Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £5.28M
• Dividend Yield: 5.5%
• Average Volume (3M): 14.21K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.36
• Revenue Growth: 6.47%
• EPS Growth: -10.00%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 9,820
• 30 Day Avg. Volume: 14,215
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 15.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: 63.00p ▲(15.60% 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 Business Overview & Revenue Model

Company Description

Aeorema 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 Money

Aeorema 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 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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	20.94M	20.29M	20.23M	12.21M	5.09M	5.48M
Gross Profit	3.42M	3.77M	4.33M	2.95M	1.09M	1.76M
EBITDA	842.43K	742.71K	1.33M	1.01M	-8.29K	-75.99K
Net Income	308.86K	296.71K	757.18K	639.34K	-164.93K	-197.43K
Balance Sheet
Total Assets	8.54M	9.02M	7.65M	6.49M	3.24M	3.37M
Cash, Cash Equivalents and Short-Term Investments	755.81K	3.12M	2.44M	1.71M	1.10M	1.72M
Total Debt	557.79K	641.79K	832.86K	1.05M	275.91K	385.76K
Total Liabilities	5.74M	6.22M	4.84M	4.23M	1.72M	1.67M
Stockholders Equity	2.80M	2.81M	2.81M	2.25M	1.51M	1.70M
Cash Flow
Free Cash Flow	-98.78K	1.15M	1.13M	742.46K	-767.50K	-237.34K
Operating Cash Flow	736.00	1.21M	1.46M	921.94K	-708.33K	-227.34K
Investing Cash Flow	-277.02K	-160.74K	-502.31K	-253.68K	-161.18K	-110.70K
Financing Cash Flow	-310.63K	-369.47K	-224.59K	-55.56K	250.00K	-151.91K

Aeorema Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.50
• 50DMA: Positive
• 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 Positive. The current price of 54.5 is below the 20-day moving average (MA) of 55.13, above the 50-day MA of 51.84, and above the 200-day MA of 49.20, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 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	75 Outperform	£5.28M	16.82	11.05%	5.50%	6.47%	-10.00%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
OMIP	54 Neutral	£9.45M	53.57	6.49%	1.43%	-14.03%	-142.86%
ZIN	54 Neutral	£16.95M	―	-12.15%	―	-19.68%	―
GULDF	―	$4.59M	―		―	―	―

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.