LONDON (Alliance News) - Newmark Security PLC Thursday reported an 8% increase in revenue for the first-half of the year, but a huge drop in pretax profits, after booking GBP826,000 in exceptional charges during the period.
The electronic and physical security systems provider reported a pretax profit from operations, before exceptional items of GBP893,000 for the six months to October 31 2013, up from GBP799,000 year earlier.
However, after booking an exceptional impairment charge of development costs totaling GBP826,000 during the period, its profit from operations shrunk to just GBP67,000.
As a result, the group reported a pretax profit of only GBP19,000 for the first-half of the year, compared with a pretax profit of GBP734,000 a year earlier, and swung to a net loss of GBP122,000, compared with a net profit of GBP638,000 the prior year.
Revenues on the other hand, rose 8% to GBP8.8 million, up from GBP8.2 million in the comparable period, driven by an 18% increase in revenues from its electronic division and a strong performance from its US-based workforce management division. It said the revenue increase was also due to orders being received, particularly from the Post Office, earlier than anticipated.
The group said revenues from its asset protection division were up 2% to GBP5 million.
"In view of the results for the first half of the year and a healthy order book, full year revenues are expected to be substantially ahead of expectations," said Chairman Maurice Dwek in its half-year report.
Newmark Security shares were trading 12.9% higher Thursday morning, at 1.75 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Newmark Security (NWT)