Aeorema Communications
Website:
Aeorema Communications
Index:
AIM
EPIC: AEO
Supersector:
Media
Sector:
Media
Subsector:
Broadcasting and Entertainment
Market Cap:
£6.18M
Payout Frequency: Annual
Aeorema Communications Dividend Analysis and Summary
Headline dividend details
- Proposed final dividend: 1.0 pence per share
- Ex-dividend date: 18/06/2026
- Record date: 19/06/2026
- Payment date: 10/07/2026
- Total dividends for the period: 4.0 pence per share (3.0p interim already paid + 1.0p proposed final)
- Estimated cash cost of proposed final: ~£94k (based on 9,435,500 shares after buyback cancellations)
- Indicative yield (reference buyback price ~65p): final ~1.5%; total period distribution ~6.2% over 18 months
Context and payout metrics
- Statutory EPS (18 months to 31 Dec 2025): ~1.89p; period dividend of 4.0p implies sub-1x cover on reported earnings.
- Adjusted performance stronger: underlying PBT £0.80m (up 107%); PBT excl. FX/liquidation £0.44m.
- Cash position: £2.2m at 31 Dec 2025; £4.1m as at announcement; no bank debt outstanding; lease liabilities £0.44m.
- Operating cash flow over the 18 months was broadly flat (reported ~£0.0m), reflecting event timing and working capital movements; deferred income rose to £3.8m.
Sustainability and growth outlook
- Coverage: The proposed final (~£94k) is modest relative to cash and underlying profitability, but the full 18-month payout (4.0p) is not covered by statutory EPS. On an underlying basis and in cash terms, coverage looks more comfortable.
- Earnings quality: Gross margin compression to 16% (from 19%) is a headwind, but a completed restructuring (33% headcount reduction, senior-weighted model) and a pivot to fewer, higher-value projects support medium-term margin rebuild.
- Growth signals: Strong 2026 trading start, record Cannes Lions bookings, expanding US presence, and improved forward visibility underpin the Board’s confidence and the maintenance of a progressive dividend stance.
Structural and policy considerations
- Share buybacks: 257,500 shares repurchased at ~65p and cancelled on 07/04/2026, reducing shares in issue to ~9.44m and lowering future dividend cash outflow per pence of DPS.
- Year-end change: Moved to 31 December, creating an 18-month reporting period; headline comparisons and payout cover should be interpreted with this in mind.
- Restructuring and entity rationalisation: Cost-reduction programme completed; liquidation of Dutch subsidiary — no direct adverse impact on dividend capacity signalled.
Risks and flags to dividend stability
- Customer concentration: Two major customers; largest at 18% of revenue — loss could pressure earnings and dividends.
- Margin pressure: Wage and third-party cost inflation reduced gross margin to 16%; recovery depends on execution of higher-value mix and cost discipline.
- FX exposure: Non-trading FX loss of ~£0.25m affected reported profits; growing USD exposure increases volatility.
- Working capital cyclicality: Event timing and large deferred income balances can swing cash generation intra-year.
- Coverage optics: Period dividend exceeds statutory EPS; ongoing sustainability rests on delivery of underlying profit growth and margin rebuild through 2026.
Read more
Aeorema Communications Annual Dividend Yield - 8.9%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/12/2024 |
20/01/2025 |
Final |
3.00p |
GBX |
| 30/10/2025 |
24/11/2025 |
Interim |
3.00p |
GBX |
Total (Annual Dividends Per Share):
6.00p
Dividend Yield =
Annual Dividends Per Share (6.00p)
÷ Share Price (67.45p)
= 8.9%
Aeorema Communications Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 18/06/2026 |
10/07/2026 |
Final |
1.0000p |
GBX |
| 30/10/2025 |
24/11/2025 |
Interim |
3.00p |
GBX |
| 24/12/2024 |
20/01/2025 |
Final |
3.00p |
GBX |
| 21/12/2023 |
19/01/2024 |
Final |
3.00p |
GBX |
| 22/12/2022 |
20/01/2023 |
Final |
2.00p |
GBX |
| 21/11/2019 |
16/12/2019 |
Final |
1.00p |
GBX |
| 13/12/2018 |
11/01/2019 |
Final |
0.75p |
GBX |
| 14/12/2017 |
12/01/2018 |
Final |
0.50p |
GBX |
| 03/11/2016 |
25/11/2016 |
Final |
2.00p |
GBX |
| 10/03/2016 |
01/04/2016 |
Special |
3.00p |
GBX |
| 05/11/2015 |
27/11/2015 |
Final |
3.00p |
GBX |
| 23/10/2014 |
21/11/2014 |
Special |
3.00p |
GBX |
| 23/10/2014 |
21/11/2014 |
Final |
2.00p |
GBX |
| Year |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
3.000 |
|
GBX |
3.000 |
0.000 |
| 2023 |
3.000 |
|
GBX |
3.000 |
50.000 |
| 2022 |
2.000 |
|
GBX |
2.000 |
100.000 |
| 2019 |
1.000 |
|
GBX |
1.000 |
33.330 |
| 2018 |
0.750 |
|
GBX |
0.750 |
50.000 |
| 2017 |
0.500 |
|
GBX |
0.500 |
-90.000 |
| 2016 |
2.000 |
3.000 |
GBX |
5.000 |
66.660 |
| 2015 |
3.000 |
|
GBX |
3.000 |
-40.000 |
| 2014 |
2.000 |
3.000 |
GBX |
5.000 |
|
Aeorema Communications Dividend Calculator
Aeorema Communications Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
14.87%
|
| Years of Growth |
–
|
| Payout Ratio |
319.2%
|
| Buyback Yield |
11.26%
|
| Shareholder Yield |
15.34%
|
| P/E Ratio (TTM) | 52.81 |
|---|
| Forward P/E | 14.49 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 1.97% |
|---|
| FCF Yield | -2.48% |
|---|
| ROE | – |
|---|
| ROCE | 9.38% |
|---|
| Profit Margin | 0.62% |
|---|
| Operating Margin | 1.43% |
|---|
| Gross Margin | 16.48% |
|---|