Cybersecurity group Shearwater claims it is already seeing the benefits of its recent reorganisation, despite registering a slight dip in first-half revenues.
The LSE-listed outfit, which is built on a series of acquisitions including security vendor SecurEnvoy and cybersecurity VAR Brookcourt Solutions, saw group revenues slip 3% year on year to £10.5m.
Adjusted pre-tax losses for the period, which covered the six months to 30 September 2023, narrowed from £493,000 to £93,000, unaudited numbers show.
Shearwater’s services arm, which includes Brookcourt, saw revenues rise 2% to £9.3m.
But its software arm – which houses SecurEnvoy – experienced a “softened performance” during the period as revenues slid 29% to £1.2m.
‘Decisive action’
“Decisive action” Shearwater took during the period to “streamline and optimise” operations saw it integrate Geolang into SecurEnvoy and Xcina into Brookcourt.
CFO Paul McFadden also resigned in September, with Adam Hurst appointed as his interim successor the following month.
CEO Phil Higgins admitted that the firm had experienced “hesitancy from some customers” in response to market uncertainty during the period.
“We are pleased with the benefits already being seen from the recent operational enhancements, which have streamlined our offering and strengthened our positioning,” he added, however.
The merging of Xcina – an information security and assurance company Shearwater acquired in 2017- into Brookcourt has created “greater traction in new business opportunities,” Higgins claimed.
Similarly, data discovery and data loss prevention vendor Geolang, which Shearwater acquired in 2018, is seeing an increase in opportunities from SecurEnvoy’s 350-strong reseller network, he claimed.
Looking forwards, Higgins said he expects the group to meet its full-year expectations based on its current pipeline.
“From regular customer engagement, we remain confident in securing the services deals which were deferred from previous periods, and in parallel we are encouraged by the opportunities for higher margin software deals which will have a meaningful impact on top line growth,” he concluded.
