Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £6.06M
• Dividend Yield: 4.8%
• Average Volume (3M): 11.09K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.28
• Revenue Growth: 0.58%
• EPS Growth: -21.54%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.04
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 17,297
• 30 Day Avg. Volume: 11,086
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 80.00p ▲(28.00% Upside)

Aeorema Communications' overall stock score reflects a mixed financial performance with stable profitability but challenges in revenue and cash flow growth. Positive corporate events and a moderate valuation provide some support, while technical indicators suggest cautious optimism. The absence of earnings call data limits insights into future guidance.

Positive Factors

Business Model Diversification

A diversified business model with multiple revenue streams enhances resilience against market fluctuations and supports long-term growth.

Stable Balance Sheet

A stable balance sheet with improved leverage indicates financial health, providing flexibility for strategic investments and growth opportunities.

Positive Net Profit Margins

Maintaining positive net profit margins suggests operational efficiency and the ability to sustain profitability despite revenue growth challenges.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand market share and invest in new opportunities, impacting long-term competitiveness.

Decreased Cash Flow Generation

Reduced cash flow generation limits the company's capacity to fund operations, invest in growth, and return value to shareholders, affecting financial stability.

Decreased Profitability Margins

Decreased profitability margins reflect cost pressures and operational inefficiencies, potentially affecting the company's ability to sustain competitive pricing and profitability.

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 presents a mixed financial picture. Positive net profit margins and a stable balance sheet with manageable leverage are offset by declining revenue growth and cash flow generation concerns.

Income Statement

Aeorema Communications shows a mixed performance in its income statement. The company has experienced a decline in revenue growth rate recently, indicating potential challenges in maintaining its market position. Gross profit margins have decreased over the years, suggesting increased cost pressures. However, the company has managed to maintain positive net profit margins, albeit at a lower level than previous years, which reflects some level of operational efficiency. The EBIT and EBITDA margins have also declined, indicating reduced profitability from core operations.

Balance Sheet

The balance sheet of Aeorema Communications reflects a stable financial position with a manageable debt-to-equity ratio, which has improved over the years. The company has reduced its leverage, which is a positive sign of financial stability. Return on equity has decreased, indicating a decline in the company's ability to generate profits from shareholders' equity. The equity ratio remains strong, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals some concerns for Aeorema Communications. The company has experienced a significant decline in free cash flow growth, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio has decreased, reflecting reduced cash conversion efficiency. However, the free cash flow to net income ratio remains relatively healthy, suggesting that the company is still able to generate cash relative to its net income.

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: Neutral
• Last Price: 62.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AEO, the sentiment is Neutral. The current price of 62.5 is below the 20-day moving average (MA) of 63.60, below the 50-day MA of 62.87, and above the 200-day MA of 51.37, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AEO.

Aeorema Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	65 Neutral	£6.06M	25.30	8.62%	4.80%	0.58%	-21.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZIN	53 Neutral	£12.12M	―	―	―	-19.68%	-72.15%
ALRT	49 Neutral	£37.63M	―	―	―	―	―
OMIP	48 Neutral	£8.34M	-125.00	6.49%	―	-14.03%	-142.86%

Aeorema Communications Corporate Events

Aeorema’s Cheerful Twentyfirst Wins Gold at The Drum Awards

Aeorema Communications plc announced that its brand experience agency, Cheerful Twentyfirst, won a Gold award in the Experiential Networking category at The Drum Awards Festival. This accolade, achieved through their SPORT BEACH project at the Cannes Lions International Festival of Creativity, enhances Aeorema’s visibility and strengthens its position as a global leader in brand experience. The win also secures Cheerful Twentyfirst’s inclusion in The Drum Recommends agency network, boosting its credibility and supporting Aeorema’s growth strategy by attracting new high-value global opportunities.

Aeorema Director Increases Stake with Share Purchase

Aeorema Communications plc announced that Richard Owen, a Non-Executive Director, has purchased 25,000 Ordinary Shares in the company through United Trading Corporation Limited. This acquisition increases Owen’s total beneficial interest to 1.81% of the company’s issued share capital, indicating a vote of confidence in the company’s prospects and potentially impacting stakeholder perceptions positively.

Aeorema Communications Reports Strong Revenue Growth and Profit Outlook

Aeorema Communications plc has reported a positive trading update for the 18-month period ending December 31, 2025, with expected revenue of no less than £29.0 million and an underlying profit before tax of no less than £700,000. The company’s restructuring efforts and focus on margin improvement have supported this growth, alongside a healthy pipeline of client work and expansion in key international markets, particularly North America and EMEA. The group is committed to delivering shareholder returns through a progressive dividend policy and aims to continue its momentum into 2026 by expanding its presence in global markets and enhancing operational efficiency.

Aeorema’s Cheerful Twentyfirst Gains Momentum in North America

Aeorema Communications plc announced that its brand experience agency, Cheerful Twentyfirst, has experienced significant momentum in North America, particularly after a successful September. The agency delivered a range of business events, including a major brand activation for The Wall Street Journal and an immersive concert for Instacart. This growth reflects strong client relationships and positions the company for continued success in the U.S. and EMEA markets, enhancing its industry standing and stakeholder value.

Aeorema Communications to Host Live Investor Update

Aeorema Communications plc announced that its CEO, Steve Quah, and Group Financial Controller, Jamie Blackwell, will host a live investor update on October 7, 2025, via the Investor Meet Company platform. This presentation is open to all existing and potential shareholders, allowing them to submit questions and gain insights into the company’s operations and strategic direction. This initiative reflects Aeorema’s commitment to transparent communication with stakeholders and may enhance its industry positioning by engaging directly with investors.

Aeorema Communications Reports Record Revenue and Strategic Growth

Aeorema Communications plc announced its unaudited interim results for the 12 months ended 30 June 2025, reporting record revenue of £20.4 million and an underlying profit before taxation of £615,000. The company has successfully completed a cost-reduction and rebalancing program, positioning itself for enhanced efficiency and profitability in FY2026. Aeorema’s operational highlights include strong performance at the Cannes Lions 2025, expansion into international markets, and multiple industry awards. The company has also strengthened its Board with the appointment of Alan Charlton as a Non-Executive Director. Looking ahead, Aeorema has strong forward visibility with contracts for 2026, focusing on margin enhancement and efficiency.