Aeorema Communications PLC on Monday said profit fell more than 50% in its most recent financial year, as expenses increased and ‘economic pressures’ hurt client activity.

The London-based live events agency said pretax profit for the year that ended June 30 was £436,928, falling 56% from £1.0 million the year before. Revenue, however, grew 0.5% to £20.3 million from £20.2 million.

Cost of sales increased 3.1% to £16.5 million from £16.0 million last year, whilst administrative expenses were up 6.5% at £3.3 million from £3.1 million.

‘Looking ahead, the board has identified that it needs to reduce costs and has implemented an ongoing programme to significantly reduce and rebalance costs, including a reduction in headcount, both direct and indirect,’ Aeorema said. ‘The reduction in costs has been implemented to drive growth in profits and efficiencies, with its full benefit expected to materialise by the end of the financial year ending June 30, 2025.’

Aeorema proposed a final dividend of 3 pence per share, unchanged from the year before.

Chair Mike Hale said: ‘While economic pressures persist for many of our clients, we anticipate greater stability in the near term, especially after key national elections in our biggest operating markets. We are therefore cautiously optimistic for financial 2025, and believe that the most uncertain times many be behind us. We look forward to the year ahead with increased confidence as we continue to build on the strong platform we have established in recent years.’

Shares in Aeorema Communications were down 1.5% at 52.70 pence each in London on Monday morning.

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