Shearwater generates 'good levels of revenue' year-to-date

Shearwater said underlying earnings were also "tracking in line with expectations", reflecting the benefit of its focus on increased efficiencies and higher-margin offerings across both its software and services divisions.

The AIM-listed group said its continued focus on prudent cash management had led to "high levels of cash conversion", giving it a "strong" balance sheet position with £4.1m in gross cash and an undrawn revolving credit facility of £4.0m.

Chief executive Phil Higgins said: "Following on from the strategic progress achieved in the prior year, where we reported our first year of underlying profitability, we are pleased to report continued positive momentum through the beginning of Q2 2020.

"Despite the impacts of Covid-19 we have seen a robust level of incoming new business enquiries both domestically and internationally and a continuance of long-term critical projects. We, therefore, remain cautiously optimistic around the outlook for the coming year."

As of 1110 BST, Shearwater shares were down 1.71% at 172.0p.