Sheffield and Leeds-base data science agency, Jaywing, says it is in discussions with its shareholder lenders to secure additional financial headroom to complete its restructuring amidst a tough trading environment.
In an update today, the business says that while operations in Australia continues their year-on-year revenue growth, it faces a markedly different situation in the UK.
A spokesman for the agency said: “Our agency business has won a number of key new accounts but as has been widely reported across the industry, clients are delaying or reducing spend in many cases and this has been particularly noticeable in the timing of new clients delivering budgeted revenue.
“This delay to client spend has also been felt in our consulting division over the summer where trading in H1 has been challenging.
“Encouragingly the prospects for H2 are much better with some new client mandates won in September and a strong pipeline of opportunities with both new and existing clients.
“In the short-term, consulting was forecast to be a key contributor to cash generation and its weak summer trading has therefore placed further strain on the company’s working capital.”
In its August update Jaywing noted tough economic conditions, higher interest rates and falling consumer confidence had all contributed to a challenging trading period in the UK.
