Shearwater Group (AIM:SWG) reported revenue of £42.3m for the year to 30 June, representing annualised growth of 34% against a prior 15-month period that generated £39.5m, as contract wins in its Services arm drove a second consecutive year of expansion.
The London-listed cybersecurity, advisory and managed security services group, which operates through subsidiaries including Brookcourt Solutions, said adjusted EBITDA rose to £2.6m, an annualised increase of 44% on the £2.2m generated in the comparative 15-month period.
Adjusted profit before tax climbed to £1.4m, up 186% on an annualised basis against £0.6m previously, while the statutory loss before tax narrowed to £0.3m from £13.4m a year earlier.
Cash stood at £5.6m at the year-end, up from £5.1m, with no bank borrowings.
The Services division, which now accounts for 96% of group revenue against 94% a year earlier, delivered annualised revenue growth of 37% to £40.6m, underpinned by sustained demand from telecoms and financial services clients.
New contracts drove the division's performance: a c.£25m renewal and expansion with a major UK-based global telecoms provider, of which £12.5m was recognised in FY26; a c.£9m three-year renewal with a global financial organisation, contributing £2.7m in FY26; and a £7.3m extension with a UK mobile network operator, contributing £3.5m in the year.
Brookcourt's approved technologies on the government's G-Cloud 15 procurement framework rose 77% to 55, from 31 previously, as the group expanded its public sector presence.
Software, the group's proprietary identity verification and access management business, told a different story: revenue fell 17% to £1.7m, as the multi-factor authentication product faced pressure from rivals such as Microsoft's Authenticator being bundled free into wider software packages, pulling adjusted EBITDA from the segment down to £0.2m from £0.6m previously.
"We have entered FY27 from a position of strength, with a growing blue-chip customer base, continued momentum across Services and no debt," said chief executive Phil Higgins, adding that actions taken in Software give the board confidence it "can continue to deliver profitable growth and long-term value for shareholders."
Shearwater's trading update in July had already flagged FY26 revenue of approximately £42m and adjusted EBITDA of £2.5m, both ahead of market expectations of £35.5m and £2.4m respectively; today's results confirm those figures came in slightly higher still, at £42.3m and £2.6m.
Read more about Shearwater
- 20/10/26Shearwater's Brookcourt wins £1.7m government threat intelligence deal
- 27/07/26Shearwater Group upgrades FY26 outlook on strong H2 trading
- 14/07/26Shearwater Group's Brookcourt business lands $1.2m contract in Japan
The board began a capital reduction process in June, the first stage of which received shareholder approval at a General Meeting on 13 October, opening the door to a future dividend or share buyback.
Robin Southwell, who was appointed chair in February, said the vote outcome gives the group a platform to "continue to deliver sustainable growth" while opening "further opportunities for us to deliver value for shareholders."
Directors David Williams and Giles Willits stepped down during the year after a combined tenure of more than 20 years, with Jon Entract joining the board as a non-executive director immediately after the period end.
The group said FY27 trading to date is in line with expectations, pointing to a $1.2m new contract with one of Japan's largest financial groups for email protection technology and a £1.7m two-year renewal to provide advanced threat intelligence to a Central Government department, secured via G-Cloud 15.