Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £4.17M
• Dividend Yield: 6.98%
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): 13.3
• Beta (1Y): >-0.01
• Revenue Growth: 6.47%
• EPS Growth: -10.00%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 81
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 477
• 30 Day Avg. Volume: 1,669
• PEG Ratio: -0.23
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.87
• 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: N/A
• Number of Analyst Covering: 0

Aeorema Communications has a solid financial base and attractive valuation, supported by recent strategic corporate events. However, the company faces challenges with profitability and growth, and technical analysis indicates bearish trends, which could pose risks to its stock performance.

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 demonstrates a mixed financial profile. The income statement shows declining profitability and stagnant revenue growth. The balance sheet is strong with low debt, and cash flow remains robust, but there is room for improvement in cash management. Overall, the company is financially stable but faces potential 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
19.66M	20.29M	20.23M	12.21M	5.09M	5.48M
	Gross Profit
4.25M	3.77M	4.33M	2.95M	1.09M	1.76M
	EBIT
520.78K	440.75K	1.09M	881.90K	-236.35K	-258.37K
	EBITDA
719.90K	742.71K	1.33M	1.01M	-8.29K	-75.99K
	Net Income Common Stockholders
343.43K	296.71K	757.18K	639.34K	-164.93K	-197.43K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03M	3.12M	2.44M	1.71M	1.10M	1.72M
	Total Assets
2.29M	9.02M	7.65M	6.49M	3.24M	3.37M
	Total Debt
0.00	641.79K	832.86K	1.05M	275.91K	385.76K
	Net Debt
-1.03M	-2.48M	-1.61M	-659.93K	-825.80K	-1.34M
	Total Liabilities
791.80K	6.22M	4.84M	4.23M	1.72M	1.67M
	Stockholders Equity
1.49M	2.81M	2.81M	2.25M	1.51M	1.70M
Cash Flow		Free Cash Flow
-1.92M	1.15M	1.13M	742.46K	-767.50K	-237.34K
	Operating Cash Flow
-1.79M	1.21M	1.46M	921.94K	-708.33K	-227.34K
	Investing Cash Flow
-272.67K	-160.74K	-502.31K	-253.68K	-161.18K	-110.70K
	Financing Cash Flow
-274.09K	-369.47K	-224.59K	-55.56K	250.00K	-151.91K

Aeorema Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 43 is above the 20-day moving average (MA) of 42.98, below the 50-day MA of 43.94, and below the 200-day MA of 50.05, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AEO.

Aeorema Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	67 Neutral	£4.17M	13.27	11.05%	6.98%	6.47%	-10.00%
Sector *	60 Neutral	$13.44B	7.15	-2.73%	3.79%	2.11%	-39.64%

Aeorema Communications Corporate Events

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.

Spark’s Take on GB:AEO Stock

According to Spark, TipRanks’ AI Analyst, GB:AEO is a Neutral.

Aeorema Communications receives an overall score of 68. The company’s strengths lie in a solid balance sheet and attractive valuation with a high dividend yield. Recent corporate events suggest positive strategic developments and future growth prospects. However, the technical analysis reveals bearish trends, and financial performance shows challenges in profitability and growth, which pose risks to sustainability.

To see Spark’s full report on GB:AEO stock, click here.

Aeorema’s Cheerful Twentyfirst Secures Major Cannes Lions Contract Renewal

Aeorema Communications plc announced that its brand experience agency, Cheerful Twentyfirst, has been reappointed by Stagwell to produce SPORT BEACH at the Cannes Lions International Festival of Creativity in 2025. This renewal marks the third consecutive year of collaboration, highlighting the success of previous events and the strategic partnership between the companies. The 2025 event will feature a reimagined design, expanded capacity, and new interactive elements, aiming to redefine sports, creativity, and culture at the festival. This continued partnership underscores Aeorema’s strong industry positioning and its commitment to delivering innovative and impactful brand experiences.

Spark’s Take on GB:AEO Stock

According to Spark, TipRanks’ AI Analyst, GB:AEO is a Neutral.

Aeorema Communications receives an overall score of 68. The company’s strengths lie in a solid balance sheet and attractive valuation with a high dividend yield. Recent corporate events suggest positive strategic developments and future growth prospects. However, the technical analysis reveals bearish trends, and financial performance shows challenges in profitability and growth, which pose risks to sustainability.

To see Spark’s full report on GB:AEO stock, click here.

Aeorema Communications Reports Improved Interim Results and Strategic Developments

Aeorema Communications plc reported interim results for the six months ended December 2024, showing a revenue increase to £7.2 million and a reduced loss before taxation compared to the previous year. The company is implementing a cost-reduction and rebalancing program to enhance operational efficiency and has changed its accounting reference date to align with industry norms. Aeorema secured new high-profile event contracts, including a debut at the World Economic Forum in Davos, and plans a share buyback program, reflecting confidence in its financial resilience. The company remains optimistic about future growth, supported by a strong project pipeline and strategic focus on high-growth opportunities.

Aeorema Communications to Announce Interim Results and Host Investor Presentation

Aeorema Communications plc announced that it will release its interim results for the six months ended 31 December 2024 on 26 March 2025. The company will also host a live investor presentation on 27 March 2025, led by CEO Steve Quah and Group Financial Controller Jamie Blackwell. This presentation is open to all existing and potential shareholders, allowing them to submit questions and engage with the company’s leadership. This announcement underscores Aeorema’s commitment to transparency and stakeholder engagement, potentially strengthening its market position and investor relations.