Shearwater delivers 'resilient' H1 performance

Shearwater stated that order intake during the period was in line with the prior year, with several multi-million-pound renewals and expansions with existing customers, alongside new client wins.

While Shearwater noted that the weighting of orders towards the end of the half had given it a lower level of recognised revenue, the firm now had an increased order book of contracted forward revenue going into the second half of the year.

The AIM-listed group now expects to report first-half revenues of approximately £11.0m, down from £16.3m, and flat underlying earnings of £1.0m.

Shearwater also pointed out that improved efficiencies in its software division had continued to deliver an underlying EBITDA margin of around 40%.

Chief executive Phil Higgins said: "The robust performance of the group during a period of significant uncertainty points to the strength and breadth of our customer relationships and continued evolution of our offering as we execute on our strategy to become the UK's leading organisational resilience provider.

"While we remain cognisant of the ongoing disruption to businesses globally caused by Covid-19, we have entered the second half of the year in a strong position, with an increased order book of contracted revenue, and are excited by the opportunity ahead of us."

As of 1110 BST, Shearwater shares were up 0.16% at 160.25p.