AEOREMA COMMUNICATIONS PLC

Earnings Release • Mar 26, 2025

National Storage Mechanism | Additional information

RNS Number : 1469C

Aeorema Communications Plc

26 March 2025

The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.

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

26 March 2025 

Aeorema Communications plc

("Aeorema", the "Company" or the "Group")

Interim Results, FY Projections and Change of Accounting Reference Date

Aeorema Communications plc (AIM: AEO), a leading strategic communications group, today announces its interim results for the six months ended 31 December 2024 ("H1 2025").

OVERVIEW

·    Revenue of £7,200,269 (H1 2024: £6,553,779).

·    Loss before taxation of £119,104 (H1 2024 Loss: £243,534).

·    Cash at date of this release of £2.75 million.

·    Commenced implementation of a cost-reduction and rebalancing programme to create a more efficient and focused operating model.

·   Continued growth at Cannes Lions International Festival of Creativity 2025 ("Cannes Lions"). Expecting exceptional project retention year on year, net new client wins and further embedding across client and local partnerships.

·    Cheerful Twentyfirst named C&IT Global Agency of the Year Award for 2024 and winner of Best Outdoor Activation at the 2024 Ex Awards.

·   Board of Directors strengthened with the appointment of Alan Charlton as a Non-Executive Director.

POST PERIOD END

·    Secured foothold at the Global Economic Forum in Davos in January 2025, which is expected to open new opportunities and widen access to the financial and professional service sectors.

CHANGE OF ACCOUNTING REFERENCE DATE

The Company is changing its accounting reference date and financial year end from 30 June to 31 December. This decision aligns the Company's reporting cycle with industry norms and ensures that the end of its annual financial reporting cycle does not coincide with the summer months, which have traditionally been its busiest operating period. This change is expected to create a more streamlined and efficient reporting process and therefore the Board believes that a 31 December year end will be in the best interest of the Group.

With the new 31 December year end, the Company's current financial year ("FY 2025") will be extended to an 18-month period, running from 1 July 2024 to 31 December 2025. The Company's revised, ongoing, reporting timetable will therefore be as follows:

·    Publication of unaudited interim results for the 12 months ending 30 June 2025 by 30 September 2025;

·    Publication of audited annual results for the 18 months ending 31 December 2025 (FY 2025) by 30 June 2026; and

·    Publication of unaudited interim results for the 6 months ending 30 June 2026 ("H1 2026") by 30 September 2026.

From then, annual and interim reports will be published each year for the 12 months to 31 December and 6 months to 30 June, respectively.

CHAIRMAN'S STATEMENT

I am pleased to present Aeorema Communications plc's interim results for the six months ended 31 December 2024 and provide an update on our company's direction.

For the six month period we reported revenue of £7.2 million (H1 2024: £6.6million) and a loss before taxation of c. £120k; a significant improvement on the loss before taxation for the corresponding period last year (H1 2024 loss: c. £244k). This reflects the initial benefits of the cost reduction and rebalancing programme we commenced during the period, with the full benefit expected to materialise by 30 June 2025.

Despite a challenging first six months, marked by a tough trading environment and ongoing uncertainty from global brands due to political and economic conditions, our pipeline remains strong, with opportunities weighted towards the second half of the calendar year.

We currently forecast an underlying profit before tax for the 12 months to 30 June 2025 of no less than £550,000 (FY2024: £437,000), and a reported profit before tax of no less than £350,000. The underlying profit before tax excludes one-off costs, which are largely restructuring costs incurred in the cost-reduction and rebalancing programme referenced above.

The Board remains focused on ensuring the Company's capital markets strategy supports its long-term ambitions and delivers value to shareholders. We have taken the decision to change our accounting reference date and year end to 31 December, bringing our reporting cycle in line with industry norms and ensuring it no longer coincides with our busiest operational period. In line with our commitment to shareholder returns, it remains the Board's intention to pay a dividend based on the unaudited interim results for the 12 months to 30 June 2025, rather than waiting until after the 18 months audited reporting period to 31 December 2025. These steps are part of our broader commitment to financial discipline, efficiency, and positioning the Company for sustainable growth.

The Company continues to maintain a strong cash position, with a balance of £2.75 million as at the date of this announcement. This follows the payment of £290,790 of dividends to shareholders in January 2025. Over the past 12 months, the Group's average cash position has been around £2 million, reflecting consistent and continued financial stability. In light of this strength, the Board is expected to shortly announce details of a share buyback programme equivalent to five per cent. of the issued share capital of the Company. The Board feels this demonstrates confidence in the Company's financial resilience and a commitment to delivering value to shareholders. A further announcement will be made in due course.

While projects continue to evolve, and some smaller activations will not be repeated at Cannes Lions this year and instead the Company anticipate that several higher value projects are set to proceed.

Our business in the US continues to grow, creating new opportunities both domestically in the US and internationally for the wider Group with leading US brands. We are also pleased to announce that we will be working with three new global brands in 2025. One is a renowned name in the fitness industry, and the other is a new brand at Cannes Lions which was introduced to us through an existing client. These partnerships further reinforce our reputation for delivering exceptional creative and strategic event solutions.

Additionally, post the period end and as announced on 8 January 2025, we have secured new high profile event contracts including, Cheerful Twentyfirst's debut at the World Economic Forum in Davos. This provides Cheerful Twentyfirst a foothold to demonstrate its world-class creative services, strategic expertise and event capabilities to an expanded audience within the financial and professional services sectors.

While the broader economic environment remains unpredictable, we are encouraged by the resilience of our blue chip client base and the strength of our relationships, with no major client losses during this period. This confidence is illustrated by the fact that we already have c. £3 million of revenue recorded for the third quarter of calendar year 2025 from existing clients. This reflects our excellent reputation and the strong demand for our expertise, with clients eager to secure our services well in advance.

Our industry leadership also continues to be recognised, with Cheerful Twentyfirst named C&IT Global Agency of the Year Award for 2024 and winner of the Best Outdoor Activation at the 2024 Ex Awards. These accolades reflect our team's dedication to delivering world class brand experiences and further strengthen our position within the industry.

We have also strengthened our board during the period with the appointment of Alan Charlton as a Non-Executive Director. Alan bringing a wealth of experience in business strategy, operational performance, cost efficiency, mergers & acquisitions, and shareholder value creation. His expertise and experience will be invaluable in supporting our future growth.

Looking ahead, we remain optimistic about the remainder of the 2025 and beyond. With a strong pipeline of contracted projects, disciplined financial management, and a strategic focus on high-growth opportunities, we are well-positioned to drive sustainable, long term growth.

The underlying strength of our business remains intact. Our focus continues to be on delivering innovative, impactful experiences for our clients and generating lasting value for our shareholders.

Mike Hale  

Chairman  

25 March 2025

Aeorema Communications plc Andrew Harvey		Tel: +44 (0) 20 7291 0444
Allenby Capital Limited (Nominated Adviser & Broker)   John Depasquale / Lauren Wright   (Corporate Finance)   Kelly Gardiner / Joscelin Pinnington (Sales & Corporate Broking)		Tel: +44 (0)20 3328 5656
St Brides Partners Ltd (Financial PR)   Paul Dulieu / Isabel de Salis/ William Turner		aeorema@stbridespartners.co.uk

Notes to Editors  

Aeorema Communications plc, (AIM: AEO) is a leading strategic communications group with offices in London, New York and Amsterdam. The Group provides bespoke event services, comprising live, virtual, and hybrid experiences to an established international blue-chip client base spanning a broad range of sectors, including finance, professional services, advertising, IT, gaming, fashion, fintech, and beverages. The Group also provides high level consultancy services to help clients maximise and deliver on their long-term communication strategies over multiple event and film touchpoints.    

Aeorema delivers these services via its fully owned companies Cheerful Twentyfirst and Cheerful Twentyfirst, Inc. (the North American arm of Cheerful Twentyfirst) ( www.cheerfultwentyfirst.com ), two live events agencies with film capabilities that specialise in devising and delivering corporate communication solutions. The Group also operates Eventful Limited (www.eventful.co.uk), which provides consultative, high-touch services including assisting clients with venue sourcing, event management and incentive travel. With more than 56 years of combined operating experience and extensive award wins, Aeorema is a recognised industry thought leader.    

Central to all that the Group does is its Corporate Social Responsibility charter, which is focussed on ensuring sustainable, inclusive and ethical business operations. To this end, the Group is a pioneer in delivering innovative strategies and services, including a client carbon measurement programme to establish a formal structure and approach around reducing emissions and offsetting both its own and its clients' carbon footprint.    

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2024

		Unaudited 6 Months to 31 December 2024	Unaudited 6 Months to 31 December 2023	Audited Year to 30 June 2024
	Notes	£	£	£
Continuing Operations
Revenue		7,200,269	6,553,779	20,288,799
Cost of sales		(5,888,862)	(5,051,024)	(16,513,827)
Gross profit		1,311,407	1,502,755	3,774,972
Administrative expenses		(1,429,499)	(1,724,982)	(3,334,224)
Operating (loss) / profit		(118,092)	(222,227)	440,748
Finance income		14,217	20	35,967
Finance costs		(15,229)	(21,327)	(39,787)
(Loss) / profit before taxation		(119,104)	(243,534)	436,928
Taxation	4	12,974	125,253	(140,221)
(Loss) / profit for the period from continuing operations		(106,130)	(118,281)	296,707
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign entities		50,345	56,973	(88,632)
Other comprehensive income for the period		50,345	56,973	(88,632)
Total comprehensive income for the period		(55,785)	(61,308)	208,075
Basic and diluted earnings per share from continuing operations
Basic (pence)	5	(1.11)	(1.24)	3.18
Diluted (pence)	5	(1.01)	(1.05)	2.69

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2024

		Unaudited 6 Months to 31 December 2024	Unaudited 6 Months to 31 December 2023	Audited Year to 30 June 2024
		£	£	£
Non-current assets
Intangible assets		564,348	565,181	564,348
Property, plant and equipment		361,237	379,137	344,827
Right-to-use assets		506,780	633,584	570,182
Deferred taxation		-	140,110	-
		1,432,365	1,718,012	1,479,357
Current assets
Trade and other receivables		6,346,873	4,213,279	4,422,020
Cash and cash equivalents		755,813	1,342,729	3,119,353
		7,102,686	5,556,008	7,541,373
Total assets		8,535,051	7,274,020	9,020,730
Current liabilities
Trade and other payables		4,968,295	3,584,467	5,371,049
Lease liabilities		116,743	109,808	113,201
Bank loans		-	69,445	27,778
Current tax payable		104,783	72,510	118,973
Provisions		35,000	35,000	35,000
		5,224,821	3,871,230	5,666,001
Non-current liabilities
Lease liabilities		441,047	594,247	500,814
Provisions		27,000	18,000	22,500
Deferred taxation		42,344	-	25,690
		510,391	612,247	549,004
Total liabilities		5,735,212	4,483,477	6,215,005
Net assets		2,799,839	2,790,543	2,805,725
Equity attributable to equity holder:
Share capital		1,211,625	1,192,250	1,192,250
Share premium		47,451	21,876	21,876
Merger reserve		16,650	16,650	16,650
Other reserve		307,758	270,870	302,809
Capital redemption reserve		257,812	257,812	257,812
Foreign translation reserve		(126,531)	(31,271)	(176,876)
Retained earnings		1,085,074	1,062,356	1,191,204
Total equity		2,799,839	2,790,543	2,805,725

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2024

	Share capital	Share premium	Merger reserve	Other reserve	Capital redemption reserve	Foreign translation reserve	Retained earnings	Total equity
	£	£	£	£	£	£	£	£
At 1 July 2023	1,192,250	21,876	16,650	233,375	257,812	(88,244)	1,180,637	2,814,356
Comprehensive income for the period	-	-	-	-	-	-	(118,281)	(118,281)
Foreign currency translation	-	-	-	-	-	56,973	-	56,973
Share-based payments	-	-	-	37,495	-	-	-	37,495
Share issue	-	-	-	-	-	-	-	-
At 31 December 2023	1,192,250	21,876	16,650	270,870	257,812	(31,271)	1,062,356	2,790,543
At 1 January 2024	1,192,250	21,876	16,650	270,870	257,812	(31,271)	1,062,356	2,790,543
Comprehensive income for the period	-		-	-	-	-	414,988	414,988
Dividend paid	-		-	-	-	-	(286,140)	(286,140)
Foreign currency translation	-	-	-	-	-	(145,605)	-	(145,605)
Share-based payments	-	-	-	31,939	-	-	-	31,939
At 30 June 2024	1,192,250	21,876	16,650	302,809	257,812	(176,876)	1,191,204	2,805,725
At 1 July 2024	1,192,250	21,876	16,650	302,809	257,812	(176,876)	1,191,204	2,805,725
Comprehensive income for the period	-	-	-	-	-	-	(106,130)	(106,130)
Foreign currency translation	-	-	-	-	-	50,345	-	50,345
Share-based payments	-	-	-	4,949	-	-	-	4,949
Share issue	19,375	25,575	-	-	-	-	-	44,950
At 31 December 2024	1,211,625	47,451	16,650	307,758	257,812	(126,531)	1,085,074	2,799,839

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2024

		Unaudited 6 Months to 31 December 2024	Unaudited 6 Months to 31 December 2023	Audited Year to 30 June 2024
		£	£	£
Cash flow from operating activities
(Loss) / profit before taxation		(119,104)	(243,534)	436,928
Adjustments for:
Depreciation of property, plant and equipment		50,467	67,827	137,105
Depreciation of right-of-use assets		63,402	63,402	126,804
Amortisation of intangible fixed assets		-	1,250	2,083
Loss on disposal of fixed assets		-	-	1,288
Share-based payment		4,949	37,495	69,434
Interest on lease liabilities		14,775	17,804	34,264
Finance income		(14,217)	(20)	(35,967)
Dilapidations		4,500	4,500	9,000
Exchange rate differences on translation		50,345	60,590	(88,632)
Operating cash flow before movement in working capital		55,117	9,314	692,307
Increase/(decrease) in trade and other payables		(402,755)	(298,470)	1,488,111
(Increase)/decrease in trade and other receivables		(1,924,852)	(710,757)	(919,497)
Cash (used in) / generated from operating activities		(2,272,490)	(999,913)	1,260,921
Taxation paid		15,438	(2,241)	(55,451)
Cash flow from investing activities
Finance income		14,217	20	35,967
Purchase of property, plant and equipment		(66,877)	(22,071)	(54,711)
Repayment of leasing liabilities		(71,000)	(35,500)	(142,000)
Net cash used in investing activities		(123,660)	(57,551)	(160,744)
Cash flow from financing activities
Share issue		44,950	-	-
Dividends paid to owners of the company		-	-	(286,140)
Repayment of bank loans		(27,778)	(41,666)	(83,333)
Net cash used in financing activities		17,172	(41,666)	(369,473)
Net (decrease) / increase in cash and cash equivalents		(2,363,540)	(1,101,371)	675,253
Cash and cash equivalents at beginning of period		3,119,353	2,444,100	2,444,100
Cash and cash equivalents at end of period		755,813	1,342,729	3,119,353

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2024

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 87 New Cavendish Street, London, W1W 6XD. 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 ending 31 December 2024 (including comparatives for the periods ended 31 December 2023 and 30 June 2024) were approved by the board of directors on 25 March 2025.

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 2024, 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 2024 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: 101 New Cavendish Street, 1st Floor South, London, W1W 6XH.

2.    Basis of preparation

These condensed consolidated interim financial statements for the period ended 31 December 2024 have been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the United Kingdom. The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2024, which have been prepared in accordance with IFRS as adopted by the United Kingdom.

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 2024 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 25 per cent (2023: 25 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 2024	Unaudited 6 Months to 31 December 2023	Audited Year to 30 June 2024
(Loss) / profit for the year attributable to owners of the Company	(£106,130)	(£118,281)	£296,707
Number of shares
Basic weighted average number of shares	9,563,833	9,538,000	9,538,000
Effect of dilutive share options	965,000	1,700,000	1,493,000
Diluted weighted average number of shares	10,528,833	11,238,000	11,031,000

6.    Dividends

During the interim period a dividend of 3 pence per share (2023: 3 pence per share) was declared to holders of the Company's ordinary shares in respect of the full year ended 30 June 2024.

7.    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 2024	Unaudited 6 months to 31 December 2023
	£	£
Subsidiaries
Amounts owed by/(to) subsidiaries	625,070	503,557
Amounts owed by/(to) subsidiaries	625,070	503,557

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 2024	Unaudited 6 Months to 31 December 2023
Harris & Trotter LLP	£	£
Aeorema Communications plc	10,000	12,950
Aeorema Limited	7,850	7,750
	17,850	20,700

Fees charged to Aeorema Communications plc include £10,000 (2023: £10,000) for the services of S Haffner as a non-executive director of that company. S Haffner resigned as a non-executive director of Aeorema Communications plc on 21 January 2025.

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

	Unaudited 6 Months to 31 December 2024	Unaudited 6 Months to 31 December 2023
	£	£
Short-term employee benefits	279,944	361,004
Post-employment benefits	11,786	10,101
	291,730	371,105

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