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Aeorema Comms Plc (AEO)

Aeorema Comms Plc

Interim Results
RNS Number : 6346Y
Aeorema Communications Plc
26 February 2013
 



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

26 February 2013

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

Interim Results

 

Aeorema Communications plc, the AIM-traded multi-media specialist, announces its results for the six months ended 31 December 2012.

 

Chairman's Statement

 

I am pleased to report on what has been a profitable period for the Company as we continue to strengthen our position as providers of high quality and contemporary corporate communications and events solutions.  During the period we achieved a pre tax profit of £98,382 (2011: £1,993) on revenues of £1,669,047 (2011: £1,237,800), and we have a cash position of £871,510 (2011: £812,104), which is a good achievement considering the tough market conditions.

 

Our On Screen and Live Events companies continue to work well together, regularly cross-selling services as they continue to produce high quality and award winning brand communications and innovative live events.  

 

We were delighted that our events division won two IVCA LiveCom awards for its work at Cannes Lions, whilst the film department also received nominations for the New York Film Festival.  These awards and nominations highlight the quality of our work.

 

Over the period of trading we have continued to develop and win new clients across both divisions.   Our client list includes a range of major companies focussed on the professional and financial services, the telecommunications sector, and the technology sector, where we have recently added new clients.  We maintain strong working relationships, with clients returning to us time and again for their conference and events needs.

 

At the end of the period, we announced our decision to dispose of viral agency ST16 Limited back to its directors for a nominal consideration.  This was due to the fact that it has not resulted in the volume of business anticipated.  Nonetheless, we are still pleased to show a profit for the period.

 

On a corporate front we also advise shareholders that the Company's registered address has changed to 64 New Cavendish Street, London, W1G 8TB.  Additionally, the Company's trading address has changed to Moray House, 23-31 Great Titchfield Street, London, W1W 7PA.

 

In the future, we look forward to building our client list and remain focussed on ensuring the continued success of our film and events divisions.  

 

I would like to thank shareholders for their continued support and give thanks to our dedicated and talented creative teams for their hard work over the period. 

 

M Hale

Chairman

25 February 2013

 

 

Aeorema Communications plc

Condensed Consolidated Statement of Comprehensive Income

Six months ended 31 December 2012



Unaudited
6 months to 31 December 2012


Unaudited
6 months to 31 December 2011


Audited
year ended
30 June
2012


Notes

£


£


£

Continuing operations














Revenue


1,669,047


1,237,880


2,837,345

Cost of sales


(1,207,470)


(870,483)


(2,042,334)








Gross profit


461,577


367,397


795,011








Administrative expenses


(401,024)


(367,022)


(833,011)








Gain recognised on disposal of former subsidiary


53,824


-


-








Operating profit / (loss)


114,377


375


(38,000)








Finance income


-


118


228

Other income


83


1,500


1,500








Profit / (loss) before taxation


114,460


1,993


(36,272)








Taxation


-


-


(2,342)








Profit / (loss) for the period
from continuing operations


114,460


1,993


(38,614)








Discontinued operations







Profit / (loss) for the period from discontinued operations

6

(16,078)


-


(46,569)








Total comprehensive income / (loss) for the period attributable to owners of the parent


98,382


1,993


(85,183)















Earnings / (Loss) per ordinary share:














From continuing and discontinued operations







Basic

5

1.22404p


0.02543p


(1.07822p)

Diluted

5

 1.13772p


0.02453p


(1.00542p)








From continuing operations







Basic

5

 1.42407p


0.02543p


(0.48876p)

Diluted

5

 1.32365p


0.02453p


(0.45576p)

 

There are no other comprehensive income items.



 

Aeorema Communications plc

Condensed Consolidated Statement of Financial Position

At 31 December 2012

 

 


Unaudited
31 December 2012


Unaudited
31 December 2011


Audited
30 June
2012


£


£


£

Non-current assets






Intangible assets

365,154


365,154


365,154

Property, plant and equipment

45,755


77,343


65,928

Deferred taxation

19,712


22,054


19,712


430,621


464,551


450,794







Current assets






Inventories

2,674


2,674


2,675

Trade and other receivables

625,784


369,040


807,841

Cash and cash equivalents

871,510


812,104


756,642


1,499,968


1,183,818


1,567,158







Total assets

1,930,589


1,648,369


2,017,952







Current liabilities






Trade and other payables

(612,884)


(414,637)


(800,152)


(612,884)


(414,637)


(800,152)







Net assets

1,317,705


1,233,732


1,217,800







Equity






Share capital

1,004,688


979,688


1,004,688

Merger reserve

16,650




16,650

Share based payment reserve

77,791


46,674


76,268

Capital redemption reserve

257,812


257,812


257,812

Retained earnings

(39,236)


(50,442)


(137,618)

Equity attributable to owners of the parent

1,317,705


1,233,732


1,217,800

 

           

 

Aeorema Communications plc

Condensed Consolidated Statement of Changes in Equity

At 31 December 2012

 


Share Capital

Merger  Reserve

Share-based payment reserve

Capital Redemption reserve

Retained earnings

Total equity


£

£

£

£

£

£








At 1 July 2011

979,688

-

31,116

257,812

(52,435)

1,216,181

Comprehensive income
for the period

-

-

-

-

1,993

1,993

Share based payments

-

-

15,558

-

-

15,558

At 31 December 2011

979,688

-

46,674

257,812

(50,442)

1,233,732








At  1 January 2011

979,688

-

46,674

257,812

(50,442)

1,233,732

Issue of shares

25,000

21,500

-

-

-

46,500

Share issue costs

-

(4,850)

-

-

-

(4,850)

Comprehensive expense
for the period

-

-

-

-

(87,176)

(87,176)

Share based payments

-

-

29,594

-


29,594

At 30 June 2012

1,004,688

16,650

76,268

257,812

(137,618)

1,217,800








At 1 July 2012

1,004,688

16,650

76,268

257,812

(137,618)

1,217,800

Comprehensive income
for the period

-

-

-

-

98,382

98,382

Share based payments

-

-

1,523

-

-

1,523

At 31 December 2012

1,004,688

16,650

77,791

257,812

(39,236)

1,317,705

 

 

 

Aeorema Communications plc

Condensed Consolidated Statement of Cash Flows

Six months ended 31 December 2012

 



Unaudited
6 months to 31 December 2012


Unaudited
6 months to 31 December 2011


Audited
year ended
30 June
2012


Notes

£


£


£

Cash flows from operating activities







Profit / (loss) before taxation


98,382


1,993


(82,841)

Depreciation


18,776


30,636


60,167

Impairment of goodwill


-


-


77,671

Gain on sale of property, plant and equipment


(43,000)


-


-

Profit on disposal of subsidiary


(53,824)


-


-

Write-off of inter-company loan due from subsidiary


26,960


-


-

Share based payment


1,523


15,558


45,152

Finance income


(83)


118


(228)

Taxation paid


-


-


(6,986)

Other non-cash adjustments


78


-





48,812


48,305


92,935








Increase / (decrease) in trade and other payables


(187,268)


87,871


439,645

Decrease / (increase) in trade and other receivables


182,059


148,421


(269,284)

Change in working capital due to disposal of subsidiary:






-    Trade and other receivables


(11,699)


-


-

-    trade and other payables


39,404


-


-

-    Increase in other receivables due to balance due from former subsidiary


19,987


-


-

Cash generated in operating activities


42,483


236,292


170,361








Cash flows from investing activities







Finance income


83


(118)


228

Investments in subsidiaries (net of cash acquired)


-


-


(16,794)

Disposal of subsidiary (net of cash disposed)

6

(16,421)


-


-

Purchase of property, plant and equipment


(3,089)


(790)


(13,653)

Proceeds from sale of property, plant and equipment


43,000


-


-

Cash (used) / generated in investing activities


23,573


(908)


(30,219)








Cash flows from financing activities







Cost of share issue


-


-


(4,850)

Cash used in financing activities


-


-


(4,850)








Net increase in cash and cash equivalents


114,868


283,689


228,227








Cash and cash equivalents at beginning of period


756,642


528,415


528,415








Cash and cash equivalents at end of period


871,510


812,104


756,642

 

 

Aeorema Communications plc

Notes to the Interim Condensed Financial Statements

Six months ended 31 December 2012

 

1    General information

Aeorema Communications Plc, previously known as Cheerful Scout 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 Moray House, 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 2012 (including the comparatives for the periods ended 31 December 2011 and 30 June 2012) were approved by the board of directors on 25 February 2013. 

 

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 2012, 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 2012 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 2012 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 2012, 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 2012, 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 2012.

 

4        Revenue and segmental results

Revenue and segmental results have been disclosed by three operating segments; On Screen, Live Events, and Viral Film (now discontinued), in the manner that the information is presented to the Board of Directors, being the Chief Operating Decision Makers.

 



Revenue

Segment profit / (loss)



Six months ended

Six months ended



31 Dec 2012

31 Dec 2011

31 Dec 2012

31 Dec 2011

Continuing operations






On Screen


842,114

514,978

69,987

30,873

Live Events


826,933

722,902

141,022

47,151

Total for continuing operations


1,669,047

1,237,880

211,009

       78,024

Unallocated expenses




(150,456)

     (77,649)

Operating profit




60,553

           375

Finance income




-

           118

Other income




83

         1,500

Profit before tax (continuing operations)




60,636

        1,993







Discontinued operation






Viral Film


69,001

-

(16,078)

-  

Gain recognised on disposal of subsidiary




53,824

-  

Total for discontinued operations


69,001

-

37,746

-  







Income tax expense continuing and discontinued




-

-  

Consolidated revenue and profit for the period

 1,738,048

1,237,880

98,382

1,993

 


Analysis of the Group's assets by operating segment

31 Dec 2012

31 Dec 2011

Continuing operations



On Screen segment assets

487,964

465,934

Live Events segment assets

762,351

418,976

Unallocated segment assets

680,274

763,459

Continuing operations - total assets

1,930,589

1,648,369




On Screen segment liabilities

(193,878)

(175,979)

Live Events segment liabilities

(379,418)

(214,458)

Unallocated segment liabilities

(39,588)

(24,200)

Continuing operations - total liabilities

(612,884)

(414,637)




Discontinued operations



Viral Film total assets

-

-

Viral Film total liabilities

-

-




Consolidated assets (continuing and discontinued)

1,930,589

1,648,369

Consolidated liabilities (continuing and discontinued)

(612,884)

(414,637)

 

 

5          Earnings (loss) per share

Basic earnings per share are calculated by dividing the profit or loss 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 or loss 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 six months to 31 December 2012


Unaudited six months to 31 December 2011


Audited
year ended
30 June
2012

Earnings attributable to owners of  parent

98,382


1,993


(85,183)







Number of shares






Basic weighted average number of shares

8,037,500


7,837,500


7,900,342







Effect of dilutive share options

609,788


288,878


572,017







Diluted weighted average number of shares

8,647,288


8,126,378


8,472,359













From continuing operations






Earnings attributable to owners of  parent

98,382


1,993


(85,183)







Less: (profit) / loss for the period from discontinued operations

16,078


-


46,569







Earnings for the purposes of basic and diluted earnings per share from continuing operations

114,460


1,993


(38,614)

 

 

6          Disposal of subsidiary

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 after the period end.

 

The profit / (loss) for the period from the discontinued operation is analysed as follows:

 

 

Unaudited
six months to 31 December 2012

 

Unaudited
six months to 31 December 2011

 

Audited
year ended
30 June
2012

 

£

 

£

 

£

Profit / (loss) for the period

(16,078)

 

(46,569)

 

-    

Gain recognised on disposal of subsidiary

53,824

 

-    

 

-    

 

37,746

 

(46,569)

 

-    

 

The results of ST16 Limited for the relevant periods were as follows:

 

 

Unaudited
six months to 31 December 2012

 

Unaudited
six months to 31 December 2011

 

Audited
year ended
30 June
2012

 

£

 

£

 

£

Revenue

69,001

 

62,257

 

-    

Operating costs

(85,079)

 

(108,813)

 

-    

Finance costs

-    

 

(13)

 

-    

Profit/(loss) before tax

(16,078)

 

(46,569)

 

-    

Income tax charge

-

 

-

 

-    

Profit/(loss) after tax

(16,078)

 

(46,569)

 

-    

 

 

The net assets / (liabilities) of ST16 Limited at the date of disposal were as follows:


£

Net liabilities disposed of

(53,819)

Profit on disposal

53,824

Total consideration

5

Less: cash in subsidiary disposed of

(16,426)

Net cash outflow arising on disposal

(16,421)

 

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. 

 

Aeorema Communications plc is a guarantor for a lease entered into by Cheerful Scout Productions 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.

 

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

 

 

** ENDS **

 

For further information visit www.aeorema.com or contact:

Gary Fitzpatrick

Aeorema Communications plc

Tel: 020 7291 0444

Mark Percy

Seymour Pierce

Tel: 020 7107 8000

Catherine Leftley

Seymour Pierce

Tel: 020 7107 8000

Elisabeth Cowell

St Brides Media & Finance Ltd

Tel: 020 7236 1177

Charlotte Heap

St Brides Media & Finance Ltd

Tel: 020 7236 1177

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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