25th Jan 2021 12:03
(Alliance News) - Newmark Security PLC on Monday said it swung to a loss in the first half of its financial year as Covid-related lockdowns caused delays for some customer projects.
Shares in Newmark were down 8.3% at 1.10 pence in London shortly before midday.
The electronic and physical security systems firm posted a GBP267,000 pretax loss for the six months ended October 31, swinging from a GBP648,000 profit the year before as revenue dropped 22% to GBP7.9 million from GBP10.1 million.
Chair Maurice Dwek explained: "A common factor for both divisions is the delay of some customer projects. The UK's response to Covid-19 has meant that the Access Control line of business, within the People & Data Management division, and the Physical Security Solutions division have been impeded by the ability for installers to attend sites."
The chair noted that this issue has been less bothersome for Human Capital Management, another part of People & Data Management, since that business involves providing technical solutions and hardware without attending the site.
Looking ahead, Dwek said: "We have entered the second half of the financial year with far more optimism than at the start of the year which is also helped by the UK securing a Brexit deal. For the full year, the board expects the group to show a reduction in revenue compared to last year although this reduction is expected to be materially less than what we experienced in the first half of the year."
By Anna Farley; [email protected]
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