REG - Aeorema Comms Plc - Interim Results
25/03/2022 07:16
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RNS Number : 9886F Aeorema Communications Plc 25 March 2022
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deemed by the Company to constitute inside information as stipulated under the
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Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media
25 March 2022
Aeorema Communications plc ('Aeorema' or 'the Company' or 'the Group')
Interim Results
Aeorema Communications plc, the AIM-traded live events agency, announces its
unaudited results for the six months ended 31 December 2021.
Highlights
- Record revenue of £4,909,742 (H1 2020: £1,677,311)
- First profitable interim period for a number of years with profit
before taxation of £255,677 (H1 2020: loss £287,676)
- Benefitting significantly from a strong performance from US office
which continues to grow, deliver profits and has recently onboarded 3 new
clients.
- Virtual online conferences and events have experienced high levels
of demand, and the provision of consultancy services has further enhanced
performance for the period
- Maintained a robust cash position of £1,534,217 (31 December 2020:
£1,342,548)
- Confident of continued delivery for remainder of financial year
Chairman's Statement
The six months ended 31 December 2021 has been a significant period of growth
for the Group and one which has seen us generate record revenue and return to
profitability, an endorsement of our ability to meet our clients' continuously
evolving needs. The pivot to virtual and hybrid events over the last two years
has been a true success and the team has repeatedly risen to any challenge and
exceeded expectations with our results for the period a clear demonstration of
this.
During the period under review, we have received an unprecedented demand for
our bespoke services from a wide range of blue-chip clients across a number of
industries. Alongside our existing offering, the strategic shift into
providing consultancy services to engage with clients at an advisory level on
their communication strategies has proved successful, utilising our team's
combined expertise in events and communications. This division is seeing
burgeoning demand and is performing well.
One of our biggest achievements has been opening our US office in New York
(opened in September 2020), which has seen significant growth in the period; a
strategic decision and demonstration of our dedication to our US-based clients
and potential international clients. Our US office has seen strong performance
and continues to win new US-based clients to complement our existing client
portfolio. Indeed, the US business is confident of further strong growth in
the 18 months ahead and, with flights returning to pre-pandemic levels, the UK
team will be able to support more as and when is needed.
The move to virtual events remains a popular choice for companies, however
live events are starting to return. Having spoken with a number of clients,
there is still an interest for live events as there is no substitute for
personal contact. There is an expectation that popular events, in person, will
go ahead this year and this includes Cannes Lions which has been confirmed to
take place - an event which has traditionally been a success for Aeorema. With
live events on the rise, the team is focused and prepared for when B2B events
shift back to being predominantly in-person.
Venue sourcing and luxury events division, Eventful, which was acquired in
March 2020 and was inevitably impacted by the restrictions over the last 24
months, is well placed to return to profitability over the next year. Despite
the quiet period for the company, it has maintained its relationships with
existing clients and has been introduced to new clients, whilst its
cross-selling opportunities continue to succeed. The upcoming year is due to
see Eventful make a strong comeback as the core business remains in good shape
and it has a healthy pipeline in place.
We ended the calendar year on a high note with a strong outlook for the second
half of the financial year having experienced the best interim period on
record with revenue of £4,909,742 and profit before tax of £255,677. These
results represent the first profitable interim period in a number of years for
the Company due to the sustained high levels of demand for virtual events,
coupled with our consultancy services offering which further enhanced
performance.
Aeorema has shown that it can operate profitably across the virtual, hybrid
and live events space and that it is able to successfully adapt to the
ever-changing communication needs of retained and potential clients. I am
confident we will continue this upward momentum for the remainder of 2022.
I would once again like to take the opportunity to thank our dedicated team
and shareholders for their ongoing support and I look forward to what the next
six months will bring for us.
M Hale
Chairman
25 March 2022
*ENDS*
For further information visit www.aeorema.com (http://www.aeorema.com/)
or contact:
Mike Hale Aeorema Communications plc +44 (0)20 7291 0444
John Depasquale / Allenby Capital Limited (Nominated Adviser and Broker) +44 (0)20 3328 5656
Liz Kirchner (Corporate Finance)
Kelly Gardiner (Sales and Corporate Broking)
Catherine Leftley/ Selina Lovell St Brides Partners Ltd (Financial PR) info@stbridespartners.co.uk (mailto:info@stbridespartners.co.uk)
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2021
Unaudited Unaudited Audited
6 Months to 31 December 2021 6 Months to 31 December 2020 Year to
30 June
2021
Notes £ £ £
Continuing Operations
Revenue 4,909,742 1,677,311 5,094,518
Cost of sales (3,734,995) (1,337,873) (3,912,376)
Gross profit 1,174,747 339,438 1,182,142
Other income 3,743 49,616 61,651
Administrative expenses (919,366) (666,985) (1,431,898)
Operating profit / (loss) pre-exceptional items 259,124 (277,931) (188,105)
Exceptional items - - 50,000
Operating profit / (loss) post exceptional items 259,124 (277,931) (138,105)
Finance income 109 539 489
Finance costs (3,556) (10,284) (22,082)
Profit / (loss) before taxation 255,677 (287,676) (159,698)
Taxation 4 48,105 40,100 (5,228)
Profit / (loss) for the period from continuing operations
303,782 (247,576) (164,926)
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign entities 11,552 (7,479) (11,044)
Other comprehensive income for the period 11,552 (7,479) (11,044)
Total comprehensive income for the period 315,334 (255,055) (175,970)
Basic and diluted earnings per share from continuing operations
Basic (pence) 5 3.28840 (2.67997) (1.78529)
Diluted (pence) 5 2.72255 (2.67997) (1.78529)
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2021
Unaudited Unaudited Audited
6 Months to 31 December 2021 6 Months to 31 December 2020 Year to
restated 30 June
2021
£ £ £
Non-current assets
Intangible assets 570,182 572,682 571,431
Property, plant and equipment 121,138 76,832 103,477
Right-to-use assets - 333,983 18,995
Deferred taxation 182,179 47,710 -
873,499 1,031,207 693,903
Current assets
Trade and other receivables 2,337,399 1,007,548 1,429,064
Cash and cash equivalents 1,534,217 1,342,548 1,101,713
Current tax receivable 36,942 - 10,758
3,908,558 2,350,096 2,541,535
Total assets 4,782,057 3,381,303 3,235,438
Current liabilities
Trade and other payables 2,514,347 1,338,500 1,417,467
Lease liabilities - 87,219 25,912
Bank loans 83,334 13,889 54,089
Current tax payable 136,132 3,711 -
Provisions 25,020 - 25,020
2,758,833 1,443,319 1,522,488
Non-current liabilities
Lease liabilities - 256,538 -
Bank loans 152,778 236,112 195,911
Provisions - 25,020 -
Deferred taxation - - 2,059
152,778 517,670 197,970
Total liabilities 2,911,611 1,960,989 1,720,458
Net assets 1,870,446 1,420,314 1,514,980
Equity attributable to equity holder:
Share capital 1,154,750 1,154,750 1,154,750
Share premium 9,876 9,876 9,876
Merger reserve 16,650 16,650 16,650
Other reserve 152,193 96,480 112,061
Capital contribution reserve 257,812 257,812 257,812
Retained earnings 279,165 (115,254) (36,169)
Total equity 1,870,446 1,420,314 1,514,980
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2021
Share capital Share Merger reserve Other reserve Capital contribution reserve Retained earnings Total equity
premium
restated restated
£ £ £ £ £ £ £
At 1 July 2020 1,154,750 9,876 16,650 81,358 257,812 139,801 1,660,247
Comprehensive income for the period - - - - - (255,055) (255,055)
Share-based payments - - - 15,122 - - 15,122
At 31 December 2020 1,154,750 9,876 16,650 96,480 257,812 (115,254) 1,420,314
At 1 January 2021 1,154,750 9,876 16,650 96,480 257,812 (115,254) 1,420,314
Comprehensive income for the period - - - - - 79,085 79,085
Share-based payments - - - 15,581 - - 15,581
At 30 June 2021 1,154,750 9,876 16,650 112,061 257,812 (36,169) 1,514,980
At 1 July 2021 1,154,750 9,876 16,650 112,061 257,812 (36,169) 1,514,980
Comprehensive income for the period - - - - - 315,334 315,334
Share-based payments - - - 40,132 - - 40,132
At 31 December 2021 1,154,750 9,876 16,650 152,193 257,812 279,165 1,870,446
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2021
Unaudited Unaudited Audited
6 Months to 31 December 2021 6 Months to 31 December 2020 Year to
30 June
2021
£ £ £
Cash flow from operating activities
(Loss) / profit before taxation 255,677 (287,676) (159,698)
Adjustments for:
Depreciation of property, plant and equipment 24,586 18,209 40,885
Depreciation of right-of-use assets 18,995 45,546 91,092
Amortisation of intangible fixed assets 1,250 1,250 2,500
Loss on disposal of fixed assets 2,096 769 769
Share-based payment 40,132 15,122 30,703
Interest on lease liabilities - 8,996 16,932
Finance income (109) (539) (489)
Exchange rate differences on translation 11,552 (7,479) (11,044)
Revaluation of right-to-use asset - - (5,311)
Operating cash flow before movement in working capital 354,179 (205,802) 6,339
Increase/(decrease) in trade and other payables 1,096,880 112,278 191,244
(Increase)/decrease in trade and other receivables (908,336) (410,049) (831,592)
Cash (used in) / generated from operating activities 542,723 (503,573) (634,009)
Taxation paid (26,185) (64,779) (74,805)
Cash flow from investing activities
Finance income 109 539 489
Purchase of property, plant and equipment (44,343) (9,856) (59,179)
Disposal of property, plant and equipment - - -
Repayment of leasing liabilities (25,912) (51,000) (102,000)
Net cash used in investing activities (70,146) (60,317) (160,690)
Cash flow from financing activities
Bank loans - 250,000 250,000
Repayment of bank loans (13,888) - -
Net cash used in financing activities (13,888) 250,000 250,000
Net increase / (decrease) in cash and cash equivalents 432,504 (378,669) (619,504)
Cash and cash equivalents at beginning of period 1,101,713 1,721,217 1,721,217
Cash and cash equivalents at end of period 1,534,217 1,342,548 1,101,713
AEOREMA COMMUNICATIONS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2021
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 the AIM market of the London Stock
Exchange.
These condensed consolidated interim financial statements for the period ended
31 December 2021 (including comparatives for the periods ended 31 December
2020 and 30 June 2021) were approved by the board of directors on 25 March
2022.
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
2021, 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 2021 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 2021 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 2021, which have been
prepared in accordance with IFRS as adopted by the European Union
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 2021
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 19 per cent (2020: 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 2021 Unaudited 6 Months to 31 December 2020 Audited Year to 30 June 2021
Profit / (loss) for the year attributable to owners of the Company £303,782 £(247,576) £(164,926)
Number of shares
Basic weighted average number of shares 9,238,000 9,238,000 9,238,000
Effect of dilutive share options 1,920,000 1,020,000 1,920,000
Diluted weighted average number of shares 11,158,000 10,258,000 11,158,000
6. Dividends
During the interim period no dividend (2020: nil) was declared to holders of
the Company's ordinary shares in respect of the full year ended 30 June 2021.
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 2021 Unaudited 6 months to 31 December 2020
£ £
Subsidiaries
Amounts owed by/(to) subsidiaries 397,759 504,694
Amounts owed by/(to) subsidiaries 397,759 504,694
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 2021 Unaudited 6 Months to 31 December 2020
Harris & Trotter LLP £ £
Aeorema Communications plc 7,500 7,500
Aeorema Limited 5,750 10,450
13,250 17,950
Fees charged to Aeorema Communications plc include £7,500 (2020: £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 2021 Unaudited 6 Months to 31 December 2020
£ £
Short-term employee benefits 162,933 140,500
Post-employment benefits 7,496 2,992
170,429 143,492
During the previous period S Quah received an interest-free loan of £10,000.
At 31 December 2021 £10,000 (2020: £10,000) was outstanding.
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