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Aeorema Communications (GB:AEO)
:AEO
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Aeorema Communications (AEO) AI Stock Analysis

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GB:AEO

Aeorema Communications

(LSE:AEO)

Rating:75Outperform
Price Target:
63.00p
▲(12.50%Upside)
Aeorema Communications' overall score of 75 reflects a strong corporate event impact and solid technical analysis, alongside a stable financial foundation. Despite profitability challenges, the company's strategic moves and market confidence, evidenced by the share buyback and options grants, bolster its market position.

Aeorema Communications (AEO) vs. iShares MSCI United Kingdom ETF (EWC)

Aeorema Communications Business Overview & Revenue Model

Company DescriptionAeorema Communications (AEO) is a UK-based company specializing in delivering live experiences and communications solutions for businesses. The company operates predominantly in the events sector, where it creates, manages, and delivers a wide array of corporate events ranging from small meetings to large-scale conferences and exhibitions. Aeorema Communications leverages creative storytelling and innovative technologies to enhance client engagement and brand visibility, offering services that include event planning, production, and digital content creation.
How the Company Makes MoneyAeorema Communications generates revenue primarily through its event management and production services. The company earns money by charging clients for the planning, execution, and management of corporate events, which often involve bespoke solutions tailored to the specific needs of each client. Revenue streams include fees for creative services, production costs, and management of logistics. Additionally, Aeorema may partner with technology providers or other service vendors to enhance their offerings, potentially benefiting from shared revenue or commissions. The company's ability to deliver high-quality, memorable experiences helps retain clients and attract new business, contributing to its financial performance.

Aeorema Communications Financial Statement Overview

Summary
Aeorema Communications shows a mixed financial profile. The balance sheet is strong with low leverage, but the income statement indicates challenges in profitability and growth. Cash flow is a relative strength, though there is room for improvement in cash management.
Income Statement
65
Positive
The income statement reveals a company with fluctuating performance. Gross profit margin is decent, but there's a notable decline from prior years, indicating potential cost management issues. Net profit margin has also decreased, showing reduced profitability. Revenue growth is stagnant, reflecting challenges in expanding the customer base or product offerings. The EBIT and EBITDA margins have dropped significantly, suggesting operational inefficiencies or increased expenses.
Balance Sheet
70
Positive
The balance sheet is relatively strong, with a solid equity base and low debt levels, resulting in a favorable debt-to-equity ratio. Return on equity is positive but has decreased, indicating a slight decline in efficiency with which equity is used to generate profits. The equity ratio remains stable, showcasing a healthy balance between assets and equity.
Cash Flow
75
Positive
The cash flow statement is positive with strong free cash flow generation, although there is a subtle decline in growth. Operating cash flow remains robust relative to net income, indicating good cash generation from core operations. However, the decline in free cash flow growth suggests the need for improved cash management strategies.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue20.29M20.23M12.21M5.09M5.48M
Gross Profit3.77M4.33M2.95M1.09M1.76M
EBITDA742.71K1.33M1.01M-8.29K-75.99K
Net Income296.71K757.18K639.34K-164.93K-197.43K
Balance Sheet
Total Assets9.02M7.65M6.49M3.24M3.37M
Cash, Cash Equivalents and Short-Term Investments3.12M2.44M1.71M1.10M1.72M
Total Debt641.79K832.86K1.05M275.91K385.76K
Total Liabilities6.22M4.84M4.23M1.72M1.67M
Stockholders Equity2.81M2.81M2.25M1.51M1.70M
Cash Flow
Free Cash Flow1.15M1.13M742.46K-767.50K-237.34K
Operating Cash Flow1.21M1.46M921.94K-708.33K-227.34K
Investing Cash Flow-160.74K-502.31K-253.68K-161.18K-110.70K
Financing Cash Flow-369.47K-224.59K-55.56K250.00K-151.91K

Aeorema Communications Technical Analysis

Technical Analysis Sentiment
Positive
Last Price56.00
Price Trends
50DMA
49.85
Positive
100DMA
47.15
Positive
200DMA
48.73
Positive
Market Momentum
MACD
2.38
Negative
RSI
69.20
Neutral
STOCH
53.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AEO, the sentiment is Positive. The current price of 56 is above the 20-day moving average (MA) of 51.58, above the 50-day MA of 49.85, and above the 200-day MA of 48.73, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 69.20 is Neutral, neither overbought nor oversold. The STOCH value of 53.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AEO.

Aeorema Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£5.43M17.2811.05%5.31%6.47%-10.00%
64
Neutral
£1.84B9.95-15.74%3.62%2.47%-68.24%
64
Neutral
£17.57M-12.15%-19.68%
54
Neutral
£9.45M53.576.49%1.43%-14.03%-142.86%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AEO
Aeorema Communications
56.00
0.85
1.54%
GB:OMIP
One Media iP
4.25
0.55
14.86%
GB:ZIN
Zinc Media
71.00
1.50
2.16%

Aeorema Communications Corporate Events

Business Operations and Strategy
Aeorema Communications Grants Share Options to Key Staff
Positive
Aug 1, 2025

Aeorema Communications plc has announced the grant of options over 130,000 new ordinary shares as part of its long-term incentive plan to align employee interests with the company’s growth. This move, which includes options for Group Financial Controller Jamie Blackwell, underscores Aeorema’s confidence in its team and its strategic direction. The options are exercisable at 56 pence and will vest from October 2027. Overall, options over 1,935,000 shares are now outstanding, representing nearly 20% of the company’s current issued share capital, indicating a significant commitment to incentivizing key personnel and aligning them with the company’s future success.

DividendsBusiness Operations and StrategyFinancial Disclosures
Aeorema Communications Reports Strong Financial Performance and Operational Success
Positive
Jul 21, 2025

Aeorema Communications plc reported strong financial performance for the 12 months ending June 30, 2025, with revenue and profit at the upper end of expectations. The company achieved a revenue of no less than £20.4 million and an underlying profit before tax of no less than £600,000, surpassing previous guidance. The company also maintained a strong cash position and plans to pay an interim dividend. Operationally, Aeorema experienced success at the Cannes Lions International Festival of Creativity 2025, securing numerous client renewals and new opportunities for 2026. The company is progressing with its cost reduction and resource rebalancing program, aiming for improved margins in 2026. These developments reinforce Aeorema’s reputation as a leader in strategic communications and live experiences, with a growing influence in international markets.

Business Operations and Strategy
Aeorema’s Cheerful Twentyfirst Wins ‘Best Creative Concept’ Award Again
Positive
Jul 11, 2025

Aeorema Communications’ creative brand experience agency, Cheerful Twentyfirst, has won the ‘Best Creative Concept’ award at the 2025 micebook Awards for the third consecutive year. This recognition underscores the agency’s commitment to its ‘Audience Above All’ philosophy, which emphasizes strategic creativity and measurable impact in delivering high-impact B2B and B2E brand experiences globally. The award highlights Cheerful Twentyfirst’s leadership in the live events industry and its role in driving business success for clients through innovative and engaging projects.

Stock Buyback
Aeorema Communications Launches Share Buyback Program
Positive
May 12, 2025

Aeorema Communications plc has announced the commencement of a share buyback program to repurchase up to 5% of its issued share capital, reflecting the board’s confidence in the company’s long-term outlook. The buyback will be funded from existing surplus cash resources, with Shard Capital Partners LLP appointed to manage the program independently. This move is aimed at reducing the company’s share capital and may have implications for shareholder interests and market positioning, although there is no guarantee that the program will be fully implemented.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025