Shearwater Group‘s guidance upgrade sent shares in the AIM-listed cybersecurity and managed security services firm 15% higher on Monday, after the company said full-year revenue and profit will exceed market expectations and outlined steps that could lead to buybacks or dividends.
The trading update, released at 07:00 on 26 July 2026, covers the year to 30 June 2026. Shearwater expects revenue of about £42m, an annualised rise of roughly 33%, and adjusted EBITDA of £2.5m, up 41% on an annualised basis.
Behind the Guidance Upgrade
The prior financial year covered a 15-month period, making direct comparisons awkward. On that basis, revenue was £39.5m and adjusted EBITDA was £2.2m for the period ended 30 June 2025.
Stripping back further, FY24 (restated) revenue stood at £24.4m, according to the company’s audited results announcement for the 15-month period. The trajectory since then has been steep: annualised revenue gains of 29% and adjusted EBITDA gains of 91% in FY25 preceded the current upgrade.
The board attributed the beat to continued growth in the Services division and momentum from a series of previously announced contract wins. The group’s interim results published 17 March 2026 had already shown revenue growth of 31% in the first half of FY26, so the full-year guidance upgrade reflects an acceleration in the second half.
Shearwater ended the period with net cash of £5.6m, up from £5.1m.
Shareholder Returns Move onto the Agenda
The board intends to call a general meeting seeking shareholder approval to reallocate capital between reserves. That step would give directors the flexibility to buy back shares or pay a dividend, though neither has been committed to.
The move signals a shift in posture for the AIM-listed group (ticker: SWG). Companies seek reserve reallocation when distributable reserves are insufficient to support returns under company law; the request implies the board sees the current cash generation as sustainable enough to plan for payouts.
Chief executive Phil Higgins said the group had delivered a second straight year of strong growth, building on the momentum from FY25. He pointed to rising demand as organisations across the public and private sectors face increasingly frequent and sophisticated cyber threats, adding that the long-established reputations of the group’s companies and the strength of its team left it well placed to capitalise.
Higgins said: ‘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.’
Context: Two Years of Compounding Growth
The guidance upgrade is the second consecutive upward revision for Shearwater, whose FY25 performance already showed a significant step-change from the FY24 base. On an annualised basis, adjusted EBITDA has more than doubled from the FY24 level to the current £2.5m forecast across two financial years.
The cybersecurity services sector has seen sustained demand from both public-sector bodies and corporates shoring up defences against ransomware and state-sponsored intrusion. Shearwater operates across cybersecurity, advisory and managed security services, giving it exposure across the threat-response lifecycle.
The full trading update did not provide revenue guidance by division. Investors seeking divisional detail will need to wait for the full-year results, where the Services segment’s contribution to the beat is expected to be set out.
With the reserve-reallocation meeting still to be called and no committed return announced, the next catalyst is the formal general meeting notice and, beyond that, full-year results for the period ended 30 June 2026.
