Share Name Share Symbol Market Type Share ISIN Share Description
Jaywing Plc LSE:JWNG London Ordinary Share GB00BF5KDY46 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.25p -5.26% 4.50p 4.20p 4.80p 4.75p 4.50p 4.75p 67,396 16:27:27
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Media 47.5 -1.2 -1.3 - 4

Jaywing PLC Half-year Report

20/11/2018 7:02am

UK Regulatory (RNS & others)


TIDMJWNG

RNS Number : 8327H

Jaywing PLC

20 November 2018

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 November 2018 
   On behalf of:   Jaywing plc ("Jaywing", "the Company" or "the Group") 
   Embargoed:    0700 hrs 20 November 2018 

Jaywing plc

Interim Results 2018/2019

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

30 September 2018 ("H1").

Financial highlights from continuing operations

 
                              6 months to 30 September   6 months to 30 September 
                                                  2018                       2017 
                                               GBP'000                    GBP'000 
 Gross profit*                                  18,158                     17,932 
 Adjusted EBITDA**                               1,331                      1,454 
 Adjusted EBITDA margin***                        7.3%                       8.0% 
 Loss after tax                                  (634)                      (376) 
 Reported EPS                                  (0.68)p                    (0.44)p 
 Net debt                                        7,132                      8,083 
 

* Revenue less direct costs of sale

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

*** As a percentage of gross profit

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

"I am pleased to report solid progress in H1 18/19.

We have seen growth in gross profit year on year, building sales momentum and recognising early stage benefits of cost realignment and debt reduction year on year. The disposal of our contact centre (HSM Limited), as announced by the Company this morning, is an important non-core asset disposal, which will allow management to concentrate entirely on developing its core business and will simplify the Jaywing offering.

Following the disposal, we will operate as a consultancy, an agency and a technology business all under-pinned by data science. Our skill is to combine these to create solutions that our clients find indispensable. We call this our "One Jaywing" model, a model which is now being utilised with over two thirds of our top 50 clients. Our approach was recognised once again when Jaywing was awarded best large integrated agency in the Prolific North Awards for the second consecutive year in May 2018. It was also validated by major new business wins for SugarCRM and Hermes as well as growth in existing clients including Firstdirect.

We are seeing momentum build quarter on quarter this year, particularly in our performance marketing division, Epiphany. The sales pipeline is also far stronger than at the same time last year and our churn rate is far lower. Our overall EBITDA margin, 7.3% H1 18/19, reflects the specific business mix in H1, and also does not yet capture the benefits of the cost base measures we have undertaken.

The end of September represents the seasonal peak of our borrowing. However, net debt has reduced year on year. We successfully renegotiated our banking facilities in July and are comfortably within our covenants.

Jaywing has demonstrable value in its data science, digital marketing and marketing technology assets, and operates in market segments with significant growth potential. The disposal transaction of HSM Limited has multiple additional benefits: it strengthens our balance sheet; provides a sizeable and ongoing revenue stream; removes a lease obligation and provides better potential for significant improvement in margins.

Looking ahead to the remainder of H2, we don't anticipate market conditions improving in the UK given the general level of uncertainty in the run up to the UK's anticipated withdrawal from the European Union on 29 March 2019. Fiscal Q4 (calendar Q1) has historically been a seasonally important period for the Company, due to the annual budgeting cycles of our clients, which are not expected to change. Despite the market conditions, the Board believes that Jaywing's differentiated offering makes it well placed to capitalise on growth opportunities in both the UK and Australia."

Enquiries:

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

CHIEF EXECUTIVE COMMENTARY

In the Media & Analysis segment, our performance marketing division, Epiphany has had an excellent H1 after a difficult 2017/18. Gross profit has recovered to a similar level to the equivalent period last year whilst EBITDA is 20% higher showing the impact of our cost realignment.

Our data science consultancy has seen comparative H1 EBITDA performance down by GBP0.6m year on year, which reflects the scaling down of a relatively large and high margin financial services project. The focus here has been and continues to be on securing new business, alongside some cost realignment in what is an increasingly valuable industry segment, where there is a scarcity of talented resource.

Our Australian operation has continued to grow strongly year on year with gross profit up 45% and EBITDA up 126% on a purely organic basis. This excludes the acquisition of Frank Digital, which was only acquired in February and is growing well and integrating its services with that of our wider operations in Australia, replicating the "One Jaywing" model.

We continue to invest in Jaywing Intelligence, though the net impact of this in H2 should be less pronounced as our technology gains traction with key clients.

In our Agency segment, we have had a number of significant new business wins, which over time should drive higher margins. The collaborative "One Jaywing" nature of our work has produced some excellent solutions for our clients and continues to differentiate when pitching for new client work.

With the disposal process of HSM Limited now complete, management can now focus on driving up the profitability of the core business and exiting the year in a strong position with good momentum.

Rob Shaw

Chief Executive Officer

19 November 2018

Consolidated interim statement of comprehensive income (unaudited)

 
                                                              Restated 
                                               Unaudited     Unaudited 
                                              Six months    Six months      Audited 
                                                   ended         ended         year 
                                                 30 Sept       30 Sept        ended 
                                                    2018          2017     31 March 
                                                                               2018 
                                     Note        GBP'000       GBP'000      GBP'000 
 
 
 Revenue                                4         21,984        23,466       47,541 
 Direct costs                                    (3,826)       (5,534)     (10,826) 
                                           -------------  ------------  ----------- 
 Gross profit                                     18,158        17,932       36,715 
 Other operating income                                -            46           64 
 Amortisation                                      (950)       (1,010)      (2,033) 
 Operating expenses                             (17,794)      (17,198)     (35,759) 
                                           -------------  ------------  ----------- 
 Operating loss                                    (586)         (230)      (1,013) 
                                           -------------  ------------  ----------- 
 Finance income                                        2             -            - 
 Finance costs                                     (159)          (79)        (203) 
                                           -------------  ------------  ----------- 
 Net financing costs                               (157)          (79)        (203) 
                                           -------------  ------------  ----------- 
 Loss before tax                                   (743)         (309)      (1,216) 
 Tax credit / (expense)                5             109          (67)           83 
                                           -------------  ------------  ----------- 
 Loss for the period from 
  continuing operations                            (634)         (376)      (1,133) 
 Exchange differences on 
  retranslation of foreign 
  operations                                         (5)          (10)         (39) 
                                           -------------  ------------  ----------- 
 Loss for the period attributable 
  to the equity holders of 
  the parent                                       (639)         (386)      (1,172) 
                                           -------------  ------------  ----------- 
 
 
   Loss per ordinary share             6 
 Basic loss per share                            (0.68p)       (0.44p)      (1.25p) 
 
 Diluted loss per share                          (0.68p)       (0.44p)      (1.25p) 
 
 
 
 

Consolidated interim balance sheet (unaudited)

 
                                                               Restated 
                                                 Unaudited    Unaudited      Audited 
                                                   30 Sept      30 Sept     31 March 
                                                      2018         2017         2018 
                                        Note       GBP'000      GBP'000      GBP'000 
 Assets 
 Non-current assets 
 Property, plant and equipment                       1,342        1,423        1,443 
 Goodwill                                           34,674       33,842       34,496 
 Other intangible assets                             5,106        6,296        5,962 
                                              ------------  -----------  ----------- 
                                                    41,122       41,561       41,901 
                                              ------------  -----------  ----------- 
 
 Current assets 
 Trade and other receivables                        13,071       12,687       11,754 
 Cash and cash equivalents                               2            1          632 
                                                    13,073       12,688       12,386 
                                              ------------  -----------  ----------- 
 Total assets                                       54,195       54,249       54,287 
                                              ------------  -----------  ----------- 
 
 Liabilities 
 Current liabilities 
 Bank overdraft                          7           (884)        (934)            - 
 Other interest bearing loans 
  and borrowings                         7         (1,500)      (4,750)      (4,750) 
 Trade and other payables                         (12,412)     (11,145)     (12,545) 
 Tax payable                                         (397)        (782)        (249) 
 Provisions                                          (151)        (172)        (151) 
                                              ------------  -----------  ----------- 
                                                  (15,344)     (17,783)     (17,695) 
                                              ------------  -----------  ----------- 
 
 Non-current liabilities 
 Other interest bearing loans 
  and borrowings                         7         (4,750)      (2,400)      (1,800) 
 Deferred tax liabilities                            (809)      (1,078)        (951) 
                                                   (5,559)      (3,478)      (2,751) 
                                              ------------  -----------  ----------- 
 Total liabilities                                (20,903)     (21,261)     (20,446) 
                                              ------------  -----------  ----------- 
 
 Net assets                                         33,292       32,988       33,841 
                                              ------------  -----------  ----------- 
 
 Equity 
 
   Capital and reserves attributable 
   to equity holders of the 
   company 
 Share capital                                      34,992       34,666       34,992 
 Share premium account                              10,088        9,108       10,088 
 Minority interest                                   1,742        1,513        1,718 
 Capital redemption reserve                            125          125          125 
 Shares purchased for treasury                        (25)         (25)         (25) 
 Share option reserve                                  826          614          736 
 Foreign currency translation 
  reserve                                             (25)            9         (20) 
 Retained earnings                                (14,431)     (13,022)     (13,773) 
                                              ------------  -----------  ----------- 
 Total equity                                       33,292       32,988       33,841 
                                              ------------  -----------  ----------- 
 

Consolidated interim cash flow statement (unaudited)

 
                                               Unaudited     Unaudited 
                                              Six months    Six months      Audited 
                                                   ended         ended         year 
                                                 30 Sept       30 Sept        ended 
                                                    2018          2017     31 March 
                                                                               2018 
                                      Note       GBP'000       GBP'000      GBP'000 
 Cash flow from operating 
  activities 
 Loss for the period                               (634)         (376)      (1,133) 
 Adjustment for: 
 Depreciation, amortisation 
  and impairment                                   1,234         1,264        2,588 
 Movement in provisions                                -           (1)         (22) 
 Foreign exchange                                    (5)          (10)         (39) 
 Finance income                                      (2)             -            - 
 Finance costs                                       159            79          203 
 Share based payment charge                          152           110          238 
 Taxation                                          (109)            67         (83) 
                                            ------------  ------------  ----------- 
 Operating cash flow before 
  changes in working capital                         795         1,133        1,752 
 
 Increase in trade and other 
  receivables                                    (1,124)       (1,285)        (360) 
 Increase/decrease in trade 
  and other payables                                 216         (965)          152 
                                            ------------  ------------  ----------- 
 Cash (used in)/generated 
  from operations                                  (113)       (1,117)        1,544 
 Interest received                                     2             -            - 
 Interest paid                                     (154)          (79)        (203) 
 Tax paid                                              -          (71)        (553) 
                                            ------------  ------------  ----------- 
 Net cash flow from operating 
  activities                                       (265)       (1,267)          788 
                                            ------------  ------------  ----------- 
 Cash flows from investing 
  activities 
 Acquisitions net of cash 
  acquired                                             -         (112)        (647) 
 Payment of deferred consideration                 (672)       (2,528)      (2,528) 
 Acquisition of intangible 
  assets                                            (94)          (76)        (448) 
 Acquisition of property, 
  plant and equipment                              (183)         (575)        (865) 
 Net cash outflow from investing 
  activities                                       (949)       (3,291)      (4,488) 
                                            ------------  ------------  ----------- 
 Cash flows from financing 
  activities 
 Increase in borrowings                                -         2,000        2,000 
 Repayment of borrowings                           (300)         (600)      (1,200) 
 Proceeds from issue of 
  share capital                                        -             9        1,316 
                                            ------------  ------------  ----------- 
 Net cash (outflow)/inflow 
  from financing activities                        (300)         1,409        2,116 
                                            ------------  ------------  ----------- 
 Net decrease in cash, cash 
  equivalents and bank overdrafts                (1,514)       (3,149)      (1,584) 
 Cash and cash equivalents 
  at beginning of period                             632         2,216        2,216 
                                            ------------  ------------  ----------- 
 Cash and cash equivalents 
  at end of period                                 (882)         (933)          632 
                                            ------------  ------------  ----------- 
 
 Cash and cash equivalents 
  comprise: 
 Cash at bank and in hand                              2             1          632 
 Bank overdrafts                       7           (884)         (934)            - 
                                            ------------  ------------  ----------- 
 Cash and cash equivalents 
  at end of period                                 (882)         (933)          632 
                                            ------------  ------------  ----------- 
 
 
 
 

Consolidated interim statement of changes in equity (unaudited)

 
                                                                                         Foreign 
                             Share       Capital                             Share      currency 
                  Share    Premium    redemption   Treasury    Minority     option   translation    Retained     Total 
                capital    account       reserve     shares    interest    reserve       reserve    earnings    equity 
              ---------  ---------  ------------  ---------  ----------  ---------  ------------  ----------  -------- 
                GBP'000    GBP'000       GBP'000    GBP'000     GBP'000    GBP'000       GBP'000     GBP'000   GBP'000 
              ---------  ---------  ------------  ---------  ----------  ---------  ------------  ----------  -------- 
 Balance at 
  31 March 
  2017           34,657      9,108           125       (25)       1,513        504            19    (12,646)    33,255 
              ---------  ---------  ------------  ---------  ----------  ---------  ------------  ----------  -------- 
 
 
 Issue of share 
  capital                        9        -     -      -       -     -      -          -        9 
 Acquisition of 
  subsidiaries 
 Charge in respect 
  of share based 
  payments                       -        -     -      -       -   110      -          -      110 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Transactions with 
  owners                         9        -     -      -       -   110      -          -      119 
 Loss for the period             -        -     -      -       -     -      -      (376)    (376) 
 Retranslation of 
  foreign currency               -        -     -      -       -     -   (10)          -     (10) 
 Total comprehensive 
  income for the 
  period                         -        -     -      -       -     -   (10)      (376)    (386) 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Balance at 30 September 
  2017                      34,666    9,108   125   (25)   1,513   614      9   (13,022)   32,988 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 
 Issue of share 
  capital                      326      980     -      -       -     -      -          -    1,306 
 Acquisition of 
  subsidiaries                   -        -     -      -     211     -      -          -      211 
 Charge in respect 
  of share based 
  payments                       -        -     -      -       -   122      -          -      122 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Transactions with 
  owners                       326      980     -      -     211   122      -          -    1,639 
 Loss for the period             -        -     -      -     (6)     -      -      (751)    (757) 
 Retranslation of 
  foreign currency               -        -     -      -       -     -   (29)          -     (29) 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Total comprehensive 
  income for the 
  period                         -        -     -      -     (6)     -   (29)      (751)    (786) 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Balance at 31 March 
  2018 (audited)            34,992   10,088   125   (25)   1,718   736   (20)   (13,773)   33,841 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 
 Charge in respect 
  of share based 
  payments                       -        -     -      -       -    90      -          -       90 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Transactions with 
  owners                         -        -     -      -       -    90      -          -       90 
 Profit / (loss) 
  for the period                 -        -     -      -      24     -      -      (658)    (634) 
 Retranslation of 
  foreign currency               -        -     -      -       -     -    (5)          -      (5) 
 Total comprehensive 
  income for the 
  period                         -        -     -      -      24     -    (5)      (658)    (639) 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 Balance at 30 September 
  2018                      34,992   10,088   125   (25)   1,742   826   (25)   (14,431)   33,292 
                           -------  -------  ----  -----  ------  ----  -----  ---------  ------- 
 
   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 November 2018.

   2.     Basis of preparation 

The consolidated interim financial statements for the six months ended 30 September 2018, 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 2018 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 2018 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 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

During the prior year, a brought forward adjustment was made to correct a client media spend provision held in the accounts. The reserves balance carried forward at 31 March 2017 has been reduced by GBP538k.

   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 2018 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 following standards and interpretations of relevance to the Group have been issued but are not yet effective and have not been adopted by the Group:

-- IFRS 16 Leases (effective 1 January 2019)

As of 1 April 2018, the Group adopted IFRS 15 "revenue from contracts with customers".

Revenue arises from the provision of marketing services. To determine whether to recognise revenue, the Group follows a 5-step process as follows:

   1.     Identifying the contract with a customer 
   2.     Identifying the performance obligations 
   3.     Determining the transaction price 
   4.     Allocating the transaction price to the performance obligations 
   5.     Recognising revenue when / as performance obligations are satisfied 

Revenue is measured at transaction price, stated net of VAT and other sales related taxes. Revenue is generally recognised over time as the Group satisfies performance obligations by transferring the promised services to its customers.

The standard is required to be adopted either retrospectively or using a modified retrospective approach. The Group used the modified retrospective approach to adopt the standard. Under this transitional provision, the cumulative effect of initially applying IFRS 15 is recognised on the date of initial application as an adjustment to retained earnings. No adjustment to retained earnings was required upon adoption of IFRS 15.

The Group has reviewed its various revenue streams and underlying contracts with customers and, as a result of the review, the adoption of IFRS 15 did not have an impact on the Group's statements of comprehensive income and financial position.

The Group does not currently anticipate that the adoption of the other standards and interpretations above will have a material impact on the Group's financial statements in the period of initial application other than IFRS 16 Leases. A review of IFRS 16 will be conducted to determine its impact on the Group.

Other standards and interpretations in issue but not yet effective are not considered to have any relevance to the Group.

   4.     Segment information (unaudited) 

The Group reports its business activities in two areas: Agency Services and Media & Analysis being its two primary business activities. Unallocated represents the Group's head office function, along with intragroup transactions.

Total assets exclude intangible assets, cash and external borrowings which have not been allocated to operating segments. The majority of the Group's activities are carried out within the UK. There is also a subsidiary in Australia.

   4.     Segment information (unaudited) (continued) 
 
 Six months ended 30 
  September 2018 
                                Agency     Media &                Total 
                              Services    Analysis   Central      Group 
                               GBP'000     GBP'000   GBP'000    GBP'000 
 Revenue                         8,706      14,215     (937)     21,984 
 Direct costs                  (1,398)     (3,365)       937    (3,826) 
                            ----------  ----------  --------  --------- 
 Gross profit                    7,308      10,850         -     18,158 
 Operating expenses 
  excluding depreciation, 
  amortisation, 
  exceptional items, 
  acquisition related 
  costs and charges 
  for share based 
  payments                     (6,560)     (8,022)   (2,245)   (16,827) 
                            ----------  ----------  --------  --------- 
 Operating profit 
  / (loss) before 
  depreciation, 
  amortisation, 
  exceptional items, 
  acquisition related 
  costs and credit 
  for share based 
  payments                         748       2,828   (2,245)      1,331 
 Depreciation                    (108)       (133)      (43)      (284) 
 Amortisation                    (513)       (437)         -      (950) 
 Other exceptional 
  costs                           (57)        (55)     (224)      (336) 
 Acquisition related 
  costs                              -           -     (147)      (147) 
 Charge for share 
  based payments                     -           -     (200)      (200) 
                                                              --------- 
 Operating profit 
  / (loss)                          70       2,203   (2,859)      (586) 
                            ----------  ----------  -------- 
 Finance costs                                                    (157) 
                                                              --------- 
 Loss before tax                                                  (743) 
 Tax expense                                                        109 
                                                              --------- 
 Loss for the 
  period                                                          (634) 
                                                              --------- 
 
   Six months ended 30 
   September 2017 (restated) 
                                Agency     Media &                Total 
                              Services    Analysis   Central      Group 
                               GBP'000     GBP'000   GBP'000    GBP'000 
 
 Revenue                         8,381      15,801     (716)     23,466 
 Direct costs                  (1,259)     (4,991)       716    (5,534) 
                            ----------  ----------  --------  --------- 
 Gross profit                    7,122      10,810         -     17,932 
 Operating expenses 
  excluding depreciation, 
  amortisation, 
  exceptional items, 
  acquisition related 
  costs and charges 
  for share based 
  payments                     (6,181)     (7,747)   (2,550)   (16,478) 
                            ----------  ----------  --------  --------- 
 Operating profit/(loss) 
  before depreciation, 
  amortisation, 
  exceptional items, 
  acquisition related 
  costs and charges 
  for share based 
  payments                         941       3,063   (2,550)      1,454 
 Depreciation                    (107)       (116)      (31)      (254) 
 Amortisation                    (646)       (364)         -    (1,010) 
 Other operating 
  income                            46           -         -         46 
 Compensation 
  for loss of office              (29)        (80)      (37)      (146) 
 Acquisition related 
  costs                              -           -      (42)       (42) 
 Charge for share 
  based payments                     -           -     (278)      (278) 
                            ----------  ----------  --------  --------- 
 Operating profit 
  / (loss)                         205       2,503   (2,938)      (230) 
                            ----------  ----------  -------- 
 Finance costs                                                     (79) 
                                                              --------- 
 Loss before tax                                                  (309) 
 Tax expense                                                       (67) 
                                                              --------- 
 Loss for the 
  period                                                          (376) 
                                                              --------- 
 
   4.   Segment information (unaudited) (continued) 
 
 Year ended 31 March 2018 
  (audited) 
                                  Agency         Media 
                                Services    & Analysis   Central      Total 
                                 GBP'000       GBP'000   GBP'000    GBP'000 
 Revenue                          18,025        31,565   (2,049)     47,541 
 Direct costs                    (2,718)      (10,157)     2,049   (10,826) 
                              ----------  ------------  --------  --------- 
 Gross profit                     15,307        21,408         -     36,715 
 Operating expenses 
  excluding depreciation, 
  amortisation, exceptional 
  items, acquisition 
  related costs and 
  charges for share 
  based payments                (12,979)      (15,449)   (5,262)   (33,690) 
                              ----------  ------------  --------  --------- 
 Operating profit/(loss) 
  before depreciation, 
  amortisation, exceptional 
  items, acquisition 
  related costs and 
  charges for share 
  based payments                   2,328         5,959   (5,262)      3,025 
 Other operating 
  income                              64             -         -         64 
 Depreciation                      (222)         (231)     (102)      (555) 
 Amortisation                    (1,293)         (740)         -    (2,033) 
 Exceptional costs                  (12)         (282)     (200)      (494) 
 Acquisition related 
  costs                                -             -     (827)      (827) 
 Charges for share 
  based payments                    (51)           (4)     (138)      (193) 
                              ----------  ------------  --------  --------- 
 Operating (loss)/profit             814         4,702   (6,529)    (1,013) 
                              ----------  ------------  -------- 
 Finance income                                                           - 
 Finance costs                                                        (203) 
                                                                  --------- 
 Loss before tax                                                    (1,216) 
 Tax expense                                                             83 
                                                                  --------- 
 Loss for the period                                                (1,133) 
                                                                  --------- 
 
 

The September 2017 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.

 
                         Agency         Media 
 Total assets          Services    & Analysis   Central     Total 
                        GBP'000       GBP'000   GBP'000   GBP'000 
 30 September 2018       25,306        34,164   (5,275)    54,195 
 31 March 2018           28,408        32,278   (6,399)    54,287 
 30 September 2017       27,128        26,613       508    54,249 
                     ----------  ------------  --------  -------- 
 
 
   5.     Tax credit / (expense) (unaudited) 

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

 
                                                                Six months ended   Six months ended     Audited year 
                                                                    30 Sept 2018       30 Sept 2017            ended 
                                                                                                       31 March 2018 
                                                                         GBP'000            GBP'000          GBP'000 
 Recognised in the consolidated statement of comprehensive 
 income: 
 Current year tax                                                           (33)              (220)            (262) 
 Origination and reversal of temporary differences                           142                153              345 
                                                               -----------------  -----------------  --------------- 
 Total tax credit / (charge)                                                 109               (67)               83 
                                                               -----------------  -----------------  --------------- 
 Loss before tax                                                           (743)              (309)          (1,216) 
 Tax charge thereon at UK corporation tax rate of 19% (2017: 
  20%)                                                                       141                 62              231 
 Effects of: 
 Non-deductible expenses                                                    (32)              (129)            (112) 
 Share based payment charges                                                   -                  -             (36) 
 Total tax credit / (charge)                                                 109               (67)               83 
                                                               -----------------  -----------------  --------------- 
 
   6.     Loss per share (unaudited) 
 
                            Six months   Six months     Audited 
                                 ended        ended        year 
                               30 Sept      30 Sept       ended 
                                  2018         2017    31 March 
                                                           2018 
                                 Pence        Pence   Pence per 
                             per share    per share       Share 
 
 Basic loss per share          (0.68p)      (0.44p)     (1.25p) 
 
 Diluted loss per share        (0.68p)      (0.44p)     (1.25p) 
                           -----------  -----------  ---------- 
 

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 
                                              2018         2017    31 March 
                                                                       2018 
                                           GBP'000      GBP'000     GBP'000 
 Loss for the period                         (639)        (386)     (1,172) 
 
 Weighted average number of                 Number       Number      Number 
  ordinary shares in issue:                   '000         '000        '000 
 Basic                                      93,432       86,896      93,432 
 Adjustment for share options, 
  warrants and contingent 
  shares                                     6,104        5,268       6,126 
                                       -----------  -----------  ---------- 
 Diluted                                    99,536       92,164      99,558 
                                       -----------  -----------  ---------- 
 
 
 
 
 
 Adjusted earnings per share 
                                 Six months   Six months     Audited 
                                      ended        ended        year 
                                    30 Sept      30 Sept       ended 
                                       2018         2017    31 March 
                                                                2018 
                                      Pence        Pence   Pence per 
                                  per share    per share       Share 
 
 Basic adjusted earnings 
  per share                           0.56p        0.92p       1.73p 
 Diluted adjusted earnings 
  per share                           0.52p        0.87p       1.62p 
                                -----------  -----------  ---------- 
 

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 
                                           2018         2017    31 March 
                                                                    2018 
                                        GBP'000      GBP'000     GBP'000 
 Loss before tax                          (743)        (309)     (1,172) 
 Amortisation                               950        1,010       2,033 
 Acquisition related costs                  147           42         827 
 Charge for share based payments            200          278         193 
                                    -----------  -----------  ---------- 
 Adjusted profit attributable 
  to shareholders                           554        1,021       1,881 
 Current period tax charge                 (33)        (220)       (262) 
                                    -----------  -----------  ---------- 
                                            521          801       1,619 
                                    -----------  -----------  ---------- 
 
 
   7.     Bank overdraft, borrowings and loans (unaudited) 
 
                                                         Audited 
                                   30 Sept   30 Sept    31 March 
                                      2018      2017        2018 
 Summary                           GBP'000   GBP'000     GBP'000 
 Bank overdraft                        884       934           - 
 Borrowings, undiscounted 
  cash flows                         6,250     7,150       6,550 
                                  --------  --------  ---------- 
                                     7,134     8,084       6,550 
                                  --------  --------  ---------- 
 
 Borrowings are repayable 
  as follows: 
 Within 1 year 
  Bank overdraft                       884       934           - 
  Borrowings                         1,500     4,750       4,750 
                                  --------  --------  ---------- 
 Total due within 1 year             2,384     5,684       4,750 
 
 In more than one year but 
  less than two years                1,800     1,200       1,800 
 In more than two years but 
  less than three years              1,800     1,200           - 
 In more than three years            1,150         -           - 
  but less than four years 
                                  --------  --------  ---------- 
 Total amount due                    7,134     8,084       6,550 
                                  --------  --------  ---------- 
 
 Average interest rates at               %         %           % 
  the balance sheet date were: 
   Overdraft                          2.00         -           - 
  Term loan                           4.00      2.61        2.25 
   Revolving credit facility             -      2.51        2.25 
                                  --------  --------  ---------- 
 

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 2018 were GBP1.1 million (2017: GBP1.1 million) and, taking into account cash balances within the Group, there was GBP1.1 million (2017: 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 2018                2       (884)      (6,250)    (7,132) 
 31 March 2018                  632           -      (6,550)    (5,918) 
 30 September 2017                1       (934)      (7,150)    (8,083) 
                         ----------  ----------  -----------  --------- 
 
   8.     Provisions (unaudited) 
 
                                                              Audited 
                                      30 Sept     30 Sept    31 March 
                                         2018        2017        2018 
                                      GBP'000     GBP'000     GBP'000 
 At the beginning of the period           151         173         173 
 Additional provisions                      -         (1)        (22) 
 At the end of the period                 151         172         151 
                                   ----------  ----------  ---------- 
 
 

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

   9.     Share capital (unaudited) 

Authorised:

 
 
                             45p deferred shares   5p ordinary shares 
                                         GBP'000              GBP'000 
 Authorised share capital 
  at 31 March 2018 and 
  30 September 2018                       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 2018 and 
  30 September 2018           67,378,520      93,432,217      34,992 
                         ---------------  --------------  ---------- 
 
 
 
   10.   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 2018.

   11.   Post balance sheet event 

On 19 November 2018 Jaywing plc agreed the sale of the entire share capital of HSM Limited for an upfront consideration of GBP500,000.

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

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