Losses widen at data science group as client spending slows
Sheffield and Leeds-base data science agency, Jaywing, says it has been operating against a backdrop of continuing difficult economic conditions, in a sector hit by a widespread slowdown in client spend.
Publishing its interim results for the six months ended 30 September 2023, the business has today reported revenues of £11.1m (2022: £11.2m) and a pre-tax loss of £1.4m (2022: £208,000 loss).
Andrew Fryatt, CEO, said: “In the first quarter of this financial year we could see the risk of a slowdown in UK revenues, and we took early action to reduce our cost base to ensure we were in the right shape for the balance of the year.
“With the support of our employees we were able to remove around 14% of UK headcount, resulting in a significant improvement in UK profitability in the second quarter of this financial year (July 23 to September 23).
“Following this exercise, group headcount is 245 across the UK and Australia.”
Jaywing says the actions it took to optimise its cost base, coupled with strong growth of its operations in Australia and its Risk Consulting business in the UK, has helped offset the impact of the weaker UK Agency sector in the first half.
The agency adds that its new business pipeline and strengthened integrated marketing proposition give it confidence for the second half.
But the firm notes it remains cautious given the backdrop of ongoing economic and geopolitical uncertainty.
