Last checked at 26 Jan 2016 10:00
Aeorema Communications plc / Index: AIM / Epic: AEO / Sector: Media
26 January 2016
Aeorema Communications plc ('Aeorema' or 'the Company')
Interim Results
Aeorema Communications plc, the AIM-traded live events agency, announces its results for the six months ended 31 December 2015.
Overview
· Pre-tax profits of £80,476 on a turnover of £1,591,114
· Stronger second half anticipated, consistent with previous years
· Robust cash position of £1,372,589
Chairman's Statement
As a provider of live events, we continue to focus on developing a strong pipeline of future revenue opportunities, whilst improving operational efficiency under a single brand, Cheerful Twentyfirst.
As we stated in our Annual Accounts, the marketplace remains competitive and the results for the first six months of the current trading year reflect this environment. Notwithstanding this, given the market position of the Cheerful Twentyfirst brand, we continue to believe that the second half of the year to 30 June 2016 should be stronger than the first half. The efforts of our management teams continue to be directed to delivering the pipeline of opportunities that the Company currently has for the second half.
Our strategy has been to focus on what is within our power to manage or influence and to create a resilient company that is well positioned for growth once the economy inevitably picks up again. We are therefore keeping costs down, and doing what we do best: innovate. This has been the lifeblood of the Company since its inception 20 years ago and is the reason business and industry leaders turn to us.
We are pleased to be working with some new clients but existing clients have, in some cases, lowered budgets or cancelled events. The new website is opening up opportunities and we are embracing social media as a marketing tool, with good results.
We have a robust balance sheet with £1,372,589 cash in the bank and revenue generation of £1,591,114. During the six months we achieved a pre-tax profit of £80,476. Operational costs were £715,202.
Overall, the team deserve our thanks for their achievements during a tough period. We are encouraged both by our business opportunities and the start we have made to the current year but, given the economic environment, we remain cautious in respect of profit growth.
M Hale
Chairman
25 January 2016
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 31 December 2015
Unaudited 6 Months to 31 December 2015 | Unaudited 6 Months to 31 December 2014 | Audited Year to 30 June 2015 | ||
Notes | £ | £ | £ | |
Continuing Operations | ||||
Revenue | 1,591,114 | 1,658,315 | 4,934,560 | |
Cost of sales | (795,832) | (855,113) | (3,017,634) | |
Gross profit | 795,282 | 803,202 | 1,916,926 | |
Administrative expenses | (715,202) | (702,238) | (1,534,471) | |
Operating profit | 80,080 | 100,964 | 382,455 | |
Finance income | 396 | 352 | 761 | |
Profit before taxation | 80,476 | 101,316 | 383,216 | |
Taxation | 5 | (16,565) | (6,664) | (67,979) |
Profit for the period from continuing operations | 63,911 | 94,652 | 315,237 | |
Basic and diluted earnings per share from continuing operations | ||||
Basic (pence) | 6 | 0.70616 | 1.06751 | 3.51904 |
Diluted (pence) | 6 | 0.68350 | 1.01227 | 3.37134 |
There are no other comprehensive income items
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the period ended 31 December 2015
Unaudited 6 Months to 31 December 2015 | Unaudited 6 Months to 31 December 2014 | Audited Year to 30 June 2015 | ||
£ | £ | £ | ||
Non-current assets | ||||
Intangible assets | 365,154 | 365,154 | 365,154 | |
Property, plant and equipment | 99,560 | 57,008 | 65,135 | |
Deferred taxation | - | 17,481 | 6,404 | |
464,714 | 439,643 | 436,693 | ||
Current assets | ||||
Inventories | - | 2,674 | - | |
Trade and other receivables | 747,770 | 939,962 | 1,352,398 | |
Cash and cash equivalents | 1,372,589 | 1,219,527 | 1,558,453 | |
2,120,359 | 2,162,163 | 2,910,851 | ||
Total assets | 2,585,073 | 2,601,806 | 3,347,544 | |
Current liabilities | ||||
Trade and other payables | (896,868) | (945,796) | (1,463,504) | |
(896,868) | (945,796) | (1,463,504) | ||
Non-current liabilities | ||||
Deferred taxation | (4,322) | - | - | |
(4,322) | - | - | ||
Net assets | 1,683,883 | 1,656,010 | 1,884,040 | |
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 | |
Share based payment reserve | - | 118,411 | - | |
Capital contribution reserve | 257,812 | 257,812 | 257,812 | |
Retained earnings | 271,045 | 124,761 | 471,202 | |
Total equity | 1,683,883 | 1,656,010 | 1,884,040 |
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2015
Share capital | Share Premium | Merger reserve | Other reserve | Share-based payment reserve | Capital contribution reserve | Retained earnings | Total equity | |
£ | £ | £ | £ | £ | £ | £ | £ | |
At 1 July 2014 | 1,079,688 | - | 16,650 | 19,500 | 110,972 | 257,812 | 482,609 | 1,967,231 |
Issue of shares | 51,625 | 7,063 | - | (19,500) | - | - | - | 39,188 |
Payment of dividends | - | - | - | - | - | (452,500) | (452,500) | |
Comprehensive income for the period | - | - | - | - | - | 94,652 | 94,652 | |
Share based payment | - | - | - | 7,439 | - | - | 7,439 | |
At 31 December 2014 | 1,131,313 | 7,063 | 16,650 | - | 118,411 | 257,812 | 124,761 | 1,656,010 |
At 1 January 2015 | 1,131,313 | 7,063 | 16,650 | - | 118,411 | 257,812 | 124,761 | 1,656,010 |
Comprehensive income for the period | - | - | - | - | - | - | 220,585 | 220,585 |
Share based payment | - | - | - | - | 7,445 | - | - | 7,445 |
Transfer | - | - | - | - | (125,856) | - | 125,856 | - |
At 30 June 2015 | 1,131,313 | 7,063 | 16,650 | - | - | 257,812 | 471,202 | 1,884,040 |
At 1 July 2015 | 1,131,313 | 7,063 | 16,650 | - | - | 257,812 | 471,202 | 1,884,040 |
Payment of dividends | - | - | - | - | - | - | (271,515) | (271,515) |
Comprehensive income for the period | - | - | - | - | - | - | 63,911 | 63,911 |
Share based payment | - | - | - | - | - | - | 7,447 | 7,447 |
At 31 December 2015 | 1,131,313 | 7,063 | 16,650 | - | - | 257,812 | 271,045 | 1,683,883 |
AEOREMA COMMUNICATIONS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 December 2015
Unaudited 6 Months to 31 December 2015 | Unaudited 6 Months to 31 December 2014 | Audited Year to 30 June 2015 | ||
£ | £ | £ | ||
Cash flow from operating activities | ||||
Profit before taxation | 80,476 | 101,316 | 383,216 | |
Adjustments for: | ||||
Depreciation of property, plant and equipment | 26,031 | 18,627 | 30,708 | |
Loss on disposal of property, plant and equipment | - | 5,389 | 5,389 | |
Share based payment expense | 7,447 | 7,439 | 14,884 | |
Finance income | (396) | (352) | (761) | |
Operating cash flow before movement in working capital | 113,558 | 132,419 | 433,436 | |
Increase/(decrease) in trade and other payables | (572,475) | (643,211) | (132,788) | |
(Increase)/decrease in trade and other receivables | 604,629 | 535,959 | 123,523 | |
(Increase)/decrease in inventories | - | - | 2,674 | |
Cash generated / (used) in operating activities | 145,712 | 25,167 | 426,845 | |
Taxation paid | - | - | (42,951) | |
Cash flow from investing activities | ||||
Finance income | 396 | 352 | 761 | |
Purchase of property, plant and equipment | (60,457) | (23,575) | (43,785) | |
Proceeds from the sale of property, plant and equipment | - | 10,000 | 10,000 | |
Net cash used in investing activities | (60,061) | (13,223) | (33,024) | |
Cash flow from financing activities | ||||
Income from share issue | - | 39,188 | 39,188 | |
Dividends paid | (271,515) | (452,500) | (452,500) | |
Net cash used in financing activities | (271,515) | (413,312) | (413,312) | |
Net increase / (decrease) in cash and cash equivalents | (185,864) | (401,368) | (62,442) | |
Cash and cash equivalents at beginning of period | 1,558,453 | 1,620,895 | 1,620,895 | |
Cash and cash equivalents at end of period | 1,372,589 | 1,219,527 | 1,558,453 | |
AEOREMA COMMUNICATIONS PLC
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 31 December 2015
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 AIM market of the London Stock Exchange.
These condensed consolidated interim financial statements for the period ending 31 December 2015 (including comparatives for the periods ended 31 December 2014 and 30 June 2015) were approved by the board of directors on 25 January 2016.
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 2015, 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 2014 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 2015 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 2015, 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 2015, 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 2015.
4. 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 2015 there is only one reportable operating segment.
5. Income tax charge
Income period tax is accrued based on the estimated average annual effective income tax rate of 20 percent (2014: 21 percent).
6. 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 2015 | Unaudited 6 Months to 31 December 2014 | Audited Year to 30 June 2015 | |
Earnings per share attributable to owners of parent | 63,911 | 94,652 | 315,237 |
Number of shares | |||
Basic weighted average number of shares | 9,050,500 | 8,866,598 | 8,958,044 |
Effect of dilutive share options | 300,000 | 483,902 | 392,456 |
Diluted weighted average number of shares | 9,350,500 | 9,350,500 | 9,350,500 |
7. Dividends
During the interim period a dividend of 3 pence (2014: 5 pence) per share was paid to holders of the Company's ordinary shares.
8. 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 2015 | Unaudited 6 months to 31 December 2014 | |
£ | £ | |
Subsidiaries | ||
Amounts owed by/(to) subsidiaries | 400,973 | 317,743 |
Amounts owed by/(to) subsidiaries | 400,973 | 317,743 |
Harris & Trotter LLP is a firm in which S Haffner and S Garbutta are members. The following was charged to the Group in respect of professional services.
Unaudited 6 Months to 31 December 2015 | Unaudited 6 Months to 31 December 2014 | |
Harris & Trotter LLP | £ | £ |
Aeorema Communications plc | 6,000 | 12,160 |
Aeorema Limited | 1,900 | 23,435 |
7,900 | 35,595 |
Fees charged to Aeorema Communications plc include £5,000 (2014: £3,750) for the services of Stephen Garbutta and Stephen Haffner as non-executive directors of that company.
The compensation of key management (including directors) of the Group is as follows:
Unaudited 6 Months to 31 December 2015 | Unaudited 6 Months to 31 December 2014 | |
£ | £ | |
Short-term employee benefits | 109,810 | 156,131 |
Post-employment benefits | 31,708 | 43,494 |
141,518 | 199,625 |
ENDS
For further information visit www.aeorema.com or contact:
Gary Fitzpatrick Aeorema Communications plc Tel: 020 7291 0444
Marc Milmo/Catherine Leftley Cantor Fitzgerald Europe Tel: 020 7894 7000
Isabel de Salis/Megan Dennison St Brides Partners Tel: 020 7236 1177