Priya Patel
TLDR:
Shearwater Group, a London-based cyber security firm, reported a decline in full year revenue missing expectations by £10m. They attributed this under-performance to delays in wrapping up larger contracts still in negotiation. Despite the revenue decline, Shearwater swung back to a pre-tax profit of £1m from losses the previous year. The company is confident in returning to growth in 2025 with new business opportunities on the horizon.
Full Article:
Shearwater Group, a cyber security firm based in London, reported a decline in its full year revenue for 2024, falling short of expectations by £10m. The company’s revenue for the financial year ended in March is expected to slide to around £22.5m, down from £26.7m the prior year. Despite this decline, Shearwater swung back to a pre-tax profit of £1m, from losses of £0.2m in 2023. Consensus estimates had forecast revenue of £32.5m and adjusted earnings before tax of £2.5m.
The under-performance was attributed to delays in finalizing larger contracts that are still in negotiation. The company’s balance sheet has ended the year higher, up £5m. Shearwater’s chairman, David Williams, highlighted the company’s profitability and solid market position, expressing confidence in future growth potential.
Shearwater is confident in its return to growth in 2025, mentioning “a number of high value contracts” with blue-chip clients in the pipeline. The company has already secured its first scheduled contract renewal for 2025 with a British media and telecommunications company, enhancing its data protection services with Brookcourt Solutions.
Phil Higgins, the chief executive of Shearwater Group, acknowledged the disappointing performance in the past year but expressed optimism about the future. He mentioned a robust new business opportunity pipeline and ongoing negotiations for substantial contracts. The Aim-listed stock of Shearwater is down nearly five per cent over the past year.
