Aeorema Communications Plc – Interim Report
Aeorema Communications plc, the AIM-traded live events agency, announces its unaudited results for the six months ended 31 December 2018.
Financial & Operational Overview
- Revenues of £1,997,303, a year-on-year increase of 7% (2017: £1,869,439)
- Operating loss pre-exceptional items of £141,765 (2017: profit £81,028)
- Recruitment of key new senior staff has impacted costs
- Robust cash position of £1,030,956 (2017: £1,038,130)
- Notable new client wins
- Continuing to build presence in the rapidly growing experiential events sector
- Trading remains in line with market expectations for the full year to 30 June 2019
Michael Hale, Chairman, gave the following statement:
During the period, Aeorema has been delivering on its strategy of building on the Company’s core business by providing enhanced services to clients, in particular the move into experiential events. As outlined in the Company’s year-end results to 30 June 2018, this has led to a series of new business wins in the current period with both new and existing clients.
These wins include a substantial three-year contract with a large media company for an annual event in Cannes. It also has won a leadership event for a professional services company and has a good pipeline of opportunities for 2019/2020. These are in addition to projects from existing clients both this year, and scheduled for 2020.
The recruitment of two senior executive staff has increased costs in the short term but is expected to contribute to revenue growth going forward. Revenue is up 7% to £1,997,303 (2017: £1,869,439), however due to increased costs in the period, the Company is showing an operating loss for the period of £141,765 (2017: profit £81.028). The Company’s cash position remains robust at £1,030,956. This position means the Company intends to pay a full year dividend, subject to the final audited results for the full year.
The first half loss was anticipated due to recruitment costs and increased salaries. This investment is already producing results and creates a structure for growth. A key focus has been on account management and growing revenues from existing clients. The new team were instrumental in winning a significant new Cannes Lions project for June this year and they have also helped win other new projects for this year and next. Cannes Lions International Festival of Creativity is a global event for those working in creative, communications, advertising and related fields. The Company has spent several years staging innovative events at Cannes Lions which have typically provided a substantial part of the Group’s annual revenues.
It is customary for Aeorema’s revenues to be second half weighted and anticipated and committed second half revenues are strong which gives the Board a good level of confidence that the Company will deliver full year results in line with market expectations.
The Company has a strong market reputation in the delivery of creative and differentiated live events, and we remain focused on building an industry-leading, cash generative, dividend-paying business with a high quality, blue-chip client base. In addition, the Company has explored, and continues to explore, value accretive acquisitions whose business or businesses are complementary to the existing offering and will help Aeorema build its position in the events and experiential category. To this end, we continue to seek to drive growth and innovation both in-house and via value accretive growth opportunities.
Finally, I would like to thank our employees for their hard work and commitment, as well as our shareholders for their continued support.