Jaywing plc Preliminary Announcement July 2018

30 September 2019 / Jaywing

Jaywing plc

30 September 2019

Jaywing plc

(“Jaywing” or “the Company”)

Posting of Annual Report and Accounts

 

Jaywing plc, the UK agency specialising in data science, announces that copies of the Annual Report and Accounts for the year ended 31 March 2019 are today being posted to shareholders and are available to view on the Company's website: www.jaywingplc.com.

 

The page references below refer to those in the Annual Report and Accounts.

 

Enquiries:


Jaywing plc
Michael Sprot (Company Secretary)                               Tel: 0114 281 1200

 

Cenkos Securities plc

Nicholas Wells (Nominated Adviser)                               Tel: 0207 397 8920

 

Financial highlights from continuing operations

 

Year to 31 March 2019

£’000

Year to 31 March 2018

£’000

Revenue

35,554

41,511

Gross profit*

29,845

30,849

Adjusted EBITDA** (note 1)

3,329

2,889

Adjusted EBITDA margin***

11.2%

9.4%

Loss after tax from continuing operations

(935)

(992)

Basic EPS on adjusted EBITDA

3.6p

3.1p

Basic EPS from continuing operations

(1.15p)

(1.06p)

Net debt

(4,960)

(5,918)

 

* Revenue less third party direct costs of sale

** Before share-based charges, exceptional items and acquisition related costs

*** As a percentage of gross profit

 

Highlights:

  • Grew adjusted EBITDA by 15% in challenging market conditions
  • Increase in adjusted EBITDA margin from 9.4% to 11.2%
  • Reduction in net debt of nearly £1.0m
  • Sale of non-core, lower margin contact centre business HSM Limited used to part fund re-structuring costs
  • Slow trading conditions in the UK in Q4 of FY19 and the first quarter of FY20, leading to a requirement for additional funding
  • The Company remains in constructive dialogue with its debt and certain equity holders with regards to the Company’s financing requirements

 

Commenting on the results, Martin Boddy, Chairman of Jaywing, said,

"During the year, overall demand in the UK was relatively soft and at times unpredictable. Despite this, margins improved significantly, with adjusted EBITDA increasing by 15% despite an overall 3% reduction in Gross Profit (GP). Encouragingly, in the UK we saw a return to top line growth in our Online Performance segment, with GP growing by 10%. But it was in Australia where we experienced the strongest growth and our Australian operation now accounts for 13% of the overall GP. 

The quality of income also improved with nearly 70% of our top 50 clients now buying more than one service line and 50% of revenues being visible beyond 6 months. 

“The disposal of a non-core call centre business (HSM Limited) has allowed management to concentrate on the core business. It provided the cash to undertake some re-structuring and sharpen our proposition to clients whose main priority is driving efficiency in marketing. With its data, digital and technology focus all delivered through a collaborative operating model, Jaywing is well positioned to take advantage of any hardening in marketing spend as and when it comes.

Trading in the final quarter of FY19 and the first quarter of the new financial year was particularly challenging and, whilst improving during the second quarter, the ongoing uncertain economic and political outlook is likely to continue to impact client activity. The Company remains in constructive dialogue with its debt and certain equity holders with regards to the Company’s financing requirements with a view to obtaining an enlarged working capital facility.” 

Read the full RNS here: Jaywing plc 2019 Annual Report and Accounts