Jaywing losses widen as outflows offset sales momentum

Jaywing saw losses widen in the first half of its trading year as building sales momentum and the benefits of cost realignment and debt reduction were offset by an increase in outgoings.

Jaywing losses widened 68% year-on-year to £634,000 despite as the 1.2% uptick seen in gross profits was partially offset by a 0.7% contraction in EBITDA margins to 7.3%.

Losses per share also bloated to 0.68p from the 0.44p recorded a year earlier as the company paid down debt, interest costs increases and taxes.

Looking forward, Jaywing doesn't anticipate market conditions improving in the UK given the general level of uncertainty ahead of the UK's withdrawal from the European Union on 29 March 2019 but believes its differentiated offering makes it well placed to capitalise on growth opportunities in both the UK and Australia.

In a separate announcement, the AIM-listed media outfit revealed that it had exchanged contracts for the sale of HSM, its contact centre business, to Bidco for a cash consideration of £500,000.

HSM recorded revenues of £6.03m, an EBITDA of £136,000 and a pre-tax loss of £30,000 in the year ended 31 March.

As of 1130 GMT, Jaywing shares had dipped 1.62% to 18.20p.