Newmark Security PLC (AIM:NWT) said it is currently operating ahead of revenue expectations after a tough year.
The security systems provider said its segments are delivering mixed margins, resulting in reduced group margin, though revenue will be higher than in the last period.
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“We enter the new financial year with growing optimism, we continue to invest in the US, and we expect to benefit from the rollout of our focused strategy and build a greater proportion of recurring revenues,” said chairman Maurice Dwek.
“The outlook for our Human Capital Management (HCM) business in the Rest of the World is also very promising, as we develop our capabilities and onboard new customers. Our Physical Security Solutions division, Safetell, stands out in the UK market as a 'one stop shop' for customers looking for a solution to their security issues. In particular, we expect to see growth in the year ahead in new product lines in the Entrance Control and Auto-door categories.”
In the year ended 30 April, revenue shed 6% to £17mln, with gross profit margin down to 37.5% from 39.7% in the previous period. The firm also reported a loss before tax of £126,000 from a £231,000 profit the year before.
Shares rose 3% to 1.16p early on Friday.