Shares in Shearwater Group PLC (AIM:SWG) rose 15% to 42.75p said a five-year contract expansion worth about £25 million will push revenue slightly ahead of expectations for the current year, though the timing of the first payment means year-end cash will come in below forecasts.
The cybersecurity, advisory and managed security services group said Brookcourt Solutions, part of Shearwater, had extended and expanded a long-standing relationship with a leading UK-based global telecommunications provider.
The agreement covers continued delivery of Brookcourt’s packet monitoring, forensic analysis and service assurance technology across the provider’s network infrastructure and key strategic clients.
Shearwater expects the contract to generate around £25 million of revenue across the five-year term, including about £12.5 million in FY26 from initial software and support licences.
The company said this underpins board confidence in achieving market expectations for FY26 adjusted EBITDA, which it put at £2.4 million, alongside expected revenue of £35.5 million.
Cash at the period end is expected to be about £5.6 million, around 20% below market expectations of £7.0 million, because the first payment under the contract expansion is expected to be collected in early FY27.
Chief executive Phil Higgins said the award reflected “the strength of our technology solutions, the quality of our service delivery and the trusted partnership we have developed with the customer over many years”.
Shearwater provides cybersecurity, managed security and professional advisory services, with shares traded on AIM under the ticker SWG.
