Yorkshire-based data firm Jaywing cuts staff as company swings to loss

The firm, which also holds offices in Sydney and Melbourne, posted a slight dip in revenue of around 0.5 per cent to £1.1 million for the financial period.

Jaywing’s CEO Andrew Fryatt said that the company could see in the first quarter of this financial year that it was at risk of a slowdown in UK revenues, and took early action to reduce its cost base.

He also said that the company had been hit by a “weak UK market and a delay in client commitments”.

Mr Fryatt added: “With the support of our employees we were able to remove around 14 per cent of UK headcount, resulting in a significant improvement in UK profitability in the second quarter of this financial year.

“Following this exercise, Group headcount is 245 across the UK and Australia.”

The firm said that following the headcount reductions, UK agency revenue per head in the first half was up 9 per cent to £42,000.

The company posted group underlying adjusted EBITDA of £1.3 million, a 39 per cent rise on the same period last year.

Net debt increased by £1.5 million to £11.9 million as of 30 September 2023. The firm said this was due to the impact of its restructuring and the funding of its acquisition of software firm Midisi in 2022.

In Australia, Jaywing said it had seen “accelerating revenue growth” after expanding its focus on performance marketing and website design to include creative and data science components.

Australian revenue was up by 25 per cent to £3.4 million after the firm won additional business with New Balance and OES, as well as opening a new account with Crocs.

Speaking on the firm’s results in Australia, Mr Fryatt added: “Revenue gains have been delivered whilst maintaining tight control of costs, and the momentum is expected to continue into the second half of the financial year.”

In the UK, the firm’s risk consulting department also saw growth. Early in the year, Jaywing announced a significant new contract for modelling work with Virgin Media O2. The company then went on to later secure contracts with Hampshire Trust Bank and ITV.

Mr Fryatt added that the firm remained confident for the second half of the financial year, but was cautious given current economic conditions.

He said: “The actions taken to optimise our cost base, coupled with the strong growth of Australia and our Risk Consulting business in the UK, have helped us to offset the impact of the weaker UK Agency sector in the first half of the financial year.

“Our new business pipeline and strengthened integrated marketing proposition give us confidence for the second half, although we remain cautious given the backdrop of ongoing economic and geopolitical uncertainty.