Jaywing has warned that its revenue and profits are likely to be below market expectations.
While the figures demonstrate growth year-on-year, its share price fell 21.82% on the news.
Jaywing said that it had been implementing cost saving measures due to “ongoing uncertainties within domestic markets and the global economy.”
However, there had been “a softening of demand over the past two months with certain clients seeking to defer their marketing spend, both in the UK and Australia, until the economic situation settles or improves.”
It anticipates that full year revenues for the year ending 31st March 2023 will be between £20m and £22.5m, with adjusted EBITDA ahead of last year. This is mainly due to a 5% reduction in group costs.
Over the last 3 years it has undergone a restructure, which, it says, has increased revenue per head by 27% and reduced office costs by 19%.
Jaywing Australia has signed a “significant” new client in the period, with Online Education Services. This deal alone is expected to increase revenues by around 5% in the following financial year – it was signed too late to have a large impact on this year’s results.
“Whilst we are disappointed to see some clients spending less than expected in the fourth quarter of the financial year, we expect this to recover as conditions improve, and we are delighted by the substantial win in Australia,” said Andrew Fryatt, CEO.
“Our cost management has mitigated the impact of this revenue shortfall, allowing us to continue growing adjusted EBITDA, and has also ensured that the Group is appropriately structured to operate in these challenging market conditions.”
Jaywing added that the overall “opportunity pipeline” continued to build in both UK and Australia, but “the lead times for both decision-making and start dates have lengthened.”
