TIDMAEO
RNS Number : 9379S
Aeorema Communications Plc
22 March 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse Regulations (Amendment) (EU
Exit) Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
Aeorema Communications plc / Index: AIM / Epic: AEO / Sector:
Media
22 March 2021
Aeorema Communications plc ('Aeorema' or 'the Company' or 'the
Group')
Interim Report
Aeorema Communications plc, the AIM-traded live events agency,
announces its unaudited results for the six months ended 31
December 2020.
Overview
-- Revenues of GBP1,677,311 (2019: GBP2,913,290)
-- Loss after taxation of GBP247,576 (2019: loss of GBP57,021)
-- Robust cash position of GBP1,342,548 (31 December 2019: GBP1,393,243)
-- Returned to profitability in the final three-months of the period
Chairman's Statement
Our shareholders will be familiar with the proverb "necessity is
the mother of invention" and this phrase became especially true for
your Company as the hospitality and events industry experienced an
immediate and full-blown shut down in the unprecedented times of
the Covid-19 pandemic.
I am proud of our achievements during the period under review,
having quickly re-invented ourselves at pace into an expert in
virtual and hybrid conferencing following the collapse of the live
events business as a result of Covid-19 last year. Equally, I am
optimistic for the future as I believe we are well positioned to
grow rapidly when live events return.
Faced with the extraordinary challenge of restructuring our
business to service a new model focused on virtual events, our team
adeptly stepped up to the plate. We developed new services, built
our own virtual events platform, KIT, grew existing accounts,
onboarded new clients, and impressively returned the Company to
profitability in the final months of the period - an outstanding
achievement following a period which necessitated substantial
restructuring costs and saw a gradual take up of our new offerings.
In addition to our traditional largely professional services client
base, we are proud to have onboarded a technology giant, working
across its four divisions, as well as working with a further five
technology clients, all of whom trust our consultancy and technical
expertise. These accounts continue to grow during this
unprecedented period, and we anticipate further engagements going
forward.
While we had expected revenues from live events of circa GBP3-5
million for July to December 2020, we replaced this lost income
with GBP1,677,311 in revenue from virtual events. We also contained
the loss after tax to GBP247,576 (2019: loss of GBP57,021) and
ended the calendar year with GBP1,342,548 in cash (2019:
GBP1,393,243) despite restructuring costs. The trend is positive.
With several new blue-chip clients and a strong pipeline, we are
confident that the next six months will be profitable. The
Company's cash position remains strong and as at the date of this
announcement is circa GBP1.1 million.
We announced the opening of an office in New York in September
2020. This was a strategic decision signifying a dedicated approach
to supporting the growing needs and requests of our clients in the
US, and internationally, as we saw an increase in potential
business in the region. I am pleased to report this has been a
beneficial investment for the Company and we are expecting to make
a profit from this division in its first year. Our presence in the
US has enabled us to grow our existing clients as well as win new
US based clients.
Whilst Eventful, acquired in March 2020, was naturally severely
impacted by Covid-19 related travel bans and venue closures, the
team has maintained its relationships with existing clients and
been introduced to many new clients working with Cheerful
Twentyfirst. During this quiet period, the team has been developing
its strategy for 2021/22 and is excited about both returning to
sourcing venues for live events and building an exceptional
incentives programme for corporates. Holly Mills has joined
Eventful as Head of Incentives (formerly Head of Incentives at
Penguins Events) and is developing the new Incentives offering for
a market with pent up demand and sizeable budgets.
Looking ahead, we believe live events will return; a number of
clients have commented that there is no substitute for personal
contact. However, regardless of when this happens, we have proven
that we can operate as a profitable business in the virtual and
hybrid space too and are excited at the prospect of new
opportunities for the Group. Furthermore, we are growing our fee
based strategic communications solutions as part of our new
consultancy approach, supported by production excellence and
networking solutions that continue to challenge the norm.
I would like to thank our team and our shareholders for their
ongoing support and look forward to the next six months with
growing optimism.
M Hale
Chairman
19 March 2021
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2020
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2020 2019 2020
Notes GBP GBP GBP
Continuing Operations
Revenue 1,677,311 2,913,290 5,475,425
Cost of sales (829,741) (2,044,591) (3,629,770)
Gross profit 847,570 868,699 1,845,655
Other income 49,616 - 82,601
Administrative expenses (1,175,117) (958,677) (2,103,299)
Operating (loss) / profit
pre-exceptional items (277,931) (89,978) (175,043)
Exceptional items - - (23,184)
Operating (loss) / profit
post exceptional items (277,931) (89,978) (198,227)
---------------- ---------------- ------------
Finance income 539 328 556
Finance costs (10,284) - (20,253)
(Loss) / profit before taxation (287,676) (89,650) (217,924)
Taxation 4 40,100 32,629 20,497
(Loss) / profit for the period
from continuing operations (247,576) (57,021) (197,427)
Other comprehensive income
Items that may be reclassified
to profit or loss
Exchange differences on translation (7,479) - -
of foreign entities
Other comprehensive income (7,479) - -
for the period
Total comprehensive income
for the period (255,055) (57,021) (197,427)
================ ================ ============
Basic and diluted earnings
per share from continuing
operations
Basic (pence) 5 (2.67997)p (0.63003)p (2.16920)p
Diluted (pence) 5 N/A N/A N/A
================ ================ ============
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2020
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2020 2019 2020
GBP GBP GBP
Non-current assets
Intangible assets 572,682 365,154 573,931
Property, plant and equipment 76,832 98,070 85,952
Right-to-use assets 333,983 425,070 379,530
Deferred taxation 47,710 25,100 7,611
1,031,207 913,394 1,047,024
Current assets
Trade and other receivables 1,007,548 1,480,984 597,497
Cash and cash equivalents 1,342,548 1,393,243 1,721,217
---------------- ---------------- ----------
2,350,096 2,874,227 2,318,714
Total assets 3,381,303 3,787,621 3,365,738
Current liabilities
Trade and other payables 1,298,948 1,472,303 1,186,670
Lease liabilities 87,219 82,973 85,070
Bank loans 13,889 - -
Current tax payable 3,711 74,616 68,490
---------------- ---------------- ----------
1,403,767 1,629,892 1,340,230
Non-current liabilities
Lease liabilities 256,538 343,756 300,689
Bank loans 236,112 - -
Provisions 25,020 25,020 25,020
---------------- ---------------- ----------
517,670 368,776 325,709
Total liabilities 1,921,437 1,998,668 1,665,939
Net assets 1,459,866 1,788,953 1,699,799
================ ================ ==========
Equity attributable to equity
holder:
Share capital 1,154,750 1,131,313 1,154,750
Share premium 9,876 7,063 9,876
Merger reserve 16,650 16,650 16,650
Other reserve 96,480 56,358 81,358
Capital contribution reserve 257,812 257,812 257,812
Retained earnings (75,702) 319,757 179,353
Total equity 1,459,866 1,788,953 1,699,799
================ ================ ==========
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2020
Share capital Share Merger Other Capital Retained Total
premium reserve reserve contribution earnings equity
reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 July 2019 1,131,313 7,063 16,650 34,261 257,812 467,283 1,914,382
Payment of dividends - - - - - (90,505) (90,505)
Comprehensive
income for the
period - - - - - (57,021) (57,021)
Share-based
payments - - - 22,097 - - 22,097
At 31 December
2019 1,131,313 7,063 16,650 56,358 257,812 319,757 1,788,953
At 1 January
2020 1,131,313 7,063 16,650 56,358 257,812 319,757 1,788,953
Comprehensive
income for the
period - - - - - (140,404) (140,404)
Share-based
payments - - - 25,000 - - 25,000
Share issue 23,437 2,813 - - - - 26,250
At 30 June 2020 1,154,750 9,876 16,650 81,358 257,812 179,353 1,699,799
At 1 July 2020 1,154,750 9,876 16,650 81,358 257,812 179,353 1,699,799
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 (75,702) 1,459,866
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2020
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2020 2019 2020
GBP GBP GBP
Cash flow from operating activities
(Loss) / profit before taxation (287,676) (89,650) (217,924)
Adjustments for:
Depreciation of property, plant
and equipment 18,209 14,064 31,871
Depreciation of right-of-use assets 45,546 43,848 89,392
Amortisation of intangible fixed
assets 1,250 - 417
Loss on disposal of fixed assets 769 1,424 1,648
Share-based payment 15,122 22,097 47,097
Interest on lease liabilities 8,996 10,222 20,253
Finance income (539) (327) (556)
Exchange rate differences on translation (7,479) - -
---------------- ---------------- ------------
Operating cash flow before movement
in working capital (205,802) 1,678 (27,802)
Increase/(decrease) in trade and
other payables 112,278 (755,036) (1,075,254)
(Increase)/decrease in trade and
other receivables (410,049) 131,361 1,014,847
Cash (used in) / generated from
operating activities (503,573) (621,997) (88,209)
Taxation paid (64,779) - (10,797)
Cash flow from investing activities
Payment for Acquisition of Subsidiary,
net of cash acquired - - (128,331)
Finance income 539 327 556
Purchase of intangible assets - - (10,000)
Purchase of property, plant and
equipment (9,856) (55,710) (61,400)
Disposal of property, plant and - 224 -
equipment
Repayment of leasing liabilities (51,000) (50,257) (101,258)
Net cash used in investing activities (60,317) (105,416) (300,433)
Cash flow from financing activities
Dividends paid - (90,505) (90,505)
Bank loans 250,000 - -
---------------- ---------------- ------------
Net cash used in financing activities 250,000 (90,505) (90,505)
Net increase / (decrease) in cash
and cash equivalents (378,669) (817,918) (489,944)
---------------- ---------------- ------------
Cash and cash equivalents at beginning
of period 1,721,217 2,211,161 2,211,161
Cash and cash equivalents at end
of period 1,342,548 1,393,243 1,721,217
================ ================ ============
AEOREMA COMMUNICATIONS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2020
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 ending 31 December 2020 (including comparatives for the
periods ended 31 December 2019 and 30 June 2020) were approved by
the board of directors on 20 March 2021.
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 2020, 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 2020 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 2020 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 2020, 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 2020 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. (2019: 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 Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2020 2019 2020
(Loss) / profit for the
year attributable to owners
of the Company (247,576) (57,021) (197,427)
Number of shares
Basic weighted average number
of shares 9,238,000 9,050,500 9,101,356
Effect of dilutive share
options 1,020,000 1,020,000 1,020,000
Diluted weighted average
number of shares 10,258,000 10,070,500 10,121,356
6. Dividends
During the interim period no dividend (2019: 1 pence per share)
was declared to holders of the Company's ordinary shares in respect
of the full year ended 30 June 2020.
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 Unaudited
6 months 6 months
to 31 December to 31 December
2020 2019
GBP GBP
Subsidiaries
Amounts owed by/(to) subsidiaries 504,694 1,027,839
---------------- ----------------
Amounts owed by/(to) subsidiaries 504,694 1,027,839
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 Unaudited
6 Months 6 Months
to 31 December to 31 December
2020 2019
Harris & Trotter LLP GBP GBP
Aeorema Communications plc 7,500 7,500
Aeorema Limited 10,450 11,750
---------------- ----------------
17,950 19,250
Fees charged to Aeorema Communications plc include GBP7,500
(2019: GBP7,500) 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 Unaudited
6 Months 6 Months
to 31 December to 31 December
2020 2019
GBP GBP
Short-term employee benefits 140,500 110,667
Post-employment benefits 2,992 5,024
143,492 115,691
During the period A Harvey received an interest-free loan of
GBP10,000. At 31 December 2020, GBP10,000 (2019: GBP10,000) was
outstanding.
During the period S Quah received an interest-free loan of
GBP10,000. At 31 December 2020, GBP10,000 (2019: GBPNil) was
outstanding.
ENDS
For further information visit www.aeorema.com or contact:
Aeorema Communications
Mike Hale plc +44 (0)20 7291 0444
John Depasquale /
Liz Kirchner (Corporate
Finance) Allenby Capital Limited
Kelly Gardiner (Sales (Nominated Adviser
and Corporate Broking) and Broker) +44 (0)20 3328 5656
Catherine Leftley/ St Brides Partners info@stbridespartners.co.uk
Selina Lovell Ltd
(Financial PR)
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