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Aeorema Communications (LSE:AEO), a corporate communications and events specialist, announces its results for the year ended 30 June 2013.
As part of the results the company announced an enhanced maiden dividend of 1.5 pence per share.
House broker, Cantor Fitzgerald commented: “The shares are trading on a historic earnings multiple of 9.9x and we would expect investors to be encouraged by these significantly improved results.”
Overview:
• Return to profitability with pre-tax profits from continuing operations of £358,864 (2012: loss of £36,272)
• 41% increase in revenues from continuing operations to £3,992,751 (2012: £2,837,345)
• Healthy cash position of £1,581,790 (2012: £756,642)
• Successful office move and integration of video and events divisions
• Strengthened team and board
• Recommending maiden dividend
Chairman’s Statement (in full):
Aeorema has had a busy year which has seen it increase sales and return to profitability. This strong financial performance is a reflection of the confidence in our core offering and subsequent strengthened position as a provider of screen media and events that bring new ideas, innovation and products vividly to life.
We continue to work closely with leading international companies operating primarily in the professional and financial services, telecommunications and technology sectors. Work undertaken during the year includes films and strategic advice on two events run by a professional services firm, events at the Cannes Lions for a global software company and a series of films for a leading management consultant for its new graduate recruitment microsite.
A key change and benefit to the organisation during the year was our office move. This has seen our events and video companies working closer than ever, now being together on a single open-plan floor. Not only does this help us to deliver an even better service to our clients, but it also makes it a more conducive workplace for our employees.
As you all know, we pride ourselves on our exceptional team and have strengthened it during the year. We have continued to win awards for the work we do for our clients both in events and film. To enhance this even further, during the year we have invested in new technologies, including an upgrade to our media storage and new presentation software. This should allow us to create a better offering to our events clients.
The results for the year show a profit before taxation from continuing operations of £358,864 (2012: loss of £36,272) on an increased revenue of £3,992,751 (2012: £2,837,345) helped considerably by the thriving events business. We achieved significant cost saving through the office move – £150,000 per year and nominal associated dilapidations. We remain cash positive with reserves of £1,581,790 (2012: £756,642).
In light of the excellent progress and significant growth potential, the Board is proposing an enhanced maiden dividend of 1.5 pence per share. This will be paid on 29 November 2013 to shareholders on the register on 25 October 2013. The Ex Dividend date is 23 October 2013. The total dividend amounts to £120,563. Going forward the Board will consider a more normalised dividend level.
In summary, our focus and confidence in our core offering have created a stronger business closely aligned with our clients’ requirements. We believe that having reduced overheads and added new clients that Aeorema is positioned well for future growth but that we are reliant on the decisions of our clients to our creative proposals. The proposed payment of a maiden dividend demonstrates our confidence in Aeorema’s strategic direction.
I would like to take this opportunity to thank both our shareholders for their support and our dedicated and talented creative team for their hard work over the period.
M Hale
Chairman
