TIDMJWNG

RNS Number : 5661X

Jaywing PLC

20 December 2019

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

   Date:               19 December 2019 
   On behalf of:   Jaywing plc ("Jaywing", "the Company" or "the Group") 
   Embargoed:    0700 hrs on 20 December 2019 

Jaywing plc

Interim Results 2019/2020

&

Directorate Change

Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended

30 September 2019 ("H1").

Financial highlights from continuing operations

 
                                6 months to     6 months to 
                               30 September    30 September 
                                       2019            2018 
                                    GBP'000         GBP'000 
 Gross profit*                       11,996          14,979 
                             --------------  -------------- 
 Adjusted EBITDA**                    (551)           1,327 
                             --------------  -------------- 
 Adjusted EBITDA margin***           (4.6%)            8.9% 
                             --------------  -------------- 
 Loss after tax                     (1,215)           (634) 
                             --------------  -------------- 
 Reported EPS                       (1.38p)         (0.70p) 
                             --------------  -------------- 
 Net debt                             5,748           7,132 
                             --------------  -------------- 
 

* Revenue less direct costs of sale

** Before amortisation, share based charges, exceptional items, acquisition related costs and adjustment for the impact of IFRS 16

*** As a percentage of gross profit

Commenting on the results, Martin Boddy, Chairman of Jaywing plc, said:

"As we have outlined in previous announcements, trading in the UK in the first quarter of the year was very weak with a modest improvement in the second quarter. With the political and economic uncertainty in the period, many clients have been focused on their short term marketing spend and where this spend is discretionary, it has been running at a level well below that seen in previous years. However, trading in our Australia operation continued to show profitable growth with EBITDA increasing by 40%.

Overall, like for like Gross Profit for the half year fell by 20% to GBP12m but the impact on EBITDA was mitigated through cost management and efficiencies resulting in a like for like EBITDA loss of GBP551k. Despite this, we have generated a small positive cashflow from operations. Net debt reduced year on year following the sale of HSM Limited in January 2019 and loan repayments.

On 2 October 2019, following the half year period, we announced that entities associated with two of our major shareholders had acquired the Company's existing secured loan facility of GBP5.2 million owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by GBP3.0 million to GBP8.2 million, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

By successfully tackling the Group's funding challenge Jaywing is now in a financially stronger position.

During September we developed a plan with the objective of returning our UK operations to profitability and cash generation in the short term, which assumed no improvement in trading conditions. Taking expert input we concluded that we needed to take a different approach and the plan sets out how we will reshape and re-engineer the organisation to address the changes that we are seeing in the way clients engage with agencies and the new demands that they are making of them. Since September management has been focused on executing the plan and I am pleased to say that we are making good progress. We have improved the management of our working capital, materially realigned our cost base and adopted a new and contemporary agency model that drives revenue and creates efficiencies in delivering even higher quality and effective work for clients. All of this is now being reflected in a stronger financial run rate.

The composition of the Board has also been reviewed and by mutual agreement. Adrian Lingard, Chief Operating Officer, is stepping down from the Board with immediate effect. On behalf of the Board I would like to thank him for his contribution over the past four years.

Beyond the short term, the Board is considering a range of strategic options to return the Company to highly accretive revenue growth. With its performance marketing proposition and pedigree in data science, Jaywing has some highly attractive capabilities that differentiate it from its competition and position it in areas of marketing spend that are set to grow."

Enquiries:

 
 Jaywing plc 
 Michael Sprot (CFO / Company     Tel: 0114 281 1200 
  Secretary) 
 Cenkos Securities plc 
 Nicholas Wells/Callum Davidson   Tel: 020 7397 8900 
 

Consolidated interim statement of comprehensive income (unaudited)

 
 
                                                  Unaudited      Unaudited 
                                                 Six months     Six months      Audited 
                                                      ended          ended         year 
                                                    30 Sept        30 Sept        ended 
                                                       2019           2018     31 March 
                                                                                   2019 
                                        Note        GBP'000        GBP'000      GBP'000 
 
 
 Revenue                                   5         13,815         18,731       35,554 
 Direct costs                                       (1,819)        (3,752)      (5,709) 
                                              -------------  -------------  ----------- 
 Gross profit                                        11,996         14,979       29,845 
 Other operating income                                  20              -           13 
 Amortisation                                         (777)          (886)      (1,795) 
 Operating expenses                                (12,619)       (14,503)     (28,872) 
                                              -------------  -------------  ----------- 
 Operating loss                                     (1,380)          (410)        (809) 
                                              -------------  -------------  ----------- 
 Finance income                                           1              2            4 
 Finance costs                                        (157)          (159)        (305) 
                                              -------------  -------------  ----------- 
 Net financing costs                                  (156)          (157)        (301) 
                                              -------------  -------------  ----------- 
 Loss before tax from continuing 
  operations                                        (1,536)          (567)      (1,110) 
 Tax credit                               6             321            109          175 
                                              -------------  -------------  ----------- 
 Loss after tax from continuing 
  operations                                        (1,215)          (458)        (935) 
 Loss from discontinued operations                        -          (176)      (1,610) 
                                              -------------  -------------  ----------- 
 Loss for the period                                (1,215)          (634)      (2,545) 
 Loss for the period is attributable 
  to: 
 Non-controlling interests                               74             24          140 
 Owners of the parent                               (1,289)          (658)      (2,685) 
                                              -------------  -------------  ----------- 
                                                    (1,215)          (634)      (2,545) 
 Other comprehensive income 
 
 Items that will be reclassified 
  subsequently to profit or 
  loss 
 Exchange differences on 
  retranslation of foreign 
  operations                                           (13)            (5)           20 
                                              -------------  -------------  ----------- 
 Total comprehensive loss 
  for the period                                    (1,228)          (639)      (2,525) 
                                              -------------  -------------  ----------- 
 
 Total comprehensive income 
  is attributable to: 
 Non-controlling interests                               74             24          140 
                                              -------------  -------------  ----------- 
 Owners of the parent                               (1,302)          (663)      (2,665) 
                                              -------------  -------------  ----------- 
                                                    (1,228)          (639)      (2,525) 
 
 Loss per share                         7 
 Basic loss per share from 
  continuing operations                             (1.38p)        (0.52p)      (1.15p) 
 Basic loss per share from 
  discontinued operations                                 -        (0.18p)      (1.72p) 
                                              -------------  -------------  ----------- 
 Total                                              (1.38p)        (0.70p)      (2.87p) 
 
 Diluted loss per share from 
  continuing operations                             (1.38p)        (0.52p)      (1.15p) 
 Diluted loss per share from 
  discontinued operations                                 -        (0.18p)      (1.72p) 
                                              -------------  -------------  ----------- 
 Total                                              (1.38p)        (0.70p)      (2.87p) 
                                              -------------  -------------  ----------- 
 

Consolidated interim balance sheet (unaudited)

 
 
                                                 Unaudited     Unaudited      Audited 
                                                   30 Sept       30 Sept     31 March 
                                                      2019          2018         2019 
                                        Note       GBP'000       GBP'000      GBP'000 
 Assets 
 Non-current assets 
 Property, plant and equipment                       3,330         1,342        1,015 
 Goodwill                                           33,054        34,674       33,054 
 Other intangible assets                             3,650         5,106        4,364 
                                              ------------  ------------  ----------- 
                                                    40,034        41,122       38,433 
                                              ------------  ------------  ----------- 
 
 Current assets 
 Trade and other receivables                         6,522        13,071        8,256 
 Tax receivable                                        285             -            - 
 Cash and cash equivalents                               1             2          690 
                                                     6,808        13,073        8,946 
                                              ------------  ------------  ----------- 
 Total assets                                       46,842        54,195       47,379 
                                              ------------  ------------  ----------- 
 
 Liabilities 
 Current liabilities 
 Bank overdraft                          8           (549)         (884)            - 
 Other interest bearing loans 
  and borrowings                         8         (1,800)       (1,500)      (1,800) 
 Trade and other payables                          (8,832)      (12,412)      (9,546) 
 Tax payable                                             -         (397)        (205) 
 Provisions                                           (42)         (151)         (42) 
                                              ------------  ------------  ----------- 
                                                  (11,223)      (15,344)     (11,593) 
                                              ------------  ------------  ----------- 
 
 Non-current liabilities 
 Other interest bearing loans 
  and borrowings                         8         (3,400)       (4,750)      (3,850) 
 Lease liability                                   (1,770)             -            - 
 Deferred tax liabilities                            (552)         (809)        (656) 
                                                   (5,722)       (5,559)      (4,506) 
                                              ------------  ------------  ----------- 
 Total liabilities                                (16,945)      (20,903)     (16,099) 
                                              ------------  ------------  ----------- 
 
 Net assets                                         29,897        33,292       31,280 
                                              ------------  ------------  ----------- 
 
 Equity 
 
   Capital and reserves attributable 
   to equity holders of the 
   company 
 Share capital                                      34,992        34,992       34,992 
 Share premium account                              10,088        10,088       10,088 
 Capital redemption reserve                            125           125          125 
 Shares purchased for treasury                        (25)          (25)         (25) 
 Share option reserve                                  683           826          838 
 Foreign currency translation 
  reserve                                             (13)          (25)            - 
 Retained earnings                                (17,178)      (14,431)     (15,889) 
                                              ------------  ------------  ----------- 
 Equity attributable to owners 
  of the parent                                     28,672        31,550       30,129 
 
 Non-controlling interest                            1,225         1,742        1,151 
 
 Total equity                                       29,897        33,292       31,280 
                                              ------------  ------------  ----------- 
 

Consolidated interim cash flow statement (unaudited)

 
                                               Unaudited     Unaudited 
                                              Six months    Six months      Audited 
                                                   ended         ended         year 
                                                 30 Sept       30 Sept        ended 
                                                    2019          2018     31 March 
                                                                               2019 
                                      Note       GBP'000       GBP'000      GBP'000 
 Cash flow from operating 
  activities 
 Loss for the period                             (1,215)         (634)      (2,545) 
 Adjustment for: 
 Depreciation, amortisation 
  and impairment                                   1,297         1,234        3,440 
 Loss on sale of HSM Limited                           -             -        1,370 
 Foreign exchange                                   (15)           (5)            - 
 Finance income                                      (1)           (2)          (4) 
 Finance costs                                       157           159          305 
 Share based payment charge                        (155)           152          177 
 Taxation                                          (321)         (109)        (175) 
                                            ------------  ------------  ----------- 
 Operating cash flow before 
  changes in working capital                       (253)           795        2,568 
 
 Decrease / (increase) in 
  trade and other receivables                      1,736       (1,124)        1,599 
 (Decrease) / increase in 
  trade and other payables                       (1,475)           216      (1,745) 
                                            ------------  ------------  ----------- 
 Cash (used in)/generated 
  from operations                                      8         (113)        2,422 
 Interest received                                     1             2            4 
 Interest paid                                     (103)         (154)        (305) 
 Tax paid                                          (273)             -        (287) 
                                            ------------  ------------  ----------- 
 Net cash flow from operating 
  activities                                       (367)         (265)        1,834 
                                            ------------  ------------  ----------- 
 Cash flows from investing 
  activities 
 Payment of deferred consideration                 (325)         (672)        (592) 
 Proceeds from sale of HSM 
  Limited                                              -             -          403 
 Acquisition of intangible 
  assets                                            (63)          (94)        (297) 
 Acquisition of property, 
  plant and equipment                               (33)         (183)        (252) 
 Net cash outflow from investing 
  activities                                       (421)         (949)        (738) 
                                            ------------  ------------  ----------- 
 Cash flows from financing 
  activities 
 Repayment of borrowings                           (450)         (300)        (900) 
 Acquisition of non-controlling 
  interest                                             -             -        (138) 
 Net cash outflow from financing 
  activities                                       (450)         (300)      (1,038) 
                                            ------------  ------------  ----------- 
 Net (decrease) / increase 
  in cash, cash equivalents 
  and bank overdrafts                            (1,238)       (1,514)           58 
 Cash and cash equivalents 
  at beginning of period                             690           632          632 
                                            ------------  ------------  ----------- 
 Cash and cash equivalents 
  at end of period                                 (548)         (882)          690 
                                            ------------  ------------  ----------- 
 
 Cash and cash equivalents 
  comprise: 
 Cash at bank and in hand                              1             2          690 
 Bank overdrafts                       7           (549)         (884)            - 
                                            ------------  ------------  ----------- 
 Cash and cash equivalents 
  at end of period                                 (548)         (882)          690 
                                            ------------  ------------  ----------- 
 
 
 
 

Consolidated interim statement of changes in equity (unaudited)

 
                                                                              Foreign 
                                Share      Capital                Share      currency                    Equity 
                      Share   premium   redemption   Treasury    option   translation   Retained   attributable   Non-controlling     Total 
                    capital   account      reserve     Shares   reserve       reserve   earnings      to parent          interest    equity 
                    GBP'000   GBP'000      GBP'000    GBP'000   GBP'000       GBP'000    GBP'000        GBP'000           GBP'000   GBP'000 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Balance at 31 
  March 
  2018               34,992    10,088          125       (25)       736          (20)   (13,773)         32,123             1,718    33,841 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Charge in 
  respect 
  of share-based 
  payments                -         -            -          -        90             -          -             90                 -        90 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Transactions 
  with 
  owners                  -         -            -          -        90             -          -             90                 -        90 
 Profit/(loss) 
  for 
  the period              -         -            -          -         -             -      (658)          (658)                24     (634) 
 Retranslation of 
  foreign 
  currency                -         -            -          -         -           (5)          -            (5)                 -       (5) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Total 
  comprehensive 
  income for the 
  period                  -         -            -          -         -           (5)      (658)          (663)                24     (639) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Balance at 30 
  September 
  2018               34,992    10,088          125       (25)       826          (25)   (14,431)         31,550             1,742    33,292 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 
 Acquisition of 
  non-controlling 
  interests               -         -            -          -         -             -        569            569             (707)     (138) 
 Charge in 
  respect 
  of share-based 
  payments                -         -            -          -        12             -          -             12                 -        12 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Transactions 
  with 
  owners                  -         -            -          -        12             -        569            581             (707)     (126) 
 Profit/(loss) 
  for 
  the period              -         -            -          -         -             -    (2,027)        (2,027)               116   (1,911) 
 Retranslation of 
  foreign 
  currency                -         -            -          -         -            25          -             25                 -        25 
 Total 
  comprehensive 
  income for the 
  period                  -         -            -          -         -            25    (2,027)        (2,002)               116   (1,886) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Balance at 31 
  March 
  2019 (audited)     34,992    10,088          125       (25)       838             -   (15,889)         30,129             1,151    31,280 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 
 Charge in 
  respect 
  of share-based 
  payments                -         -            -          -     (155)             -          -          (155)                 -     (155) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Transactions 
  with 
  owners                  -         -            -          -     (155)             -          -          (155)                 -     (155) 
 Profit/(loss) 
  for 
  the period              -         -            -          -         -             -    (1,289)        (1,289)                74   (1,215) 
 Retranslation of 
  foreign 
  currency                -         -            -          -         -          (13)          -           (13)                 -      (13) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Total 
  comprehensive 
  income for the 
  period                  -         -            -          -         -          (13)    (1,289)        (1,302)                74   (1,228) 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 Balance at 30 
  September 
  2019               34,992    10,088          125       (25)       683          (13)   (17,178)         28,672             1,225    29,897 
                   --------  --------  -----------  ---------  --------  ------------  ---------  -------------  ----------------  -------- 
 
 
   1.     General Information 

Jaywing plc (the "Company") is incorporated and domiciled in the United Kingdom. The Company is listed on the AIM market of the London Stock Exchange. The registered address is Albert Works, Sidney Street, Sheffield,

S1 4RG.

The interim financial information was approved for issue on 19 December 2019.

   2.     Basis of preparation 

The consolidated interim financial statements for the six months ended 30 September 2019, which are unaudited, have been prepared in accordance with applicable accounting standards and under the historical cost convention except for certain financial instruments that are carried at fair value.

The financial information for the year ended 31 March 2019 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 March 2019 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

   3.     Accounting policies 

Except as described below, the principal accounting policies of Jaywing plc and its subsidiaries ("the Group") are consistent with those set out in the Group's 2019 annual report and financial statements.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2019 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 April 2019 and will be adopted in the 2020 financial statements. The only standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 March 2020, and which have given rise to a change in the Group's accounting policies is:

-- IFRS 16 leases

Details of the impact of this standard is given below. Other new and amended standards and interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to have a material impact on the Group.

   4.     New IFRS implementation 

The Company has adopted IFRS 16 - Leases for the financial year ending 31 March 2020, and it has chosen to use the modified retrospective approach to adoption which means there are no restatements to the prior year figures.

IFRS 16 introduces a single lessee accounting model, whereby the Group now recognises a lease liability and a right of use asset at 1 April 2019 for leases previously classified as operating leases. Within the income statement, operating lease charges, which previously were included in administrative expenses, have been replaced by depreciation and interest expenses.

The adoption of IFRS 16 resulted in a right of use asset of GBP2.8 million, with a corresponding liability of GBP2.8 million, being recognised as at 1 April 2019 which was depreciated to a value of GBP2.5 million as at 30 September 2019.

In order to see how the impact of IFRS 16 has affected Adjusted EBITDA*, a reconciliation is presented below:

 
                                                 6 months             6 months 
                                                    ended                ended 
                                             30 September         30 September 
                                                     2019                 2018 
                                                  GBP'000              GBP'000 
-----------------------------------------  --------------  ------------------- 
 Adjusted EBITDA* - consistent with 2018 
  presentation and accounting policy                (551)                1,327 
 Changes due to new accounting policy - 
  IFRS 16                                             425                    - 
-----------------------------------------  --------------  ------------------- 
 Adjusted EBITDA* - consistent with 2019 
  presentation and accounting policy                (126)                1,327 
 

* Before amortisation, share based charges, exceptional items and acquisition related costs

The Group has adopted IFRS 16 on a modified retrospective basis. Upon transition, a lease liability has been recognised based on future lease payments discounted at an appropriate borrowing rate. Additionally, a right

of use asset has been recognised along with a related lease liability. Within the income statement, the operating lease charge (GBP370k) has been replaced by depreciation (GBP333k) and interest expense (GBP54k). This has resulted in a decrease in operating expenses and an increase in finance costs.

 
                                                    6 months             6 months 
                                                       ended                ended 
                                                30 September         30 September 
                                                        2019                 2018 
                                                     GBP'000              GBP'000 
 Non-current assets 
 Property, plant and equipment - consistent 
  with 2018 presentation and accounting 
  policy                                                 861                1,342 
 Changes due to new accounting policy -                2,469                    - 
  IFRS 16 - Right of use asset 
--------------------------------------------  --------------  ------------------- 
 Property, plant and equipment - consistent 
  with 2019 presentation and accounting 
  policy                                               3,330                1,342 
 
 Current liabilities 
 Current liabilities - consistent with 
  2018 presentation and accounting policy             10,562               15,344 
 Changes due to new accounting policy -                  661                    - 
  IFRS 16 - Short term leases 
--------------------------------------------  --------------  ------------------- 
 Current liabilities - consistent with 
  2019 presentation and accounting policy             11,223               15,344 
 
 Non-current liabilities 
 Non-current liabilities - consistent with 
  2018 presentation and accounting policy              3,952                5,559 
 Changes due to new accounting policy -                1,770                    - 
  IFRS 16 - Long term leases 
--------------------------------------------  --------------  ------------------- 
 Non-current liabilities - consistent with 
  2019 presentation and accounting policy              5,722                5,559 
 
   5.     Segment information (unaudited) 

Jaywing reports its business activities in three areas: Brand Performance, Online Performance and Data, Analysis & Technology. Central Costs represents the Group's head office function, along with intragroup transactions. The 2018 results have been restated into the new segments.

 
 Six months ended 30 September 
  2019 
                                    Brand         Online   Data Analysis   Central      Total 
                              Performance    Performance    & Technology     Costs      Group 
                                  GBP'000        GBP'000         GBP'000   GBP'000    GBP'000 
 Revenue                            4,822          7,509           3,390   (1,906)     13,815 
 Direct costs                     (1,282)        (2,010)           (433)     1,906    (1,819) 
                            -------------  -------------  --------------  --------  --------- 
 Gross profit                       3,540          5,499           2,957         -     11,996 
 Operating expenses 
  excluding depreciation, 
  amortisation, 
  exceptional 
  items, acquisition 
  related costs 
  and charges 
  for share based 
  payments                        (3,702)        (4,488)         (2,809)   (1,123)   (12,122) 
                            -------------  -------------  --------------  --------  --------- 
 Operating profit 
  / (loss) before 
  depreciation, 
  amortisation, 
  exceptional 
  items, acquisition 
  related costs 
  and credit for 
  share based 
  payments                          (162)          1,011             148   (1,123)      (126) 
                                                                          --------  --------- 
 Other Operating 
  Income                               20              -               -         -         20 
 Depreciation                        (88)          (298)            (13)     (121)      (520) 
 Amortisation                       (359)          (369)            (49)         -      (777) 
 Exceptional 
  costs                              (46)          (146)            (10)     (267)      (469) 
 Acquisition 
  related costs                         -              -               -     (293)      (293) 
 Charge for share 
  based payments                        -              -               -       785        785 
                                                                          --------  --------- 
 Operating profit 
  / (loss)                          (635)            198              76   (1,019)    (1,380) 
                            -------------  -------------  --------------  --------  --------- 
 Finance costs                                                                          (156) 
                                                                                    --------- 
 Loss before 
  tax                                                                                 (1,536) 
 Tax credit                                                                               321 
                                                                                    --------- 
 Loss for the 
  period                                                                              (1,215) 
                                                                                    --------- 
 
 
 Six months ended 30 September 2018 - continuing 
  operations 
                                 Brand         Online 
                           Performance    Performance   Data Analysis   Central      Total 
                                                         & Technology     Costs      Group 
                               GBP'000        GBP'000         GBP'000   GBP'000    GBP'000 
 
 Revenue                         6,070          6,546           7,052     (937)     18,731 
 Direct costs                  (1,340)          (333)         (3,016)       937    (3,752) 
                         -------------  -------------  --------------  --------  --------- 
 Gross profit                    4,730          6,213           4,036         -     14,979 
 Operating 
  expenses excluding 
  depreciation, 
  amortisation, 
  exceptional 
  items, acquisition 
  related costs 
  and charges 
  for share 
  based payments               (4,262)        (4,840)         (3,341)   (1,209)   (13,652) 
                         -------------  -------------  --------------  --------  --------- 
 Operating 
  profit/(loss) 
  before depreciation, 
  amortisation, 
  exceptional 
  items, acquisition 
  related costs 
  and charges 
  for share 
  based payments                   468          1,373             695   (1,209)      1,327 
                         -------------  -------------  --------------  --------  --------- 
 Depreciation                     (48)          (109)            (19)      (43)      (219) 
 Amortisation                    (488)          (360)            (38)         -      (886) 
 Other exceptional 
  costs                            (6)           (36)            (19)     (224)      (285) 
 Acquisition 
  related costs                      -              -               -     (147)      (147) 
 Charge for 
  share based 
  payments                           -              -               -     (200)      (200) 
                         -------------  -------------  --------------  --------  --------- 
 Operating 
  profit / (loss)                 (74)            868             619   (1,823)      (410) 
                         -------------  -------------  --------------  --------  --------- 
 Finance costs                                                                       (157) 
                                                                                 --------- 
 Loss before 
  tax                                                                                (567) 
 Tax credit                                                                            109 
                                                                                 --------- 
 Loss for the 
  period                                                                             (458) 
                                                                                 --------- 
 
   5.   Segment information (unaudited) (continued) 

Year ended 31 March 2019 (audited) - continuing operations

 
                                      Brand         Online   Data Analysis   Central      Total 
                                Performance    Performance    & Technology     Costs      Group 
                                    GBP'000        GBP'000         GBP'000   GBP'000    GBP'000 
 Revenue                             11,685         13,289          12,446   (1,866)     35,554 
 Direct costs                       (2,504)          (609)         (4,502)     1,906    (5,709) 
                              -------------  -------------  --------------  --------  --------- 
 Gross profit                         9,181         12,680           7,944        40     29,845 
 Operating expenses 
  excluding depreciation, 
  amortisation, exceptional 
  items, acquisition 
  related costs and 
  charges for share 
  based payments                    (8,224)        (9,931)         (6,225)   (2,136)   (26,516) 
                              -------------  -------------  --------------  --------  --------- 
 Operating profit/(loss) 
  before depreciation, 
  amortisation, exceptional 
  items, acquisition 
  related costs and 
  charges for share 
  based payments                        957          2,749           1,719   (2,096)      3,329 
                              -------------  -------------  --------------  --------  --------- 
 Other operating 
  income                                 13              -               -         -         13 
 Impairment to value 
  of goodwill                       (1,050)              -               -         -    (1,050) 
 Depreciation                          (89)          (203)            (36)      (84)      (412) 
 Amortisation                         (897)          (811)            (87)         -    (1,795) 
 Exceptional costs                     (27)          (108)           (214)     (779)    (1,128) 
 Acquisition related 
  costs                                (66)          (100)               -       577        411 
 Charges for share 
  based payments                       (14)           (19)            (27)     (117)      (177) 
                              -------------  -------------  --------------  --------  --------- 
 Operating (loss)/profit            (1,173)          1,508           1,355   (2,499)      (809) 
                              -------------  -------------  --------------  --------  --------- 
 Finance income                                                                               4 
 Finance costs                                                                            (305) 
                                                                                      --------- 
 Loss before tax                                                                        (1,110) 
 Tax credit                                                                                 175 
                                                                                      --------- 
                                                                                          (935) 
                                                                                      --------- 
 
 

The September 2018 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.

 
                            Brand         Online 
                      Performance    Performance   Data Analysis    Central   Discontinued     Total 
 Capital employed                                   & Technology      Costs     Operations     Group 
                          GBP'000        GBP'000         GBP'000    GBP'000        GBP'000   GBP'000 
 30 September 
  2019                     17,960         13,107           9,490   (10,660)              -   29,897 
 31 March 2019             19,267         13,742          10,175   (11,904)              -   31,280 
 30 September 
  2018                     21,741         12,963          12,469   (15,044)          1,163   33,292 
                    -------------  -------------  --------------                            ---------- 
 
 
   6.     Tax credit (unaudited) 

A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax credit is given below.

 
                                                                Six months ended   Six months ended     Audited year 
                                                                    30 Sept 2019       30 Sept 2018            ended 
                                                                                                       31 March 2019 
                                                                         GBP'000            GBP'000          GBP'000 
 Recognised in the consolidated statement of comprehensive 
 income: 
 Current year tax                                                            215               (33)             (91) 
 Origination and reversal of temporary differences                           106                142              266 
                                                               -----------------  -----------------  --------------- 
 Total tax credit                                                            321                109              175 
                                                               -----------------  -----------------  --------------- 
 Loss before tax                                                         (1,536)              (567)          (1,110) 
 Tax charge thereon at UK corporation tax rate of 19% (2018: 
  19%)                                                                       292                108              211 
 Effects of: 
 Non-deductible expenses                                                      29                  1             (36) 
 Total tax credit                                                            321                109              175 
                                                               -----------------  -----------------  --------------- 
 
   7.     Loss per share (unaudited) 
 
                                           Six months   Six months     Audited 
                                                ended        ended        year 
                                              30 Sept      30 Sept       ended 
                                                 2019         2018    31 March 
                                                                          2019 
                                                                         Pence 
                                                Pence        Pence         per 
                                            per share    per share       Share 
 
 Basic loss per share from continuing 
  operations                                  (1.38p)      (0.52p)     (1.15p) 
 Basic loss per share from discontinued 
  operations                                        -      (0.18p)     (1.72p) 
                                          -----------  -----------  ---------- 
 Basic loss per share                         (1.38p)      (0.70p)     (2.87p) 
 
 Diluted loss per share from 
  continuing operations                       (1.38p)      (0.52p)     (1.15p) 
 Diluted loss per share from 
  discontinued operations                           -      (0.18p)     (1.72p) 
                                          -----------  -----------  ---------- 
 Diluted loss per share                       (1.38p)      (0.70p)     (2.87p) 
 

Loss per share has been calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The calculations of basic and diluted loss per share are:

 
                                               Six months   Six months     Audited 
                                                    ended        ended        year 
                                                  30 Sept      30 Sept       ended 
                                                     2019         2018    31 March 
                                                                              2019 
                                                  GBP'000      GBP'000     GBP'000 
 Loss for the period attributable 
  to shareholders from continuing 
  operations                                      (1,289)        (482)     (1,075) 
 Loss for the period attributable 
  to shareholders from discontinued 
  operations                                            -        (176)     (1,610) 
                                              -----------  -----------  ---------- 
 Total loss for the period 
  attributable to shareholders                    (1,289)        (658)     (2,685) 
 
 Weighted average number of                        Number       Number      Number 
  ordinary shares in issue:                          '000         '000        '000 
 Basic                                             93,432       93,432      93,432 
 Adjustment for share options, 
  warrants and contingent 
  shares                                            3,688        1,481       1,707 
                                              -----------  -----------  ---------- 
 Diluted                                           97,120       94,913      95,139 
                                              -----------  -----------  ---------- 
 
 
 Adjusted earnings per share 
                                               Six months   Six months     Audited 
                                                    ended        ended        year 
                                                  30 Sept      30 Sept       ended 
                                                     2019         2018    31 March 
                                                                              2019 
                                                    Pence        Pence   Pence per 
                                                per share    per share       share 
 Basic adjusted earnings 
  per share                                       (1.11p)        0.56p       1.39p 
 Diluted adjusted earnings 
  per share                                       (1.11p)        0.55p       1.36p 
                                              -----------  -----------  ---------- 
 
 

Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment, charges for share based payments and the current period tax charge by the weighted average number of ordinary shares in issue during the period. The numbers used in calculating the basic and diluted adjusted earnings per share are reconciled below:

 
 
                                     Six months   Six months     Audited 
                                          ended        ended        year 
                                        30 Sept      30 Sept       ended 
                                           2019         2018    31 March 
                                                                    2019 
                                        GBP'000      GBP'000     GBP'000 
 Loss before tax from continuing 
  operations                            (1,536)        (743)     (2,685) 
 Amortisation                               777          950       1,885 
 Impairment to the carrying 
  value of goodwill                           -            -       1,050 
 Loss on sale of HSM Limited                  -            -       1,370 
 Acquisition related costs                  293          147       (411) 
 Charge for share based payments          (785)          200         177 
                                    -----------  -----------  ---------- 
 Adjusted profit attributable 
  to shareholders                       (1,251)          554       1,386 
 Current period tax charge                  215         (33)        (91) 
                                    -----------  -----------  ---------- 
                                        (1,036)          521       1,295 
                                    -----------  -----------  ---------- 
 
 
   8.     Bank overdraft, borrowings and loans (unaudited) 
 
                                                         Audited 
                                   30 Sept   30 Sept    31 March 
                                      2019      2018        2019 
 Summary                           GBP'000   GBP'000     GBP'000 
 Bank overdraft                        549       884           - 
 Borrowings, undiscounted 
  cash flows                         5,200     6,250       5,650 
                                  --------  --------  ---------- 
                                     5,749     7,134       5,650 
                                  --------  --------  ---------- 
 
 Borrowings are repayable 
  as follows: 
 Within 1 year 
  Bank overdraft                       549       884           - 
  Borrowings                         1,800     1,500       1,800 
                                  --------  --------  ---------- 
 Total due within 1 year             2,349     2,384       1,800 
 
 In more than one year but 
  less than two years                3,400     1,800       3,850 
 In more than two years but              -     1,800           - 
  less than three years 
 In more than three years                -     1,150           - 
  but less than four years 
                                  --------  --------  ---------- 
 Total amount due                    5,749     7,134       5,650 
                                  --------  --------  ---------- 
 
 Average interest rates at               %         %           % 
  the balance sheet date were: 
   Overdraft                          2.00      2.00           - 
  Term loan                           4.05      4.00        4.10 
   Revolving credit facility           N/A         -         N/A 
                                  --------  --------  ---------- 
 

As the loans are at variable market rates their carrying amount is equivalent to their fair value.

The borrowing facilities available to the Group at 30 September 2019 were GBP1.5 million (2018: GBP1.1 million) and, taking into account cash balances within the Group, there was GBP1.5 million (2018: GBP1.1 million) of available borrowing facilities.

A composite accounting system is set up with the Group's bankers, which allows debit balances on overdraft to be offset across the Group with credit balances.

 
                            Cash at 
 Reconciliation of net     bank and 
  debt                      in hand   Overdraft   Borrowings   Net debt 
                            GBP'000     GBP'000      GBP'000    GBP'000 
 30 September 2019                1       (549)      (5,200)    (5,748) 
 31 March 2019                  690           -      (5,650)    (4,960) 
 30 September 2018                2       (884)      (6,250)    (7,132) 
                         ----------  ----------  -----------  --------- 
 
   9.     Provisions (unaudited) 
 
                                                        Audited 
                                30 Sept     30 Sept    31 March 
                                   2019        2018        2019 
                                GBP'000     GBP'000     GBP'000 
 At the beginning of the 
  period                             42         151         151 
 Disposal of HSM Limited              -           -       (109) 
 At the end of the period            42         151          42 
                             ----------  ----------  ---------- 
 
 

Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.

   10.   Share capital (unaudited) 

Authorised:

 
 
                               45p deferred shares       5p ordinary shares 
                                           GBP'000                  GBP'000 
 Authorised share capital 
  at 31 March 2019 and 
  30 September 2019                         45,000                   10,000 
 
 
 

Allotted, issued and fully paid

 
                             45p deferred       5p ordinary 
                                   shares            shares 
                                   Number            Number       GBP'000 
 Issued share capital 
  at 31 March 2019 and 
  30 September 2019            67,378,520        93,432,217        34,992 
                          ---------------  ----------------  ------------ 
 
 
 
   11.   Related party transactions (unaudited) 

There were no significant changes in the nature and size of related party transactions for the period from those disclosed in the Annual Report for the year ended 31 March 2019.

   12.   Post balance sheet event 

On 2 October 2019, Jaywing plc announced that entities associated with two of the major shareholders had acquired the Company's existing secured loan facility of GBP5.2m owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing facility by GBP3.0m to GBP8.2m, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR MMMMZLLKGLZM

(END) Dow Jones Newswires

December 20, 2019 02:00 ET (07:00 GMT)

Grafico Azioni Jaywing (LSE:JWNG)
Storico
Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di Jaywing
Grafico Azioni Jaywing (LSE:JWNG)
Storico
Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di Jaywing