Shearwater forecasts revenue of about £42 million in FY26
Key Facts
Shearwater Group forecast revenue of about £42 million for the financial year ended 30 June 2026, an annualized year-on-year increase of about 33%, according to a trading update issued by the company in July. The group estimated adjusted EBITDA at about £2.5 million, an annualized year-on-year increase of 41%. It said both forecasts exceeded the market estimates cited in the update, which were £35.5 million for revenue and £2.4 million for adjusted EBITDA. It also reported net cash of £5.6 million at the end of the financial year, compared with £5.1 million in the previous period. These figures outline the company’s forecasts and its update to the market; the available materials did not include final FY26 results that could be used to confirm them.
Shearwater said revenue in the previous period was £39.5 million over 15 months ended 30 June 2025, representing annualized year-on-year growth of 29%. Adjusted EBITDA was £2.2 million in that period, with annualized year-on-year growth of 91%. Because the periods differ in length, the comparison in the company’s announcement uses an annualized basis rather than a direct comparison between revenue over equal periods. In July, the group’s shares rose 23.1% to 56 pence at the close, following the trading update, which cited forecasts above market expectations. At the close on 23 October, the shares stood at 71.0 pence, within a 52-week range of 35.5 to 75.0 pence.
The company attributed strong second-half performance to continued growth in its services division and momentum from several previously announced contracts. It said growth was “driven by continued growth in the services division and momentum from several contracts won and announced previously,” adding that it expected this trend to continue. The announced contracts include a five-year Brookcourt expansion contract with a UK-based global telecommunications provider, with an expected value of about £25 million and about £12.5 million expected to be recognised in FY26. The group also announced in February 2026 a renewal and expansion of a three-year contract with a global financial institution, worth about £9 million, and said £2.7 million would be recognised in FY26. These contracts provide context for the company’s forecasts of the contribution from contracted business to financial-year revenue.
In July 2026, the group also announced a new three-year contract worth $1.2 million to provide core email protection technology to one of Japan’s largest financial groups. Shearwater operates in technology solutions and consulting services focused on cybersecurity, security and regulatory compliance for businesses, delivering services through its software and services divisions. In its trading update, it said it planned to seek shareholder approval to reallocate capital between reserves, enabling the option of a share buyback or dividend distribution. The update included in the available materials did not specify a date for this step or a final decision on either option. Shareholder approval remains necessary before the company can make this option available.