TIDMAEO
RNS Number : 0323O
Aeorema Communications Plc
30 September 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Aeorema Communications plc / Index: AIM / Epic: AEO / Sector:
Media
30 September 2019
Aeorema Communications plc ("Aeorema", the "Company" or the
"Group")
Final Results
Aeorema Communications plc, the AIM-traded live events agency,
announces its audited results for the year ended 30 June 2019. The
Company's annual general meeting ("AGM") is expected to be held in
mid-November and a separate announcement will be made in due course
to confirm postage of the Annual Report and Accounts for the year
ended 30 June 2019 and the notice of AGM to shareholders, as well
as availability of the documents on the Company's website
www.aeorema.com.
Financial Highlights
-- Revenues of GBP6,765,280, a year-on-year increase of 40% (2018: GBP4,820,167)
-- Profit before exceptional items of GBP374,399, a year-on-year
increase of 29% (2018: GBP289,650)
-- GBPnil exceptional items (2018: GBP231,357) resulting in
profit after tax of GBP288,323 (2018: GBP50,405)
-- Maintained strong cash position with GBP2.2 million in the bank (as at 30 June 2019)
-- Proposed final dividend payment of 1p (2018: 0.75p)
Operational Highlights
-- Aeorema reinforced its position as a market leader in the
execution of creative and differentiated live events
-- Events included annual partner conferences, a leadership
event and several events at Cannes Lions Festival
-- New client wins include a leading global law firm, several
technology firms and an established confectionery brand
-- Further key appointments made in the period to further enhance the Company and its offering
The Board has agreed that Steve Quah and Andrew Harvey's titles
should change from Joint Managing Directors to Chief Executive
Officer and Managing Director, with immediate effect, in order to
better reflect their roles within the business.
For further information visit www.aeorema.com or contact:
Mike Hale Aeorema Communications Tel: +44 (0) 20 7291
plc 0444
John Depasquale / Liz Allenby Capital Limited Tel: +44 (0)20 3328
Kirchner (Nominated Adviser 5656
and Broker)
Gaby Jenner / Catherine St Brides Partners Tel: +44 (0) 20 7236
Leftley Ltd 1177
Chairman's Statement
In the first full year under new management, I am pleased to
report a strong financial performance for the financial year ended
30 June 2019. Revenue has increased 40% to GBP6,765,280 (2018:
GBP4,820,167) and the Group has increased profitability reporting
an operating profit pre-exceptional items of GBP374,399
representing a 29% increase on 2018 (2018: GBP289,650) and profit
before taxation of GBP375,010 (2018: GBP58,685). The Group's cash
position remains robust at GBP2.2 million (2018: GBP1.4 million).
The profitability and the maintained cash position of the Group has
led to the Board to propose a full year dividend of 1.0 pence per
share (2018: 0.75 pence) to be paid to shareholders on the register
on 22 November 2019. The ex-dividend date will be 21 November 2019.
Subject to the proposed dividend being approved by shareholders at
the forthcoming AGM, it will be paid on 16 December 2019.
The Group reinforced its strong market reputation for execution
of creative and differentiated live events through the successful
delivery of several noteworthy events. This includes four client
projects delivered at the Cannes Lions International Festival of
Creativity including a stand-out event hosted on behalf of a global
business-focussed media company that attracted high praise across
the event. I am also proud of the smaller scale corporate events
successfully undertaken including partner meetings for a global law
firm organised in the United States and an innovative, unique event
hosted at the Bristol waterfront in outdoor, temporary venues.
Further to this, a highly successful senior management event was
completed for a new client in London operating within the
technology and manufacturing sector. The Group has made additional
key executive appointments during the year with a view to
maintaining and expanding client relationships.
Whilst the Group has delivered an unusually high number of low
profit margin events during the year, new events to be delivered in
2020 are expected to have higher gross profit margins. Despite
this, the Group has delivered a highly successful and profitable
year. The Group is also continuing to invest in new hires with the
aim of reducing its use of freelancers.
We are pleased with the ongoing development and contributions
made by our film production and experiential businesses. The Group
produced a variety of award nominated films during the year which
continued to showcase the Group's creativity. The Group has
recently appointed a new Director of Client Partnerships, Andrew
Zanelli-King, who is responsible for growing the film business.
Andrew has a proven track record of helping film businesses expand
at various companies and has an established network of contacts
within the industry. The experiential business continues to grow
with several small events delivered during the year.
Outlook
Focus remains on sustaining client relationships and effective
client acquisition to ensure that a robust pipeline of business is
in place. To this end, I am confident of future growth having
already secured new client wins in the current financial year
including a leading global law firm, a number within the technology
sector and a high-profile, established confectionery brand. Another
upcoming highlight is set to be the execution of an extraordinary
event at MIPCOM in Cannes, an annual trade show for entertainment
content, in October for a global media brand.
We continue to invest in the Group and its success through
making key appointments and view this as integral to the creation
of a dividend-paying, financially healthy business operating at the
forefront of the industry. Committed to the continued growth of the
Group, we continue to assess potentially value accretive,
complementary opportunities as they are presented to the Group. To
maintain a reputation for executing highly creative live events it
is important that innovation remains at the core of what we do.
Therefore, in line with this, we strive to remain dynamic and
adaptive to changes within the industry.
It is testament to the strength of Aeorema's core business and
established relationships that we have been able to successfully
advance our strategy of enhancing the offering that we can provide
our clients during the financial year. The notable increase in
revenue and profit reported in the period validates this strategy
and provides confidence for the Board as we continue to look to
ways to grow and improve your Group, with margins maintained at an
acceptable level.
Finally, I would like to take the opportunity to thank all
employees for their hard work and commitment, as well as our
shareholders for their continued support.
M Hale
Chairman
27 September 2019
Chief Executive Officer's Report
It's been another outstanding year and I am incredibly proud of
what our operating business, Cheerful Twentyfirst, has achieved.
Our talented and dedicated team has once again raised the bar for
our wonderful clients who continue to trust us to deliver game
changing live events, brand experiences and impactful on-screen
content.
I look forward to fulfilling my new role as CEO, developing and
delivering the overall vision of the Company. Andrew Harvey will
remain in the role of Managing Director and oversee all operational
elements of the business. We will both continue to play important
roles in developing key accounts and winning new business, and we
now have an amazing senior team that will continue to grow the
business.
There have been so many highlights in the last financial year.
Our reputation continues to grow at the Cannes Lions International
Festival of Creativity. This year we delivered a record number of
projects for our clients, including a project which was widely
regarded as one of the best brand activations ever conceived and
delivered in Cannes.
As part of our growth strategy I am delighted that we have taken
our unique Cannes experience into MIPCOM Cannes for the first time.
In October 2019 we will be delivering an unimaginable brand
activation for a global media client with the world watching! It's
a 3-year project which encapsulates the ambition, creativity and
pure guts of our Company.
Our delivery in the world of Trade Marketing and B2B events was
further enhanced this year at DMEXCO, MWC and SIBOS. With the
support of our new key hires over the last 18 months we continue to
expand in this exciting space and significantly add new recurring
revenue streams to our business.
Once again, we continue to grow our reputation within the senior
leadership conference space, and we have recently won four new
clients for the year ahead within professional services, law,
confectionery and tech. Although budgets remain competitive,
clients are still looking for that unique creative and robust
delivery that we are trusted and known for - game changing
events.
We have also seen growth for the second consecutive year within
our Moving Image division. Content plays such a critical role in
what we do, and we are committed to growing this part of the
business dramatically over the coming years. To support this
ambition, we have hired Client Partnerships Director Andrew
Zanelli-King, who has an enviable reputation in our industry with a
fantastic track record of success and we can't wait to see the
effect he has on Cheerful Twentyfirst.
All this is further underpinned by us moving up 13 places in the
C&IT UKs Top 50 agency 2019 list. I look forward to building on
this success in 2020.
All this would not have been achieved without our amazing team,
our great clients and our committed investors - thank you.
S Quah
CEO
27 September 2019
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2019
Notes 2019 2018
GBP GBP
Continuing operations
Revenue 2 6,765,280 4,820,167
Cost of sales (4,584,117) (3,033,514)
------------------------------------ ------ ------------
Gross profit 2,181,163 1,786,653
Administrative expenses (1,806,764) (1,497,003)
------ ------------ ------------
Operating profit pre-exceptional
items 3 374,399 289,650
------------------------------------ ------ ------------
Exceptional items 4 - (231,357)
------------------------------------ ------ ------------
Operating profit post
exceptional items 374,399 58,293
------------------------------------ ------ ------------
Finance income 5 611 392
Profit before taxation 375,010 58,685
Taxation 6 (86,687) (8,280)
------ ------------ ------------
Profit and total comprehensive
income for the year
attributable to owners
of the parent 288,323 50,405
Profit per ordinary
share:
Total basic earnings
per share 9 3.18571p 0.55693p
Total diluted earnings
per share 9 3.14129p 0.53906p
------------------------------------ ------ ------------
There were no other comprehensive income items.
The notes are an integral part of these financial
statements.
Statement of Financial Position
As at 30 June 2019
Notes Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
------ ------------ ------------ ---------- ----------
Non-current assets
Intangible assets 10 365,154 365,154 - -
Property, plant and equipment 11 58,071 37,044 - -
Deferred taxation 7 - 2,254 - -
Investments in subsidiaries 12 - - 614,751 580,490
------------ ------------ ---------- ----------
Total non-current assets 423,225 404,452 614,751 580,490
Current assets
Trade and other receivables 13 1,612,345 1,106,292 977,427 995,874
Cash and cash equivalents 14 2,211,161 1,437,904 3,606 -
------------ ------------ ---------- ----------
Total current assets 3,823,506 2,544,196 981,033 995,874
------------ ---------- ----------
Total assets 4,246,731 2,948,648 1,595,784 1,576,364
Current liabilities
Bank loans and overdrafts 16 - (1,590) - (1,590)
Trade and other payables 15 (2,247,214) (1,274,979) (88,397) (102,647)
Current tax payable (74,616) (9,412) - -
------------ ------------ ---------- ----------
Total current liabilities (2,321,830) (1,285,981) (88,397) (104,237)
Non-current liabilities
Deferred taxation 7 (7,529) - - -
------------ ------------ ---------- ----------
Total non-current liabilities (7,529) - - -
------------ ------------ ---------- ----------
Total liabilities (2,329,359) - - -
Net assets 1,917,372 1,662,667 1,507,387 1,472,127
------------ ------------ ---------- ----------
Equity
Share capital 17 1,131,313 1,131,313 1,131,313 1,131,313
Share premium 7,063 7,063 7,063 7,063
Merger reserve 16,650 16,650 16,650 16,650
Other reserve 34,261 - 34,261 -
Capital redemption reserve 257,812 257,812 257,812 257,812
Retained earnings 470,273 249,829 60,288 59,289
------------ ------------ ---------- ----------
Equity attributable to
owners of the parent 1,917,372 1,662,667 1,507,387 1,472,127
------ ------------ ------------ ---------- ----------
The notes are an integral part of these financial
statements.
The profit for the financial year of the holding company was
GBP68,878 (loss in 2018: GBP176,778).
Consolidated Statement of Changes in Equity
For the year ended 30 June 2019
Capital
Share Merger Other redemption Retained
Group capital Share premium reserve reserve reserve earnings Total equity
GBP GBP GBP GBP GBP GBP GBP
----------------- -------------- --------- --------- ------------ ---------- -------------
At 1 July 2017 1,131,313 7,063 16,650 - 257,812 244,677 1,657,515
Comprehensive
income for
the year, net
of tax - - - - - 50,405 50,405
Dividends paid - - - - - (45,253) (45,253)
At 30 June
2018 1,131,313 7,063 16,650 - 257,812 249,829 1,662,667
Comprehensive
income for
the year, net
of tax - - - - - 288,323 288,323
Dividends paid - - - - - (67,879) (67,879)
Share-based
payment - - - 34,261 - - 34,261
At 30 June
2019 1,131,313 7,063 16,650 34,261 257,812 470,273 1,917,372
-----------------
Share premium represents the value of shares issued in excess of
their list price.
In accordance with section 612 of the Companies Act 2006, the
premium on ordinary shares issued in relation to acquisitions is
recorded as a merger reserve. The reserve is not distributable.
Other reserve represents equity settled share-based employee
remuneration, as detailed in note 21.
Capital redemption reserve represents a statutory
non-distributable reserve into which amounts are transferred
following redemption or purchase of a company's own shares.
The notes are an integral part of these financial
statements.
Company Statement of Changes in Equity
For the year ended 30 June 2019
Capital
Share Merger Other redemption Retained
Company capital Share premium reserve reserve reserve earnings Total equity
GBP GBP GBP GBP GBP GBP GBP
---------- -------------- --------- ---------- ------------ ---------- -------------
At 1 July 2017 1,131,313 7,063 16,650 - 257,812 281,320 1,694,158
Comprehensive
income for
the year, net
of tax - - - - - (176,778) (176,778)
Dividends paid - - - - - (45,253) (45,253)
At 30 June
2018 1,131,313 7,063 16,650 - 257,812 59,289 1,472,127
Comprehensive
income for
the year, net
of tax - - - - - 68,878 68,878
Dividends paid - - - - - (67,879) (67,879)
Share-based
payment - - - 34,261 - - 34,261
At 30 June
2019 1,131,313 7,063 16,650 34,261 257,812 60,288 1,507,387
Share premium represents the value of shares issued in excess of
their list price.
In accordance with section 612 of the Companies Act 2006, the
premium on ordinary shares issued in relation to acquisitions is
recorded as a merger reserve. The reserve is not distributable.
Other reserve represents equity settled share-based employee
remuneration, as detailed in note 21.
Capital redemption reserve represents a statutory
non-distributable reserve into which amounts are transferred
following redemption or purchase of a company's own shares.
The notes are an integral part of these financial
statements.
Statement of Cash Flows
For the year ended 30 June 2019
Notes Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
------ ---------- ---------- ---------- ----------
Net cash flow from operating
activities 23 890,846 (389,918) (126,930) (415,534)
Cash flows from investing
activities
Finance income 5 611 392 5 17
Purchase of property, plant
and equipment 11 (48,731) (26,119) - -
Dividends received by the
Company - - 200,000 -
Cash (used) / generated in
investing activities (48,120) (25,727) 200,005 17
Cash flows from financing
activities
Dividends paid to owners of
the Company (67,879) (45,253) (67,879) (45,253)
---------- ---------- ---------- ----------
Cash used in financing activities (67,879) (45,253) (67,879) (45,253)
Net increase / (decrease)
in cash and cash equivalents 774,847 (460,898) 5,196 (460,770)
Cash and cash equivalents
at beginning of year 1,436,314 1,897,212 (1,590) 459,180
---------- ---------- ---------- ----------
Cash and cash equivalents
at end of year 2,211,161 1,436,314 3,606 (1,590)
----------------------------------- ---------- ---------- ---------- ----------
Cash and cash equivalents
The amounts disclosed on the Statement of Cash Flows in respect
of cash and cash equivalents are in respect of the Statement of
Financial Position amounts:
Notes Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
------ ---------- ---------- ------ --------
Cash and cash equivalents 14 2,211,161 1,437,904 3,606 -
Bank overdraft 16 - (1,590) - (1,590)
2,211,161 1,436,314 3,606 (1,590)
---------------------------
The notes are an integral part of these financial
statements.
Notes to the consolidated financial statements
For the year ended 30 June 2019
1 Accounting policies
Aeorema Communications plc is a public limited company
incorporated in the United Kingdom and registered in England and
Wales. 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.
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated.
The presentation currency is GBP sterling.
Going concern
The Group's business activities, together with the factors
likely to affect its future development and performance are set out
in the review of business contained in the Chairman's Statement.
The Group's financial statements show details of its financial
position including, in note 24, details of its financial
instruments and exposure to risk.
After reviewing the Group's budget for the next financial year,
other medium term plans and considering the risks outlined in note
24, the Directors, at the time of approving the financial
statements, have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future and have therefore used the going concern basis
in preparing the financial statements.
Basis of preparation
The Group's financial statements have been prepared under the
historical cost convention and in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union, and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS.
The following new standards, amendments to standards and
interpretations have been applied for the first time from 1 July
2018. Their adoption has not had a material impact on the financial
statements:
-- IFRS 9 'Financial Instruments', effective 1 January 2018;
-- IFRS 15 'Revenue for Contracts with Customers', effective 1 January 2018;
-- IFRS 2 'Classification and Measurement of Share-Based Payment
Transactions', effective 1 January 2018.
Future standards in place but not yet effective
No new standards, amendments or interpretations to existing
standards that have been published and that are mandatory for the
Group's accounting periods beginning on or after 1 July 2019 have
been adopted early.
The following standards and amendments are not yet applied at
the date of authorisation of these financial statements:
-- IFRS 16 - Leases (effective 1 January 2019);
-- Annual Improvements to IFRS Standards 2015 - 2017 Cycle (effective 1 January 2019);
-- IAS 12 - Income taxes (effective 1 January 2019);
-- Definition of Material (Amendments to IAS 1 and IAS 8) (effective 1 January 2020); and
-- Definition of a Business (Amendments to IFRS 3) (effective 1 January 2020).
The Group does not believe that there would have been a material
impact on the financial statements from early adoption of these
standards / interpretations.
Basis of consolidation
The Group financial statements consolidate those of the Company
and all of its subsidiary undertakings drawn up to 30 June 2019.
Subsidiaries are all entities (including structured entities) over
which the Group has control. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They
are consolidated until the date that control ceases.
Intra-group transactions, balances and unrealised gains and
losses on transactions between group companies are eliminated.
The merger reserve is used where more than 90% of the shares in
a subsidiary are acquired and the consideration includes the issue
of new shares by the Company, thereby attracting merger relief
under the Companies Act 2006.
Revenue
Revenue represents amounts (excluding value added tax) derived
from the provision of services to third party customers in the
course of the Group's ordinary activities.
As a result of providing these services, the Group may from time
to time receive commissions from other third parties. These
commissions are included within revenue on the same basis as that
arising from the contract with the underlying third party
customer.
The revenue and profits recognised in any period are based on
the satisfaction of performance obligations and an assessment of
when control is transferred to the customer.
For most contracts with customers, there is a single distinct
performance obligation and revenue is recognised when the event has
taken place or control of the content or video has been transferred
to the customer.
Where a contract contains more than one distinct performance
obligation (multiple film productions, or a project involving both
build construction and event production) revenue is recognised as
each performance obligation is satisfied.
The transaction price is substantially agreed at outset of the
contract, along with a project brief and payment schedule (full
payment in arrears for smaller contracts; part payment(s) in
advance and final payment in arrears for significant
contracts).
Due to the detailed nature of project briefs agreed in advance
for significant contracts, management do not consider that
significant estimates or judgements are required to distinguish the
performance obligation(s) within a contract.
For contracts to prepare multiple film productions, the
transaction price is allocated to constituent performance
obligations using an output method in line with agreements with the
customer.
For other contracts with multiple performance obligations,
management's judgement is required to allocate the transaction
price for the contract to constituent performance obligations using
an input method using detailed budgets which are prepared at outset
and subsequently revised for actual costs incurred and any changes
to costs expected to be incurred.
The Group does not consider any disaggregation of revenue from
contracts with customers necessary to depict how the nature,
amount, timing and uncertainty of the Group 's revenue and cash
flows are affected by economic factors.
Where payments made are greater than the revenue recognised at
the reporting date, the Group recognises deferred income (a
contract liability) for this difference. Where payments made are
less than the revenue recognised at the reporting date, the Group
recognises accrued income (a contract asset) for this
difference.
A receivable is recognised in relation to a contract for amounts
invoiced, as this is the point in time that the consideration is
unconditional because only the passage of time is required before
the payment is due.
At each reporting date, the Group assesses whether there is any
indication that accrued income assets may be impaired by assessing
whether it is possible that a revenue reversal will occur. Where an
indicator of impairment exists, the Group makes a formal estimate
of the asset's recoverable amount. Where the carrying value of an
assets exceeds its recoverable amount, the asset is considered
impaired and is written down to is recoverable amount.
Intangible assets - goodwill
All business combinations are accounted for by applying the
acquisition method. Goodwill acquired represents the excess of the
fair value of the consideration and associated costs over the fair
value of the identifiable net assets acquired.
After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. At the date of acquisition, the
goodwill is allocated to cash generating units, usually at business
segment level or statutory company level as the case may be, for
the purpose of impairment testing and is tested at least annually
for impairment. On subsequent disposal or termination of a business
acquired, the profit or loss on termination is calculated after
charging the carrying value of any related goodwill.
Property, plant and equipment
Property, plant and equipment is stated in the financial
statements at cost less accumulated depreciation and any impairment
value. Depreciation is provided to write off the cost less
estimated residual value of property, plant and equipment over its
expected useful life (which is reviewed at least at each financial
year end), as follows:
Leasehold land and buildings Straight line over the life of the
lease (three years)
Fixtures, fittings and equipment Straight line over four years
------------------------------------
Any gain or loss arising on the derecognition of the asset
(calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the Statement of
Comprehensive Income in the year that the asset is
derecognised.
Fully depreciated assets still in use are retained in the
financial statements.
Impairment
The carrying amounts of the Group's assets are reviewed at each
period end to determine whether there is any indication of
impairment. If any such indication exists, the assets' recoverable
amount is estimated. For goodwill and intangible assets that have
an indefinite useful life and intangible assets that are not yet
available for use, the recoverable amount is estimated at each
annual period end date and whenever there is an indication of
impairment.
An impairment loss is recognised whenever the carrying amount of
an asset or its cash-generating unit exceeds its recoverable
amount. Impairment losses are recognised in the Statement of
Comprehensive Income in those expense categories consistent with
the function of the impaired asset.
Operating leases
Rentals under operating leases are charged to the Statement of
Comprehensive Income on a straight line basis over the period of
the lease.
The Group leases office facilities under operating leases. The
lease typically runs for a period of 5 years, with a break cause in
year 3. The Group is restricted from entering into any sub-lease
arrangements.
Investments
Fixed asset investments are stated at cost less provision for
diminution in value.
Trade and other receivables
Trade and other receivables are stated initially at fair value
and subsequently measured at amortised cost less any provision for
impairment.
Trade and other payables
Trade payables are recognised initially at fair value and
subsequently measured at amortised cost.
Cash and cash equivalents
Cash comprises, for the purpose of the Statement of Cash Flows,
cash in hand and deposits payable on demand. Cash equivalents are
short-term highly liquid investments that are readily convertible
to known amounts of cash and that are subject to an insignificant
risk of changes in value. Cash equivalents normally have a date of
maturity of 3 months or less from the acquisition date.
Bank loans and overdrafts comprise amounts due on demand.
Finance income
Finance income consists of interest receivable on funds
invested. It is recognised in the Statement of Comprehensive Income
as it accrues.
Taxation
Income tax on the profit or loss for the periods presented
comprises current and deferred tax. Current tax is the expected tax
payable on the taxable income for the year, using rates enacted or
substantively enacted at the end of the reporting period, and any
adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The following
temporary differences are not provided for: the initial recognition
of goodwill; the initial recognition of assets or liabilities that
affect neither accounting nor taxable profit other than in a
business combination; the differences relating to investments in
subsidiaries to the extent that they will probably not reverse in
the foreseeable future. The amount of deferred tax provided is
based on the expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates enacted
or substantively enacted at the end of the reporting period.
A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against
which the assets can be utilised. Deferred tax assets and
liabilities are not discounted.
Pension costs
The Group operates a pension scheme for its employees. It also
makes contributions to the private pension arrangements of certain
employees. These arrangements are of the money purchase type and
the amount charged to the Statement of Comprehensive Income
represents the contributions payable by the Group for the
period.
Financial instruments
The Group does not enter into derivative transactions and does
not trade in financial instruments. Financial assets and
liabilities are recognised on the Statement of Financial Position
when the Group becomes a party to the contractual provision of the
instrument.
Equity
An equity instrument is a contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs. The Group's equity instruments
comprise 'share capital' in the Statement of Financial
Position.
Foreign currency translation
Monetary assets and liabilities denominated in foreign
currencies are translated into sterling at the rates of exchange
ruling at the end of the reporting period. Transactions in foreign
currencies are recorded at the rate ruling at the date of the
transaction. All differences are taken to the Statement of
Comprehensive Income.
Share-based awards
The Group issues equity settled payments to certain employees.
Equity settled share based payments are measured at fair value
(excluding the effect of non-market based vesting conditions) at
the date of grant.
The fair value is estimated using option pricing models and is
dependent on factors such as the exercise price, expected
volatility, option price and risk free interest rate. The fair
value is then amortised through the Statement of Comprehensive
Income on a straight-line basis over the vesting period. Expected
volatility is determined based on the historical share price
volatility for the Company. Further information is given in note 21
to the financial statements.
Exceptional items
Exceptional items are one off, material items outside the normal
course of business which are not related to the Group's trading
activities.
Significant judgements and estimates
The preparation of the Group's financial statements in
conforming with IFRS required management to make judgements,
estimates and assumptions that effect the application of policies
and reported amounts in the financial statements. These judgements
and estimates are based on management's best knowledge of the
relevant facts and circumstances. Information about such judgements
and estimation is contained in the accounting policies and / or
notes to the financial statements. There are no critical judgements
that the directors have made in the process of applying the Group's
accounting policies.
2 Revenue and segment information
The Group 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 year ending 30 June 2019 there is only a
single reportable segment.
All revenue represents sales to external customers. Five
customers (2018: four) are defined as major customers by revenue,
contributing more than 10% of the Group revenue.
2019 2018
GBP GBP
---------- ----------
Customer One 1,342,594 617,576
Customer Two 951,189 886,981
Customer Three 905,578 -
Customer Four 794,599 493,766
Customer Five 778,834 -
---------- ----------
Major customers in the current year 4,772,794 1,998,323
----------
Major customers in prior year 1,114,846
----------
3,113,169
---------- ----------
The geographical analysis of revenue from continuing operations
by geographical location of customer is as follows:
Geographical
market 2019 2018 2019 2018 2019 2018 2019 2018
Rest Rest
of the of the
UK UK Europe Europe World World Total Total
GBP GBP GBP GBP GBP GBP GBP GBP
Revenue 6,693,163 4,774,107 61,764 31,531 10,353 14,529 6,765,280 4,820,167
2019 2018
GBP GBP
--------------------------------------- ----------
Revenue from contracts with customers 6,696,305 4,786,777
Other revenue 68,975 33,390
Total revenue 6,765,280 4,820,167
--------------------------------------- ----------
Contract assets and liabilities from contracts with customers
have been recognised as follows:
2019 2018
GBP GBP
--------
Deferred income 333,305 40,278
Accrued income 245,989 252,111
-------- --------
Deferred income at the beginning of the period has been
recognised as revenue during the period.
3 Operating profit
Operating profit is stated after charging
or crediting: 2019 2018
GBP GBP
-------------------------------------------------- ----------
Cost of sales
Depreciation of fixtures, fittings and equipment 21,525 15,327
Administrative expenses
Depreciation of leasehold, land and building - 5,089
Loss on foreign exchange differences 9,229 6,902
Fees payable to the Company's auditor in respect
of:
Audit of the Company's annual accounts 6,000 7,500
Audit of the Company's subsidiaries 17,000 21,000
Staff costs (see note 20) 1,221,559 1,081,153
Operating leases - land and buildings 91,000 91,000
---------- ----------
4 Exceptional items
Items that are material either because of their size or their
nature, or that are non-recurring, are considered as exceptional.
During the year, the Group incurred expenditure totalling GBPnil
(2018: GBP231,357 in relation to the departure of its two founders,
Peter Litten and Gary Fitzpatrick, from the Board of directors).
This cost has been included in the consolidated Statement of
Comprehensive Income as an operating exceptional cost.
5 Finance income
Finance income 2019 2018
GBP GBP
------------------------ -----
Bank interest received 611 392
------------------------ -----
6 Taxation
2019 2018
GBP GBP
---------------------------------------------------- --------
The tax charge comprises:
Current tax
Prior period adjustment 2,288 (1,739)
Current year 74,616 9,412
--------
76,904 7,673
Deferred tax (see note 7)
Current year 9,783 607
--------
9,783 607
Total tax charge in the statement of comprehensive
income 86,687 8,280
Factors affecting the tax charge for the
year
Profit on ordinary activities before taxation
from continuing operations 375,010 58,685
Profit on ordinary activities before taxation
multiplied by standard rate
of UK corporation tax of 19% (2018: 19%) 71,252 11,150
Effects of:
Non-deductible expenses 13,147 (1,131)
Prior period adjustment 2,288 (1,739)
15,435 (2,870)
Total tax charge 86,687 8,280
---------------------------------------------------- --------
The Group has estimated losses of GBP375,762 (2018: GBP375,762)
available to carry forward against future trading profits. These
losses are in Aeorema Communications plc which is not currently
making taxable profits as all trading is undertaken by its
subsidiary Aeorema Limited, therefore no deferred tax asset has
been recognised.
7 Deferred taxation
2019 2018
GBP GBP
----------------------------------------------------- --------
Property, plant and equipment temporary differences (8,555) (4,016)
Temporary differences 1,026 6,270
--------
(7,529) 2,254
At 1 July 2,254 2,861
Transfer to Statement of Comprehensive Income (9,783) (607)
At 30 June (7,529) 2,254
----------------------------------------------------- --------
8 Profit attributable to members of the parent company
As permitted by section 408 of the Companies Act 2006, the
parent Company's Statement of Comprehensive Income has not been
included in these financial statements.
9 Earnings per ordinary share
Basic earnings per share are calculated by dividing the profit
or loss attributable to 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 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
into ordinary shares.
The following reflects the income and share data used and
dilutive earnings per share computations:
2019 2018
GBP GBP
---------- ----------
Basic earnings per share
Profit for the year attributable
to owners of the Company 288,323 50,405
Basic weighted average number of
shares 9,050,500 9,050,500
Dilutive potential ordinary shares:
Employee share options 127,987 300,000
Diluted weighted average number of
shares 9,178,487 9,350,500
---------- ----------
10 Intangible fixed assets
Group Goodwill
GBP
-----------------------------
Cost
At 1 July 2017 2,728,292
At 30 June 2018 2,728,292
At 30 June 2019 2,728,292
Impairment and amortisation
At 1 July 2017 2,363,138
At 30 June 2018 2,363,138
At 30 June 2019 2,363,138
Net book value
At 1 July 2017 365,154
At 30 June 2018 365,154
At 30 June 2019 365,154
-----------------------------
Goodwill arose for the Group on consolidation of its subsidiary
company, Aeorema Limited.
Impairment - Aeorema Limited
Goodwill has previously been tested for impairment based on its
future value in use resulting in the carrying value above. The
future value was calculated on a discounted cash flow basis using
the 2018-19 budgeted figures as approved by the Board of directors,
extended in perpetuity to calculate the terminal value and
discounted at a rate of 10%. It was assumed that future growth
would be between 1.5% and 2%. Since then, the assets and
liabilities of the Group relating to the goodwill have, together
with the profit of the same, increased and it is unlikely that an
updated calculation would result in a further impairment of
goodwill. Consequently, the annual impairment test has been
completed by reference to previous calculations.
11 Property, plant and equipment
Leasehold
Group land Fixtures, fittings Total
and buildings and equipment
GBP GBP GBP
------------------------ -------------------
Cost
At 1 July 2017 58,536 95,052 153,588
Additions - 26,119 26,119
Disposals - (2,141) (2,141)
At 30 June 2018 58,536 119,030 177,566
Additions - 48,731 48,731
Disposals - (29,112) (29,112)
At 30 June 2019 58,536 138,649 197,185
Depreciation
At 1 July 2017 53,447 68,800 122,247
Charge for the year 5,089 15,327 20,416
Eliminated on disposal - (2,141) (2,141)
At 30 June 2018 58,536 81,986 140,522
Charge for the year - 21,525 21,525
Eliminated on disposal - (22,933) (22,933)
At 30 June 2019 58,536 80,578 139,114
Net book value
At 1 July 2017 5,089 26,252 31,341
At 30 June 2018 - 37,044 37,044
At 30 June 2019 - 58,071 58,071
-------------- ------------------- ---------
12 Non-current assets - Investments
Company Shares in subsidiary
GBP
---------------------
Cost
At 1 July 2017 3,274,703
At 30 June 2018 3,274,703
Increase in respect of share-based
payments 34,261
At 30 June 2019 3,308,964
Provision
At 1 July 2017 2,694,213
At 30 June 2018 2,694,213
At 30 June 2019 2,694,213
Net book value
At 1 July 2017 580,490
At 30 June 2018 580,490
At 30 June 2019 614,751
---------------------
Holdings of more than 20%
The Company holds more than 20% of the share capital of the
following companies:
Shares
Subsidiary undertakings Country of held
registration
---------- ----
or incorporation Class %
------------------ ---------- ----
England and
Aeorema Limited Wales Ordinary 100
England and
Twentyfirst Limited (Dormant) Wales Ordinary 100
------------------ ---------- ----
The registered address of Aeorema Limited and Twentyfirst
Limited is 64 New Cavendish Street, London, W1G 8TB.
13 Trade and other receivables
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------- --------
Trade receivables 1,156,689 693,725 - -
Related party receivables - - 960,063 981,850
Other receivables 38,280 25,870 4,910 4,718
Prepayments and accrued income 417,376 386,697 12,454 9,306
1,612,345 1,106,292 977,427 995,874
---------- ---------- --------
All trade and other receivables are expected to be recovered
within 12 months of the end of the reporting period. The fair value
of trade and other receivables is the same as the carrying values
shown above.
At the year end, trade receivables of GBP32,616 (2018:
GBP34,324) were past due but not impaired. These relate to a number
of customers for whom there is no significant change in credit
quality and the amounts are still considered recoverable. The
ageing of these trade receivables is as follows
Group
2019 2018
GBP GBP
-------
Less than 90 days overdue 9,339 -
More than 90 days overdue 23,277 34,324
32,616 34,324
------- -------
14 Cash at bank and in hand
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------- -----
Bank balances 2,211,161 1,437,904 3,606 -
2,211,161 1,437,904 3,606 -
---------- ---------- -----
15 Trade and other payables
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
------------------------------ ---------- --------
Trade payables 1,258,646 736,442 7,043 13,257
Related party payables - - 67,355 67,355
Taxes and social security
costs 388,869 220,825 - -
Other payables 59,677 1,541 - -
Accruals and deferred income 540,022 316,171 13,999 22,035
2,247,214 1,274,979 88,397 102,647
------------------------------ ---------- --------
All trade and other payables are expected to be settled within
12 months of the end of the reporting period. The fair value of
trade and other payables is the same as the carrying values shown
above.
16 Loans
An analysis of the maturity of loans is given below:
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------------------------- ------ ------
Amounts falling due within
one year or on demand:
Bank overdrafts - 1,590 - 1,590
- 1,590 - 1,590
------ ------
17 Share capital
2019 2018
GBP GBP
------------------------------- ----------------
Authorised
28,000,000 Ordinary shares
of 12.5p each 3,500,000 3,500,000
Allotted, called up and fully
paid Number Ordinary shares
GBP
------------------------------- ----------------
At 1 July 2017 9,050,500 1,131,313
At 30 June 2018 9,050,500 1,131,313
At 30 June 2019 9,050,500 1,131,313
------------------------------- ----------------
Holders of these shares are entitled to dividends as declared
from time to time and are entitled to one vote per share at general
meetings of the company.
See note 21 for details of share options outstanding.
18 Financial commitments
Total future minimum lease payments under non-cancellable
operating lease rentals are payable as follows:
Group Land and Buildings Other
2019 2018 2019 2018
GBP GBP GBP GBP
Not later than one year 15,167 91,000 987 -
Later than one year and
not later than five years - 15,167 4,111 -
Total 15,167 106,167 5,098 -
---------------------------- ---------- ------ -----
19 Directors' emoluments
Salary, Salary,
fees, fees,
bonuses bonuses Compensation Compensation
and benefits and benefits for loss for loss
in kind in kind Pensions Pensions of office of office Total Total
2019 2018 2019 2018 2019 2018 2019 2018
GBP GBP GBP GBP GBP GBP GBP GBP
-------------- -------------- --------- --------- ------------- ------------- -------- --------
P Litten* - 12,167 - 33,590 - 70,000 - 115,757
G
Fitzpatrick* - 8,111 - 17,019 - 50,000 - 75,130
M Hale 20,000 25,000 - - - - 20,000 25,000
S Haffner 15,000 15,000 - - - - 15,000 15,000
R Owen 20,000 25,000 - - - - 20,000 25,000
S Quah 122,004 100,000 925 493 - - 122,929 100,493
A Harvey 91,352 80,625 1,533 665 - - 92,885 81,290
268,356 265,903 2,458 51,767 - 120,000 270,814 437,670
-------------- -------------- --------- --------- ------------- ------------- -------- --------
The remuneration of directors of the Company is set out
below.
* Resigned as directors 13 September 2017
The share options held by directors who served during the year
are summarised below:
Exercise Earliest exercise
Name Grant date Number awarded price date Expiry date
25 April 24 April
S Quah 2013 300,000 16.50p 25 April 2016 2023
22 August 17 November 22 August
S Quah 2018 300,000 29.00p 2020 2028
22 August 17 November 22 August
A Harvey 2018 300,000 29.00p 2020 2028
------------ --------------- --------- ------------------ ------------
Fees for S Haffner are charged by Harris & Trotter LLP, a
firm in which he is a member (see note 22).
20 Employee information
The average monthly number of employees (including directors)
employed by the Group during the year was:
Number of employees Group Company
2019 Number 2018 Number 2019 Number 2018 Number
Administration and production 21 18 5 7
------------ ------------ ------------
The aggregate payroll costs of these employees charged in the
Statement of Comprehensive Income was as follows:
Employment costs Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------- -------
Wages and salaries 1,068,710 922,969 55,000 65,000
Social security costs 105,471 101,250 - -
Pension costs 13,117 56,934 - -
Share-based payments 34,261 - - -
1,221,559 1,081,153 55,000 65,000
---------- ---------- -------
21 Share-based payments
The Group operates an EMI share option scheme for key employees.
Options are granted to key employees at an exercise price equal to
the market price of the Company's shares at the date of grant.
Options are exercisable from the third anniversary of the date of
grant and lapse if they remain unexercised at the tenth anniversary
or upon cessation of employment. The following option arrangements
exist over the Company's shares:
Date of Exercise Number of Number of
grant price Exercise period options 2019 options 2018
From To
--------- ------------- ------------- -------------- --------------
25 April 25 April 24 April
2013 16.5p 2016 2023 300,000 300,000
22 August 17 November 22 August
2018 29.0p 2020 2028 600,000 -
14 June
2019 26.0p 14 June 2022 14 June 2029 120,000 -
1,020,000 300,000
--------- ------------- ------------- -------------- --------------
Details of the number of share options and the weighted average
exercise price outstanding during the year are as follows:
Weighted
Number of Weighted average Number of average exercise
options exercise price options price
2019 2019 2018 2018
GBP GBP
---------- ----------------- ---------- ------------------
Outstanding at beginning
of the year 300,000 0.17 300,000 0.17
Granted during the
year 720,000 0.29 - -
Outstanding at end
of the year 1,020,000 0.25 300,000 0.17
---------- ----------------- ---------- ------------------
Exercisable at the
end of the year 300,000 0.17 300,000 0.17
---------- ----------------- ---------- ------------------
The exercise price of options outstanding at the year-end was
GBP0.250 (2018: GBP0.165) and their weighted average contractual
life was 7.6 years (2018: 4.8 years). In 2019, options were granted
on 22 August 2018 and 14 June 2019. The aggregate of the estimated
fair values of the options granted on those dates is
GBP104,041.
Equity-settled share-based payments are measured at fair value
at the date of grant. The fair value as determined at the grant
date of equity-settled share-based payments is expensed on a
straight line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest. The estimated fair
value of the options is measured using an option pricing model. The
inputs into the model are as follows:
Grant date 25 April 2013
Model used Black-Scholes
Share price at grant date 16.5p
Exercise price 16.5p
Contractual life 10 years
Risk free rate 0.5%
Expected volatility 104%
Expected dividend rate 0%
Fair value option 14.889p
--------------
22 August
Grant date 2018
Model used Black-Scholes
Share price at grant date 29.0p
Exercise price 29.0p
Contractual life 10 years
Risk free rate 0.75%
Expected volatility 40.33%
Expected dividend rate 0%
Fair value option 14.800p
--------------
Grant date 14 June 2019
Model used Black-Scholes
Share price at grant date 26.0p
Exercise price 26.0p
Contractual life 10 years
Risk free rate 0.75%
Expected volatility 40.33%
Expected dividend rate 0%
Fair value option 12.894p
--------------
The expected volatility is determined by calculating the
historical volatility of the Company's share price over the last
three years. The risk free rate is the official Bank of England
base rate.
The Group recognised the following charges in the Statement of
Comprehensive Income in respect of its share-based payment
plans:
2019 2018
GBP GBP
--------------------------- -----
Share-based payment charge 34,261 -
--------------------------- -----
22 Related party transactions
The Group has a related party relationship with its subsidiaries
and its key management personnel (including directors). Details of
transactions between the Company and its subsidiaries are as
follows:
2019 2018
GBP GBP
----------------------------------- --------
Amounts owed by subsidiaries
Total amount owed by subsidiaries 960,063 981,850
Amounts owed to subsidiaries
Total amount owed to subsidiaries 67,355 67,355
-------- --------
The company received dividends during the year of GBP200,000
(2018: GBPnil) from its subsidiary, Aeorema Limited. The company
transferred a VAT receivable of GBP22,810 (2018: GBP15,155) to
Aeorema Limited due to being part of a common VAT group.
Aeorema Limited transferred a net amount of expenses to Aeorema
Communications plc during the year of GBP40,000 (2018:
GBP58,050).
Aeorema Limited paid expenses totalling GBP121,718 (2018:
GBP132,203) on behalf of Aeorema Communications plc during the
year.
During the year, Aeorema Limited made a net transfer of cash of
GBP82,879 to Aeorema Communications plc (2018: GBP413,911 from
Aeorema Communications plc to Aeorema Limited).
The compensation of key management (including directors) of the
Group is as follows:
2019 2018
GBP GBP
------------------------------ --------
Short-term employee benefits 294,997 309,786
Post-employment benefits 2,458 51,767
Termination benefits - 120,000
297,455 481,553
-------- --------
The share options held by directors of the Company are disclosed
in note 19. During the year, a charge of GBP33,761 (2018: GBPnil)
was recognised in the Consolidated Statement of Comprehensive
Income in respect of these share options.
Harris and Trotter LLP is a firm in which S Haffner is a member.
The amounts charged to the Group for professional services is as
follows:
Harris and Trotter LLP - charged during
the year 2019 2018
GBP GBP
Aeorema Communications plc 15,000 15,000
Aeorema Limited 11,850 25,995
26,850 40,995
------------------------------------------ -------
At the year end, the Group had an outstanding trade payable
balance to Harris and Trotter LLP of GBP4,500 (2018: GBP6,174).
23 Cash flows
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------- ---------- ---------- ----------
Cash flows from operating
activities
Profit before taxation 375,010 58,685 68,878 (176,778)
Depreciation 21,525 20,416 - -
Dividends received by the
Company - - (200,000) -
Loss on disposal of fixed
assets 6,179 - - -
Share-based payment expense 34,261 - - -
Finance income (611) (392) (5) (17)
436,364 78,709 (131,127) (176,795)
Increase / (decrease) in trade
and other payables 972,235 (340,624) (14,250) 8,474
(Increase) / decrease in trade
and other receivables (506,053) (98,700) 18,447 (247,213)
Taxation paid (11,700) (29,303) - -
Cash generated / (used) from
operating activities 890,846 (389,918) (126,930) (415,534)
-------------------------------- ---------- ---------- ----------
24 Financial instruments
Financial instruments recognised in the consolidated statement
of financial position
All financial instruments are recognised initially at their fair
value and subsequently measured at amortised cost.
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
---------- ---------- ----------
Financial Assets
Trade and other receivables 1,487,328 987,811 960,063 981,850
Cash and cash equivalents 2,211,161 1,437,904 3,606 -
Investments in subsidiaries - - 614,751 580,490
Total 3,698,489 2,425,715 1,578,420 1,562,340
Financial Liabilities
Trade and other payables 1,318,322 779,851 74,398 82,202
Accruals 206,716 275,893 13,999 22,035
Total 1,525,038 1,055,744 88,397 104,237
---------- ---------- ---------- ----------
The Group is exposed to risks that arise from its use of
financial instruments. There have been no significant changes in
the Group's exposure to financial instrument risk, its objectives,
policies and processes for managing those from previous periods.
The principal financial instruments used by the Group, from which
financial instrument risk arises, are trade receivables, cash and
cash equivalents and trade and other payables.
Credit risk
Credit risk arises principally from the Group's trade
receivables. It is the risk that the counterparty fails to
discharge its obligation in respect of the instrument. The maximum
exposure to credit risk at 30 June 2019 was GBP1,156,689 (2018:
GBP693,725). Trade receivables are managed by policies concerning
the credit offered to customers and the regular monitoring of
amounts outstanding for both time and credit limits. At the year
end, the credit quality of trade receivables is considered to be
satisfactory.
Liquidity risk
Liquidity risk arises from the Group's management of working
capital. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due. The Group's
policy is to meet its liabilities when they fall due. The Group
monitors cash flow on a regular basis. At the year end, the Group
has sufficient liquid resources to meets its obligations of
GBP1,988,522 (2018: GBP1,244,113).
Market risk
Market risk arises from the Group's use of interest bearing
financial instruments. It is the risk that the fair value of future
cash flows of a financial instrument will fluctuate. At the year
end, the cash and cash equivalents of the Group net of bank
overdrafts was GBP2,211,161 (2018: GBP1,436,314). The Group ensures
that its cash deposits earn interest at a reasonable rate.
Capital risk
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern while maximising
the return to stakeholders. The capital structure of the Group
consists of equity attributable to equity holders of the parent,
comprising issued share capital, reserves and retained earnings as
disclosed in the Consolidated Statement of Changes in Equity. At
the year end, total equity was GBP1,917,372 (2018:
GBP1,662,667).
25 Pension costs defined contribution
The Group makes pre-defined contributions to employees' personal
pension plans. Contributions payable by the Group for the year were
GBP13,117 (2018: GBP56,934). At the end of the reporting period
GBP1,605 (2018: GBPnil) of contributions were due in respect of the
period.
26 Dividends
On the 11 January 2019 a final dividend of 0.75 pence per share
(total dividend GBP67,879) was paid to holders of fully paid
ordinary shares.
In respect of the current year, the directors propose that a
final dividend of 1 pence per share be paid to shareholders on 16
December 2019. The dividends are subject to approval by
shareholders at the Annual General Meeting and have not been
included as liabilities in these consolidated financial statements.
The proposed dividends are payable to all shareholders on the
Register of Members on 22 November 2019. The total estimated
dividend to be paid is GBP90,505. The payment of this dividend will
not have any tax consequences for the Group.
27 Contingent liability
Company
The Company is a member of a group VAT registration with all
other companies in the Aeorema Communications group and, under the
terms of the registration, is jointly and severally liable for the
VAT payable by all members of the group. At 30 June 2019 the
Company had no potential liability under the terms of the
registration.
28 Control
There is no overall controlling party.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR LRMFTMBTTBIL
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