REG - Newmark Security PLC - Final Results
04/09/2025 07:00
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RNS Number : 9328X Newmark Security PLC 04 September 2025
This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (amendment) (EU Exit) Regulations 2019/310.
4 September 2025
Newmark Security plc
("Newmark", the "Company" or the "Group")
Final Results for the year ended 30 April 2025
HCM drives Group growth with revenue up 14% and ARR up 24% YOY
Newmark Security plc (AIM: NWT), a leading provider of electronic, software,
and physical security systems and installations is pleased to announce its
audited results for the year ended 30 April 2025 (FY25).
Group financial highlights:
· Revenue up 3% to £23.0 million (2024: £22.3 million)
· Gross profit margin increased by 2.2% pts to 40.7% (2024: 38.5%)
· EBITDA up 8% to £2.4 million (2024: £2.2 million)
· Operating profit of £0.9 million (2024: £0.8 million)
· Profit after tax of £0.7 million (2024: £0.1 million)
· Earnings per share of 7.1p (2024: 1.4p per share)
· Investments in research and development £0.5 million (2024:
£0.4 million)
· Cash generated from operations £1.8 million (2024: £2.8
million)
· Cash at bank of £0.4 million at year end (2024: £1.1 million)
· Total debt including leases at year end £4.0 million (2024:
£4.9 million)
Business highlights
Grosvenor
· Human Capital Management (HCM) revenue up 14% to £15.4 million
(2024: £13.5 million)
· HCM annualised recurring revenue* (ARR) up by 24% year-on-year to
£3.6 million as of April 2025 (April 2024: £2.9 million)
· Monthly device subscriptions for GT Connect and other GT Services
up 32% to 40,635
· Gained Oracle Integrator status following the successful
testing of HCM's Clock and Cloud-based software with first D2E customers
expected during FY26
· Completed integration with SAP earlier than anticipated, with
sales pipeline building for FY26
· Workday integration on track with certification expected by
mid-FY26 and pipeline to build further over remainder of FY26
· Signed North America partnership agreement with Synerion to
combine GT Clock devices with Synerion's software, targeting the
direct-to-end-user (D2E) market
· Post year-end, signed new five-year supply agreement with Protime
NV, to continue to supply GT Connect cloud services, clock hardware and OEM
access control equipment
Safetell
· Revenue down 15% to £4.9 million (April 2024: £5.8 million)
after expected contracts were pushed into FY26
· Service revenues grew substantially by 30% to £2.7 million,
representing 56% of annual income for the division
· Commencing strategic review of division to deliver improved sales
growth and shareholder value
Outlook
· Group has made a good start to FY26 with sales building across
both divisions
· First HCM partner already committed to onboarding new GT Tablet
with others expected to follow in FY26
· Post year-end, completed software and hardware integration
process with SAP and now building sales pipeline whilst Workday on track for
mid-FY26
· Group is seeing minimal impact from tariff changes, with HCM
terminals currently exempt due to classification as data terminals
*ARR is calculated by annualising revenue recognised in a given month from all
clients on deployed HCM subscription contracts
Maurice Dwek, Chairman of Newmark, commented:
"The Group delivered another robust full year performance with revenues and
profitability improving in the second half as anticipated.
"HCM strengthened its position as the Group's primary growth engine and now
accounts for 67% of total Group revenue. The division's KPIs included a 24%
increase in recurring revenues, whilst device subscriptions increased by 32%
to over 40,000. This growth is helping to increase HCM's cash flow and
profitability. The introduction of the new GT Tablet in FY26 will only
strengthen our service offering and help drive further recurring revenues.
"Given the strong momentum in the HCM market, we took the decision to
accelerate our Direct-to-End-user strategy, completing the integrator
processes for Oracle and SAP, whilst Workday is expected to be completed in
mid-FY26. First D2E sales are expect in FY26. Our North America partnership
with Synerion is another exciting development, with GT Clocks being combined
with Synerion's workforce management software to deliver complete solutions
directly to end-users.
"Access Control and Safetell both saw revenues increase in the second half
after previously expected new customer contracts were pushed into the latter
part of FY25 and FY26. Whilst management is undertaking a strategic review of
both these divisions, judging by the stronger contract pipelines that are
building, we anticipate both delivering improved performances in 2026, with
higher demand for door services and entrance control products..
"With a robust pipeline, proven execution, and a clear five-year technology
roadmap, we are confident in meeting our targets for the coming year and
delivering sustained value for shareholders."
Investor Webinar
As announced on 11 August 2025 (see RNS)
(https://polaris.brighterir.com/public/newmark_security/news/rns/story/wk4y7or)
, Marie-Claire Dwek (CEO) and Paul Campbell White (CFO) will provide a live
presentation relating to the FY25 results via Investor Meet Company today at
10:00am BST. Investors can sign up to Investor Meet Company for free and add
to meet Newmark Security plc
via: https://www.investormeetcompany.com/newmark-security-plc/register-investor
(https://www.investormeetcompany.com/newmark-security-plc/register-investor)
Newmark Security plc Tel: +44 (0) 20 7355 0070
Marie-Claire Dwek, Chief Executive Officer www.newmarksecurity.com (http://www.newmarksecurity.com)
Paul Campbell-White, Chief Financial Officer
Allenby Capital Limited Tel: +44 (0) 20 3328 5656
(Nominated Adviser and Broker)
James Reeve / Lauren Wright (Corporate Finance)
Amrit Nahal / Tony Quirke (Sales & Corporate Broking)
About Newmark Security plc
Newmark is a leading provider of electronic, software and physical security
systems that helps organisations protect human capital and provide safe spaces
seamlessly and securely.
From our locations in the UK and US, we operate through subsidiary businesses
positioned in specialist, high-growth markets.
We foster an open and inclusive work environment amongst our c.100 employees,
serving hundreds of blue-chip customers.
Our product portfolio consists of Human Capital Management and Access Control
Systems providing both hardware and software and Physical security
installations to various sectors.
Newmark Security plc is admitted to trading on AIM (AIM: NWT).
For more information, please visit: www.newmarksecurity.com
(https://newmarksecurity.com/)
Safe. Seamless. Secure
CHAIRMAN'S STATEMENT
Overview
The year to 30 April 2025 (FY25) marked another solid year of progress for
Newmark in pursuit of its current five-year plan, once again achieving record
revenues. Despite several external project and partner delays causing a bounce
effect for both divisions, shifting orders into a stronger second half of the
year and in some cases into the first half of FY26, every area is now in a
greater position of confidence and opportunity than at any former time in our
history. Sitting beneath the headlines, many separate factors are beginning to
align for what will be a significant scaling opportunity ahead, in a year
where the combination of sales progress and operational preparation was of
equal importance.
Developing strong partnerships that drive recurring revenues continues to be
the central focus across both divisions, as we look to improve visibility and
reduce exposure to external project cycles. Once again, human capital
management (HCM) provided the engine for growth across the Group, with
positive developments in every territory from North America to Europe and the
Rest of the World. The M&A environment for many of our strategic partners
has accelerated, providing an opportunity for our team to organise for greater
scale to come, now that many of these organisations have themselves multiplied
in size and geographic reach. Previous efforts to capture greater
share-of-wallet have had a material impact and now position us perfectly for
the enlarged partnerships that lie ahead. The instinct to lead the market with
innovation has once again seen the team make exciting progress with the launch
of GT Tablet, opening a new category of opportunity to serve organisations
with mobile and dispersed teams where fixed terminals cannot operate. Both our
sales and technical teams have been busy organising around the growing
Direct-to-End-user (D2E) opportunity, making excellent progress in developing
our partnerships with some of the world's leading HCM software providers. All
of this, against a backdrop of global uncertainty that the team continues to
ably navigate is strengthened by the resilience measures put in place as part
of the previous five-year strategic plan.
As we continue to reap the benefits of our efforts through 2025, the team has
emerged better prepared and already looking forward to the numerous scaling
opportunities to come in FY26 and beyond. Being increasingly well-positioned
to make the most of these opportunities, our focus will remain disciplined in
keeping to the strategic pillars of our growth strategy that have proven so
successful.
Board and governance
The Board and its Committees continue to maintain a robust governance
framework, led by our Chief Financial Officer, Paul Campbell-White, who
continues to be supported by a strong leadership team providing independent
challenge and ensuring good governance is sustained across the Group.
We follow the Quoted Companies Alliance Corporate Governance Code (QCA Code)
and have adopted the updates introduced in November 2023.
Going concern
The Board continues to have a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence for the
foreseeable future. We continue to deliver year-on-year revenue growth and
generate healthy operating cashflows. Growing levels of recurring revenues
provide increasing stability in our outlook and, whilst we continue to closely
monitor global macroeconomic events, supply chain issues have eased.
We are optimistic that our growth will continue in the next 12 months,
supported by the investments in strategic initiatives. A full analysis of the
Group's going concern assessment is included in the Directors' Report in the
Annual Report. Accordingly, the directors consider it appropriate to prepare
the accounts on a going concern basis.
Dividend
The Board is not recommending the payment of a dividend for the year ended 30
April 2025 (2024: £Nil).
Outlook
The Group continues to be in good health and performing well in all of the
areas identified as priorities for our strategic growth. Whilst strategic
reviews are being conducted across Access Control and Safetell, two areas
where we will seek to achieve greater value for shareholders, overall, I am
delighted with the enormous discipline, effort and resilience displayed by the
whole team as we continue expanding our opportunities and driving growth
across the board.
As evidenced by group revenues rising consecutively for the past five years in
a row, our strategies have proven highly effective, and I remain entirely
convinced of the team's positive outlook for further growth ahead. The
Executive Team and our many talented employees continue to work extremely hard
to put both divisions in the strongest possible position in each of their
markets. With significant gains to come, once again, we are forecasting
revenue growth for the coming year, having already made a strong start to
FY26.
On behalf of the Board, I would like to extend my thanks for all the hard work
and dedication shown by our teams in what has been another highly productive
year where we have continued to out-compete many larger suppliers and
incumbents with our higher quality products and services. The expanding array
of opportunities this presents us with enables us to drive forward with great
confidence and address exciting market opportunities that we have carefully
targeted. I look forward to building on our success and adding 2026 to a
series of many successful years ahead.
Maurice Dwek
Chairman
3 September 2025
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
At the outset of our new five-year 2029 Strategic Growth Plan, it was clearly
important that 2025 provided a solid first-year foundational platform for our
scaling ambitions, as we strive to accelerate growth. Our aim is to deliver
quality innovation to more customers at every level of the market. I am
delighted that this year has indeed provided the positive start we had hoped
for, and a base on which we can build, with notable gains in all key areas at
the core of our plan. Once again, this is a result of the tireless efforts of
our team, who continue to pursue our clearly defined strategy with enormous
focus and dedication.
As anticipated, Group sales and profitability strengthened in the second half
of the year. Our HCM business went from strength to strength, with revenue
growing 14% and now accounting for nearly 67% of total Group revenue. It also
grew recurring revenues by 24% and achieved a number of important new
subscription milestones.
In line with our HCM plan, we have grown recurring revenues through services,
displaced clock competitors, and are diversifying our sales channels through
our D2E strategy as we integrate our clock and cloud-based software with
world-leading HCM platforms. As a result, we are expecting HCM growth momentum
to build through FY26, particularly in North America given the size of the
market and the progress already being made with our D2E strategy. We are
already working hard to develop our D2E sales pipeline with Oracle, Workday
and SAP, and we expect to secure our first customers in FY26.
Meanwhile, delivering strong growth in recurring revenues across an even
broader base of strategic partnerships raises our confidence for both the
short and long-term. Our model of hardware-enabled software and services and
clear quality leadership combine to drive highly 'sticky' customer
relationships. Our consistent approach has been to broaden the trusted
partnerships we have established and capture full share-of-wallet across the
breadth of our product range.
Across the rest of the Group, both Access Control and Safetell also reported
stronger revenues in H2, particularly after several contract start dates were
deferred to later in the year and into FY26. Whilst these businesses are
moving in the right direction, HCM has become our primary focus given its
growth and the scale of commercial opportunities that lie ahead. As such, we
are reviewing the growth strategies of both Access Control and Safetell to
assess how we can best drive value for the Group and ultimately our
shareholders.
Performance
The combination of strategic activities contributed to another year of steady
growth across the Group. Group revenue grew by 3% year-on-year to £23.0
million (April 2024: £22.3 million) with gross profit also increasing, up 9%
to £9.4 million (April 2024: £8.6 million). This marks four years of
consecutive year-on-year growth, rising 31% from £17.6 million in 2021 to
£23.0 million in FY25, representing a compound annual growth rate (CAGR) of
6.9% - see Chart 1 above.
Within this total, our HCM opportunity continues to expand and accelerate,
with FY25 performance being driven by executing with strategic focus on this
market. HCM sales grew by 14% year-on-year to £15.4 million (April 2024:
£13.5 million), representing nearly double the Group compound growth rate, of
12.3% over the same period between FY21 (£9.7 million) and FY25 - see Chart 2
above.
HCM annualised recurring revenue (ARR) increased by 24% year-on-year (YOY) to
£3.6 million (April 2024 ARR: £2.9 million), positively contributing to
profit margin growth and reaching a record number of subscriptions which grew
by 32% to 40,635 monthly device subscriptions. This included the first new
subscriptions under the Per-Employee-Per-Month (PEPM) model, designed
specifically for the D2E market.
In 2025, GT clocks handled over 12 million monthly transactions, and in almost
all cases now generate hardware, software and warranty revenues from each
device. Our compound growth in subscriptions over the last 5 years has been
running at 57% growth per annum, with annual recurring revenues rising from
£0.15 million in 2021 to £3.6 million this year. This represents an even
more impressive 121.3% compound growth, with more to come in FY26 and beyond -
see Chart 3 above.
Access Control delivered a stronger second-half performance; however, this was
not quite sufficient to offset an overall decline of 10%, achieving full-year
revenues of £2.7 million. This was due to slower than expected migrations and
further delays from our software partner in the development and launch of our
new Janus C4 Ultra product. Whilst the regional focus did not produce the
additional growth we had hoped for, to balance the upgrade delays, progress in
this area was deprioritised in favour of increased focus and investment in our
rapidly expanding D2E opportunity. For FY26, a number of mitigations are
currently being undertaken to refocus the sales team and accelerate the
development project, whilst completing a strategic review to ensure we
identify the optimum growth strategy for the group.
This divisional combination delivered a net positive full-year result for
Grosvenor, with an improved gross margin of 42.5% contributing a gross profit
of £7.7 million (FY24: 39.7%, £6.5 million). Topline revenues increased by
10% to £18.1 million (April 2024: £16.5 million), which now accounts for
nearly 80% of Group turnover.
Safetell wrestled with the dual macro-economic effects of 2025, with delays in
public sector project cycles and the impact of significant inflationary
pressures in retail, both of which combined to cause a slowdown in projects
that dampened another excellent year of progress in growing services. Whilst
total revenues declined by 15% to £4.9 million (April 2024: £5.8 million),
service revenues grew substantially, increasing by 30% to £2.7 million,
representing 56% of annual income for the division. Passing this important
service-oriented tipping point marks a critical milestone in a business that
continues to prioritise the creation of long-term value, executing in line
with the groupwide strategy to grow recurring revenues. Once again, the
focused approach to broadening our service operations gained further traction
in FY25, driven by new strategic accounts and a greater share-of-wallet from
existing customers. This was evidenced by notable growth in Door Services
which grew by 49% to £1.0 million.
With an improved second-half performance for both products and services, the
prospects in FY26 are extremely positive, with delayed projects now resuming
and feeding into a strong, well-balanced pipeline. A number of exciting and
substantial new opportunities add to our confidence of a welcome return to
growth, whilst we assess the strategic priorities and growth plan to ensure
value for shareholders.
Financial
The Group's cash at 30 April 2025 was £0.3 million, a decrease of £0.8
million on the prior year (30 April 2024 cash: £1.1 million). This decrease
was primarily due to Coronavirus Business Interruption Loan Scheme (CBILS)
bank loan and invoice financing repayments.
Group debt (including leases) reduced by a further £0.9 million to £4.0
million (April 2024: £4.9 million). Bank net debt at 30 April 2025 was £2.1
million (30 April 2024: £2.0 million).
Amidst global concerns over changes to US tariffs, it is reassuring to note
that the Group is seeing minimal impact, with HCM terminals currently exempt
from tariffs because of their classification as data terminals. As in previous
years, inventory and supply levels are being managed effectively, in line with
revenues, to ensure we have sufficient stock to cover forecast demand. As we
continue to monitor macroeconomic events closely, we are leveraging the expert
systems and processes we use to monitor our supply chain and control inventory
to maintain our competitive edge in customer delivery. This has been made much
easier through the expanded footprint of our US location, always taking the
opportunity to improve stock turnover and cashflow where possible. This is
evidenced by the stock turn ratio steadily improving throughout the year and
is now above the 3.5 target we set.
With the oversight of our CFO, Paul Campbell-White, we continue to ensure
investment decisions are aligned with our strategic goals, exercising sound
financial discipline with strong governance and appropriate commercial
controls commonly embedded across the Group.
Strategy & Outlook
Newmark will continue into FY26 by executing the strategy that has proven
highly effective throughout the previous five-year growth plan, with new
emphasis on those areas where our scaling potential is demonstrably
increasing. A detailed explanation of each divisional strategy and its
performance can be found in the respective sections of this report. At a Group
level the direction remains consistent, engaging new partners, increasing
share-of-wallet through existing partners, investing in channel development
with new product and service innovation, and prioritising the growth of
recurring revenues through service-based subscriptions at a range of price
points.
The Group has already made a good start to FY26 with sales building across
both divisions and a well-qualified pipeline of opportunities that are
beginning to recover the handful of delays experienced in FY25.
For HCM, the D2E Oracle partnership is our immediate focus. During the second
half of FY25 we gained Oracle Integrator status following the successful
testing of HCM's Clock and Cloud-based software. The sales pipeline is
building, and we expect to secure our first D2E customers during FY26.
We are also now integrated with SAP earlier than anticipated and are targeting
our first sales during FY26. The recently announced exclusive partnership
agreement with Synerion, a global provider of cloud workforce management
software, underlined further rapid progress with our D2E strategy. The
partnership will see HCM's GT Clock devices combined with Synerion's workforce
management software and integrated into several of Synerion's HCM partner
platforms in North America, enabling us to deliver comprehensive hardware and
software solutions directly to end-users by the end of FY26.
Our Workday integration is also progressing well, and we plan to achieve
certification by mid-FY26, which will enable us to build additional pipeline
over the remainder of the year.
In each of these areas, D2E remains an exciting space and a huge opportunity
for Newmark. Activity and interest are building strongly at global trade show
events with Oracle, Workday and SAP, with each marketplace containing an
abundance of potential enterprise customers.
Innovation leadership has always been a key focus for Newmark as we seek to
differentiate and win great customer relationships based on our reputation for
delivering high quality, complete solutions, quickly and reliably. I am
particularly excited to report that the division is now launching GT Tablet in
FY26, extending HCM past hardware with our first software-only clock solution.
With similar functionality to fixed clock devices, now in tablet-compatible
form, GT Tablet can link existing customer tablets through our secure cloud
platform, GT Connect, and to GT Services.
GT Tablet will be launching on Google Play Store and IOS App Store in FY26,
although the division has already begun marketing and selling GT Tablet
directly, with initial engagements receiving significant early interest from
our existing HCM partners. We anticipate this will be an important incremental
source of recurring revenue at the end of FY26, with one HCM partner already
committed to onboarding GT Tablet, whilst discussions with others are
progressing well.
Altogether, there is strong evidence of growing demand for our HCM products
and services, giving us the confidence to think 5-years ahead. Increasing
cyber focus and regulatory pressure raise data security and compliance as
board-level priorities that continue to drive enterprise opportunities
globally. With AI being rapidly embedded and deployed across enterprise
systems, we know we must keep innovating to remain at the forefront of our
market. To bring greater focus and control to this endeavour, I am delighted
to announce that we have promoted Simon Poole-Anderson to the role of
Technical Director to create a new 5-year technology roadmap that puts both AI
and development scalability at the heart of our R&D investment. Further
growing subscriptions via GT Tablet is just part of that strategy, as we also
look to update our full range of devices, advance our secure cloud control
software GT Connect, and extend our array of HCM system integrations so that
Newmark continues to define the leading standard for state-of-the-art quality
and protection at the HCM Edge.
Safetell too, has already had a more confident start to the year with a good
pipeline building and a proportion of the deferred orders being delivered in
H1 FY26. It also expects to continue to grow its services revenues through its
Door Services offering, noting the excellent growth in FY25 that extended our
capability to include the servicing of security shutters, with plans to
further expand the range of products and services we can offer to attract a
similarly strong recurring profile.
As we press ahead with our 2029 Strategic Growth Plan, we are constantly
challenging ourselves to set and meet stretching internal targets for revenue
and EBITDA growth, to help meet our scaling ambitions. We are already
benefitting from the many operational improvements of recent years and have an
excellent team in place following clearly defined strategies that have proven
successful.
Marie-Claire Dwek
Chief Executive Officer
3 September 2025
OUR DIVISIONS - People and Data Management
Revenue information
£'000 2025 2024 Increase/ % change
(decrease)
HCM North America 9,902 9,443 459 5%
HCM Rest of World 5,478 4,009 1,469 37%
Total HCM 15,380 13,452 1,928 14%
Total Access Control 2,719 3,017 (298) (10%)
Division Total 18,099 16,469 1,630 10%
Performance overview
2025 was another year where Grosvenor Technology (Grosvenor/GT) continued its
innovation leadership in high quality timeclocks, access and identity data
control for the Human Capital Management (HCM) and Access Control markets. A
strategic priority guiding our dedicated and experienced team is our central
focus on protecting human capital by controlling the people data that powers
HCM - people's identity, time, access, and security. We focus on transacting
and protecting this data to drive efficiency, productivity and security in the
systems that manage people, keeping their data safe and ensuring companies are
compliant.
In FY25, we continued to deliver on this focus, achieving top-line revenue
growth of 10% to £18.1 million (FY24 GT Revenue: £16.5 million), a gain of
£1.6 million on FY24 and now accounting for nearly 80% of group turnover.
This growth was driven by the strong performance of the HCM business and
another substantial increase in annualised recurring revenue (ARR). As we
build our offering in the Direct-to-End-user (D2E) space through partnerships
with some of the world's largest HCM software companies, the HCM business also
recorded its first per-employee subscriptions, establishing the necessary
foundations to position the business for even stronger growth in the months
and years ahead.
HCM
Delivering strong growth through disciplined strategic execution
Executing our strategy to focus on HCM, this business continued to lead our
growth with revenue increasing by 14% year-on-year (YOY) to £15.4 million
(FY24 HCM Revenue: £13.5 million). ARR increased by 24% YOY to £3.6 million
(April 2024 ARR: £2.9 million), further improving HCM's profitability and
reaching a new subscription milestone. Achieving 40,635 monthly device
subscriptions for GT Connect and other GT Services, up 32% YOY with an
additional 9,942 subscriptions (April 2024 subscriptions: 30,693). For the
first time, this included 3,027 subscriptions under the new PEPM model,
designed specifically for the D2E market.
Strategy
Once again, by consistently pursuing our five-pillar growth strategy, in FY25
we delivered important operational progress to create the environment for
sustained and incremental performance, with highlights as follows:
1. Continue: Our team continued to build strategic partnerships across the
industry to open new sales channels, working with a number of new partners due
to be announced in FY26, and adding to an already healthy and growing pipeline
expanding through our existing partnerships.
2. Attach: GT Services provides a compelling all-round proposition that adds
significant value to our subscriptions that is hard for competitors to match.
As previously announced, in FY25 we also began to offer customers
"direct-to-customer" fulfilment from our logistics centres in the US and UK,
effectively allowing our partners to fully outsource all aspects of fulfilment
to us. This differentiated positioning, beyond device manufacturer to trusted
solutions and biometric data service provider, is building incremental future
performance by accelerating growth in recurring revenue-based subscriptions as
well as increasing customer stickiness through long-term partnerships. As a
key pillar of our growth strategy, we expect this to be directly reflected
through our newly established framework of Customer Experience measures with
services providing the key link to demonstrate ongoing added value.
3. Push: Continuing a campaign that started in FY24, we are successfully
converting existing HCM customers who had previously only purchased hardware
products, upgrading them to a recurring services model with GT Protect and GT
Connect. Now every customer in the North American region with one exception
has attached recurring services, making a significant contribution to the
forward outlook through higher value service-based contracts.
4. Displace: Demand for the GT4 and lower-cost GT4-Lite devices was
particularly strong in North America, with orders for the latter helping to
displace its main low-cost clock competitor in this market. This has been at
the heart of our plan to target full share-of-wallet, enabling us to expand
key partnerships by offering the full range of clocks, with services attached
that drive recurring revenues.
5. Diversify: With further details below, our efforts to develop and launch GT
Tablet in FY25 open a significant channel of opportunity, expanding our target
market to dispersed mobile workforces on a global scale, and providing new
routes to explore software-only revenue-sharing arrangements with our
partners. This presents a tremendously exciting opportunity for FY26.
Meanwhile, benefitting from our efforts in FY24, we have begun marketing our
new offering, GT Time, shaped to target the HCM Direct to End-user (D2E)
market opportunity by combining the flexibility of choosing entry or premium
products with services attached and per-employee-per-month pricing. Our D2E
strategy involves selling to end-users through large HCM partner platforms,
unlocking enterprise-sized customers and larger orders for GT Time products
and services. Building on our Partnership Programme with the first one of
these brand leaders, Oracle, during the second half of the year we
gained Oracle Integrator status following the successful testing of
our clock and cloud-based software. The sales pipeline is building, and
we expect to secure our first D2E customers during FY26.
We have also been busy establishing new sales channels for GT Time and now
expect to be integrated with SAP earlier than anticipated, targeting the first
sales during FY26. Our Workday integration is progressing according to plan,
and we aim to achieve certification by mid-FY26, which will enable us to build
our sales pipeline over the remainder of the year.
The recently announced partnership with Synerion, a global provider of cloud
workforce management software, marks a significant step forward in our D2E
strategy. Under this agreement, Synerion will exclusively partner with
Grosvenor Technology on D2E opportunities involving integration of GT Clock
devices into market-leading third-party HCM systems across North America. This
collaboration positions Grosvenor to deliver comprehensive hardware and
software solutions directly to end-users by the end of FY26.
Software market consolidation creates the opportunity to scale-up partnerships
With M&A-based consolidation a frequent feature of the highly active HCM
software marketplace, this can present significant partner scaling
opportunities to introduce the acquiror's broader range of customers to our
products and services. In 2025, this took place on both sides of the
acquisition equation.
In North America, our partner Workforce Software was acquired by ADP, an
employee management solutions company, whilst another partner, Paycor, was
acquired by Paychex, a payroll and HR solutions company. The disruption caused
by these acquisitions impacted orders received during the second half of FY25.
However, we believe that these acquisitions are an extremely positive
development for us, with early discussions to introduce their large customer
base to our products and services, and we are excited by the potential new
sales opportunities that lie ahead.
In the Rest of the World region (ROW), revenue growth was achieved despite our
largest European partner completing its own series of acquisitions in H1,
which caused a temporary slow-down in orders. However, these acquisitions have
led to our partner expanding into new European territories and this provides a
much-enlarged scope of opportunity, having recently secured an exclusive
position as their sole provider of timeclock software and hardware solutions.
Sales activity through this partner bounced back to deliver a strong H2, with
the pipeline building strongly for FY26.
We also delivered a series of upgrades for existing long-term UK retail
clients, with two of the leading supermarket brands placing substantial
orders. The breadth of our client portfolio and increasing scope of
opportunities has given us greater capability to absorb the impact of these
M&A-related delays, underlining the strength of our customer relationships
and the broad appeal of our products and services.
Extending beyond hardware with GT Tablet
The most exciting product announcement of FY25 was the launch of GT Tablet,
enabling us to extend HCM past hardware with our first software-only clock
solution.
With similar functionality to fixed clock devices, now in tablet-compatible
form, GT Tablet can link existing customer tablets through our secure cloud
platform, GT Connect, and to GT Services. This opens an exciting new category
of application that expands our market opportunity on a global scale.
Whilst tablets cannot replace our high-specification hardware devices that are
always-on and optimised for the rapid, high-volume throughput that is
essential in office and industrial environments, our new tablet-based
development is ideal to target specific mobile use cases that fixed devices
cannot support. This opens a substantial opportunity to broaden the
applicability of our services, being particularly well-suited to the many
non-office and locally distributed settings where dispersed workforces need to
operate, such as in retail, medical or crew-working scenarios.
As part of this plan, GT Tablet will be launching on Google Play Store and IOS
App Store in FY26, unlocking the product's global distribution potential for
customers. This is already generating significant interest from our HCM
partners, and we anticipate this will be an important incremental source of
recurring revenue at the end of FY26, with one HCM partner already committed
to onboarding GT Tablet alongside positive discussions with several others.
Investing in platform growth and innovation with a new five-year Technical Roadmap
With the technology landscape shifting ever faster, a vital attribute that has
sustained Newmark's market leadership over three decades has been its
continuous investment in innovation to remain at the forefront of delivering
to customer needs.
At the end of FY25, we promoted Simon Poole-Anderson to the role of Technical
Director who will now, in addition to Product Management, be responsible for
R&D. Simon will focus on closely aligning Product and R&D, developing
a five-year technology roadmap, putting both AI and development scalability at
the heart of R&D. The move has dual benefits, and is designed to apply his
dedicated skills, experience and product knowledge to the R&D function,
whilst freeing-up additional capacity for Colin Leatherbarrow, Grosvenor's MD.
This will enable him to accelerate our divisional scaling plans and support
our evolving operations to meet the new opportunities our product and market
innovations are rapidly creating.
Further growing subscriptions via GT Tablet is just part of the new roadmap.
Our enhanced strategy includes providing resource scaling to support faster
delivery of more Professional Services to accelerate order take-up, as well as
removing the technical barriers to winning D2E business. Our innovation
leadership now encompasses the addition of new and updated timeclocks at both
ends of the portfolio, the combination of Neural Processing Units (NPUs)
alongside updated Central Processors (CPUs) to ensure our devices remain
future-proofed, highly performant and AI-ready. Our planned investment
programme covers updates across our full range of devices, secure cloud
control software, and array of HCM system integrations so that Newmark
continues to define the leading standard for state-of-the-art quality and
protection at the HCM edge.
Optimising operations and measuring customer experience
Together with some minor team realignment to provide adequate focus and
support for the emerging D2E opportunities, we continued to upgrade inventory
and manage stock smartly to keep pace with growing customer requirements,
whilst at the same time carefully navigating a fast-changing tariff
environment. The impact of new US tariffs was minimised by optimising the use
of correct product classifications, qualifying exemptions and increasingly
agile stock management. We have also taken additional steps to reinforce the
credentials of our secure operating practices, having started System and
Operating Controls (SOC) compliance, preparing for both SOC 1 financial
reporting controls and SOC 2 data processing controls focused on security,
availability, processing integrity, confidentiality, and privacy. We are
anticipating gaining certification in FY26, in an initiative designed to
further reassure clients of the quality of our approach.
During FY25 we completed a customer journey mapping exercise and used this to
implement a new framework of Customer Experience measures. Aligning with best
practice in recurring subscription-based businesses, this is an essential
collection of KPIs delivered in real-time via an online management dashboard.
In addition to systems performance, this will help us to monitor satisfaction,
increase retention and prevent churn. As our tools and rich data sets mature,
we anticipate driving new insights, enabling new services and identifying
opportunities to extend Customer Lifetime Value (CLTV) through our
subscriptions.
Access Control
As communicated at the half year, Access Control experienced a slower start
to FY25, with sales impacted by delays from our software partner in the
development of our new Janus C4 Ultra product, as well as to several upgrade
projects. The division did see sales improve in the second half as
anticipated, although full-year revenue of £2.7 million (April 2024, £3.0
million), was 10% down on last year.
Whilst not Grosvenor's primary strategic focus, the drop in performance has
triggered important changes. In addition to mitigating tactical measures,
reorganising and focusing sales on high-value opportunities where returns
remain strong, alongside various initiatives to accelerate new product
development and migrations. We are also reviewing the entire business strategy
to assess the best options for how this unit can deliver better value for the
Group. We anticipate delivering further updates in future reports.
OUR DIVISIONS - Physical Security
Revenue information
£'000 2025 2024 Increase/ % change
(decrease)
Products 2,194 3,690 (1,496) (41)%
Service 2,744 2,118 626 30%
Division Total 4,938 5,808 (870) (15)%
Performance overview
Safetell continues to grow long-term value through services, prioritising the
shift to an increasing proportion of recurring services according to its
long-term strategy, and having crossed a tipping point with services now
accounting for 56% of total revenues at £2.7 million. This valuable progress
was achieved despite a disappointing year in projects, where a number of
substantial public sector contracts were deferred into FY26 due to extended
building schedules and procurement cycles. Whilst these delays have created a
'rebound effect' for the forthcoming year, with a robust FY26 forecast
alongside a solid pipeline of opportunities, FY25 products were also supressed
in the retail sector, where clients responded to squeezed profit margins from
high inflation and a broader slowdown in consumer spending, which also
resulted in delays in planned roll-out programs. This combination led to a
drop in overall revenues of 15% year-on-year to £4.9 million, however we
remain confident that the completion of deferred projects, together with
several exciting and substantial new pipeline opportunities, and the rising
baseline of services, will deliver a positive FY26 and a welcome return to
growth.
Services Business Performance
The highlight of FY25 was the continued growth of service and maintenance
revenue, up by 30% year-on-year, providing increased forward visibility that
adds significant value and reflects the advantage of our high-quality
operations in this space. With the completion of another year of solid
execution, scaling our services business remains of crucial strategic
importance, contributing visibility, revenue and enhanced profitability.
FY25 was, again, a year of notable growth in Door Services, which grew by 49%
to £1.0 million, driven by new strategic accounts and a greater
share-of-wallet from existing customers. Profitability of Door Services also
increased as expected, with year-on-year margin expansion continuing to track
in line with our five-year strategic plan. This was partly due to our
previously reported capability enhancements, enabling us to service and repair
roller shutters as well as doors, with one third of our engineers now fully
trained and equipped. Acting as an immediate accelerator to growth, this
enabled us to extend the scope of our service engagement, and has yielded
several new contract opportunities, in particular with large scale FM
contractors who value multi-skilled third-party providers. Learning important
lessons in optimising Door Services contracts has also led to a tighter focus
on expanding our footprint with organisations that are a direct strategic
match for our capabilities, such as universities, railway stations, blue light
portfolios and other institutions where there are high instances of automatic
doors and entrances in constant use. As we gain further critical mass in our
service contracts, our field force planning and service delivery can
increasingly be optimised to drive material gains in efficiency and
profitability, and this has been a key factor in our strategic planning.
Legacy Services remained stable throughout FY25, despite prior concerns around
revenue decline, enabling the services division to meet expectations, with a
positive forward outlook that combines increasing demand for Entrance Control
and Door Services with an already strong and active pipeline growing through
FY26.
Products (Supply-only)
Business Performance
In FY25, Supply-only product revenues exceeded expectations significantly,
achieving £0.4 million in order intake - 146% of our budgeted target. This
strong overperformance demonstrates a healthy demand for our standalone
products and reflects effective sales and operational alignment in this
high-margin segment. Although this represents a smaller proportion of total
revenue, the improving performance reinforces its strategic importance and
growth potential. As we reported last year, Safetell continues to benefit from
new and competitive products as a result of broadening its range of suppliers
in FY24, equipping it to deliver faster, at higher quality and lower cost.
This also played a key role in overcoming a critical project delivery
milestone for a major financial services customer in FY25, increasing the
potential for extended orders and ongoing service contracts, and with further
orders already being booked.
Products (Projects)
Business Performance
During FY25, a number of high-value public sector installation contracts were
subject to extended building and procurement cycles, often at short notice,
causing project delays from FY25 to FY26. This created an unavoidable topline
drag in revenues in FY25, with anticipated reversal planned in Q1 and Q3 of
FY26. A toughening of the retail environment, which led to a softening in
investment, further contributed to lower-than-expected project revenues in
FY25, with the overall effect of this volatility factoring strongly in our
resilience planning for FY26.
However, we used this period of slower activity in the Projects Team to review
and improve internal processes, project controls, and delivery execution. Both
sales and delivery capability in the projects business have now been
strengthened, placing a renewed emphasis on project quality and client
satisfaction, with the clear goal of increasing repeat business and long-term
customer relationships. Adding experienced industry sales leadership and new
business development roles has enhanced our capability to focus, identify,
pursue, and convert large-scale opportunities. In October, we also added
experienced leadership to our customer delivery processes, leading to
significantly improved project management and installation standards, as well
as a streamlined Supply-Only process. This has secured Safetell as a trusted
service partner with the confidence to deliver, leading to additional
share-of-wallet gains and winning a number of new customers. As a result, the
division saw significant margin improvements in the second half of the year,
putting us in a much stronger position to deliver efficiently and profitably
in FY26.
Against a backdrop of continuous transformation under MD, Nick Shannon,
Safetell is also pursuing further strategic initiatives to enhance resilience
and profitability, beginning the transition to a more responsive, variable
cost projects business. Using trusted contractors as projects scale up or
down, this will drive increased productivity, profitability and long-term
business confidence through better cost control.
Each of these changes have been an important part of the strategic planning
and review process in FY25, giving us a more robust and resilient platform
which we anticipate will start making an impact in FY26.
Outlook for 2026
Following key customer successes in FY25 across multiple sectors, including
universities, blue light, retail, financial services, construction and
pharmaceuticals, Safetell is ideally positioned to capitalise on its trusted
partner status with a large number of major institutions in FY26 and beyond.
The combination of strong results in Service and Supply-Only segments
demonstrates the underlying health, strategic value and operational
adaptability of the business, while the challenges in Projects offer a clear
and actionable area of focus for the year ahead. We therefore approach FY26
with a positive outlook, supported by a stable and strategically rebalanced
pipeline, with a significant increase in confidence and weighting toward
public sector projects due to rescheduling from FY25 into FY26.
Looking ahead, the following three areas in particular provide the basis for
our sustained confidence, management focus and performance ambitions.
Accelerating Door Services growth continues to offset a
slower-than-anticipated decline in Legacy Services, supporting our long-term
profitability goals. As in previous years, whilst we expect our Legacy
Services business to contract in FY26 in line with published bank branch
closures by major clients, our expanding Door Services offering provides a
robust platform to absorb this anticipated decline. Following the successful
introduction of roller shutter services at the end of FY25, we are now
assessing a further capability and service expansion opportunity through the
potential to add servicing of barriers and automated gates and further
accelerate our growing national footprint. As a result of the measures we have
already taken, and with upside from service expansion, we remain on course to
achieve sustainable profitability with a significantly reduced Legacy Services
business exposure by the end of our five-year plan.
In addition, by recalibrating our Entrance Control offering to be more
competitive, with enhancements in products, skills and training, this
high-growth area is again showing very strong potential with significant
increases in customer demand and orders from the start of FY26.
Finally, as part of our ongoing commitment to offer high quality, competitive
products, we are reviewing and updating our entire portfolio plan to ensure we
have a complete physical security product range - buying in where it makes
sense to do so, and ensuring existing products meet emerging standards. With
the introduction of the LPCB accreditation for screens, many public sector and
security conscious commercial clients will require a newly accredited screen,
giving us an opportunity to ensure our products satisfy this standard and
remain the clear choice for our customers
Our demonstrably successful strategy of focused execution will continue to
prioritise recurring revenues from services, which remains at the heart of our
approach to growth. Balancing strong foundations and long-term visibility with
more profitable short-term opportunities will help us to win tactical projects
and install our latest new products.
FINANCIAL REVIEW
Revenue 2025 2024 Increase/ Percentage change
(decrease)
£'000 £'000 £'000 %
People and Data Management Division
HCM 15,380 13,452 1,929 14%
Access Control 2,719 3,017 (298) (10%)
18,099 16,469 1,630 10%
Physical Security Solutions Division
Products 2,194 3,690 (1,496) (41)%
Service 2,744 2,118 626 30%
4,938 5,808 (870) (15%)
Group Revenue 23,037 22,277 760 3%
Group revenue increased by 3% to £23.0 million (2024: £22.3 million) driven
by growth in HCM. This revenue increase was due to both hardware sales and
recurring revenues from Software-as-a-Service (SaaS) and Clock-as-a-Service
(ClaaS). HCM recurring revenues increased by £0.8 million to £3.2 million
(2024: £2.4 million). There has also been revenue increase from Services in
the Physical Security Solutions Division. This growth is from traditional bank
and building society clients as well as new auto-door servicing and repairs.
Further commentary and discussion can be found in the relevant divisional
sections.
Gross profit margins have increased to 40.7% (2024: 38.5%) due to improvements
in the People and Data Management division from enhanced product margins and
an increase in higher margin recurring revenues. Their gross margins increased
to 42.5% (2024: 39.7%). The Physical Security Solutions division achieved a
gross profit margin of 34.1% (2024: 35.3%) the decrease primarily caused by
lower Products revenues resulting in reduced utilisation of staff who are
charged to cost of sales.
2025 2024 Increase Percentage change
£'000 £'000 £'000 %
Gross Profit 9,385 8,585 800 9%
Gross Profit Margin 40.7% 38.5%
Administrative expenses and average employees
Administrative expenses have increased by 8% to £8.5 million (2024: £7.8
million). This has been driven by both inflationary cost rises and investment
in strategic initiatives following the approval of a new five-year strategic
growth plan in June 2024.This investment included increases in headcount,
marketing and professional fees. Overall average employees have increased to
109 (2024: 102) driven by growth in Grosvenor's UK and US operations. Staff
costs (which are included in both cost of sales and administrative expenses)
increased by £0.7 million or 8% to £9.0 million (2024: £8.3 million).
Finance costs
Finance costs have decreased by £0.1 million to £0.3 million (2024: £0.4
million) due to a combination of reduced invoice financing and overdraft
borrowings and lower interest rates which started to fall in the UK from
August 2024 and in the US from September 2024.
Profitability
The current year profit from operations was £0.9 million (2024: £0.8
million). The increase in profitability was caused by a combination of
increase in gross profits from higher revenues and improved gross margins
percentages, partially offset by a rise in administrative expenses.
Profit after tax for the year was £0.7 million (2024: £0.1 million).
This is after the tax credit which is discussed in more detail below.
Taxation
A tax credit of £19,000 (2024: £254,000 charge) was recognised in the year.
This resulted from a current tax charge of £12,000 (2024: £103,000 charge)
due to minor prior period adjustments and a £31,000 deferred tax credit
(2024: £151,000 charge) primarily due to a change capital allowance
assumptions. The prior year deferred tax charge was primarily the result of
adjustments to prior periods relating to a change in assumptions for the
Grosvenor R&D tax claims. No corporation tax was paid in the year.
Earnings per share
Basic earnings per share for the year increased by 5.63p to 7.06p (2024:
1.43p). This was due to the increase in profitability in FY25.
Balance sheet
Net assets have increased by £0.6 million to £8.7 million (2024: £8.1
million). Intangible assets decreased by £0.2 million to £5.0 million due to
the amortisation of previously capitalised assets such as GT Connect being
higher than development cost additions during 2025. Property, plant and
equipment was unchanged year on year at £2.7 million. Inventory decreased by
£0.3 million to £2.4 million due to a temporary decline in order to fulfil
high levels of April 2025 HCM orders. Trade and other receivables increased by
£0.9 million to £5.4 million primarily due to a rise in trade receivables
from the high level of April 2025 HCM sales. Cash and cash equivalents
decreased by £0.8 million to £0.3 million (2024: £1.1 million) due to bank
loan and invoice financing repayments. Trade and other payables decreased by
£0.2 million primarily due to reduced Q4 Products sales in the Physical
Security Solutions Division. The £0.2 million decrease in short term
borrowings to £2.8 million was due to reduced use of the US facilities. The
£0.7 million decrease in long term borrowings was due to CBILs and lease
repayments. Bank net debt at 30 April 2025 was £2.1 million (30 April 2024:
£2.0 million).
Research & Development (R&D)
The Group has maintained its R&D investment in the People and Data
Management division at broadly the same level as prior year of £0.4 million.
Cashflow
During the year cash decreased by £0.8 million to £0.3 million (2024: £1.1
million). Cash generated from operating activities decreased by £1.2 million
to £1.8 million (2024: £3.0 million) mainly due to a one-off benefit in 2024
from a £1.4 million reduction in inventories built up during the pandemic.
There was a £0.2 million tax receipt in FY24 from a FY22 Safetell R&D tax
credit, but there were no receipts in FY25 as none had been claimed since then
by Safetell. Cashflow from investing activities increased by £0.2 million to
£1.0 million (2024: £0.8 million) primarily due to a higher number of ClaaS
clocks purchased year-on-year. In financing, the repayment of £0.7 million of
invoice financing in 2025 (2024: £0.4m repayment) is from the termination of
the $2 million US invoice financing facility in February 2025. This was
replaced by a $2 million US revolving credit facility (RCF) with our
relationship bank, HSBC. The £51,000 receipt in 2025 from bank loans (2024:
£400,000 payment) is the net of a £451,000 draw down of the US RCF and
£400,000 of repayments from the CBILS loan which started to be paid back from
September 2021 over a 5-year term. Lease principal repayments were £0.6
million (2024: £0.6 million). There was also £0.2 million of interest paid
on the debt facilities (2024: £0.3 million).
Cashflow forward currency contracts
During the year we executed our foreign exchange strategy by entering into
forward contracts. The strategy effectively hedges 75% of excess US Dollars
(USD) and reduces the level of volatility compared to using spot rates. The
contracts manage our currency mismatch between an increasing USD position from
revenues and the existing cost base in both GBP and Euros. The adopted process
involved currency forecasting three quarters ahead and taking out tranches of
forward contracts for 25% of each of the forecasted quarters relating to our
excess USD position.
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2025
2025 2024
Note £'000 £'000
Revenue 23,037 22,277
Cost of sales (13,652) (13,692)
Gross profit 9,385 8,585
Administrative expenses (8,455) (7,811)
Profit from operations 930 774
Finance costs (287) (386)
Profit before tax 643 388
Tax credit/(charge) 3 19 (254)
Profit for the year 662 134
Attributable to:
- Equity holders of the parent 662 134
Earnings per share
- Basic (pence) 7.06 1.43
- Diluted (pence) 6.65 1.35
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2025 2024
£'000 £'000
Profit for the year 662 134
Foreign exchange on the retranslation of overseas operation (162) 18
Total comprehensive income for the year 500 152
Attributable to:
- Equity holders of the parent 500 152
The notes in the annual report and accounts form part of these financial
statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 APRIL 2025
2025 2024
ASSETS Note £'000 £'000
Non-current assets
Property, plant and equipment 2,695 2,702
Intangible assets 4,986 5,226
Deferred tax 3 334 303
Total non-current assets 8,015 8,231
Current assets
Inventories 2,392 2,738
Trade and other receivables 5,398 4,544
Cash and cash equivalents 344 1,137
Total current assets 8,134 8,419
Total assets 16,149 16,650
LIABILITIES
Current liabilities
Trade and other payables 3,349 3,545
Other short-term borrowings 2,823 2,978
Total current liabilities 6,172 6,523
Non-current liabilities
Long term borrowings 1,192 1,893
Provisions 113 110
Total non-current liabilities 1,305 2,003
Total liabilities 7,477 8,526
TOTAL NET ASSETS 8,672 8,124
Capital and reserves attributable to equity holders
of the company
Share capital 4,687 4,687
Share premium 553 553
Merger reserve 801 801
Foreign exchange reserve (325) (163)
Retained earnings 2,956 2,206
Total attributed to equity holders 8,672 8,084
Non-controlling interest - 40
TOTAL EQUITY 8,672 8,124
The financial statements were approved by the Board of Directors and
authorised for issue on 3 September 2025.
Paul Campbell-White
Director
The notes in the annual report and accounts form part of these financial
statements.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2025
2025 2024
£'000 £'000
Cash flow from operating activities
Profit after tax 662 134
Adjustments for: Depreciation, amortisation and impairment 1,488 1,459
Finance cost 287 386
Gain on sale of property, plant and equipment (2) (19)
Share based payment 88 43
Corporation tax (credit)/charge (19) 254
Operating profit before changes in working capital and provisions 2,504 2,257
(Increase)/decrease in trade and other receivables (854) 156
Decrease in inventories 345 1,412
Increase in trade and other payables (193) (1,004)
Cash generated from operations 1,802 2,821
Corporation tax recovered - 177
Cash flow from operating activities 1,802 2,998
Cash flow from investing activities
Acquisition of property, plant and equipment (556) (415)
Sale of property, plant and equipment 2 19
Acquisition of intangible assets (452) (438)
(1,006) (834)
Cash flow from financing activities
Bank loans received/(paid) 51 (400)
Principal paid on lease liabilities (565) (565)
Invoice financing repayments (700) (365)
Interest paid (213) (293)
(1,427) (1,623)
(Decrease)/increase in cash and cash equivalents (631) 541
Cash and cash equivalents at beginning of year 1,137 581
Exchange differences on cash and cash equivalents (162) 15
Cash and cash equivalents at end of year 344 1,137
The notes in the annual report and accounts form part of these financial
statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share premium Merger reserve Foreign exchange reserve Retained earnings Amounts attributable to owners of the parent Non-controlling interest Total
capital
equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 May 2024 4,687 553 801 (163) 2,206 8,084 40 8,124
Profit for the year - - - - 662 662 - 662
Other comprehensive income - - - (162) - (162) (40) (162)
Total comprehensive income - - - (162) 662 500 (40) 460
for the year
Transactions with owners
Share based payment - - - - 88 88 - 88
As at 30 April 2025 4,687 553 801 (325) 2,956 8,672 - 8,672
Share Share premium Merger reserve Foreign exchange reserve Retained earnings Amounts attributable to owners of the parent Non-controlling interest Total
capital
equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 May 2023 4,687 553 801 (181) 2,029 7,889 40 7,929
Profit for the year - - - - 134 134 - 134
Other comprehensive income - - - 18 - 18 - 18
Total comprehensive income - - - 18 134 152 - 152
for the year
Transactions with owners
Share based payment - - - - 43 43 - 43
As at 30 April 2024 4,687 553 801 (163) 2,206 8,084 40 8,124
The notes in the annual report and accounts form part of these financial
statements.
1. Accounting policies
Newmark Security (the "Company") is a public limited company, limited by
shares, registered number 03339998 in England & Wales. The consolidated
financial statements of the Company comprise the Company and its subsidiaries
(together referred to as the "Group"). The registered office of the Group is
91 Wimpole Street, London, W1G 0EF. The principal place of business of
Grosvenor Technology Limited is Unit S, The Fulcrum Centre, Vantage Way,
Poole, Dorset, UK, BH12 4NU and for Safetell Limited is Unit 46, Fawkes
Avenue, Dartford, Kent, DA1 1JQ.
The financial statements are for the year ending 30 April 2025 (2024: year
ended 30 April 2024).
Basis of preparation
The primary economic environment in which the Group operates is the UK and
therefore the consolidated financial statements are presented in pounds
sterling ('£') to the nearest round thousand (£'000) unless otherwise
stated.
The consolidated financial statements have been prepared on a historical cost
basis.
The principal accounting policies adopted in the preparation of the financial
statements are set out below. The policies have been consistently applied to
all the years presented, unless otherwise stated. These consolidated financial
statements have been prepared in accordance with UK adopted international
accounting standards ("IFRS") in conformity with the requirements of the
Companies Act 2006.
The preparation of financial statements in conformity with IFRSs requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of income and expenses, and
assets and liabilities. These judgements and assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the result of which form the basis of
making the judgements about carrying values of assets and liabilities. Actual
results may differ from these estimates.
These estimates and underlying assumptions are reviewed on an ongoing basis.
Any revisions to the accounting estimates are recognised in the period in
which the revision is made.
There were a number of amendments to standards which became effective during
the period, but none of which had a significant impact on the accounting
policies of the group in the year.
No new standards that are not yet effective have been early adopted or are
expected to have a material impact on the Group's profit or loss.
Going concern
Based on the Group's latest trading, future expectations and associated cash
flow forecasts, the Directors have considered the Group cash requirements and
forecast covenant compliance and are confident that the Company and the Group
will be able to continue trading for a period of at least twelve months
following approval of these financial statements, being the going concern
period.
In August 2020, the Group secured a £2 million financing facility from its
bankers, HSBC, via the Coronavirus Business Interruption Loan Scheme
("CBILS"). This loan is for a term of 6 years, with the first year being
interest, repayment and covenant free under the Business Interruption Payment
scheme. The covenant requires the Group to deliver a pre-debt service cashflow
of 1.2 times the level of debt service, based on audited accounts.
The 2025 calculation was 1.48 times so 123% of the target. No other
financing facilities of the Group have any covenant requirements.
In February 2022, the Group secured a 3 year $2 million invoice financing
facility with Seacoast National Bank against invoices raised from our US
operation. At 30 April 2024, $0.8 million of the facility was being
utilised. The level of invoice financing available varies with the open book
of trade debtors at any point in time and therefore the level of financing
fluctuates.
In January 2023, the Group increased its UK HSBC invoice financing facility to
£2.3 million to provide additional working capital headroom. At 30 April
2025, £1.5 million was being utilised.
In February 2025, the Group secured a 1 year $2 million revolving credit
facility with HSBC. At 30 April 2025, $0.6 million of the facility was being
utilised.
At 30 April 2024 the Group had a £0.2 million overdraft facility with its
bankers, HSBC, although none was utilised as the Group had a positive bank
balance of £0.3 million at year end.
The Group's going concern assessment is based on the Group continuing to
generate positive operating cashflows for the period to 30 September 2026.
The Group's trading so far in FY26 has delivered positive operating cashflows.
Management are confident that the Group would be able to meet loan repayments
and working capital needs. The Group is expected to be able to operate within
existing finance facilities, based on Management's detailed monthly cashflow
forecasts to September 2026. Should profits or cashflow movements fall behind
expectations in this period the Group expects to be able to utilise more of
its current UK and US invoice financing facilities and also extend the
overdraft facility. Accordingly, the Directors consider it appropriate to
prepare the financial statements on a going concern basis.
2. Segment information
Description of the types of products and services from which each reportable
segment derives its revenues
The Group has two main reportable segments:
• People and Data Management division - This division is involved
in the design, manufacture and distribution of access-control systems
(hardware and software) and the design, manufacture and distribution of HCM
hardware only, for time-and-attendance, shop-floor data collection, and access
control systems. This division contributed 79% (2024: 74%) of the Group's
revenue.
• Physical Security Solutions division (previously called the
Asset Protection division) - This division is involved in the design,
manufacture, installation and maintenance of fixed and reactive security
screens, reception counters, cash management systems and associated security
equipment. This division contributed 21% (2024: 26%) of the Group's revenue.
Factors that management used to identify the Group's reportable segments
The Group's reportable segments are strategic business units that offer
different products and services. The two divisions are managed separately as
each involves different technology, and sales and marketing strategies.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker.
Segment assets and liabilities exclude group company balances.
People and Data Management division Physical Security Solutions division Total
2025 2025 2025
£'000 £'000 £'000
Revenue from external customers 18,099 4,938 23,037
Finance cost 150 93 243
Depreciation 459 246 705
Amortisation 701 - 701
Segment profit/(loss) before income tax 3,001 (847) 2,154
Reportable segment assets 11,983 1,414 13,397
Reportable segments liabilities 4,733 1,711 6,444
People and Data Management division Physical Security Solutions division Total
2024 2024 2024
£'000 £'000 £'000
Revenue from external customers 16,469 5,808 22,277
Finance cost 182 86 268
Depreciation 435 265 698
Amortisation 685 - 685
Segment profit/(loss) before income tax 2,180 (339) 1,841
12,544 2,280 14,823
Reportable segment assets
Reportable segments liabilities 4,728 2,275 7,003
Reconciliation of reportable segment revenues, profit or loss, assets and
liabilities to the Group's corresponding amounts:
2025 2024
£'000 £'000
Revenue
Total revenue for reportable segments 23,037 22,277
Profit or loss before income tax expense
Total profit or loss for reportable segments 2,154 1,841
Parent company salaries and related costs (719) (694)
Other parent company costs (792) (759)
Profit before income tax expense 643 388
Corporation taxes 19 (254)
Profit after income tax expense 662 134
Assets
Total assets for reportable segments 13,397 14,823
Parent company assets * 2,752 1,827
Group's assets 16,149 16,650
Liabilities
Total liabilities for reportable segments 6,443 7,003
Parent company liabilities ** 1,034 1,523
Group's liabilities 7,477 8,526
*PLC bank overdraft is set off against other group cash balances and has
therefore been included within the asset line owing to an offsetting
arrangement that is in place with HSBC.
**Parent company liabilities include dormant companies' intercompany balances
which eliminate fully on consolidation therefore do not feature in the
consolidated financial statements.
Geographical information:
Non-current assets by location of assets
2025 2024
£'000 £'000
UK 6,355 6,752
USA 1,326 1,176
7,681 7,928
3. Tax and Deferred tax
2025 2024
£'000 £'000
Current tax
UK corporation tax on profit for the year - 28
Overseas corporation tax 1 -
Adjustment to provision in prior periods 11 75
12 103
Deferred tax
Origination and reversal of temporary differences 111 (4)
Effect of change in corporation tax rate 7 (5)
Adjustment to provision in prior periods (149) 160
(31) 151
Total tax (credit)/charge (19) 254
The reasons for the differences between the actual tax credit for the year and
the standard rate of corporation tax in the UK applied to profits for the year
are as follows:
2025 2024
£'000 £'000
Loss before tax 643 388
Expected tax credit based on the standard rate of corporation tax in the UK of 161 97
25.0% (2024: 25%)
Research and development allowances - (79)
Effects on profits on items not taxable or deductible for tax purposes (22) 24
Movement in deferred tax not recognised 63 (7)
Remeasurement of deferred tax for changes in tax rate (2) (23)
Fixed asset differences 3 16
Income not taxable for tax purposes (11) -
Adjustments in respect of prior period (62) 75
Adjustments in respect of prior period (deferred tax) (149) 160
Other movements - (9)
Total tax (credit)/charge (19) 254
The Group has the following tax losses, subject to agreement by HMRC Inspector
of Taxes, available for offset against future trading profits as appropriate:
2025 2024
£'000 £'000
Management expenses and loan relationship deficits 207 424
Trading losses 4,426 5,121
4,633 5,545
2025 2024
A deferred tax asset has not been recognised for the following: £'000 £'000
Management expenses 207 424
Trading losses 1,198 1,649
1,405 2,073
Deferred tax
Deferred tax is calculated in full on temporary differences under the
liability method using a tax rate of 25% (2024: 25%).
Details of the deferred tax liability, and amounts (charged)/credited to the
consolidated income statement are as follows:
Total Fixed Assets Other temporary and deductible differences Available losses
Asset/(liability)
At 1 May 2024 303 (643) 78 868
Income statement (charge)/credit 31 38 54 (61)
At 30 April 2025 334 (605) 132 807
Asset/(liability)
At 1 May 2023 454 (664) 69 1,049
Income statement (charge)/credit (151) 21 9 (181)
At 30 April 2024 303 (643) 78 868
Deferred tax assets have been recognised in respect of available losses which
are expected to be matched against future trading profits. Management reviews
the estimate mid-year and assesses whether latest projections impact the level
of recognised deferred tax. Management allow for a fluctuation in projections
and apply a level of cautiousness to recognition so that it allows for profit
fluctuations.
There are unrecognised deferred tax assets as listed above, which have not
been recognised due to the uncertainty of the timing of future profits.
4. Dividends
The Directors are not proposing a dividend for 2025 (2024: nil pence).
5. Subsequent events
The Directors are not aware of any material events which occurred after the
reporting data of these financial statements which will significantly affect
the financial position of the Group or the results of its operations.
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