30th Sep 2019 10:25
(Alliance News) - Jaywing PLC shares dropped sharply on Monday morning following the company's negative outlook for the current financial year.
Shares in the media company were down 21% in mid-morning trading in London at 2.62 pence each.
In the year to the past March 31, Jaywing's pretax loss was flat on the year before at GBP1.1 million.
Revenue slipped 14% to GBP35.6 million from GBP41.5 million the year before.
Chair Martin Boddy said: "During the year, overall demand in the UK was relatively soft and at times unpredictable. Despite this, margins improved significantly, with adjusted Ebitda increasing by 15% despite an overall 3% reduction in gross profit. Encouragingly, in the UK we saw a return to top line growth in our Online Performance segment, with gross profit growing by 10%. But it was in Australia where we experienced the strongest growth and our Australian operation now accounts for 13% of the overall gross profit."
Jaywing's adjusted earnings before interest, tax, depreciation and amortisation rose to GBP3.3 million from GBP2.9 million the year before. Ebitda margin improved to 11.2% in the period from 9.4%.
The company said the "slow trading conditions" seen in the UK in the fourth quarter of financial 2019 continued into the first quarter of financial 2020. As a result, Jaywing said it requires additional funding.
"Trading in the final quarter of financial 2019 and the first quarter of the new financial year was particularly challenging and, whilst improving during the second quarter, the ongoing uncertain economic and political outlook is likely to continue to impact client activity," Boddy added.
"The company remains in constructive dialogue with its debt and certain equity holders with regards to the company's financing requirements with a view to obtaining an enlarged working capital facility."
By Paul McGowan; [email protected]
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