Cyber security firm Shearwater reported deeper losses in its interim results today, despite a huge increase in revenues as it expands in new regions.
Shearwater’s underlying loss fell to £1.6m, down from £100,000 in 2017.
Revenue soared 118 per cent to £4.5m in the six months to the end of September.
Loss per share widened to 0.32p from 0.18p the year before.
Why it’s interesting
The AIM-listed cyber security firm saw its revenue soar thanks to increased trading with Securenvoy, Acina and Geolang.
But the improved sales results were overshadowed by a deepening of losses, which the company said was due to “continued investment across the portfolio”.
Portfolio companies generated underling loss of £0.7m, after a £0.9m profit in 2017. Shearwater said this was due to significant investment in new regions and product development.
“These position the group appropriately for future growth,” the company said.
Shearwater also used the interim results to name Phil Higgins, co-founder and chief executive of Brookcourt, as executive director.
Shearwater bought cyber security firm Brookcourt for £30m in October.
Shares in Shearwater fell more than four per cent this morning.
What Shearwater said
Chairman David Williams said: “We have continued to make good progress against our strategic aim of building a leading UK based digital resilience group.
“Our portfolio companies have shown good organic revenue growth, which we expect to continue into the second half and beyond.
“Brookcourt's acquisition has significantly increased our presence in our sector – this should lead to a number of benefits for the whole group including scaling and cross selling opportunities.”