Aeorema flags higher revenue, stronger profitability

18th Nov 2025 14:53

(Sharecast News) - Aeorema Communications said in an update on Tuesday that it expects higher revenue and stronger profitability for the extended 18-month period to 31 December, supported by restructuring benefits, a healthier pipeline and growing demand across North America and EMEA.

The AIM-traded strategic communications group said it now anticipated revenue of no less than £29m, compared with £27.5m in the same 18-month period a year earlier, and underlying profit before tax of at least £700,000, more than double the prior period's £318,000.

Reported profit before tax was expected to be no less than £390,000, reflecting one-off restructuring costs incurred as part of a cost-reduction and rebalancing programme launched in 2024.

Bank balances stood at £2.25m, down from £3.1m in June, which the company said reflected investment in delivering major client projects.

Aeorema reiterated its commitment to shareholder returns, adopting a progressive dividend policy linked to earnings growth.

An interim dividend of 3p per share, declared in September for the 12 months to 30 June 2025, would be paid later this month, with any final dividend for the full 18-month period to be determined at the time of audited results.

The firm said restructuring efforts were now complete and had positioned the business for improved operational efficiency and margin growth.

It added that its international expansion was continuing to gain momentum, particularly in North America, where Cheerful Twentyfirst had delivered a series of large-scale projects for clients including the Wall Street Journal, Smartly and Instacart.

Around 40% of recent North American work came from new client relationships.

The group also reported further growth at Cannes Lions and increasing engagement around major international events such as CES, Davos, Art Basel and SXSW.

"We're pleased with the continued growth in revenue over the 18-month period and, more importantly, with the strong foundations now in place for increased profitability going forward," said chief executive Steve Quah.

"Our restructure is complete, our pipeline is healthy, and our teams continue to deliver exceptional work for clients around the world.

"As we approach our new financial year, we are focused on converting our momentum into margin growth and shareholder value."

Aeorema said it was entering 2026 with a broader client base, stronger regional presence and sustained demand across its core markets.

The board said margin improvement and profit growth would remain central priorities as the business transitioned to a calendar-year reporting cycle.

At 1342 GMT, shares in Aeorema Communications were up 1.65% at 64.55p.

Reporting by Josh White for Sharecast.com.