Ayima Group AB - Update on Coronavirus/Covid-19
Further to our announcement of 18 March, regarding the company’s response to the crisis caused by the coronavirus pandemic and resulting economic fallout, today we are issuing an update. In summary:
- All of Ayima’s offices are operating on a work-from-home policy and this has been seamless and effective. The feedback from clients is that the service continues to be excellent.
- It has become apparent that some of Ayima’s clients have been severely affected by the crisis – particularly clients in the travel, hospitality and retail sectors. This has resulted in a significant number of projects being paused. It is difficult to estimate the effect on Ayima’s revenues precisely, however we are planning for a 20-30% reduction in revenue in the short term.
- The largest effect has been the almost complete pause in new business processes. Most pitches and new contract negotiations have been paused or delayed.
- In response, Ayima has today taken steps to immediately cut costs by a corresponding amount. A 20% reduction in operating expenses will be applied with immediate effect.
- The bulk of the cost savings will come from temporary salary reductions and related employment costs such as payroll taxes and pension contributions. We have also reduced all office-related costs and any other expenses deemed “not essential” to operations.
- The company has taken the decision not to furlough or lay-off any staff at this stage. Firstly it is not yet clear what the impact of the revenue reductions will be on resourcing requirements and secondly it is not clear if the various government initiatives to protect employment during this crisis will be effective or rapid. The company may consider furloughing as an option if costs need to be reduced further in the future.
- The company is looking to take advantage of the government assistance programs being offered by the various governments under which we operate. At the moment it is too soon to gauge just how effective these programs will be or if Ayima will qualify for assistance. Additionally due to the extremely high demand being reported, we expect delays in the processing of our applications. We will update the market as soon as we have further information.
For further Information:
CEO/VD Michael Jacobson
+44-20 7148 5974
press(at)ayima.com
www.ayima.com/investors
About Ayima
Originally founded in 2007, Ayima is a digital marketing agency with around 150 employees across its offices in London, New York, San Francisco,Stockholm and Vancouver. Ayima have created a number of market-leading software tools that are used in by clients and agencies around the world, including ‘Updatable’, ‘Redirect Path’, ‘Page Insights’, ‘Pulse’ and ‘Appotate’.
Ayima is listed at Nasdaq First North under the “Ayima B” ticker. Certified Adviser is:
Eminova Fondkommission AB
+46 (0)8 – 684 211 00,
This information is insider information that Ayima Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on April 4, 2020.