Potential sale to be explored for Jaywing
Sheffield and Leeds-base data science agency, Jaywing, says a possible sale of the company will be explored as it continues to recover its profitability.
The business is now considered to be in an “offer period”, but confirms is not currently in receipt of any approach, nor in discussions with any potential offeror.
In an update published today, Jaywing notes strong trading in Australia and its Risk Consulting business has continued to offset the weakness in the UK Agency market.
It adds: “We have continued to cut costs, particularly in the UK which will ensure that we have maximum operational leverage as we emerge from this softer market.
“Whilst market conditions continuing to be challenging there are encouraging signs of recovery.”
Jaywing has increased its existing loan facility with its two lenders, DSC Investment Holdings Ltd and Lombard Odier Asset Management (Europe) Ltd by £566,500, taking the total facility to £9,766,500.
The business says its lenders remain “extremely supportive”, but have requested that as its expected recovery materialises throughout 2024, the agency should seek to refinance the loan facility, which was originally provided on a short-term interim basis in August 2019, with a more appropriate longer term capital base.
The update explains: “The company has invested significantly in broadening its geographic and technical capabilities to best serve the increasingly globalised demands of its customer base for cost effective solutions underpinned by technical insight and measurable return on marketing spend.
“In order to continue to build on this platform and reflecting the lenders desire to see the business recapitalised, the company will explore all strategic options, including a possible sale.”
Under the revised loan agreement each lender has the right to appoint two directors to the Board.
Lombard Odier has requested that Henry Turcan and Rob Giles be appointed. DSC has requested that David Beck be appointed as a director.
As part of the board restructuring Philip Hanson will resign as a director with immediate effect but will continue to support Jaywing in an advisory capacity.
