Newmark Security Share Price (NWT)

"Access Control Market by Offering (Card-based Readers, Biometric Readers, Electronic Locks, Controllers, Software, Services), ACaaS (Hosted, Managed, Hybrid), Vertical, and Region (2021-2026)

Updated date - April 27, 2022
The Access Control Market was valued at USD 8.6 billion in 2021 and expected to reach USD 13.1 billion by 2026 and grow at a CAGR of 8.7% during the forecast period (2021 - 2026).

Growing awareness regarding home security systems, ongoing technological advancements, and increasing deployment of wireless security systems are the major factor propelling the growth of the access control market. ...

Driver: Increasing number of terrorist attacks and organized crimes globally

Access control solutions enable prompt and effective real-time response during terrorist attacks and other criminal activities. The use of smart cards, biometric devices, and electronic devices for enhanced security and authentication plays an important role in providing improved security and safety to commercial, government, industrial, and residential sectors. Access control systems are also installed in highly restricted areas, nuclear plants, and organizations to enhance the security of personnel and assets. ...

Biometric readers expected to witness the highest growth rate during the forecast period

Biometrics is one of the fastest-growing technologies used to secure perimeters. Biometrics enables identifying a person’s physical characteristics to provide controlled physical access to an infrastructure. This technology is being increasingly adopted in government facilities, manufacturing units, power stations, defense establishments, and enterprises. Moreover, voice recognition and facial recognition is a non-contact, non-intrusive, and easy-to-use biometrics technology. It is the contactless method of identification and authentication of an individual which propels the demand for biometric readers market during forecast period.

Residential vertical is expected to be the fastest-growing market for access control market during the forecast period

The residential vertical is expected to grow at the highest rate during the forecast period. As theft and burglary rates are rising globally, security is becoming a major concern for individuals, residential complexes, and private residential buildings. In smart homes, access control systems are used to enhance safety and security. Individuals are allowed to enter smart homes using biometric technology or non-biometric technologies such as numeric codes. Recent technological advancements have expanded the functionality of access control systems, providing greater flexibility and convenience for users. This is expected to play a key role in driving the market for the residential vertical. ..."

https://www.marketsandmarkets.com/Market-Reports/access-control-market-164562182.html

24th May 2022 7:00 am RNS Year-end trading update
" ... Maurice Dwek, Chairman of Newmark, commented:
"I am pleased with the progress in executing our strategy and setting the right foundations for success. We are delivering on our targets for revenue growth and cost management initiatives whilst focusing on our new product pipeline that provides us with the ability to offer complete solutions to our clients continuously.
Our proactive approach during the pandemic demonstrated our agility to manage the business for the long term, building credibility and client preference. We have high confidence in our product portfolio and client-focused strategy, remaining agile and prioritising our investments with discipline to continue to drive sustainable growth.
I am confident that we have taken the right measures, working towards an optimal structure and product mix to drive our business forward. Moreover, we are well placed to further scale our business by identifying the appropriate opportunities that will synergise and complement our product offering." ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-wosluswy9hce1m9.html

NWT's comment this week about further scaling the business was interesting.

Suggesting, as it does, revenue increases without a substantial increase in resources -

"Growth vs scaling: What's the difference and why does it matter?
By Patrick Whatman
Published June 8, 2021
... Let's begin with the most common distinction between these two terms. In general, we think of growth in linear terms: a company adds new resources (capital, people, or technology), and its revenue increases as a result.
By contrast, scaling is when revenue increases without a substantial increase in resources. ..."
https://blog.spendesk.com/en/growth-vs-scaling

For the year just ended, NWT's revenue should be somewhere in the region of £20M.

So increasing it significantly from there could potentially move it into the £30 - £40M. range - e.g. within a few years.

This could potentially deliver significant economies of scale, with costs not increasing as fast: so multi-million pound profitability could potentially be on the cards.

And if the s.p. is re-rated accordingly to reflect the company's growth, recurring revenues, and technological innovation and leadership, then a £100M. market cap. could be achievable.

"Share Talk Weekly Small Cap Movers & Shakers, Saturday 28th May 2022
Abm May 28, 2022

... Newmark Security PLC (AIM: NWT) is a provider of electronic and physical security systems provider. Its year-end trading update brought them back.

Maurice Dwek (chair of Newmark) stated that “We are delivering our targets for revenue growth, and cost management initiatives while focusing on the new product pipeline which provides us with the capability to offer complete solutions to our clients continuously.”

After the company announced year-on-year revenue growth for the year ending April 2022, the shares of the company rose 27% to 37.5p. Now, the shares are close to the 41p level at which they stood in January after the half-year results. ..."

https://www.share-talk.com/share-talk-weekly-small-cap-movers-shakers-saturday-28th-may-2022/

"Access Control Market Share Estimated to Garner USD 21 Billion by 2030 with a CAGR of 9% - Report by Market Research Future (MRFR)

Rising Technologically Advancements, User-Friendly Experience, and Rise in Crime Rates to Boost Access Control Market Growth Globally

May 26, 2022 07:37 ET | Source: Market Research Future ...

Access Control Market Scope:

The launch of contactless and technologically advanced smart cards for various applications has increased the need for access control based on their seamless experience and user-friendly experience that will offer robust opportunities for the market over the forecast period. ...

Growth Drivers

Rise in Crime Rates to Boost Market Growth

The growing security concerns coupled with the rising crime rates have increased the installation of access control devices in banks, government institutions, entertainment stores, retail stores, hotels, offices, and data centers that will boost market growth over the forecast period. ..."

https://www.globenewswire.com/news-release/2022/05/26/2451167/0/en/Access-Control-Market-Share-Estimated-to-Garner-USD-21-Billion-by-2030-with-a-CAGR-of-9-Report-by-Market-Research-Future-MRFR.html

"ACCESS CONTROL SYSTEMS
Seven trends set to impact the identity and access security industry in 2022

IFSEC Global
Author Bio ?
February 10, 2022

... Future of Work: Hybrid work models are the norm today and a zero-trust approach for all is a top trend dominating the security industry in 2022. Leaders tasked with ensuring a safe environment for those returning to the office – and secure identity and access management for those working remotely – are looking to the latest physical access trends and the best practices enabling them. Touchless solutions, data protection, and visitor management technologies are ensuring healthy and secure on-site environments while multi-factor authentication solutions take centre stage for remote applications.

Contactless Biometrics: Biometrics are already in widespread use, whether it’s to secure a mobile device, secure a driver’s license or other government ID, or to track fitness. In 2022, biometrics paired with cloud-based identity management solutions is poised to fuel much faster growth. Security’s role in delivering biometric technology that enables secure authentication and protects data privacy is emerging across sectors of the economy. ..."

https://www.ifsecglobal.com/access-control/seven-trends-to-impact-the-identity-and-access-security-industry-2022/