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(Sharecast News) - Newmark Security reported substantial progress across both of its business segments in an update on Tuesday, with the last financial year culminating in its return to profitability.
The AIM-traded company, holding its annual general meeting, said the positive momentum had continued in the first half of the current financial year as it acquired new clients and secured contracts across both divisions.
One of its subsidiaries, Grosvenor, was focused on rebuilding its operations with an emphasis on recurring revenues.
That strategic shift was prompted by the expected conclusion of the UKG contract, which was projected to diminish over time after the 2020 merger between Ultimate Software and Kronos - two prominent players in human capital management (HCM) and time clock products.
Newmark chairman Maurice Dwek said Grosvenor's agility and commitment to service quality ensured that the transition only occurred in the third quarter of the last financial year.
Despite the change, Grosvenor recorded outstanding performance in its human capital management business lines, with that success including the acquisition of new clients, outpacing competitors, achieving a subscription growth rate of approximately 13%, and securing contracts with notable organisations such as the London Fire Brigade and Coventry Hospital for its Janus C4 access control solution.
Meanwhile, Newmark's other subsidiary, Safetell, achieved notable milestones, such as fulfilling a substantial protection screens order for a major supermarket chain.
The company also rolled out five new ballistic protection systems for a new money exchange client, with plans for an additional 22 installations in the coming year.
Additionally, Safetell secured new orders within various sectors, including banking, retail, utilities, and the public sector.
"The board notes that due to the timing of new contracts and orders, it expects revenue for the current financial year to be predominantly weighted to the second half," Maurice Dwek told shareholders.
"Importantly, we have adequate financial resources in place to deliver on our plans.
"Whilst continuing to monitor the impact of global macro events closely, we remain cautiously optimistic on the outlook for the rest of the year."
At 0816 BST, shares in Newmark Security were down 4.74% at 45.25p.
Reporting by Josh White for Sharecast.com.