Marketing and data science business Jaywing plc has taken itself off the market after deciding a sale would not be in its best interests.
The Sheffield firm explored the option of a sale in a strategic review launched earlier this year due to three years of tough trading conditions that led to mounting losses. But it has concluded that “seeking to crystallise value through a sale of the company at this time is not in the interests of stakeholders” and ended the review.
In the announcement, it has also been revealed that chief executive Andrew Fryatt has resigned from the firm and CFO Christopher Hughes will take on an expanded role that also includes operations. Former Merit Group CEO David Beck, who joined the board in April, will become executive chairman, with former chairman Ian Robinson becoming a non-executive director.
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Jaywing, which is based in Sheffield with offices in Leeds and Australia, released accounts for 2023 which showed an operating loss of £11.3m on revenues of £22.1m.
In today’s trading update, Jaywing said it was encountering “difficult market conditions” but was expecting revenue in its 2024 financial year to be broadly flat. But it said that an unexpectedly weak last quarter from its 海角视频 division, which had continued into the start of the current year, was putting strain on its working capital, leading to discussions with its lenders.
The update said: “Whilst market conditions remain tough it is also true that the industry outlook is improving. We continue to focus on demonstrating the efficacy of our data led offering and are excited to see it resonating strongly with new and existing customers.
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“This is a people business and it is gratifying for all involved to see their hard work and creative passion reflected in positive customer engagement. We will continue to seek operating efficiencies and opportunities for margin improvement and once we have normalised our working capital we are cautiously optimistic that our data science led client offerings, and the more aligned cost base, will deliver significantly improved financial results.
Outgoing chairman Mr Robinson said: “Andrew has led the business through a challenging period and the board would like to thank him for his contribution in his four years with the group.
“After nearly three years with the group Christopher Hughes is ready to step up to the COO role, the three CEO’s of the Group’s operating businesses will report to him. David Beck is an experienced executive with both relevant industry experience and a strong track record, he will focus on helping the executive team to build and grow the business.”