Half Yearly Report

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

5 February 2014

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

Interim Results

Aeorema Communications plc, the AIM-traded live events and communications agency, announces its results for the six months ended 31 December 2013.

Overview

· 97% rise in pre-tax profits to £225,941 (2012: £114,460)

· 9% increase in turnover to £1,812,493 (2012: £1,669,047)

· Strong cash position of £1,466,352 (2012: £871,510)

· Increased earnings per share from continuing operations to 2.51p (2012: 1.42p)

· Continued production of high quality and award winning live events and brand communications

Chairman's Statement

I am pleased to report on a successful period for the Company as we continue to build a business as providers of live events and solutions. During the six months we achieved a pre-tax profit of £225,941 (2012: £114,460) on revenues of £1,812,493 (2012: £1,669,047) with a strong cash position of £1,466,352 (2012: £871,510). 

The improving economic picture has filtered through to the UK communications market and the use of events is growing. In line with this, our agency continues to produce high quality and award winning brand communications and innovative live events. Our integrated offering has proved popular with our clients, which has led to a significant increase in revenue.

We maintain strong working relationships, with clients returning to us time and again for their conferencing and event needs, demonstrating the quality of our work. New clients from different sectors have also joined our established customer base, many of which are international. Over the past six months, our team has worked in Bali, Davos and most recently Malta, which was a great start to 2014.

Additionally we have continued to win industry awards for our work in film and events with wins in Cannes, New York, our first ever Eventia awards and five further awards at the Live Com ceremony held in January 2014.

Going forward, our focus is on delivering innovative live events, designed to create immersive and engaging experiences, which align people with strategy. We want to be known for these skills throughout the sector and be the first port of call for all the senior leaders and partners in global professional and engineering services, technology and telecoms firms. With our dedicated and talented team, we believe this is highly achievable. 

Finally, I would like to thank shareholders for their continued support and I look forward to updating on our progress in the near future. 

M Hale

Chairman

5 February 2014

Aeorema Communications plc

Condensed Consolidated Statement of Comprehensive Income

Six months ended 31 December 2013

There are no other comprehensive income items.

Aeorema Communications plc

Condensed Consolidated Statement of Financial Position

At 31 December 2013

Aeorema Communications plc

Condensed Consolidated Statement of Changes in Equity

At 31 December 2013

Aeorema Communications plc

Condensed Consolidated Statement of Cash Flows

Six months ended 31 December 2013

Aeorema Communications plc

Notes to the Interim Condensed Financial Statements

Six months ended 31 December 2013

1 General information

Aeorema Communications Plc, is a public limited company incorporated in the United Kingdom under the Companies Act 1985. 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 2013 (including the comparatives for the periods ended 31 December 2012 and 30 June 2013) were approved by the board of directors on 4 February 2014. 

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 2013, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under either 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 2013 statutory accounts and have not been audited.

Copies of the annual statutory accounts 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 2013 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 2013, which have been prepared in accordance with IFRS as adopted by the European Union.

3 Accounting policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 June 2013, 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 2013.

Aeorema Communications plc

Notes to the Interim Condensed Financial Statements (Continued)

Six months ended 31 December 2013

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 ending 31 December 2013 there is only a single reportable segment.

5 Income tax charge

Interim period income tax is accrued based on the estimated average annual effective income tax rate of 21 per cent (2012: Nil), adjusted for significant one-off events.

6 Earnings per share

Basic 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.

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:

Aeorema Communications plc

Notes to the Interim Condensed Financial Statements (Continued)

Six months ended 31 December 2013

7 Dividends

During the interim period, a dividend of 1.5 pence (2012: Nil) per share was paid to shareholders.

8 Issued capital

Issued capital as at 31 December 2013 amounted to £1,042,188 (2012: £1,004,688). 300,000 additional shares were issued on 28 November 2013. There were no movements in the issued capital of the Company in the prior interim reporting period.

9 Disposal of subsidiary in comparative period

On 7 December 2012 the Group disposed of its 100% subsidiary ST16 Limited, which carried out Viral Film operations. ST16 Limited was sold to its directors, S Crofts and J Stinton. The proceeds on disposal of £5 were received in cash before the period end.

10 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. 

Aeorema Communications plc is a guarantor for a lease entered into by Aeorema Limited, its subsidiary undertaking.

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

Aeorema Communications plc

Notes to the Interim Condensed Financial Statements (Continued)

Six months ended 31 December 2013

10 Related party transactions (continued)

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

** ENDS **

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