Nice breakdown on this batch. The Shearwater Group entry caught my attention—that 7m contract extension representing 20% of revenue is material when your client base is that concentrated. I tend to get cautious around cyber security firms where three clients drive over half the revenue since customer stickness can be unpredictable even when contracts renew. That said, the 6x EV/EBIT with the cash position is pretty attractive if FY26 growth actually materializes. Have you seen any commentary from the CEO on diversifying that client base?
'We continue to invest in new client acquisition, to drive a broader and more diversified client base.' - that's the only I came across, fairly generic. And the cash pile is not too interesting as it sits on the balance sheet since years. So without an updated capital allocation policy Shearwater is an okayish business at best I'd say.
Nice breakdown on this batch. The Shearwater Group entry caught my attention—that 7m contract extension representing 20% of revenue is material when your client base is that concentrated. I tend to get cautious around cyber security firms where three clients drive over half the revenue since customer stickness can be unpredictable even when contracts renew. That said, the 6x EV/EBIT with the cash position is pretty attractive if FY26 growth actually materializes. Have you seen any commentary from the CEO on diversifying that client base?
'We continue to invest in new client acquisition, to drive a broader and more diversified client base.' - that's the only I came across, fairly generic. And the cash pile is not too interesting as it sits on the balance sheet since years. So without an updated capital allocation policy Shearwater is an okayish business at best I'd say.