Sheffield-headquartered Jaywing has reached a deal with “entities associated to its two major shareholders” to secure an injection of working capital.
CEO Rob Shaw said: “I’m pleased we have reached a positive conclusion to our negotiations and secured this deal for Jaywing’s future.”
On Monday, the digital marketing agency reported a reduction in revenue from £41.5m to £35.5m for the year to 31st March. It had had to delay the reporting of its results because of a “very weak” first quarter of trading.
Jaywing said: “The additional finance ensures that the Company is in a much stronger financial position not only to meet its short-term financing requirements, but also to continue realigning the business and its product offerings to client demand in a market place which has and continues to evolve rapidly.”
Major shareholders have “indicated their ongoing support for the business” and Shaw added: “By addressing this funding challenge now, we have put the company in a strong position relative to its competition, which should make Jaywing even more attractive to both clients and talent.
“It comes at a time when many agencies are struggling financially on the back of difficult trading conditions.”
