(Alliance News) - Events firm Aeorema Communications PLC on Monday said revenue fell in financial 2021, though it also reported a narrowed loss amid fewer third-party expenses and a boost from an exceptional gain.
The London-based company said revenue in the year ended June 30 fell 6.9% to GBP5.1 million from GBP5.5 million.
Aeorema attributed the decline in revenue to the pandemic and its effect on the events industry.
"The group produced two large events in January 2020 prior to the onset of the Covid-19 pandemic. These two events had a significant impact on revenue in the prior year. Due to Covid-19, no events on a similar scale were held in the year ended 30 June 2021. Although demand steadily increased throughout the financial year, including the delivery of large events in May and June, these could not replace the revenue lost as a consequence of the Covid-19 pandemic," Aeorema said.
The company states that it only saw an "upturn" in demand and revenue when it transitioned to virtual events and introduced its events platform KIT.
Aeorema's annual pretax loss narrowed to GBP159,698 from GBP217,924.
"Face-to-face events usually have higher levels of direct costs including audiovisual, set and stage which are all third party costs that reduce the margin," Aeorema said.
In addition, the company reported exceptional income of GBP50,000, after posting GBP23,184 in exceptional costs in the previous financial year.
Like last year, it decided against a dividend.
"As we come out strongly of this challenging period the board will continue to monitor progress, but at this point it is too soon to comment on future dividends," it said.
Aeorema asserted that it is on track to report "record revenue" for the first half of financial 2022.
"I am greatly encouraged by the development of our virtual online business coupled with the fact that we should inevitably see further growth as and when our industry returns to staging live conferences and events alongside the virtual online offering which will clearly remain a viable option," Chair Mike Hale said.
Shares in the company were up 12% at 46.90 pence each on Monday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Aeorema Comm. (AEO)