Half Yearly Report

RNS Number : 8126E
Aeorema Communications Plc
12 February 2015
 

Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media

13 February 2015

Aeorema Communications plc ('Aeorema' or 'the Company')

Interim Results

 

Aeorema Communications plc, the AIM-traded live events agency, announces its results for the six months ended 31 December 2014.

 

Overview

·     Pre-tax profits of £101, 316 on a turnover of £1,658,315

·     Stronger second half anticipated with new client wins and repeat work

·     Strong cash position of £1,219,527 after payment in the period of a dividend and special dividend totalling £452,500

 

Chairman's Statement

 

The Company remains strong as it continues to build its position as a provider of live events under one brand, Cheerful 21st.

 

We have a robust balance sheet with £1,219,527 cash in the bank (2014: £1,466,352) and good revenue generation of £1,658,315 (2014: £1,812,493), slightly down due to a project being cancelled although we remain ahead of our budget.  We anticipate a stronger second half and are pleased to have added some new clients along with confirmation of our larger summer projects.  During the six months we achieved a pre-tax profit of £105,316 (2014: £225,941).  Operational costs were £702,238 (2014: £700,102).

 

The Board has continued to focus upon the Company's strategy, which brings innovative live event products and solutions to a range of highly sophisticated customers including senior leaders and partners in global professional and engineering services, technology and telecoms firms.  We have made good progress in supporting these clients resulting in excellent feedback and considerable repeat work. 

 

Over the past six months we were rewarded with nominations and wins at the EVCOM awards, the official industry body for the visual communications sector, for the work we are doing under our new single brand. 

 

It is imperative that we remain cautious and keep a tight rein on costs as there is still volatility in the market.  However, whilst keeping this in mind, we see great opportunities ahead, as we build on the creative capabilities of our team and deliver unique products to create growth under strong leadership.  I want to thank all our colleagues at for their hard work, and our shareholders for their continued support.

 

 

M Hale

Chairman

13 February 2015

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2014

 

 

 



Unaudited

6 Months to 31 December 2014

Unaudited

6 Months to 31 December 2013

Audited

Year to

30 June

2014







Notes

£

£

£

Continuing Operations










Revenue


1,658,315

1,812,493

4,764,584

Cost of sales


(855,113)

(886,630)

(2,794,629)






Gross profit


803,202

925,863

1,969,955











Administrative expenses


(702,238)

(700,102)

(1,465,520)






Operating profit


100,964

225,761

504,435

Finance income


352

180

406






Profit before taxation


101,316

225,941

504,841

Taxation

5

(6,664)

(23,132)

(89,145)






Profit for the period from continuing operations


94,652

202,809

415,696











Basic and diluted earnings per share from continuing operations










Basic (pence)

6

1.10675

2.50772

5.02290

Diluted (pence)

6

1.01227

2.27585

4.55487

 

 

There are no other comprehensive income items

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2014

 

 

 



Unaudited

6 Months to 31 December 2014

Unaudited

6 Months to 31 December 2013

Audited

Year to

30 June

2014







Notes

£

£

£






Non-current assets





Intangible assets


365,154

365,154

365,154

Property, plant and equipment


57,008

88,776

67,449

Deferred taxation


17,481

8,277

24,145



439,643

462,207

456,748






Current assets





Inventories


2,674

2,675

2,674

Trade and other receivables


939,962

569,131

1,475,921

Cash and cash equivalents


1,219,527

1,466,352

1,620,895



2,162,163

2,038,158

3,099,490











Total assets


2,601,806

2,500,365

3,556,238






Current liabilities





Trade and other payables


(945,796)

(872,057)

(1,589,007)



(945,796)

(872,057)

(1,589,007)






Net assets


1,656,010

1,628,308

1,967,231











Equity attributable to equity holder:





Share capital

8

1,131,313

1,042,188

1,079,688

Merger reserve


23,712

16,650

16,650

Other reserve


-

-

19,500

Share based payment reserve


118,412

103,529

110,972

Capital contribution reserve


257,812

257,812

257,812

Retained earnings


124,761

208,129

482,609






Total equity


1,656,010

1,628,308

1,967,231

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2014

 

 


Share capital

Merger reserve

Other reserve

Share-based payment reserve

Capital contribution reserve

Retained earnings

Total equity


£

£

£

£

£

£

£









At 1 July 2013

1,004,688

16,650

-

96,083

257,812

125,883

1,501,116

Issue of shares

37,500

-

-

-

-

-

37,500

Payment of dividends

-

-

-

-

-

(120,563)

(120,563)

Comprehensive income for the period

-

-

-

-

-

202,809

202,809

Share based payment

-

-

-

7,446

-

-

7,446

At 31 December 2013

1,042,188

16,650

-

103,529

257,812

208,129

1,628,308









At 1 January 2014

1,042,188

16,650

-

103,529

257,812

208,129

1,628,308

Issue of shares

37,500

-

19,500

-

-

-

57,000

Comprehensive income for the period

-

-

-

-

-

212,886

212,886

Share based payment

-

-

-

7,443

-

-

7,443

Tax credit relating to share option scheme

-

-

-

-

-

61,594

61,594

At 30 June 2014

1,079,688

16,650

19,500

110,972

257,812

482,609

1,967,231









At 1 July 2014

1,079,688

16,650

19,500

110,972

257,812

482,609

1,967,231

Issue of shares

32,125

7,062

-

-

-

-

39,187

Payment of dividends

-

-

-

-

-

(452,500)

(452,500)

Comprehensive income for the period

-

-

-

-

-

94,652

94,652

Share based payment

-

-

-

7,440

-

-

7,440

Transfer

19,500

-

(19,500)

-

-

-

-

At 31 December 2014

1,131,313

23,712

-

118,412

257,812

124,761

1,656,010

 

 

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2014

 

 



Unaudited

6 Months to 31 December 2014

Unaudited

6 Months to 31 December 2013

Audited

Year to

30 June

2014



£

£

£

Cash flow from operating activities





Profit before taxation


101,316

225,941

504,841

Adjustments for:





Depreciation of property, plant and equipment


18,625

18,360

51,579

Loss on disposal of property, plant and equipment


5,390

-

-

Share based payment expense


7,440

7,446

14,889

Finance income


(352)

(180)

(406)

Operating cash flow before movement in working capital


132,419

251,567

570,903

Increase/(decrease) in trade and other payables


(643,211)

(291,453)

448,630

(Increase)/decrease in trade and other receivables


535,959

37,426

(869,364)

Cash generated / (used) in operating activities


25,167

(2,460)

150,169






Taxation paid


-

-

(43,418)






Cash flow from investing activities





Finance income


352

180

406

Purchase of property, plant and equipment


(23,574)

(30,095)

(41,988)

Proceeds from the sale of property, plant and equipment


10,000

-

-

Net cash used in investing activities


(13,222)

(29,915)

(41,582)






Cash flow from financing activities





Income from share issue


39,187

37,500

94,500

Dividends paid


(452,500)

(120,563)

(120,564)

Net cash used in financing activities


(413,313)

(83,063)

(26,064)






Net increase / (decrease) in cash and cash equivalents


(401,368)

(115,438)

39,105






Cash and cash equivalents at beginning of period


1,620,895

1,581,790

1,581,790






Cash and cash equivalents at end of period


1,219,527

1,466,352

1,620,895






 

 

 



 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2014

 

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 AIM market of the London Stock Exchange.

 

These condensed consolidated interim financial statements for the period ending 31 December 2014 (including comparatives for the periods ended 31 December 2013 and 30 June 2014) were approved by the board of directors on 12 February 2015.

 

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 2014, 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 2014 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 2014 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 2014, which have been prepared in accordance with IFRS as adopted by the European Union

 

3.    Summary of significant accounting policies

 

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2014, as described in those annual financial statements. There has been no impact on the Group's financial position or performance from new and amended IFRS and IFRIC interpretations mandatory as of 1 July 2014.

 

4.    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, have determined that for the period ended 31 December 2014 there is only one reportable operating segment.

 

5.    Income tax charge

 

Income period tax is accrued based on the estimated average annual effective income tax rate of 21 percent (2013: 21 percent).

 

6.    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 in ordinary shares.

 

The following reflects the income and share data used and dilutive earnings per share computations:

 


Unaudited 6 Months to 31 December 2014

Unaudited 6 Months to 31 December 2013

Audited Year to 30 June 2014





Earnings per share attributable to owners of parent

94,652

202,809

415,696





Number of shares








Basic weighted average number of shares

8,866,598

8,087,500

8,276,021





Effect of dilutive share options

483,902

823,993

850,380





Diluted weighted average number of shares

9,350,500

8,911,493

9,126,401





 

7.    Dividends

 

During the interim period a dividend of 5 pence (2013: 1.5 pence) per share was paid to holders of the Company's ordinary shares.

 

8.     Issued capital

 

Issued capital as at 31 December 2014 amounted to £1,131,313 (2013: £1,042,188). 104,000 shares were issued on 2 July 2014, 9,000 shares were issued on 7 July 2014 and 300,000 shares were issued on 21 October 2014. In the prior period 300,000 shares were issued on 28 November 2013.

 

9.    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 2014

Unaudited 6 months to 31 December 2013


£

£

Subsidiaries



Amounts owed by/(to) subsidiaries

317,743

154,653

Amounts owed by/(to) subsidiaries

317,743

154,653

 

 

Aeorema Communications plc is a guarantor for a lease entered into by Aeorema Limited, its subsidiary undertaking.

 

Harris & Trotter LLP is a firm in which S Garbutta is a member. The following was charged to the Group in respect of professional services.

 


Unaudited 6 Months to 31 December 2014

Unaudited 6 Months to 31 December 2013

Harris & Trotter LLP

£

£

Aeorema Communications plc

12,160

7,500

Aeorema Limited

23,435

7,825


35,595

15,325

 

 

 

The compensation of key management (including directors) of the Group is as follows:

 


Unaudited 6 Months to 31 December 2014

Unaudited 6 Months to 31 December 2013


£

£

Short-term employee benefits

156,131

135,339

Post-employment benefits

43,494

41,178


199,625

176,517

 

 

 

 

 

 

ENDS

 

For further information visit www.aeorema.comor contact:

 

Gary Fitzpatrick                                   Aeorema Communications plc                         020 7291 0444

Mark Percy                                           Cantor Fitzgerald Europe                                   020 7894 7000

Catherine Leftley                                  Cantor Fitzgerald Europe                                   020 7894 7000

Elisabeth Cowell                                  St Brides Partners                                               020 7236 1177

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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