Shearwater Group (LSE:SWG) said stronger trading during the second half of FY26 enabled the company to outperform market expectations for both revenue and earnings, supported by continued expansion in its Services division and the contribution from previously announced contract wins. The group expects to report revenue of approximately £42 million, representing annualised growth of around 33%, while adjusted EBITDA is forecast to reach £2.5 million, an increase of roughly 41% on an annualised basis, building on the significant progress achieved during FY25.
The company finished the financial year with a net cash position of £5.6 million and intends to seek shareholder approval at a forthcoming General Meeting for a reallocation of capital between reserves. If approved, the proposal would provide the board with greater flexibility to return capital to shareholders through share buy-backs or dividend payments should it consider such actions appropriate in the future. Entering FY27, management said the business benefits from strong trading momentum, a healthy pipeline of opportunities and sustained demand for cybersecurity solutions as organisations continue to increase investment in protecting themselves against increasingly sophisticated cyber threats.
Although operational performance has strengthened, the company’s investment outlook remains constrained by the quality of its financial profile, with loss-making operations and weaker free cash flow despite rapid revenue growth. Technical indicators provide a more positive picture, with the shares trading above the 20-day and 50-day moving averages and the MACD remaining positive. Valuation, however, continues to be limited by negative earnings, while the company does not currently offer a dividend yield.
More about Shearwater Group plc
Shearwater Group plc is a UK-based cybersecurity specialist providing managed security services and professional advisory solutions to organisations across the public and private sectors. Its portfolio includes identity and access management, data protection, cybersecurity consulting, managed detection and response, and governance, risk and compliance services, delivered through a group of specialist operating businesses.
The company’s strategy combines organic growth with targeted acquisitions to expand its cybersecurity capabilities and broaden its customer base. By integrating consultancy, technology and managed security services, Shearwater aims to help organisations strengthen their cyber resilience while capitalising on growing global demand for advanced cybersecurity solutions.
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