Newmark Security PLC (AIM:NWT) CEO Marie-Claire Dwek takes Proactive's Stephen Gunnion through the company's first-half performance, which revealed strong underlying growth.
The company, which designs and manufactures physical security products, intelligent access control, timekeeping and identity management solutions, reported first-half revenues of £10.4 million and a gross profit of £3.9 million, marking an 11% increase after adjusting for the departure of UKG, a former client.
Notably, EBITDA soared to £5.8 million. The addition of three major clients in the first quarter contributed significantly to revenue. Additionally, Newmark Security has been actively expanding its service offerings, resulting in a notable increase in recurring revenue in HCM, totaling £2.3 million for the year.
Dwek expressed optimism about returning to profit after tax in the second quarter, anticipating a strong second half of the year bolstered by new clients and strategies. The company's focus on attracting more blue-chip customers across various sectors, including software houses in the US and major UK retailers, has been fruitful. Newmark Security's access control division has also seen success with blue-chip clients in the UK through distributors and dealers.
Looking ahead, the sales pipeline remains strong for the second half of the year. Newmark Security's strategic plan, which includes attaching services to hardware and introducing new products to existing partners, is proving successful.
