Bosses at marketing firm Jaywing have moved to delay the firms preliminary results following what it described as a “very weak period of trading”.
The listed Sheffield-based firm had been due to publish details of its financial performance for the year to March 31 before the end of August but has now said this will not happen prior to the end of September.
Jaywing told shareholders that trading had improved since June but that the market was “challenging with client activity adversely impacted by the uncertain economic and political outlook”.
The firm is now in negotiation with its bankers and its two principal shareholders as it battles to strengthen its balance sheet, discussions Jaywing characterised as “ongoing and constructive”.
Jaywing’s two main shareholders are Lord Ashcroft and Lombard Odier Investment Managers Group who between them own more than 50 per cent of the firm.
The firm had warned on profits in July, saying that revenues were likely to be below those posted in previous years.
In 2018 it posted revenues of £47.54m.
The news sent the value of Jaywing shares plummeting by close to 40 per cent in morning trading.
Earlier this year Jaywing announced that it had agreed to partner fashion brand PrettyLittleThing to deliver a new public relations strategy for the business.
PrettyLittleThing, part of the Boohoo group and headquartered in Manchester, has signed on with Jaywing to deliver greater positive brand sentiment for its reputation.
Jaywing employs approximately 650 people across multiple sites.
Its headquarters is in Albert Works on Sidney Street in Sheffield and it has significant bases in Leeds’s South Bank area, as well as in London, Swindon and Newbury.
It also has an Australian arm which last year accounted for approximately 10 per cent of its revenues.