Interim Results

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 £4,909,742 (H1 2020: £1,677,311)

First profitable interim period for a number of years with profit before taxation of £255,677 (H1 2020: loss £287,676)

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 £1,534,217 (31 December 2020: £1,342,548)

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 £4,909,742 and profit before tax of £255,677. 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

 

 

*ENDS*

 

For further information visit  www.aeorema.com

 

Mike Hale

Aeorema Communications plc

 

+44 (0)20 7291 0444

John Depasquale /

Liz Kirchner (Corporate Finance)

Kelly Gardiner (Sales and Corporate Broking)

Allenby Capital Limited (Nominated Adviser and Broker)

+44 (0)20 3328 5656

Catherine Leftley/ Selina Lovell

St Brides Partners Ltd  (Financial PR)

info@stbridespartners.co.uk

 

 

 


AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2021

 

 

 

 

 

 


Unaudited

6 Months to 31 December 2021

Unaudited

6 Months to 31 December 2020

Audited

Year to

30 June

2021


Notes

£

£

£

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

6 Months to 31 December 2021

Unaudited

6 Months to 31 December 2020

restated

Audited

Year to

30 June

2021



£

£

£






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

premium

Merger reserve

Other reserve

Capital contribution reserve

 

Retained earnings

 

restated

Total equity

 

restated


£

£

£

£

£

£

£


 

 

 

 

 

 

 

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

6 Months to 31 December 2021

Unaudited

6 Months to 31 December 2020

Audited

Year to

30 June

2021








£

£

£

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 6 Months to 31 December 2021

Unaudited 6 Months to 31 December 2020

Audited Year to 30 June 2021





Profit / (loss) for the year attributable to owners of the Company

£303,782

£(247,576)

£(164,926)





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 6 months to 31 December 2021

Unaudited 6 months to 31 December 2020


£

£

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 6 Months to 31 December 2021

Unaudited 6 Months to 31 December 2020

Harris & Trotter LLP

£

£

Aeorema Communications plc

7,500

7,500

Aeorema Limited

5,750

10,450


13,250

17,950

 

Fees charged to Aeorema Communications plc include £7,500 (2020: £7,500) 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 6 Months to 31 December 2021

Unaudited 6 Months to 31 December 2020


£

£

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 £10,000. At 31 December 2021 £10,000 (2020: £10,000) was outstanding.

 

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