Digital marketing firm Jaywing, which counts Asda and Domino’s Pizza among its customers, has reached a deal to provide an injection of additional funding.
The Sheffield-based firm said the additional finance will put the company in a much stronger financial position.
Jaywing has reached a deal with parties associated to its two major shareholders to provide the working capital.
The additional finance will help the firm to meet its short term financing requirements and enable it to realign the business to meet clientdemand in a market place which is evolving rapidly.
The group said its major shareholders have indicated their ongoing support for the business.
Jaywing's CEO Rob Shaw said, “I’m pleased we have reached a positive conclusion to our negotiations and secured this deal for Jaywing’s future.
"It comes at a time when many agencies are struggling financially on the back of difficult trading conditions.
"By addressing this funding challenge now, we have put the company in a strong position relative to its competition, which should make Jaywing even more attractive to both clients and talent.”
The company announced that it was in negotiations to secure a deal at the end of August.
Earlier this week Jaywing said slow UK trading conditions had led to a requirement for additional funding.
On Monday, the firm said it was in constructive dialogue with its debt and equity holders over financing requirements as it reported soft and unpredictable demand in delayed annual results.
The firm reported a 14 per cent fall in revenue to £35.6m in the year to March 31 and a £935,000 loss from continuing operations.
Jaywing said adjusted EBITDA rose 15 per cent in challenging market conditions and said the sale of its non-core, lower margin, contact centre business HSM Limited has been used to part fund restructuring costs.