Jaywing warns on FY profits amid weak demand

16th Feb 2023 11:20

(Sharecast News) - Media agency Jaywing warned on Thursday that full-year net profits would fall short of consensus estimates as weakened demand weighed on the firm.

Jaywing stated that softening demand over the past two months as clients deferred marketing spending, both in the UK and Australia, as they wait for the current macroeconomic climate to improve.

As a result, Jaywing said revenues for the twelve months ending 31 March would be between £22.0m and £22.5m, while adjusted underlying earnings were set to come in higher year-on-year as a result of a 5% reduction in overall group costs but still below market expectations.

"The company is confident that this reduction in marketing spend is temporary and represents delayed rather than lost revenues to the group," Jaywing added. "The company believes that it is well positioned to benefit when economic conditions improve and that this will be reflected in Jaywing's performance."

The AIM-listed group also cautioned that significant project revenues previously set to commence in Q4 were now unlikely to begin before 31 March.

As of 1115 GMT, Jaywing shares had tumbled 23.27% at 5.28p.

Reporting by Iain Gilbert at Sharecast.com