19th Oct 2020 11:04
(Alliance News) - Aeorema Communications PLC on Friday swung to a loss for financial 2020 as event cancellations, travel bans and lockdowns imposed due to the Covid-19 pandemic led to a deterioration in the company's performance.
Shares in the live events firm were trading 1.4% lower at 20.70 pence each on Monday morning in London.
For its financial year ended June 30, Aeorema posted a pretax loss of GBP217,924, swinging from a profit of GBP382,244 a year ago. This was as revenue fell 19% year-on-year to GBP5.5 million from GBP6.8 million and administrative expenses rose 17% to GBP2.1 million from GBP1.8 million. Exceptional costs of GBP23,184 were recognised from nil the year prior.
No dividend was recommended compared to 1.0p declared the year prior. However, the company said it intends to return to paying dividends as soon as possible.
Looking ahead, Chief Executive Steve Quah said: "The development of the group's offering to now include strategy and virtual experiences as chargeable avenues has reignited opportunities across the board. Excitingly and off the back of this, we are seeing bigger conversations and a bigger piece of the pie with returning and new clients alike. I am optimistic that the momentum already seen in the first quarter of financial 2021 reflects continued positive growth ahead for both operating businesses."
As at June 30, Aeorema had cash of GBP1.7 million, down from GBP2.2 million at the end of financial 2019.
By Ife Taiwo; [email protected]
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