REG - Newmark Security PLC - Full Year Trading Update

Newmark SecurityAnnouncement

21/05/2026 09:00

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RNS Number : 1547F  Newmark Security PLC  21 May 2026

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse (amendment)
(EU Exit) Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

21 May 2026

 

Newmark Security plc

("Newmark", the "Company" or, together with its subsidiaries, the "Group")

 

Full Year Trading Update

 

Total HCM revenue up 27% to £19.5 million driven by 43% growth in North
America

 

Further expansion of HCM partner network and investment in people and systems
to support growth

 

Newmark Security plc (AIM: NWT), a global leader in secure people-data
solutions for human capital management ("HCM") systems, is pleased to provide
an unaudited update on its trading for the year ended 30 April 2026 ("FY26")
in advance of the publication of the Group's audited FY26 results in early
September 2026.

 

Financial Highlights:

 

§ Group revenue for FY26 expected to be no less than £26 million, up over
13% (FY25: £23 million)

§ HCM revenue up 27% to £19.5 million (FY25: £15.4 million)

§ Revenue from HCM North America up 43% to £14.1 million (FY25: £9.9
million)

§ HCM annualised recurring revenues* ("ARR") increased by 8% year-on-year to
£3.9 million as of April 2026 (April 2025: £3.6 million)

§ FY26 HCM operating profit increased by more than 30% year on year

 

Operating Highlights:

 

§ Signed agreements with three new large HCM channel partners in North
America

§ Launched new GT Tablet application and achieved first sales

§ Monthly subscriptions for GT Connect and other GT Services as of April 2026
increased by 137% to 97,000 (April 2025: 41,000) driven by new GT Tablet per
employee per month subscriptions

§ Successful completion of key SOC 2 Type 2 and SOC 1 Type 2 certifications

§ Safetell losses in H2 FY26 exacerbated by slippage of orders into FY27

§ Group in exclusive negotiation for disposal of Safetell

§ Appointments of David Marks and Jonathan Kempster as Non-Executive
Directors

 

 

*ARR is calculated by annualising revenue recognised in a given month from all
clients on deployed HCM subscription contracts

 

Commenting on the FY26 performance, Marie-Claire Dwek, Chief Executive Officer
of Newmark, said:

"HCM represents the future of the Group and, having undertaken a strategic
review of Safetell during FY26, the Board has concluded that a disposal of
Safetell is the best option. We are now in advanced discussions with a
prospective buyer and are hopeful this will lead to a definitive transaction.

 

"HCM has continued to execute its growth strategy to great effect, with North
America, HCM's largest market, delivering 43% year-on-year (YoY) growth. Our
second half sales performance was by some distance our best to date, with H2
FY26 HCM revenue up 31% YoY. Other strategic highlights include adding three
Tier-1 HCM North America partners and beginning to receive RFPs from large
international corporates through our direct-to-end-user ("D2E") partnerships.

 

"We are excited by the immediate outlook for FY27 and have invested in people
and systems to support HCM's growth. HCM's sales pipeline is growing and we
have ensured good levels of microchips and product in stock, enabling us to
deliver on customer demand. We also anticipate more HCM news in due course and
look forward to providing shareholders with further updates."

 

Human Capital Management (HCM)

 

North America driving significant growth and new customer opportunities

 

HCM has successfully delivered in accordance with its growth strategy, which
has resulted in revenue increasing by 27% to £19.5 million. This performance
was led by North America, where sales grew 43%, whilst ARR at April 2026
increased by 8% YoY, further improving HCM's profitability and growth moving
into FY27. This growth in ARR was achieved despite the anticipated phasing out
of a large Mexican customer, to which HCM provided clock managed services as
part of a transition period, with their longer-term preference being to use an
in-country services provider. On an underlying basis (excluding the loss of
the Mexican partner), ARR grew 26% YoY. Whilst the business remains second
half weighted, HCM delivered its strongest H2 to date, with total H2 FY26
revenues growing 31% YoY to £11.6 million. Moving forward, as HCM's sales
channels become further diversified and ARR grows, we expect revenues to
become more evenly weighted from H1 to H2, which will improve financial
visibility.

 

In North America, we continued to drive sales growth through our existing
channel partners whilst also adding three new Tier-1 partners during H2,
including Legion Technologies, a provider of AI-powered workforce management
solutions, through whom HCM has already secured a large new customer. We will
be working closely with these new partners through the course of FY27 to
establish new sales channels and build future pipeline.

 

Following Paychex's acquisition of Paycor, which, as previously announced,
caused some short-term disruption to sales in FY25, we are now benefiting from
its greater reach and the pipeline is building for FY27. After the successful
launch in H1 FY26 of GT Tablet, the Group's workforce management solution for
remote and temporary locations, recurring revenues have continued to grow with
the support of Paychex, with further customer interest building through our
other HCM partnerships.

 

Sales from the Rest of the World were slightly lower (down 5%) due to our
largest partner taking longer than anticipated in bringing its business back
to normal after completing a series of acquisitions. There has been recent
evidence of improvement, which we now expect to see as FY27 progresses. The
long-term positive is that these acquisitions have taken our partner into new
European territories, presenting a wider network of new sales opportunities.

 

Direct-to-end-user ("D2E") strategy is building pipeline for FY27 following
first sales

 

The D2E marketplace route represents HCM's most direct engagement with
enterprise-level end users. Over the past year we have made a series of
strategic investments whilst working closely with Oracle and Workday to build
our pipeline. We are excited by the immediate outlook for FY27 and expect the
work done through FY26 to deliver sales through the new financial year.
Request for proposals ("RFPs") have also been received from large,
multinational companies, illustrating the calibre of customers we are
targeting through this channel. Our agreement with a large North American
partner, signed at the start of the year, combining our GT Clock devices with
its software for customers in the D2E SAP market, delivered its first sales in
H2 and we are encouraged by the pipeline for FY27.

 

Safetell and Access Control - Strategic Reviews

 

Safetell

 

The Board is clear in its view that HCM represents the Group's future,
offering the most attractive long-term growth prospects and shareholder
returns. A strategic review of Safetell was therefore commenced earlier in
FY26, which has included a process to seek a buyer for the business.

 

As part of an ongoing efficiency drive, £0.5 million of annualised costs were
removed from Safetell in FY26 and further cost reductions are being made.
Revenue for door services increased by over 30% during the year, with demand
continuing to grow. However, delays outside the Group's control on several
contracts have led to £1.2 million of confirmed project installations moving
from H2 FY26 into FY27.  This has resulted in a material and adverse impact
on both profit and cashflows and has contributed to the increase in Group net
debt.

 

Given this, and Safetell's further funding requirements, the Board has
accelerated the disposal of Safetell. Having approached many prospective
buyers, we are now in advanced discussions with one party and are hopeful this
will lead to a definitive transaction in the short term. However, it is not
expected that this transaction will result in any net cash inflow to the Group
at completion.

 

Access Control

 

As announced at the half year, ongoing delays with Access Control's software
partner continued to hold back the division's ability to bring Janus C4 Ultra
to market. The Board therefore took the decision to focus all investment
within Grosvenor on HCM and commenced a strategic review of Access Control.
This review is now concluding and the Company intends to provide a more
detailed update on its plans for Access Control when it publishes the FY26
Annual Report in September.

 

Financing

 

Group net debt (excluding leases) as at 30 April 2026 was £4.8 million, up
from £2.1 million at 30 April 2025, due to significant planned inventory
investment, the timing of Q4 FY26 sales and additional Safetell funding draw
down. Additional financing has been provided from a new £1 million HSBC UK
trade credit facility based on inventory purchases and a $1 million increase
in the HSBC US revolving credit facility.

 

Corporate Developments and Governance

 

During FY26, David Marks and Jonathan Kempster joined the Board as Independent
Non-Executive Directors, bringing extensive public company and advisory
experience. In conjunction with Jonathan's appointment in February 2026,
Michel Rapoport stepped down as a Non-Executive Director.

 

The newly constituted Remuneration Committee is undertaking a review of the
Group's existing remuneration and incentivisation arrangements. Changes to the
performance criteria will need to be made following the sale of Safetell.
Following feedback regarding the performance criteria relating to the Equity
LTIP in particular, these are being reviewed by the Remuneration Committee.
It is expected that the results of this review and any new arrangements will
be announced by the end of September 2026.

 

The Company is also pleased to confirm that it has, once again, completed
both SOC 1 Type 2 and SOC 2 Type 2 certifications. These validate the
effectiveness of the Company's internal controls, data processing and security
measures over a sustained period. These certifications assure clients of
secure data handling and operational integrity and are essential for operating
with our HCM partners.

 

Current Trading & Outlook

 

The outlook for FY27 is exciting. We have made a good start to the new
financial year after concluding FY26 with the strongest period to date. HCM's
sales pipeline continues to build, and we expect the strategic investment made
across the HCM business during the year to drive further growth in FY27.

 

Noting the impact of the Middle East conflict on global markets and data
centres increasingly absorbing global semi-conductor supplies, HCM is holding
a good level of microchips and components and currently sees no issues with
fulfilling orders. The Board notes that there have been cost increases in
recent months and these are being passed onto customers where possible until
prices normalise.

 

Moving into FY27, the Board is fully focused on the growth and expansion of
HCM and delivering necessary strategic solutions for Safetell and Access
Control as soon as possible in the best interest of shareholders.

 

ENDS

 

 

 

 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 (Corporate Finance)

 Amrit Nahal, Tony Quirke (Sales & Corporate Broking)
 Yellow Jersey PR                                           Tel: +44 (0) 7747 788 221

 Charles Goodwin

 

About Newmark Security plc

 

Newmark Security plc is a global leader in secure people-data solutions for
human capital management (HCM) systems, trusted by leading enterprise and
software providers. For nearly 30 years, the firm has delivered technology
that captures and manages 'people flow' - from identity and access to time and
attendance: Bridging the gap between physical and digital workplaces with
speed, security, and compliance.

 

The Company's integrated hardware and secure cloud software generate
actionable workforce data, enabling enterprises to monitor staff efficiently,
protect employees, and optimise operational productivity. Its end-to-end
technology and service solutions are designed to lower total cost of ownership
while providing lifecycle support that drives sustainable ARR growth.

 

Led by security-tech entrepreneur Marie-Claire Dwek, Newmark is trusted by
some of the world's largest retailers, law enforcement agencies and defence
organisations, and is supported by enterprise reseller software partners,
Oracle, SAP and Workday. With its award-winning technology 'powering people
flow', Newmark Security remains essential to enterprise security, compliance,
and workforce management worldwide.

 

For more information, please visit: www.newmarksecurity.com
(https://newmarksecurity.com/)

 

Safe. Seamless. Secure

 

 

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