25th Aug 2021 11:06
(Alliance News) - Jaywing PLC on Wednesday confirmed its ability to continue as a going concern as it swung to an operating profit in the recent financial year, despite posting lower revenue and a pretax loss.
Shares in the data-driven advertising and marketing agency jumped 8.7% to 12.50 pence in London on Wednesday morning in response. Earlier in the morning, the price had hit 13.50p.
In the financial year that ended March 31, operating profit was GBP91,000, compared to losses of GBP8.9 million and GBP809,000 in financial 2020 and 2019 respectively.
"At the beginning of the financial year being reported, the impact of Covid-19 indicated the existence of a degree of uncertainty which cast significant doubt, as with many other organisations, about the group's ability to continue as a going concern. The outcome for the year and the forecasts prepared by the business show that we do not consider there to be same level of uncertainty now as there was 12 months ago," Jaywing said.
Despite reduced uncertainty, the company's revenue fell 13% to GBP26.0 million from GBP29.7 million the year prior. Revenue was 27% below the GBP35.6 million taken two years prior, before the pandemic.
Nevertheless, pretax loss narrowed to GBP360,000 from a GBP9.4 million loss the year prior, as operating expenses fell and operating income rose. Jaywing had a GBP1.1 million pretax loss in financial 2019.
In the recent financial year, operating expenses totalled GBP20.9 million, the company said, down 36% from GBP33.0 million the year prior and 31% lower than the GBP30.7 million spent in financial 2019.
Other operating income rose sharply to GBP793,000 in the recent period from only GBP38,000 the previous year and GBP13,000 in financial 2019.
The company did not propose a dividend for the recent financial year, in keeping with its 2020 and 2019 financial years.
"Having protected our cash and profitability through the pandemic, we are now well positioned to focus on growth," Jaywing noted.
"The first quarter of [financial 2022] has been encouraging, with net revenue up 23% on last year, several new clients, and a good pipeline of opportunities," the company added.
By Scarlett Butler; [email protected]
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