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UPDATE - Newmark Security profits down, but in line with expectations

Last updated: 12:02 28 Jan 2016 GMT, First published: 07:58 28 Jan 2016 GMT

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The company is investing in growth.

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Newmark Security (LON:NWT) said profits for the six months ended October were down, but in line with forecasts as the security specialist invested in developing new product and market opportunities, which included opening a new office in Hong Kong.

Revenues were off £700,000 at £11.2mln, as the asset protection business reported “lower volumes from some major customer programmes”.

Profits for the period almost halved to £765,000, though Newmark’s cash balances rose to almost £1.2mln.

"Profit for the year is forecast to be in line with market expectations,” said chairman Maurice Dwek.

“As stated in the last annual report, revenue from the Asset Protection Division was expected to be lower for the current period due to lower volumes of some major customer programmes for the current year.

“The profits of the group for the current year were also expected to be lower than the previous year with a focus on new market and product development, including the opening of the new office in Hong Kong, from which the benefits are expected to be seen in the future."

The shares, up 54% in the past year, marked time at 3.05p in afternoon trade.

Broker Cantor Fitzgerald reckons the stock has further to travel. It rates the stock a ‘buy’ up to 4.5p.

“The shares have re-rated substantially over the last year and, in our view, positive news flow on the execution of the strategy remains the key catalyst for further outperformance,” investors were told.

Newmark Security says momentum gained in its fiscal first half has continued...

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...

on 29/1/24