LONDON (Alliance News) - Security systems provider Newmark Security PLC issued a profit warning on Wednesday as it said trading has become increasingly difficult in recent months.
The company recently had said trading for the year to the end of April 2016 was in line with market expectations, but said conditions have deteriorated since then. Operating profit for the current financial year to April 2017 is likely to fall significantly year-on-year, it said.
Newmark said it had seen a divergence in sales for its Janus and Sateon product lines within its Access Control division. Janus sales have declined faster than expected, in part due to the retirement of old Microsoft platforms, but Sateon revenue has increased significantly, albeit with a weaker-than-anticipated performance amongst mid-tier customers.
Elsewhere, sales in support of a workforce management contract secured in September 2015 have been delayed, while the revenue stream in its Asset Protection unit will reduce over the current year, as anticipated, as sales to Royal Mail PLC decline.
"Moving into exciting new markets inevitably comes with challenges. Though there have been setbacks over the past year in converting our pipeline into sales, I am confident that we are well-positioned to deliver the progress which we anticipate, with a host of new product launches to look forward to," said Newmark Chief Executive Marie-Claire Dwek.
"Our strong investment in major new technology foundations and products looks set to spur growing revenues over the coming financial years, as we continue to deliver the solutions of tomorrow," Dwek added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Newmark Security (NWT)