Jaywing has published its Interim Results this morning, showing that it has returned to profit.
However, the Sheffield agency saw its revenue fall from £12m in September last year, to £9.3m.
The agency’s operating profit rose to £72k, after a loss of £1.4m over the same period last year. Its adjusted EBITDA increased from a loss of £573k, to profit of £1.4m.
Jaywing also saw a reduction in its net debt, from £5.7m, to £5.1m.
Jaywing’s CEO, Andrew Fryatt said that while Covid-19 had impacted upon its revenue, he was “delighted” about the “significant turnaround” in the company’s profitability.
“We have been able to stabilise the business and restore it to both profitability and strong cashflow generation. We continue to operate successfully on a remote basis, and have taken measures to secure our financial position, including voluntary salary reductions, cost reductions, rent deferrals, use of Government grant income and deferral of certain HMRC payments,” he stated.
“These actions have ensured that despite the revenue reduction, the impact on EBITDA was mitigated and we have been able to retain key employees so that we are now well positioned to benefit as revenues start to rebuild.”
Jaywing announced a restructure in October last year, which saw 20 staff lose their jobs.
“Having just moved from the second lockdown into the new tiered structure, we remain cautious about the full year outlook. We have continued to win new business with new clients including Ikano Bank, Starling Bank, Studio Retail and Costcutter, and also additional business with existing clients, including award-winning work for KCOM,” Fryatt continued.
“However, whilst some clients are now spending at or above pre-pandemic levels, others have continued to defer expenditure in the face of the ongoing COVID impact on their business. We are nonetheless confident that the business is now on a secure footing with the foundations in place for recovery and future growth.”
Its acquisition of Australia’s Massive Group Pty took place outside of this financial period.
