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Interim Report

26 Mar 2018 07:00

RNS Number : 8226I
Aeorema Communications Plc
26 March 2018
 

Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media

26 March 2018

Aeorema Communications plc ('Aeorema' or 'the Company')

Interim Report

 

Aeorema Communications plc, the AIM-traded live events agency, announces its results for the six months ended 31 December 2017.

 

Financial & Operational Overview

· Revenue up 19% to £1,869,439 (2016: £1,575,470)

· Operating profit before exceptional items up 5% to £81,028 (2016: £76,820)

· Robust cash position of £1,038,130 (2016: £1,151,766)

· Management restructuring including the promotion of Steve Quah and Andrew Harvey to the role of Joint MD and the departure of two long-term directors

· Several notable events undertaken for blue-chip clients including a global media brand, a leading international law firm and a big four professional services firm

· Building presence in rapidly growing experiential events sector - appointed Julian Staveley as Director of Experiential post period end

 

Chairman's Statement

This has been a positive period for Aeorema, which has seen the Company maintain its position as a leading London-based live events agency, with revenues up to £1,869,439 (2016: £1,575,470).

 

The period under review saw several notable board changes, including the promotion of Steve Quah and Andrew Harvey to the role of Joint Managing Director. Both Steve and Andrew have been pivotal in advancing Aeorema into a new phase of growth and innovation following the departures of Peter Litten and Gary Fitzpatrick, who stepped down from their board positions having worked for the Company for 21 years. 

 

Work undertaken during the period has included a major event in Cannes for a global media brand, a large partner event for a top global law firm, as well as an experiential event for one of the big four professional services firms. Experiential events use experiences to connect brands with consumers; it is a form of events that is rapidly growing in popularity and is an area of business which we believe represents a significant and highly exciting growth opportunity. In light of this, and as part of our drive to build on the success of our core business through complementary offerings to our clients, we are delighted to announce the addition to the Aeorema team of Julian Staveley, the founder of London-based experiential events agency, Thrive London Ltd ("ThriveLondon").

 

As Director of Experiential, a non-board position, Julian will be responsible for building our presence in experiential events, strengthening our pipeline of new business opportunities as well as supporting our existing client base. He has delivered global activations for clients including Barclaycard, Glenfiddich and Sky and I am confident that his extensive experience and contacts will be invaluable to the Company moving forward as we provide an enhanced service offering to both current and new clients. Aeorema will continue to use the ThriveLondon name and website, along with having exclusive access to ThriveLondon's database.

 

Revenues for the period were £1,869,439 (2016: £1,575,470), delivering operating profits before exceptional items of £81,028 (2016: £76,820). Costs associated with the change of management generated exceptional items of £231,357; these were associated with the restructuring of the business and are a one-off, non-recurring cost.

 

Looking ahead, we remain focused on building an industry-leading, profitable, dividend-paying business with an illustrious blue-chip client base. To this end, we continue to drive growth and innovation both in-house and via value accretive growth opportunities.

 

Finally, I would like to thank all our employees for their hard work and commitment, as well as our shareholders for their continued support.

 

M Hale

Chairman

23 March 2018

 

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2017

 

 

 

 

 

 

Unaudited

6 Months to 31 December 2017

Unaudited

6 Months to 31 December 2016

Audited

Year to

30 June

2017

Notes

£

£

£

Continuing Operations

Revenue

1,869,439

1,575,470

4,156,592

Cost of sales

(1,081,034)

(798,814)

(2,495,487)

Gross profit

788,405

776,656

1,661,105

Administrative expenses pre exceptional and non-recurring items

(707,377)

(699,836)

(1,412,737)

Operating profit pre exceptional and non-recurring items

81,028

76,820

248,368

Exceptional and non-recurring items

4

(231,357)

-

-

Operating profit / (loss) post exceptional and non-recurring items

(150,329)

76,820

248,368

Finance income

162

360

519

Profit / (loss) before taxation

(150,167)

77,180

248,887

Taxation

6

26,587

(24,847)

(37,284)

Profit / (loss) for the period from continuing operations

 

(123,580)

 

52,333

 

211,603

Basic and diluted earnings per share from continuing operations

Basic (pence)

7

(1.36545)

0.57823

2.33803

Diluted (pence)

7

(1.30156)

0.55968

2.26301

 

 

There are no other comprehensive income items

 

 

 

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2017

 

 

 

Unaudited

6 Months to 31 December 2017

Unaudited

6 Months to 31 December 2016

Audited

Year to

30 June

2017

£

£

£

Non-current assets

Intangible assets

365,154

365,154

365,154

Property, plant and equipment

31,898

50,958

31,341

Deferred taxation

22,274

-

2,861

419,326

416,112

399,356

Current assets

Trade and other receivables

872,650

651,502

1,007,592

Cash and cash equivalents

1,038,130

1,151,766

1,897,212

1,910,780

1,803,268

2,904,804

Total assets

2,330,106

2,219,380

3,304,160

Current liabilities

Trade and other payables

772,303

636,320

1,615,603

Dividends payable

45,252

-

-

Current tax payable

23,868

83,205

31,042

841,423

719,525

1,646,645

Non-current liabilities

Deferred taxation

-

1,610

-

-

1,610

-

Net assets

1,488,683

1,498,245

1,657,515

Equity attributable to equity holder:

Share capital

1,131,313

1,131,313

1,131,313

Share premium

7,063

7,063

7,063

Merger reserve

16,650

16,650

16,650

Capital contribution reserve

257,812

257,812

257,812

Retained earnings

75,845

85,407

244,677

Total equity

1,488,683

1,498,245

1,657,515

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2017

 

 

Share capital

Share

Premium

Merger reserve

Capital contribution reserve

Retained earnings

Total equity

£

£

£

£

£

£

At 1 July 2016

1,131,313

7,063

16,650

257,812

214,084

1,626,922

Payment of dividends

-

-

-

-

(181,010)

(181,010)

Comprehensive income for the period

-

-

-

-

52,333

52,333

 

At 31 December 2016

 

1,131,313

 

7,063

 

16,650

 

257,812

 

85,407

 

1,498,245

 

 

At 1 January 2017

1,131,313

7,063

16,650

257,812

85,407

1,498,245

Payment of dividends

-

-

-

-

-

-

Comprehensive income for the period

-

-

-

-

159,270

159,270

 

At 30 June 2017

 

1,131,313

 

7,063

 

16,650

 

257,812

 

244,677

 

1,657,515

 

 

At 1 July 2017

1,131,313

7,063

16,650

257,812

244,677

1,657,515

Payment of dividends

-

-

-

-

(45,252)

(45,252)

Comprehensive income for the period

-

-

-

-

(123,580)

(123,580)

 

At 31 December 2017

 

1,131,313

 

7,063

 

16,650

 

257,812

 

75,845

 

1,488,683

 

 

 

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2017

 

 

Unaudited

6 Months to 31 December 2017

Unaudited

6 Months to 31 December 2016

Audited

Year to

30 June

2017

£

£

£

Cash flow from operating activities

Profit/(loss) before taxation

(150,167)

77,180

248,887

Adjustments for:

Depreciation of property, plant and equipment

11,850

25,235

51,454

Finance income

(162)

(360)

(519)

Operating cash flow before movement in working capital

(138,479)

102,055

299,822

Decrease in trade and other payables

(843,300)

(704,264)

275,021

Decrease in trade and other receivables

134,942

522,835

166,745

Cash (used in) / generated from operating activities

(846,837)

(79,374)

741,588

Taxation paid

-

-

(69,072)

Cash flow from investing activities

Finance income

162

360

519

Purchase of property, plant and equipment

(12,407)

(15,933)

(22,536)

Net cash used in investing activities

(12,245)

(15,573)

(22,017)

Cash flow from financing activities

Dividends paid

-

(181,010)

(181,010)

Net cash used in financing activities

-

(181,010)

(181,010)

Net increase / (decrease) in cash and cash equivalents

(859,082)

(275,957)

469,489

Cash and cash equivalents at beginning of period

1,897,212

1,427,723

1,427,723

Cash and cash equivalents at end of period

1,038,130

1,151,766

1,897,212

 

 

 

 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2017

 

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 23-31 Great Titchfield Street, London, W1W 7PA. 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 2017 (including comparatives for the periods ended 31 December 2016 and 30 June 2017) were approved by the board of directors on 23 March 2018.

 

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 2017, 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 2017 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 2017 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 2017, which have been prepared in accordance with IFRS as adopted by the European Union

 

3. Summary of significant accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2017, as described in those annual financial statements. There has been no impact on the Group's financial position or performance from new and amended IFRS and IFRIC interpretations mandatory as of 1 July 2017.

 

4. Exceptional and non-recurring items

Items that are material either because of their size or their nature, or that are non-recurring, are considered as exceptional. During the interim period, the Group incurred expenditure totalling £231,357 (2016: £nil) in relation to the departure of its two founders, Peter Litten and Gary Fitzpatrick, from the board of directors. This expenditure related to final salary payments, pension payments and associated legal costs. This cost has been included in the condensed consolidated interim Income Statement as an operating exceptional cost.

 

 

 

 

 

 

 

 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the period ended 31 December 2017

 

5. 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, have determined that for the period ended 31 December 2017 there is only one reportable operating segment.

 

6. Income tax charge

 

Income period tax is accrued based on the estimated average annual effective income tax rate of 19 percent (2016: 20 percent).

 

7. 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 in ordinary shares.

 

The following reflects the income and share data used and dilutive earnings per share computations:

 

Unaudited 6 Months to 31 December 2017

Unaudited 6 Months to 31 December 2016

Audited Year to 30 June 2017

Profit/(loss) for the year attributable to owners of the Company

(123,580)

52,333

211,603

Number of shares

Basic weighted average number of shares

9,050,500

9,050,500

9,050,500

Effect of dilutive share options

444,262

300,000

300,000

Diluted weighted average number of shares

9,494,762

9,350,500

9,350,500

 

8. Dividends

 

During the interim period a dividend of 0.5 pence (2016: 2 pence) per share was declared to holders of the Company's ordinary shares.

 

 

 

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the period ended 31 December 2017

 

9. 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 6 months to 31 December 2017

Unaudited 6 months to 31 December 2016

£

£

Subsidiaries

Amounts owed by/(to) subsidiaries

1,020,183

504,015

Amounts owed by/(to) subsidiaries

1,020,183

504,015

 

 

 

Harris & Trotter LLP is a firm in which Stephen Haffner is a member. The following was charged to the Group in respect of professional services.

 

Unaudited 6 Months to 31 December 2017

Unaudited 6 Months to 31 December 2016

Harris & Trotter LLP

£

£

Aeorema Communications plc

7,500

7,500

Aeorema Limited

17,900

2,450

25,400

9,950

 

Fees charged to Aeorema Communications plc include £7,500 (2016: £7,500) for the services of Stephen Haffner as a non-executive director of that company.

 

The compensation of key management (including directors) of the Group is as follows:

 

Unaudited 6 Months to 31 December 2017

Unaudited 6 Months to 31 December 2016

£

£

Short-term employee benefits

197,153

112,000

Post-employment benefits

50,666

20,496

247,819

132,496

 

 

 

 

 

For further information visit www.aeorema.com or contact:

 

Mike Hale

Aeorema Communications plc

Tel: +44 (0) 20 7291 0444

Marc Milmo / Catherine Leftley

Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker)

Tel: +44 (0) 20 7894 7000

Jeremy Porter / John Depasquale / Liz Kirchner

Allenby Capital Limited (Joint Broker)

Tel: +44 (0)20 3328 5656

Charlotte Page / Isabel de Salis

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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