Agency Jaywing enjoys turnaround in its profitability
The Sheffield-based firm reported adjusted earnings of £1.4m in the six months to September 30, up from a loss of £600,000 in the previous half year.
Andrew Fryatt, CEO of Jaywing, said: “I’m delighted to report a significant turnaround in Jaywing’s profitability... despite a fall in revenue primarily brought about by the Covid pandemic.
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Hide Ad“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 said these actions have ensured that despite the revenue reduction, the impact on EBITDA was mitigated and the firm has been able to retain key employees so that it is now well positioned to benefit as revenues rebuild.
The restructuring plan that started last year continued into the current year, and in August Jaywing reorganised its UK businesses to focus on making its full range of services available to its entire client base, whilst reducing headcount by a further 20 heads.
The firm’s front office teams are now focused on three broad sectors: retail, FMCG (fast moving consumer goods) and financial & professional services. They are supported by four operational divisions: data science, performance & media science, creative and public relations.
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Hide AdMr Fryatt said: “Together, these enable our proposition of an ‘integrated agency powered by data science’, which is proving ever more relevant in the current climate.”
Despite the Covid related revenue reduction, net revenue per employee increased by 3.8 per cent to £32,700.
“Having just moved from the second lockdown into the new tiered structure, we remain cautious about the full year outlook,” said Mr Fryatt.
“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.
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Hide Ad“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.”