Aeorema Communications : 2020-2021 Six month report

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Regulation 11 of the Market Abuse Regulations

(Amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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

22 March 2021

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

Interim Report

Aeorema Communications plc, the AIM-traded live events agency, announces its unaudited results for the six months ended 31 December 2020.

Overview

• • Revenues of £1,677,311 (2019: £2,913,290)

• • Loss after taxation of £247,576 (2019: loss of £57,021)

• • Robust cash position of £1,342,548 (31 December 2019: £1,393,243)

• • Returned to profitability in the final three-months of the period

Chairman's Statement

Our shareholders will be familiar with the proverb "necessity is the mother of invention" and this

phrase became especially true for your Company as the hospitality and events industry experienced an immediate and full-blown shut down in the unprecedented times of the Covid-19 pandemic.

I am proud of our achievements during the period under review, having quickly re-invented ourselves at pace into an expert in virtual and hybrid conferencing following the collapse of the live events business as a result of Covid-19 last year. Equally, I am optimistic for the future as I believe we are well positioned to grow rapidly when live events return.

Faced with the extraordinary challenge of restructuring our business to service a new model focused on virtual events, our team adeptly stepped up to the plate. We developed new services, built our own virtual events platform, KIT, grew existing accounts, onboarded new clients, and impressively returned the Company to profitability in the final months of the period - an outstanding achievement following a period which necessitated substantial restructuring costs and saw a gradual take up of our new offerings. In addition to our traditional largely professional services client base, we are proud to have onboarded a technology giant, working across its four divisions, as well as working with a further five technology clients, all of whom trust our consultancy and technical expertise. These accounts continue to grow during this unprecedented period, and we anticipate further engagements going forward.

While we had expected revenues from live events of circa £3-5 million for July to December 2020, we replaced this lost income with £1,677,311 in revenue from virtual events. We also contained the loss after tax to £247,576 (2019: loss of £57,021) and ended the calendar year with £1,342,548 incash (2019: £1,393,243) despite restructuring costs. The trend is positive. With several new blue-chip clients and a strong pipeline, we are confident that the next six months will be profitable. The

Company's cash position remains strong and as at the date of this announcement is circa £1.1 million.

We announced the opening of an office in New York in September 2020. This was a strategic decision signifying a dedicated approach to supporting the growing needs and requests of our clients in the US, and internationally, as we saw an increase in potential business in the region. I am pleased to report this has been a beneficial investment for the Company and we are expecting to make a profit from this division in its first year. Our presence in the US has enabled us to grow our existing clients as well as win new US based clients.

Whilst Eventful, acquired in March 2020, was naturally severely impacted by Covid-19 related travel bans and venue closures, the team has maintained its relationships with existing clients and been introduced to many new clients working with Cheerful Twentyfirst. During this quiet period, the team has been developing its strategy for 2021/22 and is excited about both returning to sourcing venues for live events and building an exceptional incentives programme for corporates. Holly Mills has joined Eventful as Head of Incentives (formerly Head of Incentives at Penguins Events) and is developing the new Incentives offering for a market with pent up demand and sizeable budgets.

Looking ahead, we believe live events will return; a number of clients have commented that there is no substitute for personal contact. However, regardless of when this happens, we have proven that we can operate as a profitable business in the virtual and hybrid space too and are excited at the prospect of new opportunities for the Group. Furthermore, we are growing our fee based strategic communications solutions as part of our new consultancy approach, supported by production excellence and networking solutions that continue to challenge the norm.

I would like to thank our team and our shareholders for their ongoing support and look forward to the next six months with growing optimism.

M Hale

Chairman

19 March 2021

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT For the period ended 31 December 2020

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the period ended 31 December 2020

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period ended 31 December 2020

Share capital

£

Share premium

£

Merger reserve

£

Other reserve

£

Capital contribution reserve £

Retained earnings

Total equity

£

£

At 1 July 2019

Payment of dividends Comprehensive income for the period Share-based payments

1,131,313 - -7,063 - -16,650 - - -

34,261 - - 22,097

257,812 - - -

467,283

1,914,382

• (90,505) (90,505)

• (57,021) (57,021)

-

-

-22,097

At 31 December 2019

At 1 January 2020

Comprehensive income for the period Share-based payments Share issue

1,131,313

7,063

16,650 16,650 -

1,131,313 -

56,358 56,358 -

7,063 -

257,812 257,812

• 319,757 1,788,953

• 319,757 1,788,953

- (140,404) (140,404)

- 23,437

- 2,813

• - 25,000

- -

• - 25,000

  -

  -

• - 26,250

At 30 June 2020

1,154,750

9,876

16,650

81,358

257,812

• 179,353 1,699,799

  At 1 July 2020

  Comprehensive income for the period Share-based payments

  1,154,750 -

  9,876 -

  16,650 - -

  81,358 - 15,122

  257,812

• 179,353 1,699,799

• - (255,055)

(255,055)

-

-

-

-

15,122

At 31 December 2020

1,154,750

AEOREMA COMMUNICATIONS PLC

9,876

16,650

• 96,480 257,812

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the period ended 31 December 2020

Unaudited 6 Months to 31 December 2020

(75,702)Unaudited 6 Months to 31 December 2019

1,459,866

Audited Year to 30 June 2020

Cash flow from operating activities (Loss) / profit before taxation Adjustments for:

Depreciation of property, plant and equipment Depreciation of right-of-use assets Amortisation of intangible fixed assets Loss on disposal of fixed assets Share-based payment

Interest on lease liabilities Finance income

Exchange rate differences on translation

Operating cash flow before movement in working

£

(287,676)

18,209

45,546

1,250

769

15,122

8,996

(539)

(7,479)

£

£

(89,650) (217,924)

14,064 31,871

43,848 89,392

- 417

1,424 1,648

22,097 47,097

10,222 20,253

(327) (556)

(205,802)

- 1,678

- (27,802)

capital

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 31 December 2020

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 2020 (including comparatives for the periods ended 31 December 2019 and 30 June 2020) were approved by the board of directors on 20 March 2021.

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 2020, 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 2020 statutory accounts and have not been audited.

Copies of the annual statutory financial statements and the interim report can be found on our website atwww.aeorema.comor 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 2020 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 2020, 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 2020 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. (2019: 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:

During the interim period no dividend (2019: 1 pence per share) was declared to holders of the Company's ordinary shares in respect of the full year ended 30 June 2020.

7. 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 (2019: £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 period A Harvey received an interest-free loan of £10,000. At 31 December 2020, £10,000 (2019: £10,000) was outstanding.

During the period S Quah received an interest-free loan of £10,000. At 31 December 2020, £10,000 (2019: £Nil) was outstanding.

ENDS

For further information visitwww.aeorema.com or contact: