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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

 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

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2024