Aeorema Communications swings to loss, shares down

wh ireland

Aeorema Communications shares (LON: AEO) fell almost 5% on Monday as the group swung to a loss for the year ending 30 June 2020.

The AIM-traded live events agency reported a pre-tax loss of £175,043, compared to last year’s profit of £384,483.

Revenues at Aeorema Communications fell from £6.8m to £5.5m.

Amid the pandemic, the group has said they are increasingly focusing on digital and hybrid events.

“We have launched a robust and flexible technology platform to help run virtual events and this has had a very positive response from clients,” said Aeorema Communications.

The company’s cash position remains strong with in excess of £1m. However, given continuing uncertainties, the Board has not recommended the payment of a full-year dividend.

The group’s chief executive said: The development of the Group’s offering to now include strategy and virtual experiences as chargeable avenues has reignited opportunities across the board. Excitingly and off the back of this, we are seeing bigger conversations and a bigger ‘piece of the pie’ with returning and new clients alike.

“I am optimistic that the momentum already seen in Q1 2020-2021 reflects continued positive growth ahead for both operating businesses. A strong finish to a challenging year, we continue to make waves in the UK and globally as Game Changers in purpose, strategy, creative and value,” he added.

In March this year, Aeorema Communications acquired Eventful Ltd, which provides venue sourcing, strategic event planning and management and incentive travel services.

Aeorema Communications shares (LON: AEO) are -1.43% at 20,70 (1047GMT).