Shearwater revenue drops but "business confidence" is returning

(Alliance News) - Shearwater Group PLC on Wednesday reported a 3.7% revenue drop in the financial year ended March 31 but said "business confidence" is returning.

Shares in the London-based cybersecurity provider closed 7.7% down at 160.55 pence in London on Wednesday.

Shearwater's annual pretax profit was GBP33 million, an improvement from the previous year's loss of GBP1.2 million.

Shearwater's Chief Executive David Williams said the firm was pleased with the financial year's 8.6% growth on earnings before interest, tax, depreciation, and amortisation. Ebitda rose ahead of market expectations to GBP3.7 million with a margin of 12% from GBP3.4 million with a margin of 10%.

"It was a year of two halves. We were impacted by Covid-19 related decision-making delays, and the inability to provide on-site advisory services in the first hald," said Williams.

"However, we still delivered a resilient performance in the first half with underlying Ebitda ahead of the prior year, due to our diverse range of offerings and the benefits of margin expansion flowing through."

Shearwater invested in significantly less software in the period, which accounted for a cash loss of GBP7.0 million compared to GBP1.4 million in 2020.

The firm proposed no dividend, in line with the year before.

Looking forward, the firm tips it may flex its muscles in the M&A space with a pipeline of potential acquisitions.

By Josie O'Brien; josieobrien@alliancenews.com

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