26th Nov 2020 11:28
(Alliance News) - Jaywing PLC on Thursday posted a significantly widened loss for its financial year that ended back in March, as it warned it expects income in financial 2021 to take a further hit due to the pandemic
Shares in the data-driven media consultancy were trading 13% lower at 5.13 pence each on Thursday morning in London.
For its financial year ended that ended March 31, Jaywing posted a pretax loss of GBP9.4 million, considerably widened from the GBP1.1 million loss recorded the year before. This was as revenue fell 20% to GBP29.7 million from GBP35.6 million as a result of "difficult market conditions".
Operating expenses increased to GBP33.0 million from GBP30.1 million.
The Sheffield-based company said the Covid-19 pandemic has hurt trading further since the end of March, with revenue for the first quarter falling 20% year-on-year as a result of clients reducing or delaying spend during the initial lockdown period.
Looking ahead, Jaywing said it believes it is still at least six months away from revenue returning to pre-pandemic levels in the UK but warned this could be further extended if the second wave hits hard. Positively, it noted that in Australia, revenue is already close to the levels recorded in the fourth quarter for financial 2020.
"At this stage we expect the impact of Covid-19 to be a significant reduction in full year net revenues for financial 2021 compared to financial 2020, but with good prospects for a significant improvement in underlying earnings before interest, taxes, depreciation, and amortization," added Chief Executive Andrew Fryatt.
For financial 2020, the company posted an adjusted Ebitda loss of GBP158,000.
By Ife Taiwo; [email protected]
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