Jaywing plc provided earnings guidance for the fiscal year ended March 31, 2024. Despite difficult market conditions in the year just ended the Company will report flat YoY revenue in FY24 on a constant currency basis, down slightly in real terms. The Australia division had a strong year with revenue growth of close to 30% in local currency. The financial year to 31 March 2024 ended with the winning of a number of major pieces of work across the UK and Australia including a significant piece of work in the UK from one of existing Australian clients. The benefit of these new client wins, as well as the UK Agency cost reductions implemented in FY24, is expected to be seen in the financial year ended 31 March 2025. Conversely UK Consulting division which had been trading very strongly for much of the last financial year reported an unexpectedly weak last quarter as scheduled work with a major customer did not materialise. This trend has continued in the first quarter of the current year.
The shortfall in UK Consulting revenues pending increased cash receipts from growing UK Agency revenues has increased the strain on the Company's working capital. This, combined with some additional one off costs of further reducing ongoing operating expenses, means the Company intends to enter discussions with its two lenders, DSC Investment Holdings Limited and Lombard Odier Asset Management (Europe) Limited, both of which are represented on the Board, regarding increasing the existing facility it has in place with them.