Shearwater Group
SWG · AIM · Technology · mcap £16m · 66.0p
Shearwater provides cyber security, data protection and compliance services, mainly through its Brookcourt subsidiary, plus some software. Customers are large telecom, financial and UK government organisations, usually on multi-year contracts.
The case for
- FY26 revenue of about £42m and EBITDA of £2.5m beat market expectations. 27 Jul 2026
- Large multi-year contracts, such as £25m over five years and £9m over three years, give revenue visibility. 1 Jul 2026 3 Feb 2026
- Guidance for the 15-month period was met, with EBITDA about doubling on an annualised basis. 30 Jan 2025 11 Nov 2025
- Net cash of £5.6m and a planned reserves reallocation open the way to buybacks or dividends. The CEO owns about 11%. 27 Jul 2026 18 Nov 2025
The case against
- The April 2024 warning showed revenue can fall sharply when customers delay spending. 3 Apr 2024
- Margins are thin: H1 FY26 EBITDA was about zero on £14m revenue, and cash fell. 17 Mar 2026
- Revenue depends heavily on a few large telecom customers. 1 Jul 2026 4 Dec 2025 3 Feb 2026
- The Software segment shrank and had to be targeted to return to growth. Cash at the FY26 year end was 20% below expectations. 26 Nov 2024 11 Nov 2025 1 Jul 2026
- Board turnover includes a new Chair whose other company entered administration. 15 Jan 2026 18 May 2026 1 Apr 2026
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.