Shearwater Group (SWG) has secured a five-year contract extension and expansion worth about £25 million through its Brookcourt Solutions business with a leading UK-based global telecommunications provider.
The agreement extends a long-standing relationship and will see Brookcourt continue providing packet monitoring, forensic analysis and service assurance technology across the customer's network infrastructure and key strategic clients. The contract reinforces Brookcourt's position as a trusted provider of network visibility and service assurance solutions.
The contract is expected to generate about £25 million of revenue over its five-year term, providing strong revenue visibility. Around £12.5 million is expected to be recognised in the 2026 financial year from the delivery of initial software and support licences. As a result, the board said it remains confident of meeting market expectations for FY26 EBITDA, while revenue is expected to come in slightly ahead of forecasts.
The first payment under the expanded agreement will be received early in FY27. As a result, period-end cash is expected to be about £5.6 million, around 20% below market expectations because the receipt falls into the next financial year. Cash at the end of the previous financial year stood at £5.1 million.
“We are delighted to have secured this significant five-year expansion agreement with one of the world's leading telecommunications providers,” said Shearwater Group Chief Executive Officer Phil Higgins.
“This award reflects the strength of our technology solutions, the quality of our service delivery and the trusted partnership we have developed with the customer over many years. We look forward to continuing to support our customer and its strategic clients throughout the term of this agreement. The expected contribution from this contract in the current financial year further underpins our confidence in achieving the Group's expectations for FY26."
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The expanded agreement provides Shearwater with a substantial source of recurring revenue and improves earnings visibility over the next five years. While the timing of cash receipts temporarily affects the year-end cash position, the contract supports confidence in FY26 performance and highlights the strength of Brookcourt's long-term customer relationships in critical telecommunications infrastructure.