Newmark Security PLC Year-end trading update (2283B)
09 June 2021 - 4:00PM
UK Regulatory
TIDMNWT
RNS Number : 2283B
Newmark Security PLC
09 June 2021
This announcement contains inside information for the purposes
of Regulation 11 of the Market Abuse (amendment) (EU Exit)
Regulations 2019/310.
Newmark Security plc
("Newmark", the "Company" or the "Group")
Year-end trading update
Newmark Security plc (AIM: NWT), a leading provider of products
and services in the security and data sectors announces an update
on trading for the year ended 30 April 2021 ("FY 20/21").
Trading for the second half of FY 20/21 continued broadly in
line with management's expectations, with the Company showing an
improved performance in H2 as compared to H1. As a result, subject
to audit, the Company expects to report revenue for FY 20/21 of c.
GBP17.7m, 6% lower than FY 19/20 (GBP18.8m), and a marginal profit
for the full year. This reduction in full year revenue is
significantly lower than what was achieved at the half year (23%
reduction in revenue compared to H1 19/20), demonstrating the
improved trading in H2.
During the year, Grosvenor Technology ("Grosvenor"), which
specialises in data security and privacy, achieved further growth
in its Human Capital Management ("HCM") activities. Increases in
sales from existing and new HCM customers outstripped the expected
reduction from the merger of Ultimate Software with Kronos
Incorporated as anticipated, resulting in year-on-year growth of
6%. Grosvenor's Access Control division was impacted to a greater
degree by COVID-19 with less ability for our installer network to
attend sites during lockdown, although the second half of the year
showed improvement over the first half as expected and with Janus
C4 continuing to build traction.
Safetell, the Group's asset protection division, managed to
recover revenues well in the second half of the year resulting in a
full year c. 7% reduction against last year compared to a 24%
reduction reported at the half year, whilst still maintaining a
strong sales pipeline.
Outlook
With the expectation that the COVID-19 pandemic will continue to
become more controlled with the successful roll out of
vaccinations, the Directors of Newmark are optimistic about future
trading. HCM is expected to continue growing from the continued
onboarding of Software Houses and the further roll out of its
Software-as-a-Service ("SaaS") and Clock-as-a-Service ("ClaaS")
subscription services. Further focus is being placed on the
transition from Legacy Access Control sales to Janus C4 and in
Safetell we anticipate steady growth from a more considered and
targeted approach to the market.
The Board appreciates the amount of hard work from the Newmark
team that has gone into delivering a set of good results
considering the events of the past year.
Newmark Security plc
Marie-Claire Dwek, Chief Executive Tel: +44 (0) 20 7355 0070
Officer www.newmarksecurity.com
Graham Feltham, Group Finance Director
Allenby Capital Limited Tel: +44 (0) 20 3328 5656
(Nominated Adviser and Broker)
James Reeve / Liz Kirchner (Corporate
Finance)
Amrit Nahal (Sales & Corporate
Broking)
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END
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