Revenues slip at data science group amidst slow down in client spending

Sheffield and Leeds-base data science agency, Jaywing, says the dip in UK consumer confidence has put pressure on its client budgets, as it publishes its audited results for the year ended 31 March 2023.

The agency reports revenues for the group for FY23 of £22.1m (2022: £23.3 m), 5.4% down on FY22. The decrease in revenue in FY23 comprises a fall of 9.5% in UK revenues (2022: increase of 13.3%) and a rise of 8.8% in Australia revenues (2022: increase of 25%).

Over the same period the group made a pre-tax loss of £12.5m (2022: £6.6m loss).

Ian Robinson, non-executive chairman, said: “Our staff in the UK and Australia have continued to work closely with our customers to help serve their varied and challenging business needs and continued to win and welcome new customers to Jaywing.

“Whilst trading conditions in the UK remain challenging, the recent restructuring of the UK division and recent new business wins as well as a strong pipeline is expected to assist the UK division’s ability to withstand ongoing challenges in the macroeconomic environment as well as improving margin run rates.

“Recent significant new business wins in Australia are expected to provide strong revenue and profitability growth.”

The agency notes that in the first quarter of FY24 it carried out a significant restructuring of the UK division to improve margin efficiency through cost reduction, and implemented a new organisational structure which is intended to help the group rebalance its strengths on its higher margin services.

In the UK, Jaywing says its clients have slowed down on new spending through the end of last year and the first two months of the current year.

But from June onwards it says it has started to see an upturn in client spending, along with a growing pipeline of new client opportunities.

The group emphasises that despite more encouraging revenue performance recently, it continues to manage costs tightly.