30th Jan 2020 13:04
(Alliance News) - Newmark Security PLC on Thursday reported a rise in interim profit, as revenue grew on a stronger performance in the security system provider's Electronic division.
For the six months to the end of October, London-based Newmark reported a pretax profit of GBP648,000, up 49% from GBP461,000 the same period the year before as revenue grew by 3.3% to GBP10.1 million from GBP9.8 million.
Segmentally, Newmark Security's Electronic division - also known as Grosevnor Technology - reported 41% growth in revenue to GBP7.1 million, as Human Capital Management sales rose in North America and the UK on a higher number of customers.
In the Asset Protection segment however, revenue dropped by GBP3.0 million, due to the reduction of work relating to the lower demand from bank and buildings societies, along with less project work in the Services unit.
Looking ahead, Newmark Security expects to report an improved level of operating profit for the full financial year, but a marginal reduction in revenue.
"The board is pleased with the growth achieved in the first half of the year and the continued group profitability. The Electronic division has achieved improved revenue growth and, whilst its performance is expected to be slightly first half weighted, it is anticipated that the profitability of this division will continue in the second half," said Chair Maurice Dwek.
"The group's smaller Asset Protection division's revenue is also expected to be weighted in the first half of the year, as in previous years, due to seasonality factors and therefore having a corresponding impact on full year operating profit for that division," Dwek added.
Shares in Newmark Security were down 6.2% at 1.36 pence on Thursday afternoon in London.
By Dayo Laniyan; [email protected]
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