Newmark Security trades broadly in line with expectations in H2

Security systems services company Newmark Security said on Wednesday that second-half trading continued to "broadly in line with management's expectations", with the firm putting on an improved performance over the first six months of the trading year.

As a result, Newmark now expects to report full-year revenues of roughly £17.7m, a 6% reduction on the prior year, as well as "a marginal profit" for the full year.

Newmark highlighted that the reduction in full-year revenue was "significantly lower" than what it had achieved at the halfway point of the year when revenues had slumped 23% year-on-year, demonstrating the improved trading in the second half.

Newmark said that during the year, Grosvenor Technology, which specialises in data security and privacy, achieved further growth in its human capital management activities, with increases in sales from existing and new HCM customers outstripping the expected reduction from the merger of Ultimate Software with Kronos Incorporated.

However, Grosvenor's access control unit was impacted to a greater degree by Covid-19, with less ability for its installer network to attend sites during lockdowns.

Safetell, the AIM-listed group's asset protection wing, saw revenues recover well in the second half of the year, resulting in a roughly 7% full-year reduction against the prior year - compared to a 24% reduction reported at the time of its interim report card.

As of 1150 BST, Newmark shares were untraded at 1.25p.