26 August 2020
Jaywing plc ("Jaywing")
("Jaywing", "the Company" or "the Group")
Appointment of Chief Financial Officer, Notice of Results, Trading Update and Closure of Performance Share Plan
Appointment of CFO
The Board of Jaywing plc (AIM: JWNG), the UK agency specialising in data science, is pleased to announce that it has appointed Caroline Ackroyd as Chief Financial Officer with effect from 7th September 2020. Caroline will report directly to Andrew Fryatt, Chief Executive Officer, and is expected to join the Board in due course.
Caroline is an experienced CFO with significant commercial experience in technology-based businesses operating in competitive and client-centric markets. She is currently CFO of Push Doctor, a provider of online GP services, and previously held senior finance roles in Sky Betting & Gaming and Coral Interactive.
Full Year Results Announcement
The Company announces that it has received approval from AIM under its COVID-19 temporary measures for a three-month extension in the publication of the Company’s full year results for the year ended 31st March 2020. These will now be published before the end of November 2020. The Annual General Meeting of the Company will take place on 29th September 2020, followed by a General Meeting in December 2020 to approve the financial statements. A notice of the Annual General Meeting will be posted to shareholders in due course.
Performance Share Plan
The Company also announces the termination of the Jaywing Plc Performance Share Plan, with effect from 9th October 2020, in accordance with the rules of the plan. Following this closure, there will then be no outstanding share options under the Performance Share Plan, although the Company continues to operate an employee Save As You Earn scheme, which terminates in 2021.
Following the trading and banking challenges during the previous financial year, the Company began the process last year of restructuring and realigning the business more closely to its clients and its service offerings. This restructuring and realignment of the business has continued following the appointment of Andrew Fryatt as CEO in March 2020.
The Company expects to report net revenue for the year ended 31st March 2020 of approximately £24.0m (2019: £29.8m). At 31st March 2020, net debt was £5.7m (2019: £5.0m).
Since March 2020, the economic impact of COVID-19 has resulted in revenue levels below those of the prior year, but the Company has taken actions to protect both cash and profitability through this period, including voluntary salary reductions, cost reductions, rent deferrals and deferral of certain HMRC payments. The Company has also continued to win new business and the April to June quarter has been profitable at EBITDA* level (unadjusted). As at 31st July 2020, the Company’s net debt had reduced to £3.9 million, excluding £1.7m of deferred liabilities for VAT, PAYE and rent. Whilst there remains considerable uncertainty in markets generally, the Company believes that it is well positioned to benefit as economic activity recovers.
Andrew Fryatt, CEO, commented:
“We have been able to provide continuous service to our clients since March, and I am pleased that we have to date mitigated the impact of this pandemic on the business. I am grateful to our employees for adapting so rapidly to remote working.
“I am also delighted that we have been able to recruit someone of the calibre of Caroline into the CFO role and look forward to working with her to fulfil the potential of Jaywing.”
This announcement is released by Jaywing and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Group's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Group by Andrew Fryatt, Chief Executive Officer.
*operating profit after adding back depreciation, amortisation, share based payment charges and other non-cash charges.
Jaywing plc (www.jaywingplc.com)
Andrew Fryatt (CEO)
Tel: 0114 281 1200
Cenkos Securities plc
Nicholas Wells/Callum Davidson (Nominated Adviser)
Tel: 0207 397 8900