24th Oct 2019 11:42
(Alliance News) - Cybersecurity firm Shearwater Group PLC said Thursday trading in the first half was in line with its own expectations.
In the six months to September 30, Shearwater expects to report revenue of about GBP16.0 million, almost four times the GBP4.5 million reported the year before.
The company said about 10% of this growth is expected to be organic.
As a result, Shearwater expects underlying earnings before interest, tax, depreciation and amortization to come in at GBP1.0 million compared to a GBP1.6 million loss the year before.
The company said it was able to secure "a number of significant" new contract wins, including multi-year managed service contracts, in the first half.
"A substantial number of live cross-selling opportunities were generated of which 19 were converted into contract wins. Shearwater also secured 45 net new customer relationships since April 2019," the company said.
Chair David Williams added: "We have seen good momentum in the first half with the execution of our strategy yielding a materially improved financial performance, resulting in our second consecutive quarter of profits and strong organic revenue growth.
"For the current financial year, we are trading in line with our expectations, with the business approximately two thirds second half weighted. With our developing forward visibility and improving cross selling opportunities, we are well positioned for long term sustainable growth."
He added: "Operating in the cyber security sector, we are well positioned to benefit from one of the most certain growth areas; as for us, there are now three certainties in life - death, taxes and cyber-crime."
Shares in Shearwater were 1.9% higher in London on Thursday at 229.20 pence each.
By Paul McGowan; [email protected]
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