LONDON (ShareCast) - (Sharecast News) - Shearwater expects annual results near the top of its expectations after the digital security company's main businesses improved their performance.


In the financial year to the end of March revenues were £6.3m, reflecting 11 months of trading from SecurEnvoy and eight months of trading from Xcina Consulting.

SecurEnvoy's revenue increased 17% to £3.4m and Xcina, which was loss-making when Shearwater bought the authentication software business in July 2017, is generating earnings and trading ahead of expectations.

Xcina, a consulting and cyber threat business, has gained more than 30 new customers since joining Shearwater and racked up revenue of £2.9m.

Shearwater's goal is to build a "digital resilience" group by buying information security and cyber security businesses with leading products or services. The AIM-traded company said it was on the lookout for further acquisitions.

Shearwater said it "anticipates announcing full year results at the upper end of the Board's expectations during August 2018".

David Williams, Shearwater's chairman, said: "Throughout 2018 we have continued to build upon the transformational steps taken since we launched our new digital resilience strategy. Each of our portfolio companies has made substantial progress since joining the group.

"The quality of our M&A pipeline suggests that we will have the opportunity to substantially grow, both through further organic growth and potential acquisitions, during this new financial year."

Shearwater shares rose 6.5% to 6.07p at 08:25 BST.

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