REG - Newmark Security PLC - Half-year Financial Report
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RNS Number : 9496O Newmark Security PLC 15 January 2026
This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (amendment) (EU Exit) Regulations 2019/310.
15 January 2026
Newmark Security plc
("Newmark", the "Company" or the "Group")
Interim Results
for the six months ended 31 October 2025
HCM revenue up 20% with Annualised Recurring Revenue up 30%
Strong performance in North America with D2E strategy building momentum
Newmark Security plc (AIM: NWT), a global leader in secure people-data
solutions for human capital management ("HCM") systems, is pleased to announce
its unaudited results for the six months ended 31 October 2025 ("H1 FY26" or
the "Period").
Maurice Dwek, Chairman of Newmark, commented:
"The Group has delivered another successful period by executing its strategic
objectives and achieving growth across both divisions.
"HCM continues to be the Group's focus and growth engine, with total H1 FY26
HCM revenue increasing by 20% and annual recurring revenues up 30%. We have
continued to capitalise on our partnerships and open new sales channels,
integrate our products with major software houses as part of our
direct-to-end-user ("D2E") strategy and displace our time-clock competitors.
We expect H2 sales to be even stronger and have already laid the foundations
for further growth in FY27.
"Safetell's sales have returned to growth after a significant increase in
service revenues, whilst a series of new project installations are scheduled
for H2 FY26, which will feed into full year revenue. At the same time, a 15%
reduction in annualised salary costs has put the division on stronger footing.
Whilst Safetell's operating losses have been reduced, it still weighed on the
Group's reported H1 profit. However, Safetell is on track to be profitable in
the second half, and with its strategic review progressing further updates
will be provided in due course.
"Looking ahead, we are excited by the commercial opportunities that are
building as we maintain our focus on HCM. Based on the current pipeline for
both divisions, we are anticipating a greater revenue and profit weighting to
the second half compared to last year, which would result in the Group
achieving full year profit ahead of the prior year (FY25 profit after tax:
£0.7 million)."
Group Financial Highlights:
· Group revenue up 13% to £11.6 million (H1 FY25: £10.2 million)
· Strong HCM performance and recovery underway at Safetell
· Gross profit margin increased by 1.3% pts to 39.4% (H1 FY25: 38.1%)
· EBITDA of £0.9 million (H1 FY25: £0.5 million)
· Adjusted EBITDA* of £1.0 million (H1 FY25: £0.5 million)
· Operating profit of £0.1 million (H1 FY25 loss: £0.3 million)
· Significantly reduced loss after tax of £0.1 million (H1 FY25
loss: £0.4 million)
· Investment in research and development of £0.3 million (H1 FY25:
£0.2 million)
· Net cash inflow from operations of £0.6 million (H1 FY25 £0.7
million) after considerable planned investment in inventory during the period
· Cash at bank as at 31 October 2025 of £0.4 million (H1 FY25: £0.3
million)
Business Highlights:
Grosvenor Technology
· Human Capital Management ("HCM") revenue up 20% to £7.9 million
(H1 FY25: £6.5 million) and accounted for 68% of overall Group revenue (H1
FY25: 64%)
· HCM North America revenue increased by 32% to £6.0 million
· HCM annualised recurring revenues** ("ARR") increased by 30%
year-on-year to £3.9 million as of October 2025 (October 2024: £3.0
million)
· Monthly device subscriptions for GT Connect and other GT Services
up 30% to over 45,000
· First sale of new GT Tablet monthly subscription application
· First D2E revenues recorded from our Synerion agreement
· New five-year agreement with Protime NV, to continue supplying GT
Connect cloud services, clock hardware and OEM access control equipment
Safetell
· Revenue up 3% to £2.5 million (H1 FY25: £2.4 million)
· Service revenues grew substantially by 43% to £1.8 million,
representing 71% of H1 FY26 income for the division
· Salary costs reduced by c. 15% through restructuring of operations
team as a part of the strategic review
· Expected to move from a divisional operating loss in H1 FY26 to an
operating profit in H2 FY26 (before parent company recharges)
Post-Period and Outlook
· First client revenues earned from the new partnership agreement with
Legion, the AI workforce software specialist, who are a Global HCM
introduction partner
· Appointment of David Marks as Independent Non-Executive Director
· With the Group historically second half weighted, the Board notes
that H2 FY26 has started strongly and currently expects both divisions to
surpass H2 FY25 revenues and operating profits
*After adding back one-off Safetell restructuring costs of £0.1 million
**ARR is calculated by annualising revenue recognised in a given month from
all clients on deployed HCM subscription contracts
For further information:
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
Operational Highlights:
Group performance
Revenue Six months Six months Increase Percentage change
to 31 October 2025
to 31 October 2024
£'000 £'000 £'000 %
People and Data Management division 9,079 7,833 1,246 16%
Physical Security Solutions division 2,473 2,390 83 3%
Group revenue 11,552 10,233 1,329 13%
Group revenue increased by 13% YOY to £11.6 million (H1 FY25: £10.2
million), primarily due strong HCM growth in the People and Data Management
division. The growth in the Physical Security Solutions division was driven by
the continued increase in Services revenues.
Gross profit percentage increased by 1.3% pts to 39.4% (H1 FY25: 38.1%) due to
improvements in Services margins from the Physical Security Solutions
division. Gross profit percentages were flat year-on-year in the People and
Data Management division with the growth in higher margin HCM recurring
revenues being offset by revenue growth from our lower margin GT4-Lite
devices.
Underlying administrative expenses (before one-off restructuring costs of
£0.1 million from headcount reductions in the Physical Security Solutions
Division) increased by c. 5% to £4.4 million (H1 FY25: £4.2 million) driven
by both inflationary cost rises and investment in strategic growth
initiatives. This investment included increases in headcount, marketing and
professional fees.
Profit from operations was £0.1 million (H1 FY25: loss of £0.3 million) with
profitability improvements from both divisions. Finance costs during the
period were £0.14 million (H1 FY25: £0.15 million). The reduction in
financing costs is from reduced use of invoice financing facilities and lower
interest rates.
For H1 FY26, the Group made a loss per share of 0.77 pence (H1 FY25: loss per
share of 4.60 pence).
Net cash inflows from operations decreased by £0.1 million to £0.6 million
(H1 FY25 £0.7 million) as a result of considerable investment in inventory
during the period to fulfil strong H2 FY26 demand and the £0.1 million of
Safetell restructuring costs.
People and Data Management division - Grosvenor Technology ("Grosvenor")
Revenue information
Six months Six months Increase/ Percentage change
to 31 October 2025
to 31 October 2024
(decrease)
£'000 £'000 £'000 %
People and Data Management division
HCM North America 5,983 4,527 1,456 32%
HCM ROW 1,879 2,003 (124) (6%)
Total HCM 7,862 6,530 1,332 20%
Access Control 1,217 1,303 (86) (7%)
Division total revenue 9,079 7,833 1,246 16%
Human Capital Management
HCM is our core growth driver, and this was once again illustrated by the 20%
increase in revenues to £7.9 million (H1 2025: £6.5 million), whilst ARR
grew 30% year-on-year to £3.9 million (October 2024: £3.0 million), which is
further enhancing HCM's cash flow and profitability. GT Connect, the
division's global platform, has over 45,000 monthly device subscriptions for
GT Connect and other GT Services (H1 FY25: 35,000).
In North America, our largest addressable market, we achieved 32% revenue
growth. The North America performance was driven by sales growth for our GT4
and GT4 lite devices, which are displacing competitors and adding to our
stream of recurring revenue. As documented in recent updates, excellent
progress has been made with HCM's D2E strategy and we are now integrated with
Oracle, SAP and Workday. At the start of the Period, we signed an agreement
with Synerion to combine our GT Clock devices with its software, targeting the
D2E market, and since the Period-end we have recorded our first sale through
this partnership.
Since recently launching the new GT Tablet application, the Group's workforce
management solution, we are pleased to confirm that the first recurring
revenues are now coming through and contributed to H1 revenues. Further
interest in the GT Tablet application is building though our partnership with
Paycor and we expect to onboard further new clients in the coming months. HCM
also added Legion, the AI workforce software specialist, as an HCM
introduction partner, which has led to rapidly winning a multi-territory
contract for the supply of time clocks and GT services to a major global home
furnishing retailer.
Rest of the World ("ROW") was slightly down in the period due the phasing of
orders from our largest European partner.
Access Control
As disclosed in our most recent annual report released in September 2025, the
management team decided to undertake a review of Access Control's strategy
considering the delays with its software partner, which have continued to hold
back our ability to bring the new Janus C4 Ultra to market. These delays and
the rapidly expanding D2E opportunity for HCM has led to a refocusing of
investment within the Grosvenor division. This has proven to be commercially
the right decision, given the D2E advancements made in recent months. Whilst
sales were slower than the comparable period, we are expecting better second
half performance. The strategic review is ongoing, and we will provide further
updates on this in due course.
Physical Security Solutions division - Safetell
Revenue information
Six months Six months Increase/ Percentage change
to 31 October 2025
to 31 October 2024
(decrease)
£'000 £'000 £'000 %
Physical Security Solutions division
Products 711 1,155 (444) (38%)
Service 1,762 1,135 527 43%
Division total revenue 2,473 2,390 83 3%
As previously announced, the Board has been undertaking a strategic review of
Safetell in the context of the Group's future direction and focus. In recent
months Safetell has achieved efficiency gains and its annualised salary costs
have been reduced by c. 15%. These savings have put the division on a stronger
footing, underpin margins and combined with higher H2 FY26 revenues is
currently expected to result in the division returning to an operating profit
before parent company recharges in FY26.
Safetell delivered 3% revenue growth, despite the contract delays that built
up last year, as customers deferred their project plans with nervousness
around the UK economic outlook being a contributing factor. While some of
these delayed contracts were completed in the Period, which included new
installations for a critical services provider, a major UK supermarket
retailer and a UK engineering firm, higher service revenue was the key driver
for the division, which increased by 43% on the comparable period. Revenues
specifically related to door servicing increased by 57%, which was a mix of
existing clients and winning new service contracts. Collectively, our
servicing business is now covering more than 500 sites, further enhancing the
quality, visibility and diversification of Safetell's recurring revenue
streams.
Whilst the projects business traded below H1 FY25 due to the protracted delay
with pending contracts, Safetell has recently secured a number of
strategically important contract awards that are expected to convert to
revenue in H2 FY26 and beyond. These include the supply of ballistic doors for
a government customer, attack-resistant doors and screens for a prison
facility, and a blast-proof wall for a government institution. As a result of
these wins, our secured work-in-hand is more than twice the level recorded at
this point last year, which will help to deliver a much stronger FY26
performance.
Board Structure
As announced on 15 October 2025, after listening to feedback from Thalassa
Holdings Ltd, a 21.3% shareholder, the Company confirmed that it was aligned
in the view that the Board should be strengthened, with the introduction of
two new independent non-executive directors. On 9 December 2025, the Company
announced the appointment of David Marks, a highly experienced company
director in both private and listed companies, as one of its new,
non-executive directors. The Board confirms that it is making good progress
with a second new appointment, which will also correspond with Michel Rapoport
stepping down from the Board and his role as a non-executive director.
Post-Period and Outlook
As we continue to execute our HCM strategy, we are seeing good momentum as we
head through H2 FY26, whilst also paving the way for growth in FY27. We are
currently in advance discussions with three new North American enterprise HCM
businesses and we expect some of these partners to contribute to new hardware
sales before the Company's year-end. Since the Period end we have also
extended our existing North American agreement with Synerion to cover its
global market, which is helping to accelerate our D2E plans. Additionally,
with GT Tablet SaaS sales now generating recurring revenues, we anticipate an
increase in customers taking this solution through the second half of FY26.
While remaining vigilant as to how quickly political policy can impact
business decisions (as we saw in 2025 with trade tariffs), both divisions are
trading well and have a strong revenue pipeline through to the end of the
year, which gives the Board confidence that the Group will achieve an improved
full year profit.
Balance sheet and Financing
Cash as at 31 October 2025 was £0.4 million compared to £0.3 million at the
prior year. The Group had an unused £0.2 million UK overdraft facility at the
balance sheet date (H1 FY25: £0.2 million).
Net debt (including leases of £1.5 million) increased by £0.2 million to
£4.0 million at 31 October 2025 compared to £3.8 million at 31 October 2024
(including leases of £1.5 million). The increase is due to higher revolving
credit facility drawdowns, partly offset by CBILS loan repayments, lower UK
invoice financing draw downs and increased cash balances. In December 2025,
the HSBC UK invoice financing facility was increased by £0.2 million to £2.5
million to provide additional working capital funding to support future
business growth. The HSBC US revolving credit facility remains at $2 million
with $1.7 million drawn down at 31 October 2025.
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 October 2025
Unaudited Unaudited Audited
Six months Six months Year
ended
ended
ended
31 October 31 October 30 April
2025 2024 2025
Note £'000 £'000 £'000
Revenue 11,552 10,223 22,037
Cost of sales (6,996) (6,330) (13,652)
Gross Profit 4,556 3,893 9.385
Administrative expenses (4,488) (4,170) (8,455)
Profit/(loss) from operations 68 (277) 930
Finance costs (140) (154) (287)
(Loss)/profit before tax (72) (431) 643
Tax credit - - 19
(Loss)/profit for the period/year (72) (431) 662
Attributable to:
- Equity holders of the parent (72) (431) 134
Earnings per share
- Basic (pence) 2 (0.77) (4.60) 7.06
- Diluted (pence) 2 (0.77) (4.60) 6.65
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 October 2025
Unaudited Unaudited Audited
Six months Six months Year
ended
ended
ended
31 October 31 October 30 April
2025 2024 2025
£'000 £'000 £'000
(Loss)/profit for the period/year (72) (431) 662
Foreign exchange on the retranslation of overseas operation 84 (75) (162)
Total comprehensive income for the period/year 12 (506) 500
Attributable to:
- Equity holders of the parent 12 (506) 500
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 October 2025
Unaudited Unaudited Audited
31 October 31 October 30 April
2025 2024 2025
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 2,727 2,707 2,695
Intangible assets 4,918 5,093 4,986
Deferred tax 389 303 334
Total non-current assets 8,034 8,103 8,015
Current assets
Inventory 3,116 2,640 2,392
Trade and other receivables 4,897 3,871 5,398
Cash and cash equivalents 386 275 344
Total current assets 8,399 6,786 8,134
Total assets 16,433 14,889 16,149
LIABILITIES
Current liabilities
Trade and other payables 3,243 3,053 3,349
Other short-term borrowings 3,400 2,564 2,823
Total current liabilities 6,643 5,617 6,172
Non-current liabilities
Long term borrowings 961 1,519 1,192
Provisions 113 100 113
Total non-current liabilities 1,074 1,629 1,305
Total liabilities 7,717 7,246 7,477
TOTAL NET ASSETS 8,716 7,643 8,672
Capital and reserves attributable to equity holders of the company
Share capital 4,689 4,687 4,687
Share premium reserve 553 553 553
Merger reserve 801 801 801
Foreign exchange difference reserve (241) (108) (325)
Retained earnings 2,914 1,800 2,956
Total attributed to equity holders 8,716 7,603 8,672
Non-controlling interest - 40 -
TOTAL EQUITY 8,716 7,643 8,672
CONSOLIDATED STATEMENT OF CASHFLOWS
For the six months ended 31 October 2025
Unaudited Unaudited Audited
Six months Six months Year
ended
ended
ended
31 October 31 October 30 April
2025 2024 2025
£'000 £'000 £'000
Cash flow from operating activities
Net (loss)/profit after tax from ordinary activities (72) (431) 662
Adjustments for:
Depreciation and amortisation 811 745 1,488
Finance costs 140 155 287
Gain on sale of property, plant and equipment (7) (3) (2)
Share based payment 30 25 88
Corporation tax credit - - (19)
Operating profit before changes in working capital and provisions 902 492 2,504
Decrease/(increase) in trade and other receivables 509 577 (854)
(Increase)/decrease in inventories (701) 48 345
(Decrease)/increase in trade and other payables (108) (400 (193)
Cash generated from operations 602 717 1,802
Corporation tax recovered - - -
Cash flows from operating activities 602 717 1.802
Cash flow from investing activities
Acquisition of property, plant and equipment (277) (310) (556)
Sale of property, plant and equipment 7 2 2
Acquisition of intangible assets (307) (221) (452)
(577) (529) (1,006)
Cash flow from financing activities
Bank loans received/(paid) 618 (200) (51)
Principal paid on lease liabilities (293) (271) (565)
Repayments from invoice financing (214) (453) (700)
Interest paid (106) (112) (213)
5 (1,036) (1,427)
Increase/(decrease) in cash and cash equivalents 30 (848) (631)
Cash and cash equivalents at beginning of period/year 344 1,137 1,137
Exchange differences on cash and cash equivalents 12 (14) (162)
Cash and cash equivalents at end of period/year 386 275 344
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 2025 4,687 553 801 (325) 2,956 8,672 - 8,672
Loss for the period - - - - (72) (72) - (72)
Other comprehensive income 84 - 84 - 84
Total comprehensive income for the period - - - 84 (72) 12 - 12
Transactions with owners
Share based payment - - - - 30 30 - 30
Issue of shares 2 - - - - 2 - 2
Total transactions with owners 2 - - - 30 32 - 32
As at 31 October 2025 4,689 553 801 (241) 2,914 8,716 - 8,716
At 1 May 2024 4,687 553 801 (163) 2,206 8,084 40 8,124
Loss for the period - - - - (431) (431) - (431)
Other comprehensive income (75) - (75) - (75)
Total comprehensive income for the period - - - (75) (431) (506) - (506)
Transactions with owners
Share based payment - - - - 25 25 - 25
As at 31 October 2024 4,687 553 801 (238) 1,800 7,603 40 7,643
NOTES TO THE ACCOUNTS
1. BASIS OF ACCOUNTS
The financial information for the six months ended 31 October 2025 and 31
October 2024 does not constitute the Group's statutory financial statements
for those periods within the meaning of Section 434(3) of the Companies Act
2006 and has neither been audited or reviewed pursuant to guidance issued by
the Auditing Practices Board. The annual financial statements of Newmark
Security plc are prepared in accordance with IFRSs as adopted by the European
Union. The principal accounting policies used in preparing the interim results
are those that the Group expects to apply in its financial statements for the
year ending 30 April 2026 and are unchanged from those disclosed in the
Group's Annual Report for the year ended 30 April 2025.
The comparative financial information for the year ended 30 April 2025
("FY25") included within this report does not constitute the full statutory
accounts for that period. The statutory Annual Report and Financial Statements
for FY25 have been filed with the Registrar of Companies. The Independent
Auditors' Report on that Annual Report and Financial Statement for FY25 was
unqualified, did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their report and did not
contain a statement under section 498(2)-498(3) of the Companies Act 2006.
After making enquiries, the directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-yearly condensed consolidated
financial statements.
2. EARNINGS PER SHARE
The loss per share figure has been calculated based on the weighted average
number of shares in issue during the period, which was 9,378,163 shares (H1
FY25: 9,374,647).
3. DIVIDENDS
No interim dividend is proposed (H1 FY25: Nil).
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