Shearwater Group PLC Trading Update (6355W)
August 20 2020 - 1:00AM
UK Regulatory
TIDMSWG
RNS Number : 6355W
Shearwater Group PLC
20 August 2020
20 August 2020
SHEARWATER GROUP PLC
("Shearwater", or the "Group")
Trading update
Positive momentum sustained
Shearwater Group plc (AIM: SWG), the organisational resilience
group, is pleased to announce a trading update following
publication of the Group's final results in July 2020. This update
is provided in response to the continued macro-economic uncertainty
and reflects Shearwater's commitment to shareholder
communication.
The Group continues to generate good levels of revenue, in line
with expectations, driven through contract renewals from its
existing customer base and supplemented by new business wins. New
business wins this financial year include contracts secured with
two existing clients: a global bank providing a three year cyber
service and protection solution, and a UK based multimedia services
and telecom provider, to carry out additional data base protection
and monitoring services in additional regional locations.
Underlying EBITDA profit* is also tracking in line with
expectations, reflecting the benefit of the Group's focus on
increased efficiencies and higher margin offerings across both its
software and services divisions. With a continued focus on prudent
cash management this has led to high levels of cash conversion.
The Group has a strong balance sheet position with unaudited
gross cash as at 31 July 2020 of GBP4.1m plus an undrawn revolving
facility of GBP4.0m, positioning it well for future
opportunities.
In line with the Group's strategic focus to complement organic
growth with acquisitions, the executive management team remain
engaged with potential targets and whilst there are a healthy
number of opportunities in the pipeline, the Group remains
committed to maintaining strict acquisition discipline, pursuing
only those opportunities which have a clear strategic fit and which
will have the ability to enhance value for all stakeholders.
Phil Higgins, Chief Executive Officer, said:
"Following on from the strategic progress achieved in the prior
year, where we reported our first year of underlying profitability,
we are pleased to report continued positive momentum through the
beginning of Q2 2020.
Despite the impacts of Covid-19 we have seen a robust level of
incoming new business enquiries both domestically and
internationally and a continuance of long-term critical projects.
We therefore remain cautiously optimistic around the outlook for
the coming year. In addition, we continue our conversations with
potential acquisition targets. In the longer term, the opportunity
to develop a quality, scaled UK organisational resilience Group has
only grown and we are confident we have the right platform in place
to deliver on the opportunity."
Enquiries:
Shearwater Group plc www.shearwatergroup.com
David Williams c/o Alma PR
Phil Higgins
Cenkos Securities plc - NOMAD and
Joint Broker
Max Hartley / Ben Jeynes - NOMAD
Julian Morse / Michael Johnson -
Sales +44 (0) 20 7397 8900
Berenberg - Joint Broker
Matthew Armitt / Mark Whitmore +44 (0) 20 3207 7800
Alma PR shearwater@almapr.co.uk
Caroline Forde / Susie Hudson / +44 (0) 20 3405 0205
Harriet Jackson
About Shearwater Group plc
Shearwater Group plc is an award-winning organisational
resilience group that provides cybersecurity, advisory and managed
security services to help assure and secure businesses in a
connected global economy.
The Group's comprehensive cybersecurity solutions and services
maintain trust between users, assure the protection of information
assets and critical infrastructure, and support organisations'
operational effectiveness. Its capabilities include identity and
access management and data security, cybersecurity solutions and
managed security services, and security governance, risk and
compliance.
The Group is headquartered in the UK with offices in the US, UK
and Europe, serving customers across the globe who are active in a
broad spectrum of industries.
Shearwater shares are listed on the London Stock Exchange's AIM
under the ticker "SWG". For more information, please visit
www.shearwatergroup.com.
*Underlying EBITDA defined as profit before tax, before one off
exceptional items, share based payments, finance charges,
depreciation, amortisation and fair value adjustment for deferred
consideration.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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