JAYWING PLC

Regulatory Filings • Mar 1, 2016

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RNS Number : 5324Q

Jaywing PLC

01 March 2016

Date:                    0700 Tuesday 1st March

On behalf of:   Jaywing plc ("the Company")

Jaywing plc

("Jaywing" or "the Company")

Imperial College London Collaboration and Trading Update

Jaywing is pleased to announce the formation of a strategic collaboration with Data Science Institute (DSI) at Imperial College London. 

The Company has agreed to sponsor a three and a half year research programme to measure cognitive response through neuroimaging technology.

Over this period, using the power of the Institute's state-of-the-art Global Data Observatory, the researchers from Imperial will work alongside Jaywing's creative and 60-strong data science teams on real-life client challenges. 

They will use advanced neuroscience techniques, applying the DSI's technologies to learn why consumers make the decisions they do and which brain areas are responsible. The findings from the study will be integrated into the design process of data-driven marketing and it is intended that the research will lead to new methodologies in future data-driven marketing, new innovations in data product design and a scientific framework to predict emotional responses to marketing stimuli.

Martin Boddy, CEO Jaywing plc, commented on the initiative, "This project is extraordinarily exciting and presents a rare opportunity to be at the vanguard of a step change in how we use data in marketing.  The DSI's Global Data Observatory facility is technically hugely impressive, as are the academics working in it, processing millions of brain function data points to understand not just how but why we respond to stimuli. This programme has the potential to disrupt the marketing industry, changing the way marketing is done and the role played by marketing agencies."

Yike Guo, Founding Director, Data Science Institute Imperial College London added, "Data is the world's largest and fastest growing resource. Our use of technology at work and home means that so much of what we do generates data.  Harnessing the power of this amazing resource to provide new and meaningful insights is what data science is all about and why Imperial has created the Data Science Institute. Commercial sponsorship provides the university with the opportunity to invest in important and cutting-edge technologies as well as employing some of the best minds working hard on ground-breaking research projects. We're delighted to have Jaywing on board.  Not only do we look forward to developing exciting new ways to approach marketing challenges, but also to working with Jaywing's brightest data scientists."

Trading Update

Trading for the year ending 31 March 2016 is expected to be in line with management expectations, with gross profit and adjusted EBITDA showing overall organic growth of c5% compared to the prior year. 

This financial year has been one of delivering meaningful organic growth in a competitive UK market whilst investing in product and proposition development to accelerate our growth in the future.  In this context our anticipated overall result demonstrates our ability to deliver against expectations today whilst proactively developing the business for tomorrow.

In the Media & Analysis segment, adjusted EBITDA will show growth of nearly 10% compared with the previous year. The H2 performance is over 30% higher than H1, and 15% higher than the equivalent period in the prior year. This has been driven by the continued growth in search marketing (Epiphany) and the level of demand we have experienced from clients needing analytical support from our data consultants to comply with changes to accounting standard IFRS9.

The financial performance of our Agency segment is expected to be similar to last year although this is now the much smaller segment of our business.  More encouraging are the number of projects and opportunities involving collaboration across multiple areas of the business.

Cash generation and free cash flow both remain strong as a consequence of the high level of

resilience in our income streams.  We continue to set ourselves apart from the more traditional agency businesses as more than 50% of our income is now recurring.  We are still challenging ourselves to increase this proportion in the services we offer and the way we contract with clients.

Management remain focused on progressing our strategic objectives of sharpening our focus, creating a low risk international growth platform and innovation in data science.  The announcement today of our collaboration with Imperial College London is a statement of our ambition in respect of this last objective.

Enquiries:

Jaywing plc

Michael Sprot (Company Secretary)                      Tel: 0114 281 1200

Cenkos Securities plc

Nicholas Wells (Nomad)                                             Tel: 0207 397 8920

This information is provided by RNS

The company news service from the London Stock Exchange

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