Shearwater Group plc (AIM: SWG, “Shearwater” or the “Group”), the organisational resilience group, has published its results for the year ended 31 March 2019.
Highlights
§ Completed acquisitions of Brookcourt Solutions, GeoLang and Pentest (April 2019)
§ Group revenue of £23.5 million (2018: £6.2 million) – only 5.5 months of trading from Brookcourt Solutions
o £3.9 million (2018: £3.4 million) from owned software products (17%)
o £19.6 million (2018: £2.8 million) from provision of services (83%)
§ Group underlying EBITDA[1] loss of £1.4 million (2018: loss £0.8 million)
§ Brookcourt Solutions materially outperforms expectations – £29.2 million of revenue and £3.4 million of EBITDA for the 12 month period ended 31 March 2019
§ Group pro forma revenue of £37.5 million – calculated on the basis of a full 12 months contribution of Brookcourt Solutions for the financial year ended 31 March 2019
Current trading and outlook
§ Notably strong financial performance in Q1 2020 – in line with expectations
o Maiden profit on an underlying EBITDA basis
o Strong cash generation – cash balance up 183% from 31 March 2019 to £1.7 million as at 30 June 2019
§ Group positioned for strong growth
o Material number of new customer wins since 31 March 2019
o Strategy yielding multiple cross-sell opportunities
o Pursuit of accretive acquisitions, with tangible opportunities for revenue and cost synergies
David Williams, Chairman of Shearwater, said:
“The acquisition of Brookcourt Solutions and its subsequent outperformance has materially transformed the Group and provides an excellent foundation as we move forward.
“The market opportunity for our unique collection of technology and solutions companies remains compelling, and we are now starting to deliver on our strategy.
“We’ve made an excellent start to the new financial year, delivering a quarterly profit and materially improving our cash position. We are now set up for strong revenue growth and profitability as the complementary nature of our group companies is beginning to be realised.”
