Newmark Security PLC Trading Update (2472E)
27 Octubre 2022 - 1:00AM
UK Regulatory
TIDMNWT
RNS Number : 2472E
Newmark Security PLC
27 October 2022
Newmark Security plc
("Newmark", the "Company" or the "Group")
Trading Update
Newmark Security plc (AIM: NWT), a leading provider of
electronic, software and physical security systems, today provides
an update on trading ahead of the publication of its results for
the year-ended 30 April 2022 ("FY 2022"), subject to finalisation
of the audit.
Highlights:
-- Strong revenue growth, with revenue of approximately GBP19
million (2021: GBP17.6 million), driven by Human Capital Management
("HCM") sales in the US and customer uptake of new products
-- Enhanced product offering and end-to-end solutions driving client base expansion
-- Delivering recurring income and optimising product mix provides for sustainable growth
As announced on 24 October 2022, the Company expects to release
its FY 2022 results at the end of November.
As noted in the Company's year-end trading update, announced on
24 May 2022, sharp increases in componentry and freight costs
impacted the Group's margins. However, we have implemented a
programme of strict cost control and increased prices to mitigate
the effect of higher costs to the extent possible, which has
resulted in reduced losses for the second half of FY 2022. The full
benefits of price increases and cost measures will be seen in the
current financial year.
Operations
People and Data Management division - Grosvenor Technology
("Grosvenor")
Significant process was made during the year in the evolution of
Grosvenor's business model, which now encompasses hardware-enabled
software and services centres focused on providing customers with
'secure cloud control'. There was ongoing success in the North
American HCM operations, which continued to deliver double-digit
growth. Grosvenor is launching a new HCM SaaS Cloud Control
platform in FY 2023 which is expected to increase high-margin,
recurring revenues.
Physical Security Solutions division - Safetell
The Group's strategy is to build the services side of the
business and took initiatives during FY 2022 to implement this,
which are delivering positive results and supporting the return of
Safetell to growth. Demand for security products and services
partially recovered during the year compared to the prior year,
where demand had been significantly impacted by the effects of the
COVID pandemic, and the Group is well positioned to accelerate and
scale to meet the increase in demand. Safetell is in the process of
introducing new products, new strategic partnerships and
improvements throughout the business which are expected to support
its growth.
Current trading and financial position
The Group secured a $2 million US invoice discounting facility
in February 2022 to provide additional working capital headroom and
successfully managed supply chain challenges by building inventory
to satisfy ongoing customer demand and stay ahead of the
competition.
The Group had GBP0.2m of cash and cash equivalents at 30 April
2022.
The Group's working capital level is expected to ease as the
amount of inventory held is reduced, allowing for improved cash
flow generation. We are fully utilising our recent investments in
products and infrastructure to enhance future growth and increase
recurring revenues.
Post period end, the Group returned to profitability and
positive operating cashflows during the first five months of FY
2023, whilst also continuing to grow revenues.
A full update on our financial performance for FY 2022 and
progress in the current year will be provided in the upcoming
annual report.
Ends
Newmark Security plc
Marie-Claire Dwek, Chief Executive Tel: +44 (0) 20 7355 0070
Officer www.newmarksecurity.com
Paul Campbell-White, Chief Financial
Officer
Allenby Capital Limited Tel: +44 (0) 20 3328 5656
(Nominated Adviser and Broker)
James Reeve / F reddie Wooding (Corporate
Finance)
Amrit Nahal (Sales & Broking)
About Newmark Security plc
Newmark is a leading provider of electronic, software and
physical security systems that helps organisations protect human
capital and provide safe spaces seamlessly and securely.
From our locations in the UK and US, we operate through
subsidiary businesses positioned in specialist, high-growth
markets.
We foster an open and inclusive work environment among our c.100
employees, serving hundreds of blue-chip customers.
Our product portfolio consists of Human Capital Management and
Access Control Systems providing both hardware and software and
Physical security installations to various sectors.
Newmark Security plc is admitted to trading on AIM (AIM:NWT).
For more information, please visit:
https://newmarksecurity.com/
Safe. Seamless. Secure
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END
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