FY26 Trading Update

Upon publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Shearwater Group plc

("Shearwater", or the "Group")

FY26 Trading Update

Strong H2 performance drives full-year revenue and adjusted EBITDA ahead of market expectations

Shearwater Group plc, the cybersecurity, advisory, and managed security services group, is pleased to provide an update on trading for the year to 30 June 2026 ("FY26").

The Group has delivered a strong trading performance in H2, driven by continued growth in the Services segment and momentum from several contract wins announced previously. As a result, revenue and adjusted EBITDA are now anticipated to be ahead of market expectations* with expected revenue of c.£42m, representing an annualised YoY increase of c.33% (FY25: £39.5m for 15-month period), and expected adjusted EBITDA of £2.5m, an annualised increase of 41% (FY25: £2.2m).

The expected result builds on the strong growth delivered in FY25, which on an anualised basis, saw increases of 29% in revenue and 91% in adjusted EBITDA.

The Group finished the period with net cash of £5.6m (FY25: £5.1m). In the near term, the Directors of the Company expect to issue notice of a General Meeting to seek shareholder approval for a proposed reallocation of capital between reserves on the balance sheet. This will provide the Group with flexibility going forward to buy back its own shares and/or pay a dividend, should the Directors determine that either represents an appropriate use of capital.

The Group enters FY27 with positive momentum, supported by continued demand for its cybersecurity services and a strong pipeline of opportunities. The Board remains confident in the Group's prospects for the year ahead.

Phil Higgins, CEO of Shearwater Group, commented: "We are delighted to have delivered a second consecutive year of strong trading performance, achieving further growth in both revenue and EBITDA and building on the momentum established in FY25.

"The cyber security landscape continues to evolve rapidly, with organisations across both the public and private sectors facing increasingly sophisticated and frequent cyber threats. We expect this trend to continue and the strong reputations of each of our Group companies, built over a long period, aligned to the outstanding capability of our team, positions us well to capitalise on the opportunity that this creates."

*The company considers that current FY26 market expectations referred to in this announcement are revenues of £35.5m and adjusted EBITDA of £2.4m