UK markets closed

Coronavirus: This cybersecurity group sees spike in software demand

Edmund Heaphy
Finance and news reporter
Shearwater makes a multi-factor authentication system. Photo: Getty

Cybersecurity firm Shearwater (SWG.L) on Wednesday said that the coronavirus pandemic had resulted in an increase in demand and a number of new contract wins for its software products, as the number of people working from home surges.

The company, which makes a multi-factor authentication (MFA) security system, said that new and existing clients were using its tools “to promptly disseminate crisis and emergency information to their employees.”

MFA systems verify a user’s identity by requiring multiple credentials, such as a password and some other type of information.

Read more: European stocks rise as US agrees on $2tn coronavirus stimulus package

Shearwater's SecurIdentity system allows employees to sign onto their company’s systems and networks using a token-less MFA protocol, which means that costly infrastructure and hardware is not needed.

“Whilst the coronavirus pandemic is a rapidly developing situation, we remain confident that we can continue to provide our customers with continuity of service and support at a time when their organisations are particularly susceptible to network penetration and data loss through both intentional and unintentional actions,” said Phil Higgins, the chief executive of Shearwater, on Wednesday.

“The seismic shift towards remote working has driven increased demand in SecurEnvoy's multi-factor authentication solutions, which provides secure access across a range of platforms and apps.”

Read more: UK shoppers warned food prices could rise despite drop in inflation

Governments and companies across the world have been advising employees to work from home as much as is possible to slow the spread of coronavirus.

While hundreds of companies are expecting a huge drop in consumer demand and an unprecedented economic crisis, several firms, such as those that produce videoconferencing software, have seen gains.

Shearwater, which will will issue a trading update in April, said it has yet to see a significant negative impact on profitability or cash flow as a result of coronavirus.