Jaywing has reported profits up 39%, despite “challenging economic conditions.”
The results relate to the first half of this financial year and show its adjusted EBITDA has risen to £1.31m. Its total revenue has remained fairly static year-on-year, dropping 0.5% to £11.107m, led by strong performance of Jaywing Australia.
The agency, which has offices in Leeds, Sheffield and Sydney, Australia said that while there had been decreased spend across the UK marketing sector, its UK marketing division had had a strong second quarter. This was partly due to a restructure and “removing around 14% of its UK headcount.” It now employs 245 staff across the UK and Australia.
Andrew Fryatt, CEO of Jaywing Plc said the restructure meant its cost-base was “right-sized” for expected revenues:
“We have found ourselves operating against a backdrop of continuing challenging economic conditions and in a Marketing sector coming to terms with clients slowing down their spend,” explained Fryatt.
“With the risk of a slowdown in UK revenues, we took early action to reduce our cost base to ensure that we were in the right shape for the balance of the year. Working in partnership with our employees, we were able to offer a voluntary redundancy opportunity in overstaffed areas which enabled the business to reshape with only minimal compulsory job losses. As such, we were able to remove around 14% of UK headcount.
“In the second quarter of this financial year, this helped us to achieve our best quarterly adjusted EBITDA since before the pandemic and we are confident of a good second half despite the economic conditions.”
Over the period, its UK marketing operation worked with new and returning clients, including DUSK.com, Subaru Europe, Lowell Financial and HSBC.
Its Risk Consulting division had a 23% growth in revenue, driven by partnerships with Virgin Media O2, Hampshire Trust Bank and ITV.
Jaywing Australia also grew, with its revenue up 25% over the period as it worked with brands such as OES, Crocs Australia and New Balance. That growth has been offset by international exchange rates – looking purely at growth using its local currently, its turnover was up 36%.
