Shearwater Group PLC (AIM:SWG) said it saw strong year-on-year growth in adjusted underlying earnings (EBITDA) in the six months to the end of September and is set to meet expectations for the year.
Adjusted EBITDA rose 19% to £1.3mln from £1.1mln in the corresponding period of 2020, while the adjusted EBITDA margin improved to 12% from 10%.
Revenue fell to £10.6mln from £11.2mln the year before, which the cyber security and managed security services firm said was due to several contracts that were expected to be signed in the first half of the year slipping into the second half.
The group said it is currently on track to meet the market’s EBITDA expectations for the full year.
“We have seen both our divisions grow profits in the period under review with growth in our software sales and a strong rebound in advisory business. The increasing quality of our earnings coupled with investment in our subsidiaries, enabled by our strong cash position, gives us confidence in the outcome for the full year, especially with c.50% of second-half revenues identified,” said Phil Higgins, the chief executive officer of Shearwater.
Shares in Shearwater were up 1.7% at 121.5p in early deals.