Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, today announces its audited results for the year ended 30 April 2019.
Financial highlights:
· Turnover from continuing operations was £19.6 million (2018: £16.0 million), an increase of 22%
· Gross margin from continuing operations before exceptional items increased to 39.7% (2018: 36.1%)
· Cost of sales within the consolidated income statement includes an exceptional provision for redundancy costs of £60k (2018: exceptional provision for impairment of development costs £698k)
· Gross margin from continuing operations after exceptional items increased to 39.3% overall (2018: 31.7%)
· Profit from continuing operations before exceptional items was £644k (2018: Loss £1,039k)
· In addition to the exceptional items included within cost of sales there were £292k (2018: £140k) of exceptional redundancy costs included within administrative expenses
· Profit from continuing operations after exceptional items was £292k (2018: Loss of £1,877k)
· Earnings per share of 0.04 pence (2018: Loss per share 0.40 pence)
· Cash generated from operations was £405k (2018: cash outflow £195k)
Operational highlights
· Sateon revenue increased by 8.9%, whilst the decline in revenue from the legacy Janus platform of 2.9% was lower than in the previous period.
· Revenues from Human Capital Management (HCM) increased by 67.8% including a 167% rise in US revenues, which benefited from new supply agreements signed in the previous year.
· Towards the end of the year, the new platform Janus C4 was released. This Integrated Security Management and Access Control product provides a single-platform, multi discipline solution.
· Within the asset protection division, revenue increased by 6.3%, including a 17.9% rise in sales within the service division as bank branch upgrade work continued. Revenue in the products division decreased by 1.3% as banks and building societies moved from fortress counters to open plan branches.
Commenting on the results, Maurice Dwek, Chairman of Newmark, said “It has been a turnaround period for the Group and I am pleased to report the return to profitability in the year. The Board thanks all shareholder for their patience over what has been a challenging few years”.
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