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Alliance News


Newmark Swings To Loss As New Strategy Fails To Perform

Thu, 14th Sep 2017 12:11


LONDON (Alliance News) - Newmark Securities PLC on Thursday said it anticipates a difficult trading year ahead after reporting a swing to a pretax loss for its recently ended financial year.

Revenue for the year ended in April fell 27% to GBP16 million from the year before's GBP21.8 million, whilst Newmark recorded a pretax loss of GBP5.2 million after recording a profit of GBP1.5 million the year before.

Newmark said the strategy of investing in new products, new customer acquisition, and new geographies has taken longer to return yields than it had originally anticipated. Although the pipeline has grown, it said conversion into sales has been slower than hoped and continuing economic uncertainty has affected customer spending, with some programmes being delayed or cancelled.

Regarding the loss, Newmark said there were a number of exceptional items such as an impairment provisions of development costs and goodwill of GBP1.3 million and GBP2.2 million compared to nil last year, primarily, it said, due to the age of the goodwill and historical products and the current focus on new product ranges. Redundancy costs also totalled GBP285,000.

Newmark said its Hong Kong office was closed due to revenues falling "well short" of expectations, giving an operating loss of GBP225,000 for the year ended.

Newmark said, in view of the year's results, it will not be paying a dividend for the year ending April 30 having paid 0.10 pence per share the year before.

Going forward, despite growth from its new Sateon Advance access control system and counter terrorism products, the year ahead will be a difficult one, Newmark said.

Shares in Newmark were down 19% Thursday at 0.927 pence.

By George Collard; georgecollard@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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