LONDON, July 1, 2026, 17:04 BST
- Shearwater Group plc (LON:SWG) jumped 16.2% to finish at 43p after Brookcourt secured a five-year telco contract extension valued at around £25 million.
- The contract is worth around 2.4x Shearwater’s £10.25 million market cap at the close.
- Shearwater expects to book about £12.5 million in FY26, which is around 35% of its FY26 revenue target. Cash will be later as the first payment is scheduled for early FY27.
Shearwater Group plc (LON:SWG) jumped 16.2% Wednesday. The AIM-listed cyber-security firm said Brookcourt Solutions got a five-year extension and expansion deal from a UK-based global telecoms firm. Shares finished at 43p after starting at 39.5p and hitting a high of 43.5p. Volume was 284,240.
The thing that stands out for investors is the size. The £25 million contract tops Shearwater’s own equity value, even with shares up. At the close, the company’s market cap was £10.25 million. The expected FY26 revenue from the deal alone is put at £12.5 million.
| Measure | Figure | Investor read |
|---|---|---|
| Five-year contract value | c.£25 mln | That’s about 2.4x last close market cap |
| FY26 revenue to be recognised | c.£12.5 mln | Around 35% of FY26 revenue forecast |
| FY26 revenue expectation | £35.5 mln | Revenue view now just ahead |
| FY26 adjusted EBITDA expectation | £2.4 mln | Cavendish left forecasts at this level |
| Period-end cash guide | c.£5.6 mln | That’s about 20% short of the £7.0 mln net-cash view |
Cash is a sticking point. Shearwater said it will get the first payment on its extended contract in early FY27, which is after this period ends. That means period-end cash should come in at about £5.6 million, or about 20% under what the market was expecting. At the end of the last financial period, cash stood at £5.1 million.
Shearwater CEO Phil Higgins said the company secured a “significant five-year expansion agreement” with “one of the world’s leading telecommunications providers.” Higgins added the deal came from a “trusted partnership” built up “over many years.” Investegate
Cavendish, Shearwater’s nomad and broker, said the contract backs its FY26 outlook, left its forecasts unchanged and maintained a 90p target price. That’s around 109% more than where shares ended Wednesday.
Investors had reason to be cautious. Shearwater posted H1 FY26 revenue of £14.0 million in March, up 31%. But adjusted EBITDA was just break-even. Cash and cash equivalents were at £2.2 million as of Dec. 31, held back by project cash timing.
| Operating line | H1 FY26 | July 1 contract read-through |
|---|---|---|
| Revenue | £14.0 mln, up 31% | About £12.5 mln to be booked for FY26 from new telco contract |
| Adjusted EBITDA | £0.0 mln | FY26 guidance unchanged at £2.4 mln |
| Cash | £2.2 mln at Dec. 31; £3.7 mln on adjusted basis | Forecast to reach about £5.6 mln by period-end |
| Services revenue | £12.9 mln, making up 92% of H1 revenue | Brookcourt pushes Services weighting higher |
| Software revenue | £1.1 mln, down 12% | Still not a major revenue driver in the short term |
Customer mix is another risk. Shearwater’s H1 update said Services momentum depends on telecoms, financial services, and government clients. The Brookcourt deal gives five-year visibility, but also increases reliance on delivery for a single big, unnamed telco customer.
At 43p, Shearwater’s expected period-end cash of £5.6 million is about 55% of its £10.25 million market value. Stripping out that cash, market value drops to £4.7 million, not counting other balance-sheet moves. This puts attention on the early FY27 cash receipt as a main cash check for the stock.
