Creative agency Jaywing reported Tuesday a narrower annual loss as revenues grew 4.2% despite a 'challenging' year.

For the 12 months ended 31 March, pre-tax losses more than halved to £1.22m from £2.98m as revenue increased 4.2% to £18.0m, and gross profit increased by 2%, but fell 3.1% on a like-for-like basis.

Gains in revenue were led by a 6.3% increase in revenue at the company's agency services division.

The improved annual performance comes against a backdrop of a challenging period of market conditions in the UK but the firm said it was well positioned to meet expectations for the new financial year.

'Whilst there is still caution in the UK market we believe we are well positioned to achieve our market expectation, especially with the continued growth in Australia enhanced by our most recent acquisition.'

At 10:08am: (LON:JWNG) Jaywing Plc share price was -0.5p at 22p