TIDMNWT
RNS Number : 5138M
Newmark Security PLC
24 May 2022
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
Top-line growth despite market challenges
Well-positioned to capitalise on market opportunities, building
a resilient business model.
Newmark security plc (AIM: NWT), a leading provider of
electronic and physical security systems, today provides an update
on trading for the year ended 30 April 2022 ("FY 2022").
Highlights:
-- Confirmation of FY 2022 year-on-year revenue growth, driven
by Human Capital Management ("HCM") sales in the US.
-- Product innovation and efficient software systems have
enhanced our solutions offering, driving new client contracts.
-- Product initiatives are set to increase recurring revenues, an area of strategic focus.
-- Continued to invest in people and infrastructure to fuel sustainable growth.
As noted in the Company's half year report, announced on 27
January 2022, sharp increases in componentry and freight costs have
impacted the Group's margins. However, the Company has implemented
a programme of strict cost management and increased its prices to
mitigate the effect of higher input and freight costs. This has
resulted in reduced losses for the second half of the year compared
to H1.
Operations
People and Data Management division - Grosvenor Technology
-- New product development continues in the Human Capital
Management and Access Control businesses to capture positive market
momentum and increase market share.
-- Launching a new HCM SaaS Cloud platform that will further
increase high margin, recurring revenues.
-- Continue to deliver market-leading secure data processing
complying with international standards such as ISO27001.
-- Currently exploring the establishment of a new manufacturing
facility in the US, a fast-growing and large market.
-- Investing in human capital and infrastructure to drive
business growth and underpin the "will-to-win" vision.
Physical Security Solutions division - Safetell
-- Nick Shannon joined in February from G4S Secured Solutions to
head up the division. He will lead the strategic focus to build the
services side of the business with the aim of increasing the
proportion of recurring revenues.
-- We have successfully launched new products, expanded our
client base, and formed new partnerships.
Financial Position
-- Recently secured a $2m US invoice discounting facility to
provide additional working capital headroom.
-- Successfully managed supply chain challenges by building
inventory to satisfy ongoing customer demand and stay ahead of the
competition.
-- Working capital level is expected to ease as we reduce
inventory held, allowing for cash flow generation.
-- We are fully utilising our recent investments in products and
infrastructure to fuel our future growth.
-- We are continuing to implement strict cost management that,
together with increased selling prices, are expected to mitigate
the effect of higher input and freight costs.
-- We expect to see the full benefit of the price rises and cost
savings in the year ending 30 April 2023.
Maurice Dwek, Chairman of Newmark, commented:
"I am pleased with the progress in executing our strategy and
setting the right foundations for success. We are delivering on our
targets for revenue growth and cost management initiatives whilst
focusing on our new product pipeline that provides us with the
ability to offer complete solutions to our clients
continuously.
Our proactive approach during the pandemic demonstrated our
agility to manage the business for the long term, building
credibility and client preference. We have high confidence in our
product portfolio and client-focused strategy, remaining agile and
prioritising our investments with discipline to continue to drive
sustainable growth.
I am confident that we have taken the right measures, working
towards an optimal structure and product mix to drive our business
forward. Moreover, we are well placed to further scale our business
by identifying the appropriate opportunities that will synergise
and complement our product offering."
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 / Liz Kirchner (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 amongst 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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