Newmark Security PLC (AIM:NWT) reported increased first-half revenues for both its divisions, while profit margins were squeezed by global supply chain issues.
Group revenue came to £9.7m for the six months ended 31 October 2021, an increase of 22% on the same period a year earlier.
In the People and Data Management division, where trading is under the Grosvenor Technology brand, revenue rose 28% to £7.1mln, with the strongest sales in human capital management (HCM), with a 32% surge to £5.5mln.
HCM ranges from simple ‘clocking in’ technology to more complex ‘timeclocks’ to cover a full suite of solutions for higher degrees of employee engagement and productivity.
Access control, where technology now means this is “more than simply opening a door”, revenue increased 18% to £1.7mln.
In the Physical Security Solutions division, which provides asset protection, building security to counter-terror provisioning under the Safetell brand, revenue climbed 12% to £2.6mln.
The group loss before tax was £0.9mln for the period, compared to £0.3mln last time.
For the full year, chairman Maurice Dwek said, based on current pipeline and estimates,t he board expects the group to show an increase in revenue compared to last year, although at a lower margin due to increases in componentry and freight costs.
"Unfortunately, this is not expected to be reflected in the net profit/(loss) which we are anticipating will be below last year.
"This is due to continued pressure on margins as the supply chain issues push up purchase and freight costs, coupled with additional administrative costs as we have setup the business for further future growth," the statement said.
He added the group has “continued to be proactive at finding solutions for its customers despite the continued covid issues and the global supply chain challenges,” and has continued to invest in new products and services to meet current and future customer needs.