5 Year c.£25m contract extension with global Telco

Shearwater Group plc, the cybersecurity, advisory, and managed security services group, is pleased to announce that Brookcourt Solutions, part of the Shearwater Group plc, has secured a five-year contract expansion valued at approximately £25m with a leading UK-based global telecommunications provider.

The agreement extends and expands the long-standing relationship between Brookcourt and its valued customer and will see the continued delivery of the Company's packet monitoring, forensic analysis and service assurance solution across the provider's network infrastructure and key strategic clients.

The contract strengthens Brookcourt's position as a trusted provider of advanced network visibility and service assurance solutions, supporting the customer's evolving requirements for operational performance, network intelligence and forensic investigation capabilities.

The contract is expected to generate c.£25m revenue across the five-year term, providing significant revenue visibility into future years. Approximately £12.5m of the total contract value will be recognised in FY26, reflecting the delivery of initial software and support licenses, which underpins the Board's confidence in achieving market expectations* for FY26 EBITDA, with revenue expected to be slightly ahead of expectations.

The first payment in respect of this contract expansion will be collected in early FY27. Accordingly, cash at the period end is expected to be c £5.6m, around 20% below market expectations, due to the receipt falling into the next financial year. Cash at the end of the prior financial period was £5.1m.

Phil Higgins, Group Chief Executive Officer of Shearwater Group plc, commented: "We are delighted to have secured this significant five-year expansion agreement with one of the world's leading telecommunications providers. This award reflects the strength of our technology solutions, the quality of our service delivery and the trusted partnership we have developed with the customer over many years. As network traffic volumes and operational requirements continue to evolve, organisations increasingly require sophisticated packet monitoring and service assurance capabilities to maintain visibility and performance across critical infrastructure. We look forward to continuing to support our customer and its strategic clients throughout the term of this agreement. The expected contribution from this contract in the current financial year further underpins our confidence in achieving the Group's expectations for FY26."

*The Company understands FY26 market expectations to be: £35.5m Revenue, £2.4m Adjusted EBITDA and £7.0m Net Cash.