TIDMAEO
RNS Number : 9886F
Aeorema Communications Plc
25 March 2022
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
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 GBP4,909,742 (H1 2020: GBP1,677,311)
- First profitable interim period for a number of years with
profit before taxation of GBP255,677 (H1 2020: loss GBP287,676)
- 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 GBP1,534,217 (31 December 2020: GBP1,342,548)
- 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 GBP4,909,742 and
profit before tax of GBP255,677. 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
*S*
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
Kelly Gardiner (Sales Limited (Nominated
and Corporate Broking) Adviser and Broker) +44 (0)20 3328 5656
Catherine Leftley/ St Brides Partners info@stbridespartners.co.uk
Selina Lovell Ltd (Financial PR)
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2021
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2021 2020 2021
Notes GBP GBP GBP
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 6 Months Year to
to 31 December to 31 December 30 June
2021 2020 2021
restated
GBP GBP GBP
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 Other Capital Retained Total
premium reserve reserve contribution earnings equity
reserve
restated restated
GBP GBP GBP GBP GBP GBP GBP
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 6 Months Year to
to 31 December to 31 December 30 June
2021 2020 2021
GBP GBP GBP
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 Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2021 2020 2021
Profit / (loss) for the GBP303,782 GBP(247,576) GBP(164,926)
year attributable to owners
of the Company
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 Unaudited
6 months 6 months
to 31 December to 31 December
2021 2020
GBP GBP
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 Unaudited
6 Months 6 Months
to 31 December to 31 December
2021 2020
Harris & Trotter LLP GBP GBP
Aeorema Communications plc 7,500 7,500
Aeorema Limited 5,750 10,450
---------------- ----------------
13,250 17,950
Fees charged to Aeorema Communications plc include GBP7,500
(2020: 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
2021 2020
GBP GBP
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 GBP10,000. At 31 December 2021 GBP10,000 (2020: GBP10,000) was
outstanding.
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