LONDON (ShareCast) - A strong increase in sales and a lower cost base helped communications and events specialist Aeorema Communications post its first annual profit since 2010.

The AIM-listed company, which operates through the Cheerful Scout video production arm and Twentyfirst events company, made a £0.36m profit before tax in the year to end-June, compared to a £0.04m loss the year before.

Revenues jumped 41% from £2.84m to £3.99m as the events business thrived.

The company added several new clients, with work during the year including the production of films and strategic advice on two events run by a professional services firm, running events at the Cannes Lions creative festival for a global software company and creating a series of films for a leading management consultant for its new graduate recruitment microsite.

Costs were cut and a move to new offices created a cost saving of £150,000 per year.

Excited by its growth prospects, management has proposed payment of an “enhanced maiden dividend” of 1.5p per share, but cautioned that in future it would consider a “more normalised” dividend level.

Chairman Mike Hale said: “In summary, our focus and confidence in our core offering have created a stronger business closely aligned with our clients' requirements.

“We believe that having reduced overheads and added new clients that Aeorema is positioned well for future growth but that we are reliant on the decisions of our clients to our creative proposals.”

Shares in Aeorema were up 37% to 47p at 14:51 on Tuesday.

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