's intention
to pay a dividend based on the unaudited interim results for the 12 months to
30 June 2025, rather than waiting until after the 18 months audited reporting
period to 31 December 2025. These steps are part of our broader commitment to
financial discipline, efficiency, and positioning the Company for sustainable
growth.
The Company continues to maintain a strong cash position, with a balance of
£2.75 million as at the date of this announcement. This follows the payment
of £290,790 of dividends to shareholders in January 2025. Over the past 12
months, the Group's average cash position has been around £2 million,
reflecting consistent and continued financial stability. In light of this
strength, the Board is expected to shortly announce details of a share buyback
programme equivalent to five per cent. of the issued share capital of the
Company. The Board feels this demonstrates confidence in the Company's
financial resilience and a commitment to delivering value to shareholders. A
further announcement will be made in due course.
While projects continue to evolve, and some smaller activations will not be
repeated at Cannes Lions this year and instead the Company anticipate that
several higher value projects are set to proceed.
Our business in the US continues to grow, creating new opportunities both
domestically in the US and internationally for the wider Group with leading US
brands. We are also pleased to announce that we will be working with three
new global brands in 2025. One is a renowned name in the fitness industry, and
the other is a new brand at Cannes Lions which was introduced to us through an
existing client. These partnerships further reinforce our reputation for
delivering exceptional creative and strategic event solutions.
Additionally, post the period end and as announced on 8 January 2025, we have
secured new high profile event contracts including, Cheerful Twentyfirst's
debut at the World Economic Forum in Davos. This provides Cheerful Twentyfirst
a foothold to demonstrate its world-class creative services, strategic
expertise and event capabilities to an expanded audience within the financial
and professional services sectors.
While the broader economic environment remains unpredictable, we are
encouraged by the resilience of our blue chip client base and the strength of
our relationships, with no major client losses during this period. This
confidence is illustrated by the fact that we already have c. £3 million of
revenue recorded for the third quarter of calendar year 2025 from existing
clients. This reflects our excellent reputation and the strong demand for our
expertise, with clients eager to secure our services well in advance.
Our industry leadership also continues to be recognised, with Cheerful
Twentyfirst named C&IT Global Agency of the Year Award for 2024 and winner
of the Best Outdoor Activation at the 2024 Ex Awards. These accolades reflect
our team's dedication to delivering world class brand experiences and further
strengthen our position within the industry.
We have also strengthened our board during the period with the appointment of
Alan Charlton as a Non-Executive Director. Alan bringing a wealth of
experience in business strategy, operational performance, cost efficiency,
mergers & acquisitions, and shareholder value creation. His expertise and
experience will be invaluable in supporting our future growth.
Looking ahead, we remain optimistic about the remainder of the 2025 and
beyond. With a strong pipeline of contracted projects, disciplined financial
management, and a strategic focus on high-growth opportunities, we are
well-positioned to drive sustainable, long term growth.
The underlying strength of our business remains intact. Our focus continues to
be on delivering innovative, impactful experiences for our clients and
generating lasting value for our shareholders.
Mike Hale
Chairman
25 March 2025
Aeorema Communications plc Tel: +44 (0) 20 7291 0444
Andrew Harvey
Allenby Capital Limited (Nominated Adviser & Broker) Tel: +44 (0)20 3328 5656
John Depasquale / Lauren Wright (Corporate Finance)
Kelly Gardiner / Joscelin Pinnington (Sales & Corporate Broking)
St Brides Partners Ltd (Financial PR) aeorema@stbridespartners.co.uk (mailto:aeorema@stbridespartners.co.uk)
Paul Dulieu / Isabel de Salis/ William Turner
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) (www.cheerfultwentyfirst.com
(http://www.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.
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 2024
Unaudited Unaudited Audited
6 Months to 31 December 2024 6 Months to 31 December 2023 Year to
30 June
2024
Notes £ £ £
Continuing Operations
Revenue 7,200,269 6,553,779 20,288,799
Cost of sales (5,888,862) (5,051,024) (16,513,827)
Gross profit 1,311,407 1,502,755 3,774,972
Administrative expenses (1,429,499) (1,724,982) (3,334,224)
Operating (loss) / profit (118,092) (222,227) 440,748
Finance income 14,217 20 35,967
Finance costs (15,229) (21,327) (39,787)
(Loss) / profit before taxation (119,104) (243,534) 436,928
Taxation 4 12,974 125,253 (140,221)
(Loss) / profit for the period from continuing operations
(106,130) (118,281) 296,707
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign entities 50,345 56,973 (88,632)
Other comprehensive income for the period 50,345 56,973 (88,632)
Total comprehensive income for the period (55,785) (61,308) 208,075
Basic and diluted earnings per share from continuing operations
Basic (pence) 5 (1.11) (1.24) 3.18
Diluted (pence) 5 (1.01) (1.05) 2.69
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2024
Unaudited Unaudited Audited
6 Months to 31 December 2024 6 Months to 31 December 2023 Year to
30 June
2024
£ £ £
Non-current assets
Intangible assets 564,348 565,181 564,348
Property, plant and equipment 361,237 379,137 344,827
Right-to-use assets 506,780 633,584 570,182
Deferred taxation - 140,110 -
1,432,365 1,718,012 1,479,357
Current assets
Trade and other receivables 6,346,873 4,213,279 4,422,020
Cash and cash equivalents 755,813 1,342,729 3,119,353
7,102,686 5,556,008 7,541,373
Total assets 8,535,051 7,274,020 9,020,730
Current liabilities
Trade and other payables 4,968,295 3,584,467 5,371,049
Lease liabilities 116,743 109,808 113,201
Bank loans - 69,445 27,778
Current tax payable 104,783 72,510 118,973
Provisions 35,000 35,000 35,000
5,224,821 3,871,230 5,666,001
Non-current liabilities
Lease liabilities 441,047 594,247 500,814
Provisions 27,000 18,000 22,500
Deferred taxation 42,344 - 25,690
510,391 612,247 549,004
Total liabilities 5,735,212 4,483,477 6,215,005
Net assets 2,799,839 2,790,543 2,805,725
Equity attributable to equity holder:
Share capital 1,211,625 1,192,250 1,192,250
Share premium 47,451 21,876 21,876
Merger reserve 16,650 16,650 16,650
Other reserve 307,758 270,870 302,809
Capital redemption reserve 257,812 257,812 257,812
Foreign translation reserve (126,531) (31,271) (176,876)
Retained earnings 1,085,074 1,062,356 1,191,204
Total equity 2,799,839 2,790,543 2,805,725
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2024
Share capital Share Merger reserve Other reserve Capital redemption reserve Foreign translation reserve Retained earnings Total equity
premium
£ £ £ £ £ £ £ £
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
At 1 January 2024 1,192,250 21,876 16,650 270,870 257,812 (31,271) 1,062,356 2,790,543
Comprehensive income for the period - - - - - 414,988 414,988
Dividend paid - - - - - (286,140) (286,140)
Foreign currency translation - - - - - (145,605) - (145,605)
Share-based payments - - - 31,939 - - - 31,939
At 30 June 2024 1,192,250 21,876 16,650 302,809 257,812 (176,876) 1,191,204 2,805,725
At 1 July 2024 1,192,250 21,876 16,650 302,809 257,812 (176,876) 1,191,204 2,805,725
Comprehensive income for the period - - - - - - (106,130) (106,130)
Foreign currency translation - - - - - 50,345 - 50,345
Share-based payments - - - 4,949 - - - 4,949
Share issue 19,375 25,575 - - - - - 44,950
At 31 December 2024 1,211,625 47,451 16,650 307,758 257,812 (126,531) 1,085,074 2,799,839
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2024
Unaudited Unaudited Audited
6 Months to 31 December 2024 6 Months to 31 December 2023 Year to
30 June
2024
£ £ £
Cash flow from operating activities
(Loss) / profit before taxation (119,104) (243,534) 436,928
Adjustments for:
Depreciation of property, plant and equipment 50,467 67,827 137,105
Depreciation of right-of-use assets 63,402 63,402 126,804
Amortisation of intangible fixed assets - 1,250 2,083
Loss on disposal of fixed assets - - 1,288
Share-based payment 4,949 37,495 69,434
Interest on lease liabilities 14,775 17,804 34,264
Finance income (14,217) (20) (35,967)
Dilapidations 4,500 4,500 9,000
Exchange rate differences on translation 50,345 60,590 (88,632)
Operating cash flow before movement in working capital 55,117 9,314 692,307
Increase/(decrease) in trade and other payables (402,755) (298,470) 1,488,111
(Increase)/decrease in trade and other receivables (1,924,852) (710,757) (919,497)
Cash (used in) / generated from operating activities (2,272,490) (999,913) 1,260,921
Taxation paid 15,438 (2,241) (55,451)
Cash flow from investing activities
Finance income 14,217 20 35,967
Purchase of property, plant and equipment (66,877) (22,071) (54,711)
Repayment of leasing liabilities (71,000) (35,500) (142,000)
Net cash used in investing activities (123,660) (57,551) (160,744)
Cash flow from financing activities
Share issue 44,950 - -
Dividends paid to owners of the company - - (286,140)
Repayment of bank loans (27,778) (41,666) (83,333)
Net cash used in financing activities 17,172 (41,666) (369,473)
Net (decrease) / increase in cash and cash equivalents (2,363,540) (1,101,371) 675,253
Cash and cash equivalents at beginning of period 3,119,353 2,444,100 2,444,100
Cash and cash equivalents at end of period 755,813 1,342,729 3,119,353
AEOREMA COMMUNICATIONS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2024
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 2024 (including comparatives for the periods ended 31
December 2023 and 30 June 2024) were approved by the board of directors on 25
March 2025.
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
2024, 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 2024 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 2024 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 2024, 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 2024
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 (2023: 25 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 2024 Unaudited 6 Months to 31 December 2023 Audited Year to 30 June 2024
(Loss) / profit for the year attributable to owners of the Company (£106,130) (£118,281) £296,707
Number of shares
Basic weighted average number of shares 9,563,833 9,538,000 9,538,000
Effect of dilutive share options 965,000 1,700,000 1,493,000
Diluted weighted average number of shares 10,528,833 11,238,000 11,031,000
6. Dividends
During the interim period a dividend of 3 pence per share (2023: 3 pence per
share) was declared to holders of the Company's ordinary shares in respect of
the full year ended 30 June 2024.
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 2024 Unaudited 6 months to 31 December 2023
£ £
Subsidiaries
Amounts owed by/(to) subsidiaries 625,070 503,557
Amounts owed by/(to) subsidiaries 625,070 503,557
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 2024 Unaudited 6 Months to 31 December 2023
Harris & Trotter LLP £ £
Aeorema Communications plc 10,000 12,950
Aeorema Limited 7,850 7,750
17,850 20,700
Fees charged to Aeorema Communications plc include £10,000 (2023: £10,000)
for the services of S Haffner as a non-executive director of that company. S
Haffner resigned as a non-executive director of Aeorema Communications plc on
21 January 2025.
The compensation of key management (including directors) of the Group is as
follows:
Unaudited 6 Months to 31 December 2024 Unaudited 6 Months to 31 December 2023
£ £
Short-term employee benefits 279,944 361,004
Post-employment benefits 11,786 10,101
291,730 371,105
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