Shearwater Group PLC shares dropped on Wednesday, after it said its financial 2024 results are below expectations.

Shares in the London-headquartered cybersecurity services provider were down 14% to 42.80 pence each in London on Wednesday morning.

In the financial year ended March 31, revenue is expected to fall to about £22.5 million from £26.7 million a year earlier.

However, Shearwater is expected to swing to an adjusted earnings before interest, tax, depreciation and amortisation of £1 million from a loss of £200,000.

The company noted that this is below market expectations.

‘As guided at the half year, trading is traditionally weighted to the second half and whilst the Group was bolstered at the beginning of Q3 with visibility of sales opportunities across both the Services and Software divisions, it continued to experience delays in concluding larger contracts which were expected and remain in negotiation,’ it explained.

Looking ahead, Shearwater said the new year has ‘started well’, with the first scheduled contract renewal already secured. The contract is valued at £1.4 million and is signed with a British media and telecommunications company.

Chief Executive Phil Higgins commented: ‘Although we are understandably disappointed by our performance this year, there are compelling reasons for optimism as we look ahead. Our confidence in achieving growth in FY25 and beyond remains strong. Notably, our new business opportunity pipeline has reached an exceptionally robust level, and we are actively negotiating several substantial contracts.’

Copyright 2024 Alliance News Ltd. All Rights Reserved.