Published on: December 2, 2022

Robust trading despite macro headwinds

Interim results for the six months ended 30 September 2022 show that Shearwater has delivered a robust trading and operational performance. The Services division saw an increase in revenue, while Software division revenue was once again impacted by the impending new product launches and revisions. Current trading is strong, with newly released software products generating encouraging interest. The financial performance was, however, affected by a significant unrealised forex charge and working capital drag. We have revised our forecasts to reflect these transient negatives and sustainable positives. Cyber and Shearwater are long-term stories with dynamics that are significantly more attractive than mainstream software and services; Shearwater’s market valuation does not appear to reflect this.