Aeorema Comm. Regulatory News (AEO)

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

25 March 2022

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

Interim Results

Aeorema Communications plc, the AIM-traded live events agency, announces its unaudited results for the six months ended 31 December 2021.

Highlights

- Record revenue of £4,909,742 (H1 2020: £1,677,311)

- First profitable interim period for a number of years with profit before taxation of £255,677 (H1 2020: loss £287,676)

- Benefitting significantly from a strong performance from US office which continues to grow, deliver profits and has recently onboarded 3 new clients.

- Virtual online conferences and events have experienced high levels of demand, and the provision of consultancy services has further enhanced performance for the period

- Maintained a robust cash position of £1,534,217 (31 December 2020: £1,342,548)

- Confident of continued delivery for remainder of financial year

Chairman's Statement

The six months ended 31 December 2021 has been a significant period of growth for the Group and one which has seen us generate record revenue and return to profitability, an endorsement of our ability to meet our clients' continuously evolving needs. The pivot to virtual and hybrid events over the last two years has been a true success and the team has repeatedly risen to any challenge and exceeded expectations with our results for the period a clear demonstration of this.

During the period under review, we have received an unprecedented demand for our bespoke services from a wide range of blue-chip clients across a number of industries. Alongside our existing offering, the strategic shift into providing consultancy services to engage with clients at an advisory level on their communication strategies has proved successful, utilising our team's combined expertise in events and communications. This division is seeing burgeoning demand and is performing well.

One of our biggest achievements has been opening our US office in New York (opened in September 2020), which has seen significant growth in the period; a strategic decision and demonstration of our dedication to our US-based clients and potential international clients. Our US office has seen strong performance and continues to win new US-based clients to complement our existing client portfolio. Indeed, the US business is confident of further strong growth in the 18 months ahead and, with flights returning to pre-pandemic levels, the UK team will be able to support more as and when is needed.

The move to virtual events remains a popular choice for companies, however live events are starting to return. Having spoken with a number of clients, there is still an interest for live events as there is no substitute for personal contact. There is an expectation that popular events, in person, will go ahead this year and this includes Cannes Lions which has been confirmed to take place - an event which has traditionally been a success for Aeorema. With live events on the rise, the team is focused and prepared for when B2B events shift back to being predominantly in-person.

Venue sourcing and luxury events division, Eventful, which was acquired in March 2020 and was inevitably impacted by the restrictions over the last 24 months, is well placed to return to profitability over the next year. Despite the quiet period for the company, it has maintained its relationships with existing clients and has been introduced to new clients, whilst its cross-selling opportunities continue to succeed. The upcoming year is due to see Eventful make a strong comeback as the core business remains in good shape and it has a healthy pipeline in place.

We ended the calendar year on a high note with a strong outlook for the second half of the financial year having experienced the best interim period on record with revenue of £4,909,742 and profit before tax of £255,677. These results represent the first profitable interim period in a number of years for the Company due to the sustained high levels of demand for virtual events, coupled with our consultancy services offering which further enhanced performance.

Aeorema has shown that it can operate profitably across the virtual, hybrid and live events space and that it is able to successfully adapt to the ever-changing communication needs of retained and potential clients. I am confident we will continue this upward momentum for the remainder of 2022.

I would once again like to take the opportunity to thank our dedicated team and shareholders for their ongoing support and I look forward to what the next six months will bring for us.

M Hale

Chairman

25 March 2022

*ENDS*

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

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

For the period ended 31 December 2021

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended 31 December 2021

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 December 2021

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 December 2021

AEOREMA COMMUNICATIONS PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended 31 December 2021

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 ended 31 December 2021 (including comparatives for the periods ended 31 December 2020 and 30 June 2021) were approved by the board of directors on 25 March 2022.

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 2021, 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 2021 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 2021 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 2021, which have been prepared in accordance with IFRS as adopted by the European Union

3. 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, has determined that for the period ended 31 December 2021 there is only one reportable operating segment.

4. Income tax charge

Income period tax is accrued based on the estimated average annual effective income tax rate of 19 per cent (2020: 19 per cent).

5. 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 into ordinary shares.

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

6. Dividends

During the interim period no dividend (2020: nil) was declared to holders of the Company's ordinary shares in respect of the full year ended 30 June 2021.

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.

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

Fees charged to Aeorema Communications plc include £7,500 (2020: £7,500) for the services of S Haffner as a non-executive director of that company.

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

During the previous period S Quah received an interest-free loan of £10,000. At 31 December 2021 £10,000 (2020: £10,000) was outstanding.