TIDMAEO
RNS Number : 6467U
Aeorema Communications Plc
29 March 2023
The following amendment has been made to the "Interim Results"
announcement published on 29 March 2023 at 07.00am under RNS Number
5325U. In the Condensed Consolidated Statement of Cash Flows table,
the announcement incorrectly stated that "Cash (used in) /
generated from operating activities" was GBP2,048,422 for 6 Months
to 31 December 2022, GBP188,544 for 6 Months to 31 December 2021,
and GBP(143,738) for the 12 months to 30 June 2022. This has now
been corrected to GBP2,520,486, GBP542,723, and GBP965,352
respectively.
The amended table of Condensed Consolidated Statement of Cash
Flows is shown below. All other information remain unchanged.
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
29 March 2023
Aeorema Communications plc
("Aeorema", the "Company" or the "Group")
Interim Results
Aeorema Communications plc (AIM: AEO) , a leading strategic
communications group, is pleased to announce its unaudited interim
results for the six months ended 31 December 2022.
Highlights
-- Record level revenue of GBP7,121,103 (H1 2021: GBP4,909,742)
-- Record level profit before taxation of GBP326,021 (H1 2021: GBP255,677)
-- A period of continued growth and major investment for the Group
-- Eventful Limited returning to profitability
-- Substantially increased cash position of GBP3,676,194 (31 December 2021: GBP1,534,217)
Chairman's Statement
The six-month period ended 31 December 2022 has been a period of
continued growth and major investment for the Group, following the
record financial year we announced in November.
Group revenue increased by 45% year-on-year to GBP7.12 million
(H1 2021: GBP4.91 million) and profit before taxation by 28% to
GBP0.33 million (H1 2021: GBP0.26 million). The Group continues to
invest in the team, our processes, and offices, in order to put us
in a strong position to achieve sustained growth and success in the
future.
The team continues to adapt and diversify to meet the range of
demands and evolving needs, of both new and existing clients. As a
fully integrated agency, the Group has consistently delivered
innovative and bespoke events on a live, virtual and hybrid basis
to a range of clients across many sectors. Moreover, the team has
been able to capitalise on the ever-changing nature of the industry
by expanding our offerings to include long-term communication
campaigns and consultancy services. The development of a
longer-term client partnership approach has successfully been
executed with leading brands across multiple regions and markets.
The flexible nature of the business model has enabled the Group to
maintain a loyal base of blue-chip clients.
I am thrilled that the team's remarkable efforts have been
recognised with award nominations and successful wins, both during
and post-period end. Cheerful Twentyfirst, Aeorema's main operating
division, won Creative Team of the Year for the fifth year running
at the Conference News Agency Awards, Best Agency at the Micebook V
Award, and Best Place to Work and Global Agency of the Year at the
C&IT awards. Winning these high-profile awards not only bears
testament to the strong ability of our team, but also affirms the
Group's leading position in the sector.
We are delighted to announce, as a post-period end event, that
we are working with Stagwell Inc. a NASDAQ listed,
multi-billion-dollar challenger in the marketing network, on a
unique brand activation 'Sport Beach' at Cannes Lions International
Festival of Creativity. The activation is expected to be one of the
largest brand activations in Cannes this year, and with discussions
ongoing surrounding other additional contracts, 2023 has a
promising outlook to be our biggest presence at the festival to
date.
We continue to benefit from an increased global footprint, a
growing presence in mainland Europe (with the opening of our
Amsterdam office), and we continue to seek additional growth
opportunities in line with our global growth strategy. Moreover, we
look to serve the growing needs and requests of our clients
operating in London and New York, by continuing the increased
integration of the respective offices, as well as expanding our own
presence in the North American market.
We are pleased to report that Eventful Limited, our venue
sourcing and incentive travel agency, has had a strong six months
with a record number of events. I am optimistic that we will be
able to report a return to profitability at the end of the 2023
financial year.
Following the introduction of our client carbon measurement
programme and the addition of a Sustainability Director in April
2022, post-period end we were pleased to launch our third annual
Corporate Social Responsibility ("CSR") charter. The CSR charter
was established as part of our transition into a value-led agency
that views people, planet and prosperity as a balanced scale.
The 2023 CSR charter introduced several new environmental
initiatives and commitments including the publication of our 2022
operational carbon footprint, and the offsetting of the Group's
last three years' carbon emissions. A revised assessment tool,
which considers the social and environmental impact of any new
project also enables us to take on briefs that match our ethos and
reinforce our commitment to become Net Zero by 2030.
We are very confident about the outlook for the remainder of the
2023 financial year. As mentioned earlier, we have more significant
projects at Cannes this year than ever before. The investment we
have made in strengthening our team and resources is a significant
factor in the growth we have achieved, and it provides us with the
structure to achieve significant revenue growth going forward. We
are also confident that we can maintain our policy of paying a
dividend to shareholders without limiting our growth
opportunities.
Finally, I would like to take the opportunity to thank our
dedicated team and our shareholders for their continued support and
I look forward to what the rest of the year will bring.
M Hale
Chairman
28 March 2023
For further information contact:
Aeorema Communications plc +44 (0)20 7291 0444
Andrew Harvey www.aeorema.com
Allenby Capital Limited
(Nominated Adviser and Broker)
John Depasquale (Corporate Finance) +44 (0)20 3328 5656
Kelly Gardiner (Sales and Corporate
Broking)
St Brides Partners Ltd
(Financial PR)
Catherine Leftley/Paul Dulieu aeorema@stbridespartners.co.uk
Notes to Editors
A eorema 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) (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 and for the year ended 30 June 2022 reported record revenue
and profits (before tax) of GBP12.2 million and GBP843,564
respectively, and also declared a dividend for the year.
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.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2022
Unaudited Unaudited Audited
6 Months 6 Months Year
to 31 December to 31 December to
2022 2021 30 June
2022
Notes GBP GBP GBP
Continuing Operations
Revenue 7,121,103 4,909,742 12,207,253
Cost of sales (5,595,529) (3,734,995) (9,169,691)
Gross profit 1,525,574 1,174,747 3,037,562
Other income - 3,743 3,743
Administrative expenses (1,175,668) (919,366) (2,170,129)
Operating profit / (loss) 349,906 259,124 871,176
Finance income 80 109 241
Finance costs (23,965) (3,556) (27,853)
Profit / (loss) before taxation 326,021 255,677 843,564
Taxation 4 (30,553) 48,105 (204,222)
Profit / (loss) for the period
from continuing operations 295,468 303,782 639,342
Other comprehensive income
Items that may be reclassified
to profit or loss
Exchange differences on translation
of foreign entities (29,245) 11,552 42,347
Other comprehensive income
for the period (29,245) 11,552 42,347
Total comprehensive income
for the period 266,223 315,334 681,689
---------------- ---------------- ------------
Basic and diluted earnings
per share from continuing
operations
Basic (pence) 5 3.18118 3.28840 6.92078
Diluted (pence) 5 2.71870 2.72255 5.80797
---------------- ---------------- ------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2022
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2022 2021 2022
GBP GBP GBP
Non-current assets
Intangible assets 567,682 570,182 568,931
Property, plant and equipment 389,668 121,138 222,479
Right-to-use assets 760,388 - 823,772
Deferred taxation - 182,179 25,925
1,717,738 873,499 1,641,107
Current assets
Trade and other receivables 2,834,446 2,337,399 3,130,035
Cash and cash equivalents 3,676,194 1,534,217 1,714,417
Current tax receivable 101,426 36,942 -
---------------- ---------------- ----------
6,612,066 3,908,558 4,844,452
Total assets 8,329,804 4,782,057 6,485,559
Current liabilities
Trade and other payables 4,713,051 2,514,347 2,960,221
Lease liabilities 141,278 - 121,999
Bank loans 69,445 83,334 83,333
Current tax payable - 136,132 177,790
Provisions 35,000 25,020 35,000
---------------- ---------------- ----------
4,958,774 2,758,833 3,378,343
Non-current liabilities
Lease liabilities 668,006 - 738,041
Bank loans 83,334 152,778 111,111
Provisions 9,000 - 4,500
Deferred taxation 4,629 - -
764,969 152,778 853,652
Total liabilities 5,723,743 2,911,611 4,231,995
Net assets 2,606,061 1,870,446 2,253,564
---------------- ---------------- ----------
Equity attributable to equity
holder:
Share capital 1,192,250 1,154,750 1,154,750
Share premium 21,876 9,876 9,876
Merger reserve 16,650 16,650 16,650
Other reserve 205,730 152,193 168,956
Capital contribution reserve 257,812 257,812 257,812
Foreign Translation reserve 2,058 - 31,303
Retained earnings 909,685 279,165 614,217
Total equity 2,606,061 1,870,446 2,253,564
---------------- ---------------- ----------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2022
Share Share Merger Other Capital Foreign Retained Total
capital premium reserve reserve contribution translation earnings equity
reserve reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 July 2021 1,154,750 9,876 16,650 112,061 257,812 (11,044) (25,125) 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 (11,044) 290,209 1,870,446
At 1 January
2022 1,154,750 9,876 16,650 152,193 257,812 (11,044) 290,209 1,870,446
Comprehensive
income for
the
period - - - - - - 324,008 324,008
Foreign
currency
translation - - - - - 42,347 - 42,437
Share-based
payments - - - 16,763 - - - 16,763
At 30 June
2022 1,154,750 9,876 16,650 168,956 257,812 31,303 614,217 2,253,564
At 1 July 2022 1,154,750 9,876 16,650 168,956 257,812 31,303 614,217 2,253,564
Comprehensive
income for
the
period - - - - - - 295,468 295,468
Foreign
currency
translation - - - - - (29,245) - (29,245)
Share-based
payments - - - 36,774 - - - 36,774
Share issue 37,500 12,000 - - - - - 49,500
At 31
December
2022 1,192,250 21,876 16,650 205,730 257,812 2,058 909,685 2,606,061
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2022
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 31 December to 31 December 30 June
2022 2021 2022
GBP GBP GBP
Cash flow from operating activities
(Loss) / profit before taxation 326,021 255,677 843,564
Adjustments for:
Depreciation of property, plant
and equipment 48,873 24,586 56,036
Depreciation of right-of-use assets 63,384 18,995 82,361
Amortisation of intangible fixed
assets 1,250 1,250 2,500
Loss on disposal of fixed assets - 2,096 4,646
Share-based payment 36,774 40,132 56,895
Interest on lease liabilities 20,244 - 21,191
Finance income (80) (109) (241)
Dilapidations 4,500 - -
Exchange rate differences on translation (28,902) 11,552 42,138
Operating cash flow before movement
in working capital 472,064 354,179 1,109,090
Increase/(decrease) in trade and
other payables 1,752,830 1,096,880 1,557,234
(Increase)/decrease in trade and
other receivables 295,592 (908,336) (1,700,972)
Cash (used in) / generated from
operating activities 2,520,486 542,723 965,352
Taxation paid (279,218) (26,185) (43,657)
Cash flow from investing activities
Finance income 80 109 241
Purchase of property, plant and
equipment (216,406) (44,343) (179,475)
Repayment of leasing liabilities (71,000) (25,912) (74,201)
Net cash used in investing activities (287,326) (70,146) (253,435)
Cash flow from financing activities
Share issue 49,500 - -
Repayment of bank loans (41,665) (13,888) (55,556)
---------------- ---------------- ------------
Net cash used in financing activities 7,835 (13,888) (55,556)
Net increase / (decrease) in
cash and cash equivalents 1,961,777 432,504 612,704
---------------- ---------------- ------------
Cash and cash equivalents at beginning
of period 1,714,417 1,101,713 1,101,713
Cash and cash equivalents at
end of period 3,676,194 1,534,217 1,714,417
---------------- ---------------- ------------
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2022
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 2022 (including comparatives for the
periods ended 31 December 2021 and 30 June 2022) were approved by
the board of directors on 28 March 2023.
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 2022, 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 2022 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 2022 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 2022, 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 2022 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 (2021: 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
2022 2021 2022
Profit / (loss) for the GBP295,468 GBP303,782 GBP639,342
year attributable to owners
of the Company
Number of shares
Basic weighted average number
of shares 9,288,000 9,238,000 9,238,000
Effect of dilutive share
options 1,580,000 1,920,000 1,770,000
Diluted weighted average
number of shares 10,868,000 11,158,000 11,008,000
6. Dividends
During the interim period a dividend of 2 pence per share (2021:
Nil) was declared to holders of the Company's ordinary shares in
respect of the full year ended 30 June 2022.
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 Unaudited
6 months 6 months
to 31 December to 31 December
2022 2021
GBP GBP
Subsidiaries
Amounts owed by/(to) subsidiaries 370,342 397,759
---------------- ----------------
Amounts owed by/(to) subsidiaries 370,342 397,759
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
2022 2021
Harris & Trotter LLP GBP GBP
Aeorema Communications plc 9,450 7,500
Aeorema Limited 9,500 5,750
---------------- ----------------
18,950 13,250
Fees charged to Aeorema Communications plc include GBP7,500
(2021: 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
2022 2021
GBP GBP
Short-term employee benefits 266,375 162,933
Post-employment benefits 7,496 7,496
273,871 170,429
During the period S Quah received an interest-free loan of
GBP40,000 which has now been repaid. As at 31 December 2022
GBP50,000 (2021: GBP10,000) was outstanding.
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END
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March 29, 2023 10:00 ET (14:00 GMT)
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