Jaywing (JWNG) , the data science agency and consulting business, had two major shareholders acquire its secured loan facility owed to Barclays on Wednesday.
The £5.2m facility was bought by major shareholders Lord Ashcroft KCMG PC and Lombard Odier Asset Management (Europe) Limited. They also increased the loan facility by £3m to £8.2m.
The Sheffield headquartered business said that the financing put it in a stronger financial position, not only in the short term, but also for the longer term realignment of the business and product offerings to meet “rapidly changing client demand”.
The major shareholders indicated ongoing support for the business, which could include further debt and/or equity, the company said.
Earlier in the week, Jaywing reported that revenues were down 14% to £35.6 million from £41.5m million, and gross profits were down to £29.8m from £30.8m, which sent shares falling to 2.62p.
However shares rebounded on Wednesday, soaring 195% to 7.25p following the update.
It recently disposed of its call centre business HSM Limited to concentrate on the core business; performance marketing and brand-led marketing, who service blue chip clients that include HSBC and Pepsi.
The company’s marketing business has recently won multiple industry awards, including Advertising, Strategic Thinking and Creativity/Innovation from The Drum Recommends awards.
Shares have been gradually declining since the year began, however the extension of financing by two major investors seems to have brought renewed investor confidence in the AIM listed firm.
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