Listed marketing agency finds grounds for cautious optimism
Sheffield-headquartered marketing agency Jaywing says it has managed to stabilise its business and lay the foundations for recovery.
It has published its interim results for the six months ended 30 September 2020, which include revenues of £11.3m, down from £13.8m for the equivalent period in 2019.
The agency made a pre-tax loss of £251,000, compared to a loss of £1.5m the year before.
It also reports a £2m improvement in adjusted EBITDA to £1.4m, compared with a £0.6m loss in the prior period, with £1.9m in cash generated from operations including IFRS 16.
Andrew Fryatt, CEO of Jaywing, said: “I’m delighted to report a significant turnaround in Jaywing’s profitability, to deliver £1.4m of adjusted EBITDA for the half year period, compared with a loss of £0.6m for the prior year comparative period, despite a fall in revenue primarily brought about by the COVID pandemic.
“We have been able to stabilise the business and restore it to both profitability and strong cashflow generation.
“We continue to operate successfully on a remote basis, and have taken measures to secure our financial position, including voluntary salary reductions, cost reductions, rent deferrals, use of Government grant income and deferral of certain HMRC payments.
“Having just moved from the second lockdown into the new tiered structure, we remain cautious about the full year outlook.
“Whilst some clients are now spending at or above pre-pandemic levels, others have continued to defer expenditure in the face of the ongoing COVID impact on their business.
“We are nonetheless confident that the business is now on a secure footing with the foundations in place for recovery and future growth.”