Search Share Prices
Shearwater Group's subsidiary achieves profitability and sets sights on US
Shearwater Group announced on Thursday that its portfolio company Xcina Consulting has generated £1m in incremental revenues and won over 30 new customers since its acquisition in July 2017.
The AIM-traded digital resilience firm said that after reporting £2.4m of revenue and registering a loss at the EBITDA level prior to the acquisition, Xcina is now trading profitability on a reported basis at the EBITDA level and is ahead of the board's expectations.
Xcina is a provider of digital, operational and regulatory solutions and services that are scalable to the current and future needs of customers.
Michael Stevens, group chief executive of Shearwater, said: "Delivering £1 million worth of new business and becoming profitable in less than a year is a tremendous achievement for Mark and the team, and we are delighted the benefits of accessing the wider Shearwater Group infrastructure are being realised so early on."
The acquisition was made due to Shearwater's perception of the quality of employees at Xcina and the businesses potential for scalability.
Consequently, with the revelation that the subsidiary is now trading profitably, Xcina intends to launch its first international office in the US with a view to providing better and more comprehensive service to current and prospective multinational clients.
Mark Child, executive managing director of Xcina Consulting, added: "The market for business and technology risk assurance and advisory services is rapidly evolving and we are really excited about the expansion of our capability beyond traditional GRC services which is enabling us to meet the digital, operational and regulatory resilience requirements of our growing client base."
As of 0934 BST, Shearwater Group's shares were up 5.21% at 5.05p.