TIDMAEO
RNS Number : 4044N
Aeorema Communications Plc
20 May 2020
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Aeorema Communications plc / Index: AIM / Epic: AEO / Sector:
Media
20 May 2020
Aeorema Communications plc ('Aeorema', the 'Company', or the
'Group')
Operations & Trading Update - Strategic Hire of Unicorn
Events Team
Aeorema Communications plc, the AIM-traded live events agency,
is pleased to announce an operations and trading update along with
the addition to the Group of the founder and senior team members of
Unicorn Events Limited.
Strategic Hires
Aeorema is delighted to confirm it has appointed Hannah Luffman
as Strategy Director, focussing on brand strategy and
communications. Hannah was the founder of Unicorn Events Limited
('Unicorn'), a highly successful creative and award-winning brand
experience agency delivering events worldwide, helping brands
connect with audiences both internally and externally through live
event experiences. Fast-tracking Unicorn to a highly respected
challenger agency with significant year-on-year increase in
turnover over a short period, Hannah and her team worked with
clients including a number of large and blue-chip companies, such
as Google UK, InterContinental Hotels Group, Boots and
Soap&Glory, to name a few. Also joining Hannah are two of her
senior team from Unicorn, all of which retain strong ties with
their clients and hope to assist them with their events going
forward.
With 15 years' experience in developing global campaigns and
complex communications programmes, Hannah will be responsible for
taking a client's campaign purpose and bringing it to life with
cutting edge messaging and global activation. In addition, she will
head up the Group's global strategic direction, unifying its
messaging, value proposition and offering to the Company's diverse
client base. As part of Aeorema's drive to build on the success of
its core business through complementary offerings to clients,
Hannah's experience and knowledge in offering learning &
development workshops to shape a client's strategy will provide the
Company with a point of difference in its service offering,
expanding on the opportunities which the board anticipates will be
presented going forward.
The addition of Hannah and team will reinforce the Company's
current offering during the Covid-19 lockdown restrictions, with
recent and foreseeable events moving to purely virtual as well as
hybrid (being a combination of smaller physical events alongside an
online event) which are expected to become more prevalent in the
final quarter of 2020 and into 2021, subject to worldwide
governments' guidelines.
As well as being able to use the Unicorn name and website and
reference its case studies and industry awards, Aeorema will
importantly benefit from introductions to the team's contact base
which is already proving advantageous with pitching for new
business taking place.
Operations and Trading Update
As announced on 24 March 2020, the Company acquired the entire
issued share capital of Eventful Limited ("Eventful"), a boutique
events and incentive travel company. In the first 8 weeks since
acquisition, integration is going as planned, despite the Covid-19
restrictions that are currently placed upon the business.
Collaboration amongst the teams is starting to pay off with the
sharing of client relationships creating opportunities for
cross-selling boutique incentive events in particular, a
differentiated client market to that of Cheerful Twentyfirst,
Aeorema's live events business. The Board remains confident that
the acquisition of Eventful will strengthen and add to the
Company's offerings to current and new clients supporting the
Company's business model and long-term strategy of enhancing the
services provided to grow the Group.
The Company continues to monitor closely the continuing
developments regarding Covid-19. As previously announced, the
Company has seen the postponement of a number of its scheduled live
events. The Board took swift action to reduce costs and made
immediate significant reductions in overheads, including,
regrettably, reducing the workforce by 25%. The Company has
extended this and is utilising the Government's furlough scheme for
certain members of staff in the immediate term, along with
implementing a number of other cost saving initiatives.
As a result of continued close monitoring of costs along with
some visibility over future revenue streams for the year ending 30
June 2020, the Company is encouraged to update that the envisaged
loss before tax for FY20, subject to audit, will be at the lower
end of the GBP150,000 - GBP250,000 range previously announced. As
set out above, Aeorema has been agile in pivoting its offering in
the Covid-19 environment, recognising that companies still wish to
reach internal and external audiences. The Directors continue to
anticipate that clients will look to start holding live events
during calendar Q4 20/Q1 21 and therefore remain confident that the
revenue and profit from postponed events will now fall into the
financial year ending 30 June 2021. Aeorema has maintained its
strong cash position with a cash balance in excess of GBP1 million,
after allowing for the permitted deferral of taxes which will
become due later in the year.
The Company will continue to take a measured approach to
acquisitions of businesses, teams and talent. As has been
demonstrated of late, Aeorema is cognisant of opportunities that
are emerging where service offerings can be added for existing and
new clients, positioning the Group to win new business across its
divisions, all of which is anticipated to ultimately create value
for shareholders.
Mike Hale, Chairman, said: "We are delighted that Hannah and her
team from Unicorn Events have joined Aeorema, and we know they will
be an excellent addition to the Group providing additional
offerings to existing and new clients. Their work with a blue-chip
roster of companies is impressive and we hope we can continue to
assist such businesses with their live events. The cultures of
Aeorema and Unicorn are complementary and the Board are confident
that Hannah's extensive experience and contacts will be invaluable
to the Company moving forward as we provide an enhanced service
offering to both current and new clients.
"Notwithstanding we remain in unchartered territory with the
current Covid-19 virus outbreak, we believe Aeorema is well placed
to weather this storm, particularly with our strong cash balance.
Strengthening and adding to the Company's offerings to current and
new clients at this time supports our business model and long term
strategy of enhancing the services we provide to grow the
Group."
Hannah Luffman, Strategy Director, commented: "I am delighted to
be joining Aeorema's established and respected live events agency,
a forward-thinking and dynamic company, one that understands brand
messaging and the importance of strategic communications. Myself
and the senior Unicorn team are thrilled to be enhancing the
successful work of Aeroema Communications PLC to date, and look
forward to contributing to the future growth and diverse offering
of the agency. "
**ENDS**
For further information visit www.aeorema.com or contact:
Mike Hale Aeorema Communications Tel: +44 (0) 20
plc 7291 0444
John Depasquale Allenby Capital Limited Tel: +44 (0)20
/ Liz Kirchner (Nominated Adviser 3328 5656
and Broker)
Catherine Leftley St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
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END
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