Shearwater Share Discussion Threads

[rivaldo] 29/7/2022 07:25

The results to 31st March are ahead of even the upgraded expectations.

EBITDA in particular is £4.4m compared to the previously flagged £4.2m, and adjusted PBT is similarly well ahead at £3m (compared to Progressive's forecast £2.6m).

Net cash of £5.6m is as stated, and SWG are on the hunt for acquisitions.

Above all, the outlook is very rosy, with Q1 having been strong, high repeatable revenues and an increasing number of new clients.

With 14.1p EPS forecast for this year SWG are a cybersecurity company trading on a single-digit P/E (and even less net of the cash pile).....

[northwards] 29/7/2022 07:19

Yes, very little not to like here now. Growing profitability, wide client base, debt free, growing cash pile. In an exciting must have growth sector. The current market cap of 33m is crazy. Especially when you strip out the cash. With such a small number of shares in issue, we could see a strong rebound. Feels like a smart acquisition is now very much back on the table.

[igoe104] 29/7/2022 07:14

Yep, excellent results across all metics. Exceeding expectations. Hopefully the market will responsed to these results..
.

[northwards] 29/7/2022 06:49

Ebitda of at least 4.2m. Let's see if we can push that north today.

[zico01] 28/7/2022 20:56

We already about the results ,a really solid statement on the outlook is needed to get the share price motoring ahead.

Lets hope the company delivers.

[chrisdgb] 28/7/2022 12:19

Will be interesting to see if they comment on any acquisitions.......

[solarno lopez] 27/7/2022 08:06

Well Hargreaves have just shot through the roof on exceptional results same could happen here on Friday

[rivaldo] 26/7/2022 10:38

Cheers Tole, reads well. Looking forward to Friday.

[ianhamo] 26/7/2022 08:57

Friday seems a strange day to announce positive results. Could be news on the M&A front?

[tole] 25/7/2022 19:11

https://masterinvestor.co.uk/equities/shearwater-group-final-results-due-this-friday-could-well-beat-expectations-yet-again/amp/Shearwater Group – final results due this Friday could well beat expectations yet againShearwaterThe question is could we strike a small vein of gold with this group?This company was formerly known as Aurum Mining, but in 2017 changed its name to the Shearwater Group (LON:SWG).Later this week it will be reporting its final results for the year to end March and the hope is that the cyber security group will be beating market expectations yet again.The BusinessThe company's full service offering spans identity and access management and data security, cybersecurity solutions and managed security services, as well as security governance, risk and compliance.Through a focused 'buy-to-build' approach, the group has a growth strategy that is focused upon building a scalable group offering an entire spectrum of cyber security and managed security needs.It serves customers in some 46 countries across the globe, across a broad spectrum of industries.Operation SegmentsThe group operates through two main segments – Software (13.6% of group sales) and Services (86.4% of group sales) – it has five primary businesses, Brookcourt Solutions, GeoLang, Pentest, SecurEnvoy and Xcina Consulting.Brookcourt Solutions delivers cyber security, network monitoring technologies and managed security services to help secure and protect an organisation's critical infrastructure. GeoLang delivers data discovery, data extraction and data loss prevention solutions, services and technologies to discover, classify and protect sensitive data and information in the cloud and on-premise.Pentest provides research-led penetration testing, red teaming, and offensive security consultancy services designed to uncover IT security vulnerabilities, support ongoing information security efforts, and to increase the digital resilience of client organisations.SecurEnvoy provide trusted identity and access management solutions to millions of users in real-time. Across five continents, its customers benefit from rapid deployments that scale through instant provision, simplicity of use and ease of management.Xcina Consulting provides business and technology risk assurance and advisory services in support of organisational resilience.On sales per region basis the UK makes up some 73.7% of sales, Europe 21.6%, North America 3.7% and the Rest of the World just 1%.The EquityThere are 23.82m shares in issue.The larger holders include Schroder Investment Management (13.2%), Secarma Group (12.3%), Phil Higgins, CEO, (9.31%), D Stacey (8.83%), David Williams, Chmn, (6.80%), Killik & Co (3.98%), S Watts (3.75%), SpreadEx (1.11%), Robin Southwell, NExec, (0.65%) and Stephen Ball, NExec, (0.50%).It is interesting to note that the second largest holder in the group's equity is Secarma Group Ltd, the Manchester-based cybersecurity consultancy.Year End Trading Update – "the potential for our business is evident"In late April the group issued its Year End Trading Update and provided revenue guidance for the financial year ended 31 March 2022.Following a strong second half of trading, the group stated that it expected to report revenue up some 12% to over £35.5m (£31.8m).It guided that adjusted EBITDA could be in excess of £4.2m (£3.7m).The revenue growth came from a mix of strong renewals from long term clients, in addition to a number of significant new contract wins in the group's Services division.With the Update the group's CEO Phil Higgins stated that:"I am delighted to report a strong performance for the group, with both revenue and Adjusted EBITDA growth anticipated to be ahead of expectations. Our long-standing clients have continued to extend their business with us, a testament to the strength of our offering, and we have also won work with new customers looking to fortify their organisational resilience in today's uncertain world.We have returned to a revenue growth trajectory, underpinned by a strong financial position, and we remain excited for what the future holds."While Chairman David Williams said that:"It is pleasing to see group wide efforts paying off with the delivery of another set of market-beating numbers. The potential for our business is evident."Broker's View – 200p 'fair value'Simon Strong, analyst at Cenkos Securities, rated the group's shares as a Buy, with a 'fair value' of 200p a share.His estimate for the last year was £35.5m sales and an adjusted EBITDA of £4.2m (£3.7m) giving an adjusted earnings per share figure of 11.8p (10.4p).Looking into the current year his figures are for £37.4m revenues and an EBITDA of £4.8m, worth 13.7p in earnings.Analysts Ian Robertson and Gareth Evans at Progressive Equity Research look for adjusted EBITDA earnings of 11.9p for last year and 14.1p for this year.My View – short-term opportunityI would believe that both companies will be revisiting their current year estimates after this week's finals statement.My first Profile on the group was at the start of Covid-19, a period that subsequently saw the shares fall away before the start of the Ukraine war hit them back even further, with 70p its lowest at the start of March.The way that the shares have responded to the End Year Update is a pointer to further good news boosting them even higher.It will take some motoring to get anywhere near my first Target Price, but my most recent aim should be achieved within days.I see them reacting well to this Friday's good news and subsequent analyst upgrades.The shares closed at 139p on Friday night, which I consider offers short-term punters a quick opportunity.

[solarno lopez] 25/7/2022 08:37

Looking good

[2lb] 22/7/2022 16:05

Not a bad move to bring a new voice on to the presentation given the the CEO and CFO are dull as dishwater and sentiment can be changed by positive narrative and the injection of a bit of personality and excitement, then again he may be equally as dull.

[northwards] 22/7/2022 09:31

Have a feeling results could be an important milestone in rebuilding confidence.

[zico01] 22/7/2022 09:25

Thanks for the advice but i'm sure posters like " rivaldo " who invests in growth stocks like these know what they are doing with out your help.

Thanks again for your kind words.

[bionicdog] 22/7/2022 09:18

Just warning people that you've been caught altering documents by adding lies in , that's all. Then they can make their own minds up about the company. I have no stance on SWG.

[zico01] 22/7/2022 09:15

bio,

You are making a fool of yourself by following me around from thread to thread.

This company does not need to be ramped and no one is ramping it.
It will announce results next week which we holders already know will be ahead of expectations.

The shares look like they will finally surpass the £1.40 resistance.

[rivaldo] 22/7/2022 08:56

Agreed. I'm looking forward to the results and outlook as we know they'll be good, but the InvestorMeet presentation should also be really interesting given the attendance by this guy:

"Group CEO, Phil Higgins and CFO, Paul McFadden will be joined by Marcus Willett CB OBE, a member of the Group's Advisory Panel, who will provide an update on the cyber security market. Marcus was formerly the Deputy Head of GCHQ and its first Cyber Director. He has held posts across the wider UK intelligence and security community and is currently the Senior Advisor for Cyber at the International Institute for Strategic Studies, a world-leading authority on global security, political risk and military conflict. "

[sidam] 22/7/2022 08:12

The presentation may be very interesting if mr willet is as good as his credentials. His chat on cyber security could be very valuable to those of us who are not experts in that area.

I have registered.

[zico01] 22/7/2022 07:24

That £1.40 resistance should finally surpass today.

[igoe104] 22/7/2022 07:17

Results next Friday . Followed by a presentation the following Wednesday...

[jbravo2] 21/7/2022 12:31

Yes, only 2 MM’s with 2500 & 1000 market size showing for 140. So 3500 total at a max as they’re not quoting for any.
Next MM at 145. The rise before the “surprise̶1; about the strong results will continue, those results should kick it firmly up.

[someuwin] 21/7/2022 11:42

Would only let me add £1500 worth.