Shares in Jaywing PLC (AIM:JWNG), the integrated agency powered by data science, tumbled after it warned full-year net profits would be below market expectations.
In a trading update, the company reported a softening in demand over the past two months with certain clients seeking to defer their marketing spend, both in the UK and Australia, until the economic situation settles or improves.
This has been particularly evident with consumer-facing brands.
As a result, Jaywing forecast revenues for the year to 31 March 2023 of between £22.0mln and £22.5mln with adjusted EBITDA ahead of last year as a result of a 5% reduction in overall group costs, but below market expectations.
“The company is confident that this reduction in marketing spend is temporary and represents delayed rather than lost revenues to the group,” it added.
However, significant project revenues previously expected to commence in the fourth quarter are unlikely to now commence by 31 March 2023, it noted.