Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £5.77M
• Dividend Yield: 5.04%
• Average Volume (3M): 8.88K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.42
• Revenue Growth: 0.58%
• EPS Growth: -21.54%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 11,171
• 30 Day Avg. Volume: 8,879
• PEG Ratio: -1.05
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 14.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £63.00
• Price Target Upside: 5.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: 63.00p ▲(5.88% Upside)

Aeorema Communications' stock score is driven by strong technical indicators and a stable financial position, despite concerns over revenue growth and cash flow. The attractive dividend yield also supports the valuation.

Aeorema Communications Business Overview & Revenue Model

Company Description

Aeorema Communications (AEO) is a leading provider of communication solutions specializing in delivering strategic messaging and innovative digital experiences across various sectors, including corporate communications, event management, and audience engagement. The company focuses on creating compelling narratives and immersive experiences that enhance brand visibility and foster connections between organizations and their stakeholders. AEO's core services encompass event production, digital content creation, and strategic consulting aimed at helping clients effectively communicate their messages in an increasingly digital world.

How the Company Makes Money

Aeorema Communications generates revenue through a diversified business model that includes service fees for event management and production, consulting fees for strategic communication services, and revenue from digital content creation projects. Key revenue streams include long-term contracts with corporate clients for ongoing communication services, one-time fees for specific events or projects, and partnerships with technology providers that enhance their service offerings. Additionally, AEO may leverage sponsorship opportunities during events, further contributing to its earnings. The company's ability to adapt to market trends and foster strong client relationships plays a significant role in its financial performance.

Aeorema Communications Financial Statement Overview

Summary

Aeorema Communications has a mixed financial profile. The income statement shows declining margins and stagnant revenue growth, indicating profitability challenges. However, the balance sheet remains strong with low debt levels, and cash flow generation is robust despite a subtle decline in growth. Overall, the company is financially stable but faces risks in maintaining profitability and growth momentum.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.41M	20.41M	20.29M	20.23M	12.21M	5.09M
Gross Profit	3.30M	3.37M	3.77M	4.33M	2.95M	1.09M
EBITDA	547.76K	474.64K	742.71K	1.33M	1.01M	-8.29K
Net Income	238.12K	238.12K	296.71K	757.18K	639.34K	-164.93K
Balance Sheet
Total Assets	10.83M	10.83M	9.02M	7.65M	6.49M	3.24M
Cash, Cash Equivalents and Short-Term Investments	3.10M	3.10M	3.12M	2.44M	1.71M	1.10M
Total Debt	500.75K	500.75K	641.79K	832.86K	1.05M	275.91K
Total Liabilities	8.11M	8.11M	6.22M	4.84M	4.23M	1.72M
Stockholders Equity	2.72M	2.72M	2.81M	2.81M	2.25M	1.51M
Cash Flow
Free Cash Flow	366.17K	351.95K	1.15M	1.13M	742.46K	-767.50K
Operating Cash Flow	489.19K	474.98K	1.21M	1.46M	921.94K	-708.33K
Investing Cash Flow	-265.02K	-219.14K	-160.74K	-502.31K	-253.68K	-161.18K
Financing Cash Flow	-273.62K	-273.62K	-369.47K	-224.59K	-55.56K	250.00K

Aeorema Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 59.5 is above the 20-day moving average (MA) of 56.88, above the 50-day MA of 55.64, and above the 200-day MA of 49.65, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 95.25 is Negative, neither overbought nor oversold. The STOCH value of 78.68 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	70 Outperform	£5.77M	24.09	8.62%	5.04%	0.58%	-21.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ALRT	58 Neutral	$74.83M	―	―	―	―	―
OMIP	48 Neutral	£8.90M	53.57	6.49%	1.43%	-14.03%	-142.86%
ZIN	43 Neutral	£13.73M	―	-12.15%	―	-19.68%	-72.15%

Aeorema Communications Corporate Events

Aeorema Communications Grants Share Options to Key Staff

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.

Aeorema Communications Reports Strong Financial Performance and Operational Success

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.

Aeorema’s Cheerful Twentyfirst Wins ‘Best Creative Concept’ Award Again

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.

Aeorema Communications Launches Share Buyback Program

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.