Shearwater Group plc has reported a strong recovery in its latest audited results, with revenues rising to £39.5 million for the 15-month period to 30 June 2025 — a 29% annualised increase from the restated £24.4 million the year prior. The AIM-listed cybersecurity firm also saw adjusted EBITDA nearly double to £2.2 million and returned to profitability with an adjusted pre-tax profit of £0.6 million.
The uptick was driven by strong performance in the Group’s Services division, which delivered £37 million in revenue, buoyed by repeat business from long-standing clients and notable contract wins in the telecoms sector. These included a $12.8 million five-year 5G security deal with a global telco, and an £8.4 million renewal with an existing client.
CEO Phil Higgins said the results reflected “significant progress” across the Group, citing investment in proprietary solutions and staff. The company also maintained a healthy cash position of £5.1 million, with no debt, and noted growing demand from both public and private sector clients amid escalating cyber threats.
Reported figures were impacted by £11.3 million in exceptional charges, mainly a non-cash impairment to goodwill and intangibles. However, management emphasised that underlying performance was in line with, or ahead of, expectations.
Beyond client delivery, Shearwater continued to invest in innovation — including the development of in-house AI tools to improve scalability and tendering processes. Subsidiary Brookcourt Solutions recently became one of the first UK firms to achieve ISO 42001 certification for responsible AI governance, a move that positions the Group well for public sector opportunities following its inclusion on the UK’s G-Cloud 14 procurement framework.
Looking ahead, Shearwater expects the increasing complexity of cyber threats to drive sustained growth, supported by a strong pipeline and deep sector expertise in telecoms and financial services.
View from Vox:
Shearwater’s latest results signal a clear turning point. After several years of consolidation, the Group is beginning to show the benefits of specialisation and scale in key high-assurance sectors. The headline figures though shaped by accounting policy changes and impairments reveal a business that is leaner, more focused, and increasingly confident in its strategy.
The 5G contract win is particularly telling. It shows that Shearwater isn’t just riding sector momentum but competing at the top end of the cybersecurity market. Its early adoption of AI governance standards also demonstrates a rare willingness among smaller firms to lead, rather than follow, on compliance.
Challenges remain in reigniting growth in the software segment, but with a clean balance sheet and clearer narrative, Shearwater looks better placed than it has in years. For investors seeking exposure to the cybersecurity sector at a reasonable valuation, this may be a name to revisit.