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Aeorema Communications
(LSE:AEO)
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Rating:49Neutral
Price Target:
85.00 p
▲(31.78% Upside)
Action:Reiterated
Date:09/16/26
The score is held back primarily by weakening profitability and especially inconsistent/negative recent operating and free cash flow, despite a relatively strong low-leverage balance sheet. Technicals are supportive due to a clear uptrend, but the very overbought RSI adds near-term risk. Valuation is a headwind given the high P/E, only partially mitigated by the strong dividend yield.
Positive Factors
Low and Improving Leverage
The company has modest and improving leverage, with debt-to-equity falling from about 0.47 in 2022 to 0.17 at 31 December 2025. This gives Aeorema greater financial flexibility to absorb uneven trading and fund operations than a highly leveraged balance sheet would provide.
Negative Factors
Revenue Contraction
Revenue contraction indicates weaker demand or reduced client activity across the company’s marketing engagements. A declining top line can reduce operating leverage, limit the resources available for reinvestment, and make it harder to sustain earnings growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low and Improving Leverage
The company has modest and improving leverage, with debt-to-equity falling from about 0.47 in 2022 to 0.17 at 31 December 2025. This gives Aeorema greater financial flexibility to absorb uneven trading and fund operations than a highly leveraged balance sheet would provide.
Read all positive factors
Aeorema Communications (AEO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.95M
Dividend Yield4.71%
Average Volume (3M)19.74K
Price to Earnings (P/E)68.5
Beta (1Y)0.25
Revenue Growth-10.98%
EPS Growth4.92%
CountryUK
Employees58
SectorCommunication Services
Sector Strength97
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.01
Shares Outstanding9,350,500
10 Day Avg. Volume29,467
30 Day Avg. Volume19,736
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)0.06
Revenue Forecast (FY)£22.00M
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 makes money primarily by selling marketing and advertising services to clients under contracted engagements. Its revenue is generated through fees charged for strategic marketing consulting (e.g., brand and campaign strategy...
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
64.50
Price Trends
67.46
Positive
64.58
Positive
62.22
Positive
Market Momentum
5.32
Negative
90.05
Negative
75.00
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 64.5 is below the 20-day moving average (MA) of 74.20, below the 50-day MA of 67.46, and above the 200-day MA of 62.22, indicating a bullish trend. The MACD of 5.32 indicates Negative momentum. The RSI at 90.05 is Negative, neither overbought nor oversold. The STOCH value of 75.00 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 | £5.66M | -6.00 | -13.57% | ― | -1.33% | -276.19% | |
49 Neutral | £7.95M | 68.55 | 4.61% | 4.71% | -10.98% | 4.92% | |
47 Neutral | £6.80M | -4.03 | -461.47% | ― | 43.21% | 14.40% | |
47 Neutral | £19.37M | -27.45 | -10.38% | ― | 2.25% | -158.24% | |
46 Neutral | £4.46M | -0.37 | -245.25% | ― | -11.54% | -16.67% | |
41 Neutral | £15.08M | -2.52 | -996.83% | ― | -22.76% | -245.18% |
* Communication Services Sector Average
GB:AEO
Aeorema Communications
85.00
28.77
51.16%
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Aeorema Communications Corporate Events
Regulatory Filings and Compliance
Aeorema Updates Total Voting Rights and Shares in Issue
Neutral
Oct 1, 2026
Aeorema Communications has reported that as of the close of business on 30 September 2026, it has 9,370,500 ordinary shares of 12.5 pence each in issue, of which 20,000 are held in treasury, resulting in 9,350,500 voting rights on AIM. The updated...
Stock BuybackRegulatory Filings and Compliance
Aeorema Updates Share Buyback and Voting Rights After Treasury Share Cancellation
Neutral
Sep 28, 2026
Aeorema Communications plc has repurchased 20,000 of its own ordinary shares at 76.0 pence each on AIM as part of a previously announced share buyback programme, with the shares to be held in treasury and periodically cancelled. The company has al...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Aeorema Communications Delivers Record Half-Year Profit and Upgrades FY2026 Outlook
Positive
Sep 22, 2026
Aeorema Communications reported record interim results for the six months to 30 June 2026, with revenue up 32.5% to £17.5 million and profit before tax tripling to £1.5 million, underpinned by a leaner, more efficient cost base and stron...
Business Operations and Strategy
Aeorema Schedules Online Investor Update to Deepen Shareholder Engagement
Positive
Sep 18, 2026
Aeorema Communications plc has announced that its chief executive Steve Quah and finance director Jamie Blackwell will host a live investor update via the Investor Meet Company platform on 23 September 2026. The session is open to existing and pro...
Business Operations and StrategyFinancial Disclosures
Aeorema lifts FY2026 revenue and profit guidance after strong trading
Positive
Sep 15, 2026
Aeorema Communications plc has issued a further upgrade to its guidance for the financial year ending 31 December 2026 after strong trading in the second half. The Board now expects revenue to be at least £22.6 million, up from £22.0 mil...
Regulatory Filings and Compliance
Aeorema Updates Share Capital and Voting Rights for Transparency Compliance
Neutral
Aug 28, 2026
Aeorema Communications has disclosed its total voting rights, confirming that as of 28 August 2026 it has 9,435,500 ordinary shares of 12.5 pence in issue, carrying 9,370,500 voting rights, with 65,000 shares held in treasury. The updated capital ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Aeorema Updates Market on Share Buyback and Voting Rights
Positive
Aug 27, 2026
Aeorema Communications plc has continued to execute its recently announced share buyback programme, repurchasing 45,000 ordinary shares on AIM at a price of 63.5 pence per share via Shard Capital Stockbrokers Limited. The shares, which are being h...
Stock BuybackRegulatory Filings and Compliance
Aeorema Updates Share Buyback Activity and Voting Rights
Positive
Aug 24, 2026
Aeorema Communications plc has continued to execute its recently announced share buyback programme, purchasing 20,000 ordinary shares at a price of 64 pence per share on 19 August 2026 through broker Shard Capital Stockbrokers. The bought-back sha...
Business Operations and StrategyStock Buyback
Aeorema Communications Launches Share Buyback of Up to 5% of Capital
Positive
Aug 13, 2026
Aeorema Communications has launched an on-market share buyback programme to repurchase and cancel up to 5% of its issued share capital, signalling board confidence in the Group’s long-term outlook. The initiative will be funded entirely from...
Business Operations and StrategyFinancial Disclosures
Aeorema lifts 2026 guidance after profit surge in first half
Positive
Aug 6, 2026
Aeorema Communications reported a strong first half for 2026, with revenue expected to rise 32% year on year to at least £17.4 million and profit before tax climbing to no less than £1.5 million. The group’s solid cash position and...
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.