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Aeorema Communications
(LSE:AEO)
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Rating:52Neutral
Price Target:
63.00 p
▲(0.80% Upside)
Action:Reiterated
Date:07/03/26
The score is held back primarily by weakened profitability and negative/volatile recent cash flows, which raise sustainability risk despite ongoing accounting profitability. Offsetting this, the balance sheet is relatively strong with modest leverage, and technicals show a mild bullish bias with neutral momentum. Valuation remains a constraint due to a high P/E, partially balanced by a high dividend yield.
Positive Factors
Improving balance sheet / modest leverage
Aeorema's materially lower debt-to-equity and meaningful equity base provide durable financial flexibility. Improving leverage reduces refinancing and solvency risk, enabling the company to fund working capital, absorb short-term revenue dips, and pursue selective investments over the next few quarters without immediate external capital.
Negative Factors
Compressed margins
Very thin gross and net margins materially limit the firm's ability to absorb cost inflation or invest in growth. Persistently low margins compress returns on equity and reduce retained earnings, making it harder to rebuild profitability without structural changes to pricing, service mix, or cost base.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving balance sheet / modest leverage
Aeorema's materially lower debt-to-equity and meaningful equity base provide durable financial flexibility. Improving leverage reduces refinancing and solvency risk, enabling the company to fund working capital, absorb short-term revenue dips, and pursue selective investments over the next few quarters without immediate external capital.
Read all positive factors
Aeorema Communications (AEO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.90M
Dividend Yield4.8%
Average Volume (3M)11.09K
Price to Earnings (P/E)49.8
Beta (1Y)0.31
Revenue Growth-3.18%
EPS Growth-59.49%
CountryUK
Employees74
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.01
Shares Outstanding9,435,500
10 Day Avg. Volume17,297
30 Day Avg. Volume11,086
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)2.32
Price to Sales (P/S)0.31
P/FCF Ratio-39.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aeorema Communications Business Overview & Revenue Model
Company Description
Aeorema Communications plc operates as a specialist live events firm, designing and implementing corporate communication strategies for clients across the United Kingdom, the United States, and international territories. Established in 2001, the c...
How the Company Makes Money
Aeorema Communications primarily makes money by providing marketing and communications services to clients under commercial contracts. Key revenue streams typically include (1) professional service fees for strategy, creative, design, digital mark...
Aeorema Communications Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.64M | 19.64M | 20.41M | 20.29M | 20.23M | 12.21M |
| Gross Profit | 3.12M | 3.24M | 3.37M | 3.77M | 4.33M | 2.95M |
| EBITDA | 464.54K | 410.85K | 474.64K | 742.71K | 1.33M | 1.01M |
| Net Income | 121.47K | 121.47K | 238.12K | 296.71K | 757.18K | 639.34K |
Balance Sheet | ||||||
| Total Assets | 8.16M | 8.16M | 10.83M | 9.02M | 7.65M | 6.49M |
| Cash, Cash Equivalents and Short-Term Investments | 2.19M | 2.19M | 3.10M | 3.12M | 2.44M | 1.71M |
| Total Debt | 441.73K | 441.73K | 500.75K | 641.79K | 832.86K | 1.05M |
| Total Liabilities | 5.52M | 5.52M | 8.11M | 6.22M | 4.84M | 4.23M |
| Stockholders Equity | 2.64M | 2.64M | 2.72M | 2.81M | 2.81M | 2.25M |
Cash Flow | ||||||
| Free Cash Flow | 4.83M | -153.50K | 351.95K | 1.15M | 1.13M | 742.46K |
| Operating Cash Flow | 5.05M | -4.16K | 474.98K | 1.21M | 1.46M | 921.94K |
| Investing Cash Flow | -426.27K | -239.41K | -219.14K | -160.74K | -502.31K | -253.68K |
| Financing Cash Flow | -872.37K | -376.27K | -273.62K | -369.47K | -224.59K | -55.56K |
Aeorema Communications Technical Analysis
Positive
62.50
Price Trends
60.60
Positive
59.36
Positive
60.55
Positive
Market Momentum
0.33
Positive
53.62
Neutral
54.17
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 62.5 is below the 20-day moving average (MA) of 63.32, above the 50-day MA of 60.60, and above the 200-day MA of 60.55, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | £6.66M | -45.63 | -3.35% | ― | 7.27% | -100.00% | |
52 Neutral | £5.90M | 49.84 | 8.62% | 4.80% | -3.18% | -59.49% | |
47 Neutral | £6.46M | -5.80 | 4.93% | ― | -2.27% | -365.00% | |
44 Neutral | £17.17M | -5.63 | ― | ― | 28.33% | 34.53% | |
42 Neutral | £6.44M | -2.37 | -104.84% | ― | ― | ― | |
40 Underperform | £2.13M | -0.35 | -73.62% | ― | 31.13% | 1.67% |
* Communication Services Sector Average
GB:AEO
Aeorema Communications
62.50
17.61
39.23%
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57.50
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5.65
1.50
36.14%
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0.41
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-18.87%
Aeorema Communications Corporate Events
Business Operations and Strategy
Aeorema Wins Three-Year Climate Week NYC Contract, Bolstering Revenue Visibility
Positive
Jun 11, 2026
Aeorema Communications’ brand experience agency Cheerful Twentyfirst has secured a landmark three-year contract to deliver Climate Week NYC in 2026, 2027 and 2028, reinforcing its standing in large-scale global event delivery. The win streng...
Business Operations and StrategyShareholder Meetings
Aeorema Wins Strong Shareholder Backing as All AGM Resolutions Pass
Positive
Jun 9, 2026
Aeorema Communications plc reported that all resolutions put to shareholders at its latest Annual General Meeting were duly passed, with proxy votes showing overwhelming support across the board. The strong backing from investors signals continued...
Business Operations and StrategyFinancial Disclosures
Aeorema Secures Record Cannes Lions Revenue, Boosting 2026 Visibility
Positive
Jun 4, 2026
Aeorema Communications’ brand experience agency Cheerful Twentyfirst has secured a record volume of contracted revenue linked to Cannes Lions 2026, underpinned by 17 brand activations and a 92% retention rate for returning projects. Key repe...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Aeorema boosts profits and cash as restructuring sharpens focus on high-value global events
Positive
May 18, 2026
Aeorema Communications reported revenue of £29.5 million for the 18 months to 31 December 2025, a 7% increase on the comparable period, with underlying profit before tax more than doubling to £797,000 despite reported profit being dampen...
Regulatory Filings and Compliance
Aeorema Cancels Treasury Shares and Updates Voting Rights
Neutral
Apr 30, 2026
Aeorema Communications has confirmed that its issued share capital now consists of 9,435,500 ordinary shares of 12.5 pence each, following the cancellation of 257,500 shares that had been previously held in treasury. As a result, the company no lo...
Other
Aeorema Director Increases Stake With Fresh Share Purchase
Positive
Apr 9, 2026
Aeorema Communications plc has disclosed that non-executive director Alan Charlton has purchased 35,000 ordinary shares in the company at 56.22 pence per share on 9 April 2026. Following this transaction, Charlton’s total holding has increas...
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.