Jaywing Regulatory News (JWNG)

11 August 2022

Jaywing Plc

("Jaywing" or the "Company")

Year End Trading Update, Results, AGM and potential acquisition

Jaywing Plc (AIM: JWY), the marketing and data science business specialising in integrated marketing and risk and data consulting, provides the following unaudited trading update for the 12 months to 31 March 2022.

Highlights

· Net revenue for the year ended 31 March 2022 is expected to deliver growth of 16% at £23.3m (2021: £20.2m).

· Strong growth in Retail, Financial & Professional Services, and in Australia. Our new business wins and pipeline continue to be strong, with new client wins including Rush Hair and Beauty, Hallmark Cards, Cox Automotive, CityFibre and Skipton Building Society.

· Combined with careful cost management, this has enabled significant improvement in underlying profitability with Adjusted EBITDA broadly in line with market expectations.

· Full year results for the year to 31 March 2022 will be published in early September, with the Annual General Meeting following by the end of September 2022.

· The Company today announces that it is in discussions with the shareholders of Midisi Ltd, a marketing software development business which owns the intellectual property rights for the "Decision" software which Jaywing currently sells under a licence agreement, regarding the potential acquisition of Midisi Ltd by the Company.

Decision is an award-winning Artificial Intelligence solution for online marketing activity that Jaywing currently sells to certain clients, enabling them to automate Pay-Per-Click advertising management. Decision is a fully automated and self-learning tool that adapts to market supply and demand in near real-time.

Whilst discussions are ongoing regarding the terms of any acquisition, including consideration payable, and there can be no certainty as to the outcome of those discussions, the Company anticipates that the transaction would comprise a substantial transaction under the AIM Rules for Companies. A further announcement will be made in due course.

Partly in anticipation of the above potential transaction, and to provide further working capital to the Group, the Company has increased the headroom in its existing short-term finance facility by £1m, through a variation of the existing debt agreement with its lenders, DSC Investment Holdings Ltd and 1798 Volantis Fund Ltd. If the Midisi acquisition completes, this would cover the initial transaction costs, with subsequent payments funded out of the Company's cashflows. The Company also announces that it is in discussions with its lenders with regard to potentially rescheduling the existing debt arrangements, and will update on this in due course.

The increase to the short-term finance facility comprises a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The Directors consider, having consulted with the Company's nominated adviser, that the terms of the transactions are fair and reasonable insofar as the Company's shareholders are concerned.

This announcement contains inside information

Andrew Fryatt, Jaywing's CEO commented:

"I am pleased to report that Jaywing Plc has entered the new financial year on the back of a strong outturn. The combination of double-digit revenue growth and a more efficient cost base has enabled us to increase underlying profitability, giving us confidence for the year ahead. Whilst we remain cautious about the overall economic outlook, our pipeline of new business is stronger than at any time in the last three years, and we are continuing to win new clients in both the UK and Australia."

Enquiries:

Jaywing plc

Andrew Fryatt (CEO) Tel: 0333 370 6500

Cenkos Securities plc

Nicholas Wells

Callum Davidson (Nominated Adviser) Tel: 0207 397 8920