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(Alliance News) - Newmark Security PLC on Thursday said it expects to deliver increased annual revenue as it anticipates greater profit next year from increased prices.
Shares in the electronic and physical security systems were trading 29% higher at 33.00 pence each in London on Thursday around midday.
In a trading update ahead of results for the year that ended at April 30, Newmark Security said it expected to record revenue of around GBP19 million, up from GBP17.6 million last year. This growth was driven by Human Capital Management sales in the US and customer uptake of new products.
The company's strategy is to "build the services side of the business" and it said it took initiatives during the 2022 financial year to implement this. These initiatives, it said, are delivering "positive results and supporting the return of Safetell to growth". Safetell provides security solutions across public and private sectors.
Demand for security products and services has partially recovered during the year compared to the prior year, where demand had been significantly impacted by the effects of the Covid pandemic.
As noted in the company's year-end trading update, announced in May, sharp increases in componentry and freight costs have impacted the group's margins.
However, the company has implemented a programme of "strict cost control" and increased prices to mitigate the effect of higher costs to the extent possible. This has resulted in reduced losses for the second half of the 2022 financial year.
It noted that "the full benefits of price increases and cost measures will be seen in the current financial year".
Post-period end, the company "returned to profitability". It has seen positive operating cashflows during the first five months of 2023 and has continued to grow its revenue.
By Chris Dorrell; chrisdorrell@alliancenews.com
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