TIDMAEO
RNS Number : 3085H
Aeorema Communications Plc
03 August 2021
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
Aeorema Communications plc / Index: AIM / Epic: AEO / Sector:
Media
3 August 2021
Aeorema Communications plc ('Aeorema' , the ' Company' , or the
' Group')
Trading Update
Aeorema Communications plc, the AIM-traded live events agency,
is pleased to announce a trading update for the year ended 30 June
2021, following a period in which the Company has demonstrated
resilience and agility with a focus on largely virtual and hybrid
events.
Highlights
-- Further multi-national blue-chip client wins during the period
-- Team adapted quickly and capitalised on an increasing
requirement for virtual and hybrid events
-- Strategic shift to providing consultancy services and
engaging with clients at a higher advisory level on their
communications strategies is proving very successful
-- Improved gross profit margin achieved, primarily driven by
the ability to bill an increased amount of higher-margin services
in the pre-production phase of contracts
-- Continued return to profitability during H2 2021(*)
-- Operating loss for FY 2021 expected to be in the region of
GBP230,000(*) (H1 2021: operating loss of GBP277,931, FY 2020:
operating loss of GBP175,043)
-- The outlook for the start of the new financial year is very
strong: H1 2022 revenues are anticipated to be greater than any
previous interim period on record
-- Very strong pipeline looking forward with new and existing clients
-- New York office continues to grow and win new US based clients
-- Opportunities are strong in virtual, hybrid and face to face events
-- Maintained strong cash position in excess of GBP1 million
* All numbers appearing in this statement remain subject to
final audit
Business Update
As previously reported, ahead of the start of the Covid-19
pandemic it was clear that there were going to be a number of
changes to the live events industry and the way live events were
being run and staged, with an increasing focus put on digital and
hybrid events. This was accelerated by the impact of the Covid-19
pandemic and Aeorema was agile in its ability to adapt quickly
having taken material advantage of the opportunity since March
2020.
With the enlarged team fully in place following a number of
strategic and skilled hires late in FY 2020 adding depth and new
business opportunities, along with the training of our existing
team, Aeorema has transitioned into a multi-faceted and
multi-skilled communications adviser and executor. The Group's
offerings to its blue-chip clients have been, and continue to be,
enhanced which has proved fruitful in widening new business
possibilities, some of which are on a retainer model. As we have
indicated previously, this offers enhanced revenue visibility and
strengthens the Company's relationships with those clients. The
Company provides clients with strategic advice on how they
communicate and interact with different target audiences using
Aeorema's 'best of breed' virtual tools and technology along with
how they skilfully manage the opportunity of hybrid events.
Cheerful Twentyfirst, Aeorema's main operating division, has been
entrusted with delivering large-scale virtual events for some of
the world's largest and most high-profile companies. These events
involve professional production crews, dynamic virtual sets and
speakers at events being provided with high quality broadcast
equipment to use from their homes.
Aeorema has added increasing amounts of work from its existing
blue-chip clients in the period. The Board is thrilled that the
team have also won contracts, completed and committed for the
future, from new blue-chip clients which the Board believes is as a
result of the ability of the team to deliver further scope in
services resulting in more successful events, whether virtual,
hybrid or live. Our new clients include those operating across
sectors such as finance, professional services, oil & gas,
advertising, IT, fashion, Fintech and beverages. This increase in
revenue has resulted in Aeorema remaining profitable during H2 2021
(subject to final audit), following the return to profitability in
the final three months of H1 2021. With a very strong pipeline, the
Company expects this to result in a marked increase in revenue
during H1 2022.
Aeorema continues to maintain its strong cash position with a
cash balance in excess of GBP1 million. The Company expects to be
in a position to publish its results for the year ended 30 June
2021 in October 2021.
Mike Hale, Chairman, said: "In a period in which the team have
worked tirelessly, up-skilling, retraining and refocusing on
virtual and hybrid events following a history of purely live
events, I believe we have created the perfect platform on which we
can capitalise on the changes we have all experienced over the last
18 months, and changes which I believe are largely here to
stay.
"We have adapted and are thriving with an increasing amount of
client business, from existing and new clients, smaller companies
to blue-chip, and our very strong pipeline is testament to the work
and advice our team provide. Returning to profitability is
something the Board and I are incredibly proud of and I would like
to take this opportunity to thank our clients, and crucially our
team, for their dedication and loyalty and I look forward to seeing
this growth continue.
"We will see an increasing return to live events, but I believe
the landscape has changed for the long term and with Aeorema's
combination of both virtual and physical events in the form of
hybrid events, clients will be provided with the best of what both
have to offer. With our reach into the US as well, we are ideally
structured to maximise on the opportunities in the UK, Europe and
the US and I look to the future with confidence.
Finally, we are delighted to have won the CN Agency Award for
Creative Team of the Year for a third consecutive year, confirming
our status as one of the leading agencies amongst our peers."
**ENDS**
For further information visit www.aeorema.com or contact:
Mike Hale Aeorema Communications Tel: +44 (0) 20 7291
plc 0444
John Depasquale / Liz Allenby Capital Limited Tel: +44 (0)20 3328
Kirchner (Corporate (Nominated Adviser and 5656
Finance) Broker)
Kelly Gardiner (Sales
and Corporate Broking)
Catherine Leftley /Selina St Brides Partners Ltd. Tel: +44 (0) 20 7236
Lovell 1177
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