Interim Results

RNS Number : 0010N
Aeorema Communications Plc
26 January 2016
 

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

26 January 2016

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 2015.

 

Overview

·     Pre-tax profits of £80,476 on a turnover of £1,591,114

·     Stronger second half anticipated, consistent with previous years

·     Robust cash position of £1,372,589

 

Chairman's Statement

 

As a provider of live events, we continue to focus on developing a strong pipeline of future revenue opportunities, whilst improving operational efficiency under a single brand, Cheerful Twentyfirst.

 

As we stated in our Annual Accounts, the marketplace remains competitive and the results for the first six months of the current trading year reflect this environment.  Notwithstanding this, given the market position of the Cheerful Twentyfirst brand, we continue to believe that the second half of the year to 30 June 2016 should be stronger than the first half.  The efforts of our management teams continue to be directed to delivering the pipeline of opportunities that the Company currently has for the second half.

 

Our strategy has been to focus on what is within our power to manage or influence and to create a resilient company that is well positioned for growth once the economy inevitably picks up again.  We are therefore keeping costs down, and doing what we do best: innovate.  This has been the lifeblood of the Company since its inception 20 years ago and is the reason business and industry leaders turn to us.

 

We are pleased to be working with some new clients but existing clients have, in some cases, lowered budgets or cancelled events.  The new website is opening up opportunities and we are embracing social media as a marketing tool, with good results.

 

We have a robust balance sheet with £1,372,589 cash in the bank and revenue generation of £1,591,114.  During the six months we achieved a pre-tax profit of £80,476.  Operational costs were £715,202.

 

Overall, the team deserve our thanks for their achievements during a tough period.  We are encouraged both by our business opportunities and the start we have made to the current year but, given the economic environment, we remain cautious in respect of profit growth.

 

M Hale

Chairman

25 January 2016

 

 

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2015

 

 

 



Unaudited

6 Months to 31 December 2015

Unaudited

6 Months to 31 December 2014

Audited

Year to

30 June

2015







Notes

£

£

£

Continuing Operations










Revenue


1,591,114

1,658,315

4,934,560

Cost of sales


(795,832)

(855,113)

(3,017,634)






Gross profit


795,282

803,202

1,916,926











Administrative expenses


(715,202)

(702,238)

(1,534,471)






Operating profit


80,080

100,964

382,455

Finance income


396

352

761






Profit before taxation


80,476

101,316

383,216

Taxation

5

(16,565)

(6,664)

(67,979)






Profit for the period from continuing operations


63,911

94,652

315,237











Basic and diluted earnings per share from continuing operations










Basic (pence)

6

0.70616

1.06751

3.51904

Diluted (pence)

6

0.68350

1.01227

3.37134

 

 

There are no other comprehensive income items

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2015

 

 

 



Unaudited

6 Months to 31 December 2015

Unaudited

6 Months to 31 December 2014

Audited

Year to

30 June

2015








£

£

£






Non-current assets





Intangible assets


365,154

365,154

365,154

Property, plant and equipment


99,560

57,008

65,135

Deferred taxation


-

17,481

6,404



464,714

439,643

436,693






Current assets





Inventories


-

2,674

-

Trade and other receivables


747,770

939,962

1,352,398

Cash and cash equivalents


1,372,589

1,219,527

1,558,453



2,120,359

2,162,163

2,910,851











Total assets


2,585,073

2,601,806

3,347,544






Current liabilities





Trade and other payables


(896,868)

(945,796)

(1,463,504)



(896,868)

(945,796)

(1,463,504)






Non-current liabilities





Deferred taxation


(4,322)

-

-



(4,322)

-

-






Net assets


1,683,883

1,656,010

1,884,040











Equity attributable to equity holder:





Share capital


1,131,313

1,131,313

1,131,313

Share premium


7,063

7,063

7,063

Merger reserve


16,650

16,650

16,650

Share based payment reserve


-

118,411

-

Capital contribution reserve


257,812

257,812

257,812

Retained earnings


271,045

124,761

471,202






Total equity


1,683,883

1,656,010

1,884,040

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2015

 

 


Share capital

Share

Premium

Merger reserve

Other reserve

Share-based payment reserve

Capital contribution reserve

Retained earnings

Total equity


£

£

£

£

£

£

£

£










At 1 July 2014

1,079,688

-

16,650

19,500

110,972

257,812

482,609

1,967,231

Issue of shares

51,625

7,063

-

(19,500)

-

-

-

39,188

Payment of dividends

-


-

-

-

-

(452,500)

(452,500)

Comprehensive income for the period

-


-

-

-

-

94,652

94,652

Share based payment

-


-

-

7,439

-

-

7,439

At 31 December 2014

1,131,313

7,063

16,650

-

118,411

257,812

124,761

1,656,010










At 1 January 2015

1,131,313

7,063

16,650

-

118,411

257,812

124,761

1,656,010

Comprehensive income for the period

-

-

-

-

-

-

220,585

220,585

Share based payment

-

-

-

-

7,445

-

-

7,445

Transfer

-

-

-

-

(125,856)

-

125,856

-

At 30 June 2015

1,131,313

7,063

16,650

-

-

257,812

471,202

1,884,040










At 1 July 2015

1,131,313

7,063

16,650

-

-

257,812

471,202

1,884,040

Payment of dividends

-

-

-

-

-

-

(271,515)

(271,515)

Comprehensive income for the period

-

-

-

-

-

-

63,911

63,911

Share based payment

-

-

-

-

-

-

7,447

7,447

At 31 December 2015

1,131,313

7,063

16,650

-

-

257,812

271,045

1,683,883

 

 

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2015

 

 



Unaudited

6 Months to 31 December 2015

Unaudited

6 Months to 31 December 2014

Audited

Year to

30 June

2015



£

£

£

Cash flow from operating activities





Profit before taxation


80,476

101,316

383,216

Adjustments for:





Depreciation of property, plant and equipment


26,031

18,627

30,708

Loss on disposal of property, plant and equipment


-

5,389

5,389

Share based payment expense


7,447

7,439

14,884

Finance income


(396)

(352)

(761)

Operating cash flow before movement in working capital


113,558

132,419

433,436

Increase/(decrease) in trade and other payables


(572,475)

(643,211)

(132,788)

(Increase)/decrease in trade and other receivables


604,629

535,959

123,523

(Increase)/decrease in inventories


-

-

2,674

Cash generated / (used) in operating activities


145,712

25,167

426,845






Taxation paid


-

-

(42,951)






Cash flow from investing activities





Finance income


396

352

761

Purchase of property, plant and equipment


(60,457)

(23,575)

(43,785)

Proceeds from the sale of property, plant and equipment


-

10,000

10,000

Net cash used in investing activities


(60,061)

(13,223)

(33,024)






Cash flow from financing activities





Income from share issue


-

39,188

39,188

Dividends paid


(271,515)

(452,500)

(452,500)

Net cash used in financing activities


(271,515)

(413,312)

(413,312)






Net increase / (decrease) in cash and cash equivalents


(185,864)

(401,368)

(62,442)






Cash and cash equivalents at beginning of period


1,558,453

1,620,895

1,620,895






Cash and cash equivalents at end of period


1,372,589

1,219,527

1,558,453






 

 

 

 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2015

 

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 2015 (including comparatives for the periods ended 31 December 2014 and 30 June 2015) were approved by the board of directors on 25 January 2016.

 

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 2015, 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 2015 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 2015, 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 2015, 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 2015.

 

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 2015 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 20 percent (2014: 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 2015

Unaudited 6 Months to 31 December 2014

Audited Year to 30 June 2015





Earnings per share attributable to owners of parent

63,911

94,652

315,237





Number of shares








Basic weighted average number of shares

9,050,500

8,866,598

8,958,044





Effect of dilutive share options

300,000

483,902

392,456





Diluted weighted average number of shares

9,350,500

9,350,500

9,350,500





 

7.    Dividends

 

During the interim period a dividend of 3 pence (2014: 5 pence) per share was paid to holders of the Company's ordinary shares.

 

8.    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 2015

Unaudited 6 months to 31 December 2014


£

£

Subsidiaries



Amounts owed by/(to) subsidiaries

400,973

317,743

Amounts owed by/(to) subsidiaries

400,973

317,743

 

 

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

 


Unaudited 6 Months to 31 December 2015

Unaudited 6 Months to 31 December 2014

Harris & Trotter LLP

£

£

Aeorema Communications plc

6,000

12,160

Aeorema Limited

1,900

23,435


7,900

35,595

 

Fees charged to Aeorema Communications plc include £5,000 (2014: £3,750) for the services of Stephen Garbutta and Stephen Haffner as non-executive directors of that company.

 

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

 


Unaudited 6 Months to 31 December 2015

Unaudited 6 Months to 31 December 2014


£

£

Short-term employee benefits

109,810

156,131

Post-employment benefits

31,708

43,494


141,518

199,625

 

 

ENDS

 

For further information visit www.aeorema.com or contact:

 

Gary Fitzpatrick                                                                Aeorema Communications plc                  Tel: 020 7291 0444

Marc Milmo/Catherine Leftley                  Cantor Fitzgerald Europe                             Tel: 020 7894 7000

Isabel de Salis/Megan Dennison                              St Brides Partners                                            Tel: 020 7236 1177

 

 


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