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Aeorema Communications (AEO) Shares Rally On Strong Outlook

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Updated: 3 Aug 2021

Aeorema Communications' (LON: AEO) share price has jumped on Tuesday after the company released a trading update.

The live events agency said it made “further multi-national blue-chip client wins” during the year ended 30 June and improved its gross profit margin, which was primarily driven by the ability to bill an increased amount of higher-margin services in the pre-production phase of contracts.

The company continued to return to profitability during the year, although its operating loss for fiscal 2021 is expected to be £230,000.


“The outlook for the start of the new financial year is very strong,” the AIM-quoted firm said. 

“H1 2022 revenues are anticipated to be greater than any previous interim period on record,” it added. 

During the period, they made a strategic shift to providing consultancy services and engaging with clients at a higher advisory level and Aeorema feels that opportunities are strong in virtual, hybrid and face to face events.

Mike Hale, Chairman of Aeorema, said: “In a period in which the team have worked tirelessly, up-skilling, retraining and refocusing on virtual and hybrid events following a history of purely live events, I believe we have created the perfect platform on which we can capitalise on the changes we have all experienced over the last 18 months, and changes which I believe are largely here to stay.

“We have adapted and are thriving with an increasing amount of client business, from existing and new clients, smaller companies to blue-chip, and our very strong pipeline is testament to the work and advice our team provide.”

The company's shares have jumped 31.5% on Tuesday, trading at 37.6p.

Should you invest in Aeorema Communications shares?

Aeorema Communications shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Aeorema Communications shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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