Aeorema Communications : 2021-2022 Six month report.pdf

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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 tovirtual 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 visitwww.aeorema.com or contact:

AEOREMA COMMUNICATIONS PLC

CONDENSED CONSOLIDATED INCOME STATEMENT For the period ended 31 December 2021

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