(Alliance News) - Shearwater Group PLC on Friday announced that its annual results have been delayed until next month, but reported an improved performance in the recent first quarter.

Shares in the London-headquartered cybersecurity services provider surged up 16% to 45.00 pence in London on Friday.

Shearwater said it now expects to report its final results, for the year ended March 31, on September 5. It said the delay was due to the audit process having not yet been completed.

On a more positive note, Shearwater reassured investors that trading in the first quarter of the current fiscal year saw "improving traction", as expected, with revenue exceeding that of the first quarter of financial 2023. It attributed this to more favourable market conditions.

Shearwater added that it has now received several previously delayed contracts, and that its "significant investment" in its Software division is bringing forth "a number of promising opportunities".

Shearwater added that "with market conditions in the sector being more favourable, the board is confident in seeing a much improved financial performance in the current year."

In July last year, Shearwater had reported a strong performance for financial 2022, with pretax profit "surging" to GBP936,000 from GBP33,000 and revenue increasing 13% to GBP35.9 million.

Shearwater stated at the time that it was encouraged by trading in the first quarter of the latest financial year, and expected a "strong sense of optimism" going forward.

However, in early June 2023 Shearwater said it expected revenue for financial 2023 to be down 25% to around GBP27.0 million from GBP35.9 million, although it also said its strong pipeline would bring sustainable revenue and profit growth in the future.

By Emma Curzon, Alliance News reporter

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