Shearwater Share Discussion Threads

[lammylover] 22/4/2021 10:38

Fabulous update - surprised by modest share price rise...
SWG hit 166p a couple of months ago on big contract wins.
Further to go in my opinion - holding mine for 200p+

Rich

[tnt99] 22/4/2021 10:24

Follow the money even the directors are all in

[zico01] 22/4/2021 09:16

Excellent trading update and H2 momentum has continued in to Q1.

Bought this morning expecting a strong year for revenue growth and increase in profits ... significant re rating of share price !!!

[tnt99] 22/4/2021 09:03

100 per cent upside from here my target price by year end 3.50 what's yours

[northwards] 22/4/2021 09:03

I think we are now in a good place for recovery.

[eezymunny] 22/4/2021 08:28

Ippressive H2.

If they can grow from that base it looks very cheap for the first time ever IMO. If not, not. As ever...

[trader536] 22/4/2021 08:24

This one popped up on my technical screener on 19 April, here's a shot of the chart then and now.

Then....





Now.....

[chrisdgb] 22/4/2021 08:22

Fantastic update...........

[w1lbur01] 22/4/2021 08:20

Yes concur have brought in this morning looks under priced now with more visibility

[elsa7878] 22/4/2021 08:13

Generated £2.3 million in cash in H2. Cash of £6 million is 25p roughly per share.
Market cap is £36 million.
Seems very undervalued at first glance.

[northwards] 22/4/2021 08:11

I think it's less now about risk, and more about rebuilding trust.

[sphere25] 22/4/2021 08:08

Buys are flying in.

Happy with that update. The H2 numbers are suggesting cause for optimism and an under appreciation by the market. The net cash figure could allay concerns over any need for funding too.

The way the price has been sat bang near lows and has been incredibly stubborn to hold any form of rally (particularly in this type of bullish market) can often suggest concerns over funding.

If we can get over those and factor in what looks like a more bullish tone going forward, then there is reason to suggest a re-rating here. Clearly it is substantially off any form of recovery levels.

I only hold a small position and it clearly still carries a great deal of risk, but that is surely better than most were expecting.

All imo
DYOR

[northwards] 22/4/2021 07:55

Looks like the SaaS business could offer significant growth.

[pinemartin9] 22/4/2021 07:49

Think I will buy more after seeing how the market reacts

[northwards] 22/4/2021 07:44

Hopefully we've seen the bottom now. 20m in revs and over 2m in ebitda in the 2nd half bodes well going forwards.

[weatherman] 22/4/2021 07:43

They managed £20m turnover in last half. They have gone from net debt of 1.4m to cash of 6m (7.3m-1.3m), with placing that raised 3.75m. That is a cash improvement of 3.6m in the 12 months. Looking good for a recovery imo.

[tole] 22/4/2021 07:41

And a nice enhancing acquisition.. The Group remains committed to making acquisitions in line with its buy, focus, grow strategy and strict acquisition criteria. It has an active pipeline of M&A opportunities.Fingers crossed they've got something decent in mind.. and hopefully the brief statement is a pre cursor to some imminent news.

[jammytass] 22/4/2021 07:28

Very nice RNS
All that’s needed now is a few extra contracts!!

[channel pirate] 22/4/2021 07:09

22/04/2021 7:00am
UK Regulatory (RNS & others)

Shearwater (LSE:SWG)
Intraday Stock Chart

Thursday 22 April 2021

Click Here for more Shearwater Charts.
TIDMSWG

RNS Number : 2349W

Shearwater Group PLC

22 April 2021

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (as amended), which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018. Upon publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

22 April 2021

SHEARWATER GROUP PLC

("Shearwater", or the "Group")

Post Close Trading Update

Second half momentum; underlying EBITDA expected to be ahead of expectations

Shearwater Group plc, the organisational resilience group which provides cybersecurity, advisory and managed security services, is pleased to provide the following post close trading update for the financial year ended 31 March 2021(1) .

Following a robust second half of trading, and subject to audit, the Group expects to report FY21 underlying EBITDA(2) in excess of GBP3.6 million (FY20: GBP3.4m), ahead of market expectations. Revenue of GBP31.8m was delivered in the year (FY20: GBP33.0m), reflecting a substantial increase in sales activity converted across the second half and strong margin improvement.

Over the past 12 months the Group's balance sheet has significantly strengthened. Cash collection also exceeded expectations, resulting in unaudited net cash(3) balances of GBP7.3 million as at 31 March 2021 (31 March 2020: GBP1.4m net debt), of which GBP1.3m will be applied towards the settlement of deferred VAT payments relating to FY21 revenues.

Shearwater delivered very strong trading in H2 FY21 with year on year revenues for the six months up by 24% on the same period in the prior year. Revenue was driven by new client wins and several high value contract renewals. The Group noted numerous positive signs of returning business confidence, including the early commencement of the previously announced GBP3.6m project to monitor and provide support to next generation mobile communications which had initially been scheduled to commence in Q1 FY22.

A particular demonstration of execution on strategy was the success of the Group's cross-selling initiatives seen over the year, which contributed in excess of GBP500,000 of revenue in FY21. There are good opportunities to expand these projects, and many new leads, generated through cross-company introductions, remain in the pipeline.

The Group also continued to invest in innovation, further developing its SaaS based Secure Identity & Access Management Platform in the period. Demand for this offering is set to increase substantially and represents an exciting opportunity for the business as hybrid working is adopted as routine. Shearwater's platform is well positioned to take market share in this area.

The Group remains committed to making acquisitions in line with its buy, focus, grow strategy and strict acquisition criteria. It has an active pipeline of M&A opportunities.

The Group expects to publish its audited results for the financial year ended 31 March 2021 in July 2021.

Phil Higgins, Group Chief Executive Officer of Shearwater, commented:

"I am very proud of what Shearwater has achieved in the year, navigating Covid-19 related challenges and continuing to both renew contracts with existing customers and to secure new business to deliver underlying EBITDA ahead of market expectations. This performance reflects the strength of our offering and the growing demand for organisational resilience services, alongside the recovery of more normalised patterns of decision making as greater macro-economic confidence begins to return.

"The majority of our businesses are reporting a solid increase in enquires, quotations and consulting utilisation for Q1 of the new financial year, in comparison to the same period last year. We are very encouraged by the uplift in market activity and remain confident of our ability to capitalise on the numerous opportunities for growth going forward, both organic and in the consolidation of the market. Whilst inevitably, uncertainty remains, we are well-placed to now return to driving growth in the business over the coming year and beyond, delivering value to all our stakeholders."

(1) All figures unaudited

(2) Underlying EBITDA is defined as profit before tax, before one off exceptional items, share based payment charges, finance charges, impairment of intangible assets, fair value adjustments to deferred consideration, contingent consideration depreciation and amortisation.

(3) Net cash includes gross cash on hand less loans and drawings against RCF (excluding lease liabilities).

[igoe104] 22/4/2021 07:07

Excellent update, ahead of expectations and now over 7 million cashpot. Surely the market will wake up to these now.

[elsa7878] 16/4/2021 13:26

They've spent approx £60 million on acquisitions and the market cap is £33 million....

[lammylover] 15/4/2021 10:34

Holder here - I've been buying down to 134.8p - looks a bargain at this level for growth share in hot sector..
We know that H2 results were improving at end 2020 before they put out the RNS of new contracts received in January 2021 - this lifted share price to around 165p.
Its just a waiting game - its frustrating that they release so little information, but I expect by the end of April, that share price will have lifted significantly - patience required!
Rich

[channel pirate] 15/4/2021 10:07

Hi Husbod,
Must say I did the same before the old Tax Year ended in order to reduce Capital Gains Liability. I decided not to replace what I had offloaded until we can see how they are doing, i.e., the trading update. Personally, I would feel happier if they gave us a bit more regular info, and also if they were a bit more "transparent" with the info they do release.

[husbod] 15/4/2021 09:20

Morning CPI hate to say I have been lightening my load, at considerable cost, over the last few months as the opportunity lost elsewhere was becoming too great to ignore. I still have a material holding as I hope the potential here will be realised. Just wish they would get on with it.