Shearwater Group PLC Trading Update (9890Q)
November 02 2021 - 3:00AM
UK Regulatory
TIDMSWG
RNS Number : 9890Q
Shearwater Group PLC
02 November 2021
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (as amended), which forms
part of domestic UK law pursuant to the European Union (Withdrawal)
Act 2018. Upon publication of this announcement via a Regulatory
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be in the public domain.
2 November 2021
Shearwater Group PLC
("Shearwater", or the "Group")
Trading Update
Increase in underlying EBITDA in line with expectations
Shearwater Group plc, the organisational resilience group which
provides cybersecurity, advisory and managed security services, is
pleased to provide an update on trading for the six months ended 30
September 2021(1) , ahead of the publication of the Group's Interim
Results in late November.
For the traditionally quieter first half of the year, the Group
expects to report encouraging underlying EBITDA(2) growth, up 19%
year-on-year to GBP1.3m in H1 FY22 in line with the Board's
expectations (H1 FY21: GBP1.1m).
This growth is driven by an improved underlying EBITDA margin of
12% (H1 FY21: 10%), reflecting the increasing proportion of higher
margin software and advisory revenue within the revenue mix .
Revenue for the first half of the year is expected to be GBP10.6m
(H1 FY21: GBP11.2m). In line with the Group's historical trends,
c.50% of H2 revenue is either already contracted or anticipated to
be generated through renewals.
The Group has a strong balance sheet with unaudited net cash of
GBP4.4m as at 30 September 2021 (30 September 2020: GBP3.0m)
following the repayment of GBP1.1m of VAT deferrals during the
period (GBP0.2m remaining). The Group continues to benefit from a n
undrawn revolving credit facility of GBP4.0m.
Demand for Shearwater's offering has remained high across the
Group. Particularly pleasing has been the continued rebound in
advisory work, with the advisory businesses' pipelines now back to
pre-COVID levels.
New customers secured during the first half included a UK
university and a number of public sector organisations, with
cross-sales between Group businesses also having continued and a
number of significant contract renewals concluded.
Phil Higgins, Chief Executive Officer of Shearwater Group PLC,
commented:
"Confidence levels are high across Shearwater, reflecting both
the level of business won in the first half of the year but also
the increased activity levels at our clients. Demand for our
cybersecurity, advisory and managed security services remains
robust as the marketplace develops."
(1) All figures are unaudited
(2) Underlying EBITDA is defined as profit before tax, before
one off exceptional items, share based payment charges, finance
charges, impairment of intangible assets, fair value adjustments to
deferred consideration, contingent consideration depreciation and
amortisation.
Enquiries:
Shearwater Group plc www.shearwatergroup.com
David Williams c/o Alma PR
Phil Higgins
Cenkos Securities plc - NOMAD and
Joint Broker
Ben Jeynes / Max Gould - Corporate
Finance
Julian Morse / Michael Johnson
- Sales +44 (0) 20 7397 8900
Berenberg - Joint Broker
Matthew Armitt / Mark Whitmore +44 (0) 20 3207 7800
Alma PR shearwater@almapr.co.uk
Susie Hudson / Caroline Forde / +44 (0) 20 3405 0205
Joe Pederzolli
About Shearwater Group plc
Shearwater Group plc is an award-winning group providing cyber
security, managed security and professional advisory solutions to
help create a safer online environment for organisations and their
end users.
The Group's differentiated full service offering spans identity
and access management and data security, cybersecurity solutions
and managed security services, and security governance, risk and
compliance. Its growth strategy is focused on building a scalable
group that caters to the entire spectrum of cyber security and
managed security needs, through a focused buy and build
approach.
The Group is headquartered in the UK, serving customers across
the globe across a broad spectrum of industries.
Shearwater shares are listed on the London Stock Exchange's AIM
under the ticker "SWG". For more information, please visit
www.shearwatergroup.com.
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