Shearwater Group (SWG) reported strong revenue growth and improved profitability for the year ended 30 June 2026 (FY26), supported by major contract wins and continued momentum in its Services division.
The cybersecurity, advisory and managed security services group reported a 34% annualised increase in revenue to £42.3 million, while adjusted EBITDA rose 44% to £2.6 million.
The increase in EBITDA was supported by higher revenue and continued cost discipline. Adjusted profit before tax rose 186% to £1.4 million, while the statutory loss before tax narrowed 97% to £0.3 million from £13.4 million in FY25.
The group ended the year with £5.6 million in cash, up 10%, and no borrowings. Annualised comparisons reflect the previous financial year's 15-month reporting period.
Growth in the Services division was supported by sustained demand from the telecoms and financial services sectors. Major contracts included a ~£25 million renewal and expansion with a global telecommunications provider, generating £12.5 million in FY26 revenue, and a ~£9 million three-year renewal and expansion with a global financial organisation, contributing £2.7 million. The group also delivered a £7.3 million contract extension with a leading UK mobile network operator.
Shearwater also expanded its public sector presence through the G-Cloud 15 framework, increasing Brookcourt's approved technologies by 77% to 55. The group also continued investing in proprietary software products and operational improvements to support future growth.
Trading in FY27 remains in line with expectations, supported by a robust pipeline and new contract wins. These include a £1.2 million contract with a major Japanese financial group and a £1.7 million two-year contract renewal and expansion with a UK Central Government department.
The group also started a capital reduction process aimed at increasing financial flexibility and potentially supporting future dividends or share buybacks.
Shearwater's Group CEO Phil Higgins said: "I am delighted to report a second consecutive year of strong growth in revenue and underlying profitability. Our Services business has continued to perform strongly, supported by major multi-year contract renewals and expansions and the quality of our specialist cybersecurity offering.
"We have entered FY27 from a position of strength, with a growing blue-chip customer base, continued momentum across Services and no debt. Combined with the actions taken to improve performance in Software, this gives us confidence that we can continue to deliver profitable growth and long-term value for shareholders."
View from Vox
Shearwater's FY26 results demonstrate continued progress in revenue growth and profitability, supported by significant multi-year contract wins and a stronger balance sheet. With FY27 trading in line with expectations, a growing customer base and an expanding public sector presence, the group appears well-positioned to benefit from sustained cybersecurity demand.