Listed digital marketing company issues profit warning

A Sheffield-headquartered digital marketing firm has issued a profit warning, stating its trading in the first quarter has been “very weak”.

Jaywing, which also has a large Leeds base, said that political and economic uncertainty had impacted the firm because clients were focused on short term strategies.

Issuing a trading update, Jaywing said:  “Where their spend is discretionary, it is running at a level well below that seen in previous years.

“So, even at this relatively early stage in the year and with a significant amount (typically 50%) of revenues being recurring, it is unlikely that the current year’s profit will match last year’s.”

The company is intending to publish its preliminary results for the year to 31 March 2019 before the end of August 2019. These are expected to report that the EBITDA measure of profitability is in line with market expectations.

Last month, Jaywing was revealed to be among Sheffield City Region’s fastest-growing companies, with a turnover of £47.5m last year.

In January, Jaywing confirmed it had sold its contact centre. 

In May, the company reported a year of “solid progress”, boosted by growth in its online marketing division and fast-growing operations in Australia.