Early progress made at data science group following action to cut costs
Sheffield and Leeds-base data science agency, Jaywing, says it must wait to reap the full rewards of a significant restructuring of its UK division.
The business has today published its audited results for the year ended 31 March 2024, in which it reports revenues of £21.5m (2023 £22.1m) and a pre tax loss of £2.4m (2023: £12.5m pre tax loss). Group adjusted EBITDA for FY24 was up by 13.3% to £2.2m.
Jaywing says that as cash savings from cost reduction initiatives, combined with the benefit of recent new business wins begin to make an impact, it anticipates reaching a more stable cash position in the second half of the current year.
David Beck, executive chairman, said: “The group has been undergoing a period of significant change and recovery that started in the financial year ended 31 March 2024 (FY24) and has continued since.
“The results for FY24 reflect some of the early progress made, although the full impact of the actions taken to reduce the cost base will not be felt until the current financial year.
“UK market conditions remain challenging but the UK operation is now leaner, more efficient and able to convert more of its future revenue growth into profit and cash.
“Changes to our leadership teams and a greater focus on marketing of the group’s data and creative skills alongside investments made in client growth, are beginning to make a difference to operational performance. Cash however remains very tight and a key focus for management.”
Jaywing notes tough economic conditions, higher interest rates and falling consumer confidence all contributed to a difficult trading period in the UK.
Overall, the UK division saw a 9.9% reduction in revenue in the year ended 31 March 2024.
But Jaywing points out that market conditions in Australia – where the agency has offices in Sydney and Melbourne – were more favourable and helped its operations there grow both revenue and profitability.
