LONDON (Alliance News) - Insight and creative agency Jaywing PLC on Tuesday said it swung to a profit in its last financial year as it booked lower costs and revenue rose, and said it is well-placed in the aftermath of the EU referendum, the result of which it thinks will present both risks and opportunities for the business.
Jaywing said it made a pretax profit of GBP1.1 million in the year ended March 31, having suffered a pretax loss of GBP1.4 million the year before. Revenue increased to GBP36 million from GBP33.8 million, boosted by good growth in the media and analysis division, while profit was helped further by a decrease in depreciation and amortisation costs.
Jaywing said it has made an encouraging start to the new financial year as a result of the momentum achieved in the final quarter, adding that the impact of the EU referendum result "remains to seen" but presents both risks and opportunities.
"In the aftermath of the EU referendum, there is some uncertainty, which may lead to delays or reductions in the marketing spend of some clients. It is in times such as these that resilience matters, and we believe that we are well-placed to weather this storm as we have a large proportion of our income that is recurring and are not exposed to currency risks," Jaywing said in a statement.
"Whilst the EU referendum decision brings with it some risks, it also is likely to provide some opportunities. Our clients are likely to need support in preparing for life outside of the European single market, whilst marketers in general will be looking to improve the effectiveness of their media spend by increasing the proportion spent on digital channels or improving their use of digital media by taking a more sophisticated data science-led approach," the company added.
Last week, Jaywing said it agreed to acquire a 75% stake in Australian search marketing agency Massive Group Pty.
Massive Group, which trades as Digital Massive, specialises in search marketing from its headquarters in Sydney. Jaywing said the AUD4.0 million deal will expand its search marketing capabilities and cross-selling opportunities in Australia.
Shares in Jaywing were trading down 1.6% at 30.00 pence on Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Jaywing (JWNG)