Shearwater Group shares jumped on Monday after the firm said full-year revenue and profit will come in ahead of market expectations, buoyed by a strong second half, and is preparing the ground to return cash to shareholders.
The cybersecurity, advisory and managed security services group expects revenue of about £42m for the year to 30 June 2026, an annualised rise of roughly 33%.
Adjusted EBITDA is forecast at £2.5m, up 41% on an annualised basis. The prior year covered a 15-month period, with revenue of £39.5m and adjusted EBITDA of £2.2m.
The upgrade was driven by continued growth in the Services division and momentum from a run of previously announced contract wins. It marks a second consecutive year of strong trading, following annualised gains of 29% in revenue and 91% in adjusted EBITDA in FY25.
Shearwater Group shares were 15% higher at the time of writing.
Shearwater ended the period with net cash of £5.6m, up from £5.1m. The board now plans to call a general meeting to seek shareholder approval to reallocate capital between reserves on the balance sheet — a move that would give it the flexibility to buy back shares and/or pay a dividend, should the directors decide either is an appropriate use of capital.
Chief executive Phil Higgins said the group had delivered a second straight year of strong growth, building on the momentum established in FY25. He pointed to rising demand as organisations across the public and private sectors face increasingly frequent and sophisticated cyber threats, adding that the long-established reputations of the group’s companies and the strength of its team left it well placed to capitalise.
Phil Higgins, CEO of Shearwater Group, commented: “We are delighted to have delivered a second consecutive year of strong trading performance, achieving further growth in both revenue and EBITDA and building on the momentum established in FY25.”