TIDMAEO
RNS Number : 5352Y
Aeorema Communications Plc
10 September 2020
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Aeorema Communications plc / Index: AIM / Epic: AEO / Sector:
Media
10 September 2020
Aeorema Communications plc ('Aeorema' , the ' Company' , or the
' Group')
Business Update - Expansion of Virtual Events Offering
Aeorema Communications plc, the AIM-traded live events agency,
is pleased to announce a business update following the successful
acquisition of Eventful Limited in March 2020, the strategic hires
made in May 2020, and the subsequent response to the impact of the
Covid-19 pandemic on the way companies look to run live events.
Highlights
-- An encouraging number of multi-national blue-chip client wins seen in 2020 so far
-- Virtual events offering expanded
-- Team adapting quickly and capitalising on an increasing
requirement for virtual and hybrid events
-- Integration of Eventful Limited successful, diversifying and
enhancing offering to existing and new clients
-- Addition of Strategy Director and associated team in May
delivering results - focusing on brand strategy and
communications
-- Maintained strong cash position in excess of GBP1 million
Business Update
Ahead of the start of the Covid-19 pandemic it was clear that
there were going to be a number of changes to the live events
industry and the way live events were being run and staged. There
was already an increasing focus put on digital and hybrid events
(being a combination of smaller physical events alongside an online
event), particularly with the desire for a more environmentally
sustainable method of running events, but the immediate impact of
the Covid-19 pandemic created an acceleration of the need for
digital and hybrid events. Aeorema, with its experience and ability
to be agile and adapt quickly, is pleased to report that it has
taken advantage of this opportunity in a very short period of time
and successfully expanded its virtual and hybrid events
offering.
The Aeorema team has worked tirelessly over the last six months,
up-skilling, retraining and refocusing on virtual and hybrid
events, as the Company believes that this is where the
opportunities will continue to lie in the immediate and longer
term. Aeorema has been agile in pivoting its offering in the
Covid-19 environment, recognising that companies still wish to
reach internal and external audiences.
With the Company's strong financial position, the Board of
Aeorema continually assesses the strategic opportunities available
to the Company to ensure that the Group's offerings to its
blue-chip clients are continually being enhanced. This led to the
successful addition of two teams within the Group earlier this
year.
In March, the Company acquired Eventful Limited, an incentive
travel events business, and in May, the Company announced a number
of strategic hires from a highly successful creative and
award-winning brand experience agency delivering events worldwide.
This has diversified and enhanced the offering to existing and new
clients, as well as provided the Group with a wider and valuable
network of contacts across multiple industries, offering
opportunities for cross-selling. In addition, the Company has been
able to expand and embed dedicated consultancy services into its
offering to clients, which has resulted in new client relationships
being forged.
The integration of both teams has been encouraging and has added
significant depth to management as well as opened major new
business opportunities for the Company . Some significant
introductions from the new teams have been made and the sharing of
client relationships and opportunities for cross-selling has
benefitted the Company.
The Group is also thrilled to be winning new business from
multi-national brands, some of which is now on a retainer model
allowing further earnings visibility, and seeing continued and new
work from its existing client base, particularly as lockdown
measures are being eased by governments. Whilst some larger events,
such as Cannes Lions, had to inevitably be cancelled for 2020, the
Company has been pleased to see strong interest from organisations
looking to plan other events for the remainder of this year.
To complement all this, the Company is launching a new virtual
events digital platform for clients, called KIT, fully managed and
curated in house. In addition, with the increasing opportunities in
the US, Aeorema also expects to announce the opening of a New York
office shortly.
Corporate Update
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, particularly as the acceleration to virtual events
continues to be evident.
Aeorema has maintained its strong cash position with a cash
balance currently in excess of GBP1 million, even after allowing
for the permitted deferral of taxes which will become due later in
the year. The Company expects to publish its results for the year
ended 30 June 2020 in October 2020 and as per previous guidance,
are expected to show a loss before tax, subject to audit, in the
range of GBP150,000 to GBP250,000.
Mike Hale, Chairman, said: " We are delighted with the
successful integrations of the two new teams; their addition to
Aeorema could not have come at a more pivotal point in the way
events are being staged. I am very proud of the way the team has
adapted, and in fact thrived, over the past six months, retraining
and refocusing efforts to produce successful virtual events for our
many existing and new clients. The team has won some significant
new business, ranging from large blue-chip companies running
virtual events attended by some 26,000 people, to smaller companies
looking to run multiple small events, and we are developing a
strong pipeline of exciting opportunities.
" Although large live events will undoubtedly be slow to return,
clients in certain sectors are keen to go back to this
communication and selling technique. With Aeorema's marriage of
both virtual and physical events in the form of hybrid events,
clients will be provided with the best of what both have to
offer.
" The industry has matured at a record pace over the last six
months and we have matured and developed with it. Whilst we remain
in uncharted territory with the continuing impact of Covid-19, I
strongly believe we are positioned to capitalise on the changes we
continue to see, and I look forward with cautious optimism to the
next phase in the Company' s life."
**ENDS**
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 (Corporate (Nominated Adviser and 5656
Finance) Broker)
Kelly Gardiner (Sales)
Catherine Leftley St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
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