Shearwater Group plc, a UK-based cybersecurity and managed security advisory firm listed on the AIM market, has called for a shareholder vote on a capital reduction proposal. The company aims to cancel 22,106,460 deferred shares, each valued at £0.90, totaling an aggregate nominal value of £19.9 million. This move will also cancel the share premium account, pending confirmation by the High Court of Justice in England and Wales. The vote is scheduled for October 13, 2026, at 10 a.m., with the resolution requiring a special majority of at least 75% of votes cast. Approval must also be followed by court order and registration with the Registrar of Companies for the transaction to take effect.
The capital reduction stems from Shearwater’s accumulated historic deficit, primarily driven by accounting write-downs in the value of its investments. As a result, the company has been unable to distribute dividends or repurchase shares. The proceeds from the cancellations will be credited to the accumulated profits and losses reserve, first offsetting accumulated losses. The merger reserve remains unaffected by this process. Future dividend payments or share buybacks will continue to require separate board approval and are not part of this resolution.
The proposal reflects efforts to address financial restructuring amid ongoing operational challenges, though it does not alter Shearwater’s core business activities in cybersecurity and managed security services.
