London South East | The UK's favourite investor portal.

"China’s Economy Is Bouncing Back As PMI Beats Expectations

By Charles Kennedy - Feb 01, 2023, 2:19 AM CST

The much anticipated January reading for China’s purchasing managers’ index has confirmed expectations that Asia’s powerhouse is back into growth mode, beating analyst expectations and topping 50. ..."

https://oilprice.com/Latest-Energy-News/World-News/Chinas-Economy-Is-Bouncing-Back-As-PMI-Beats-Expectations.html

"Chinese Demand Will Drive Oil Prices This Year

By Tsvetana Paraskova - Jan 31, 2023, 8:00 PM CST

... For the first time in decades, China’s oil and gas demand declined in 2022 as the strict Covid policies curtailed economic growth and mobility. This year, demand is set to rebound thanks to the reopening of the Chinese economy, pushing global oil demand higher and giving Europe a run for its money to stock up on LNG. The pace of recovery in Chinese oil and gas demand will be one of the most important trends influencing oil and gas markets and prices in 2023.

Rare 2022 Demand Decline

Last year, while the world saw overall oil demand grow following the reopening of economies and gas trade flows materially shifted after the Russian invasion of Ukraine, China’s demand was subdued and fell for both fossil fuels—for the first time in decades. The Chinese economy continued to grow last year, but at a much smaller pace than in previous years.

Combined with the property crisis and the zero-Covid policy, all these dragged Chinese oil demand down by 3% – or by 390,000 barrels per day (bpd), according to estimates by the International Energy Agency (IEA). That was the first annual decline in oil consumption in China since 1990.

At the same time, global oil demand rose by 2.2 million bpd in 2022, per the IEA. ...

Expected 2023 Rebound

Demand for oil and gas in China is expected to rebound this year, as Beijing ditched the zero-Covid policy, which should lead to a jump in mobility and economic activity, analysts say.

The IEA also expects a rebound in Chinese oil and gas consumption, with oil demand growth in China driving half of the currently projected global oil demand growth in 2023.

“With the Chinese economy now recovering, it will have major implications for oil and gas market balances,” Fatih Birol, Executive Director of the IEA, told the New York Times in an interview.

Global oil demand is set to rise by 1.9 million bpd in 2023, to a record 101.7 million bpd, with nearly half the gain coming from China following the lifting of its Covid restrictions, the IEA said in its Oil Market Report for January. ..."

https://oilprice.com/Energy/Crude-Oil/Chinese-Demand-Will-Drive-Oil-Prices-This-Year.html

"Newmark Security returns to profitability on easing supply chains

Victor Parker
Vox Newswire
14:14, 31st January 2023

Newmark Security (NWT), a provider of electronic software and physical security systems, announced unaudited interim results for the 6 months ended 31 October 22 (H1 23).

Newmark reported revenues up 10% year-on-year to £10.6m, compared to £9.7m a year ago. Gross profit margin also increased to 38.9% from 33.2% a year ago, driving EBITDA of £1.1m, up from a £0.03m loss a year ago, with an operating profit of £0.5m, compared to a £0.6m loss a year ago.

Newmark's earnings per share stood at 4.89p, compared to loss per share of 0.17p in 1H22. Investment in R&D decreased slightly to £0.3m from £0.4m and net assets increased to £8.2m from £7.6m a year ago.

Maurice Dwek, Chairman, commented: "I am pleased to announce a strong trading and financial performance over this period which highlights our focus on our strategic priorities, customer service excellence, product innovation and complete product offering. We are effectively managing the supply chain, pricing and spending across our business alongside with our focus on efficiency, resulting in these positive results today."

View from Vox

A positive update from Newmark, marking the company's return to profitability with strong momentum into 2023.

Newmark's growth was driven by its Human Capital Management (HCM) division where recurring revenues increased 260%, as well as double digit growth in its People and Data Management and Access Control divisions.

Gross profit margin improvement resulted from a combination of price increases flowing into higher 1H23 revenues, product innovation, and increased higher margin HCM recurring revenues.

Newmark brought down administrative costs by 11% to £3.6m, helping the company's return to profitability with £0.5m in after-tax profit in 1H23 compared to last year's £0.8m loss. Newmark also managed to avoid supply chain disruptions last year, ensuring uninterrupted sales and underpinning its robust performance in 1H23.

Going into 2023, Newmark's transition to high-margin/recurring revenue-based SaaS business will continue, expected to drive higher revenues and keep the company profitable in future quarters as global demand for cloud-enabled software control solutions continues to grow."

https://www.**********.co.uk/articles/newmark-security-returns-to-profitability-on-easing-supply-chains-f35880a/

Stunningly good half year results today from NWT ... even better than I had hoped for.

So congratulations and thanks to all concerned on such a crackingly good performance.

First half EPS of 4.89p is an annualised 9.78p, putting NWT on a annualised P/E of just 4.5! (Current s.p. 44p.)

For such an exciting growth story that is quite extraordinarily cheap, and it is from such bargains that mega multibaggers are made.

31st Jan 2023 7:00 am RNS Half-year Report

"Interim Results

for the six months ended 31 October 2022

Newmark Security plc (AIM: NWT), a leading provider of electronic, software, and physical security systems and installations is pleased to announce its unaudited interim results for the six months ended 31 October 2022 ("H1 FY23"). The Board of Newmark is pleased to reiterate positive momentum and the Group returning to profitability.

Financial highlights:

• Revenue up 10% to £10.6m (H1 FY22: £9.7m)

• Gross profit margin increased by 5.7% pts to 38.9% (H1 FY22: 33.2%)

• EBITDA of £1.1m (H1 FY22 EBITDA loss: £0.03m)

• Operating profit of £0.5m (H1 FY22 loss: £0.6m)

• Profit after tax of £0.5m (H1 FY22 loss: £0.8m)

• Earnings per share of 4.89 pence (H1 FY22: loss per share 0.17 pence)

• Investment in research and development £0.3m (H1 FY22: £0.4m)

• Net assets of £8.2m (H1 FY22: £7.6m)

Key business highlights:

• Returning to profitability is a testament that our strategic business plan has set the right foundations for sustainable growth

• Human Capital Management ("HCM") annual subscription-based recurring revenues increased by 260 % year-on-year to £1.3m positively contributing to our profit margins

• Substantially increased net profit margins despite the inflationary cost pressures and higher cost of funding to fuel our growth

• Continued focus on cost management initiatives and product innovation

• Further customer base expansion driven by our product offering and end-to-end solutions

• Efficient management of our supply chain makes for stability and uninterrupted sales, underpinning the Group's competitive edge ..."

https://www.lse.co.uk/rns/NWT/half-year-report-22phs4l5im1fv8m.html

Automatic doors servicing and maintenance looks like a major growth opportunity for Safetell.

And moreover, one which dovetails perfectly with NWT's strategy to generate a greater proportion of the Group's revenues from recurring services.

23rd Jan 2023 7:00 am RNS Final Results

"... Physical Security Solutions division - Safetell - Diversifying our product portfolio ...

Demand for security products has normalised in recent months and our return to growth has already begun. Several delayed projects have now recommenced and demand for security products and services appears to have recovered to above pre-pandemic levels. This provides confidence that the business is well-positioned to achieve its ambitious growth strategy.

Product update

A strategic priority in our long-term plan is to grow service and maintenance work in the UK autodoor servicing market, estimated at twice the size of Safetell's traditional target markets. ..."

https://www.lse.co.uk/rns/NWT/final-results-fjybevmguogyzsg.html

"AUTOMATIC DOORS

REPAIR AND MAINTAIN

DON’T REPLACE

Automatic Powered Pedestrian Doors with a security bias, and a repair, not replace, mentality."

"Safetell is the right choice for automatic doors.

Clients appreciate our reliable service and installation. Our engineers are security vetted, qualified and trained to safely work for locations such as banks, building societies, local authorities, and petrol forecourts.

We supply, install,?we project?manage and we service. As an independent installer we always provide the right product for the situation and the customer, rather than ourselves.

Safetell – quality, secure solutions."

http://www.safetell.co.uk/security-products/automatic-doors/

"AUTOMATIC DOORS

We provide efficient and professional automatic door service and installation, supplying a range of products to suit a wide range of businesses. We champion a repair, not replace, mentality and utilise our many years of experience and expertise to deliver the very best value for our customers.

Of equal importance to selecting and installing the most suitable automatic door is the ongoing servicing and maintenance. We can provide customers with a reliable ongoing arrangement to ensure their doors are compliant to all necessary safety measures. Whether we have installed the doors or not, we are happy to undertake any necessary servicing and maintenance including repairs.

Our maintenance is in line with the original equipment manufacturers recommendations. Increasing the life, value and performance of your automatic door system and includes a cost-effective programme of regular inspections and a prompt repair service when applicable to keep it SAFE.

We are an ADSA (Automatic Door Suppliers Association) accredited company. Our Engineers are ADSA trained and qualified, conversant with BS EN16005."

http://www.safetell.co.uk/product/automatic-doors/

"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance ...

The impact of COVID-19 is also at play. The pandemic drove a rise in demand for automatic doors as they provide hands-free access to public places, such as shops, hospitals, restaurants, office buildings, and apartments, and cut the risk of viral transmission.

A report by Technavio said that the market will achieve a YOY growth of 5.23% at a CAGR of 5.91% during the forecast period of 2021-2025

“APAC will account for 49% of market growth. In APAC, China is the most important market for automatic doors. The market in this region will increase at a quicker rate than the market in other regions.” said the study.

“Over the projection period, a surge in investment in commercial real estate projects with upgraded facilities will aid the automated doors market expansion in APAC. Furthermore, countries such as the China, US, Germany, and France are expected to emerge as prominent markets for Automatic Doors Market during the forecast period.”

All of the new activity that takes place in Europe and many locations in Asia and the Middle East will comply with EN 16005 regulations.

What is the size of the automatic door sensor market?

With much of the increase in the automatic door market covered by EN 16005 regulations, the size of the automatic door sensor market also shows an upward trend. A Research And Markets forecast reports that the European automatic door sensor market is expected to grow from $305.3 million in 2019 to $427.5 million in 2027, with a CAGR of 4.4% over the period.

The report noted: “The growing popularity of smart airports and escalating airport development as well as expansion activities across Europe bolster the market growth in this region. The growth of the aviation industry over the years has complemented developments in several associated technologies, such as internet connectivity.

“Moreover, the governments of European countries are investing in smart airport technologies such as smart sensors, communication and network systems, cameras, RFID tags, and wearable devices, owing to rising consumer preference for real-time information.”

Safetell – an experienced and trusted automatic door partner

Safetell has a proven track record of automatic door servicing and maintenance. As well as carrying out annual checks to ensure compliance with EN 16005 regulations, our experts are adept at repairing faults and issues, keeping downtime to a minimum. Our customers benefit from our ‘repair not replace’ mentality, meaning they save significant sums of money by not having to replace whole automatic door systems. We’re also system-agnostic, so we give customers unbiased advice, regardless of the makes and models of their equipment."

https://newmarksecurity.com/company-insights/global-automatic-door-market-trending-upwards-en-16005-demands-annual-maintenance/

Another strongly positive regulatory driver for NWT:-

"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance
JANUARY 19, 2023"
https://newmarksecurity.com/company-insights/

"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance

The global automatic door market is predicted to grow in all segments over the next five years, according to multiple reports. The widely-adopted EN 16005 directive also means building owners must ensure their doors meet stringent safety standards.

Since 2013, building owners have been subject to regulations around automatic doors that are used by the public. The directive, known as EN 16005, applies to all European Committee for Standardization countries, including major European economies such as the UK, Germany, France, Italy, and Spain.

What does the EN 16005 directive cover?

EN 16005 covers all new power-operated doors installed after 10th October 2012 used for normal access, in escape routes and as fire resistance and/or smoke control door sets. Specifically, ‘power operated doors’ refers to pedestrian sliding, swing and revolving door sets, including balanced and folding doors.

The directive was ordered to improve safety standards and states that people and goods are not allowed to be hit by moving doors. To ensure this is achieved, EN 16005 says that power-operated doors must be installed with safety sensors and door operators that are in constant communication.

Maintenance has to be carried out by approved technicians annually on all doors covered by EN 16005. Failure to do so leaves owners potentially liable should an incident occur because of a faulty door. The scope of EN 16005 is described as “[dealing] with all significant hazards, hazardous situations and events relevant to power-operated doorsets when they are used as intended and where conditions of misuse are reasonably foreseeable by the manufacturer”.

While the EN 16005 regulations were agreed upon for use in Europe, it has also been adopted by nations in the Middle East and Asia.

What is the size of the automatic door market?

The global automatic door market reached a value of $18.44 billion in 2021. IMARC Group expects the market to reach $30.09 billion by 2027, exhibiting at a CAGR of 8.27% during 2022-2027.

The IMARC report cited “significant growth in the construction industry” as one of the critical drivers of growth in the automatic door market. It also noted that automatic doors are increasingly finding favour as they provide secure and convenient door access to differently-abled individuals. ..."

https://newmarksecurity.com/company-insights/global-automatic-door-market-trending-upwards-en-16005-demands-annual-maintenance/

The large and strongly growing North American HCM market is clearly a very compelling market opportunity for NWT.

And this has already been reflected in NWT's final results for last year, where the HCM US revenues rose 34%, to £8.7M., accounting for 45.5% of NWT's £19.1 full year revenues.

23rd Jan 2023 7:00 am RNS Final Results

" ... Grosvenor - Hardware-enabled software and services

The business achieved top-line revenue growth of 15% to GBP14.6 million, primarily driven by strong North American human capital management ("HCM") business growth and our expanding relationships with Tier 1 software partners. Key achievements during the period included re-platforming our core cloud control software, GT Connect, and evolving warranty and support services with GT Protect. We have seen substantial progress in our HCM hardware enabled SaaS strategy with HCM annual recurring revenue ("ARR") increasing by over 600% year-on-year to GBP0.9m in April 2022 driven by SaaS and ClaaS.

The success of our North American HCM operations continued to deliver double-digit growth for the fifth consecutive year, with revenues increasing by 34% to GBP8.7 million. The current outlook is very promising, expecting a new revenue pipeline for next year. ...

Partnerships

We continued our successful partnership with major software vendors enabling us to supply directly to their large customer base. We are working with our partners to increase our share-of-wallet acting as their preferred supplier and new partnerships are being established to help us deliver our growth targets. We are pleased to announce we have signed a GT Connect and support contract with one of the largest US retailers based in Mexico in H2 2023. This contract will help accelerate our growth in HCM recurring revenues. ..."

https://www.lse.co.uk/rns/NWT/final-results-fjybevmguogyzsg.html

And the strong US dollar, compared to sterling, is great news for NWT, in three ways:-
1. Becomes cheaper to sell to America.
2. Value of NWT's US revenues is increased per dollar.
3. NWT becomes a cheaper takeover target for a US predator.

Moreover, the substantial business that NWT conducts in the US also increases the chance of a US takeover, in two ways:-
1. Brings NWT on the radar screens of more American peers.
2. Makes it more attractive to a US predator wishing to expand domestically.

"HCM Growth Expected To Hit An All-Time High ...

Technology

HCM capabilities have come a long way, propelled by advances in enterprise technology. In the world of HCM, businesses are increasingly using software with artificial intelligence (AI) and robotic process automation (RPA) capabilities.

In the US, the battle for talent is fierce; hiring managers are using AI and machine learning tools built into HCM software to filter hundreds of candidates and select those most suited to the position, reducing admin time significantly.

Businesses are widely utilising RPA as part of their HCM strategy. RPA is effectively a digital worker that automates repetitive and time-consuming tasks, such as payroll, data input, and remittance, enabling HR teams to focus on high-level tasks.

The Cloud

Enterprises worldwide are turning to cloud-based solutions to hone efficiency, improve output, and reduce costs. In the HCM sector, customers can choose from many bespoke cloud-based HCM solutions that can be customised to suit the needs of their organisation.

These cloud solutions connect all HR processes across a business, meaning companies with multiple locations across the US and further afield can collaborate on recruitment, talent acquisition, employee relations, and other HR functions such as payroll and remittance.

This is a vast improvement on previous methods, where a business would have stored sensitive HCM information locally on one or two machines.

The Pandemic

No single corner of the business world hasn’t seen change brought about by the pandemic, and HCM is no exception. It changed the way businesses and their people work, with hybrid and remote working becoming the norm for many.

As a result, cloud-based solutions and collaboration tools such as HCM have been brought in since they allow HR and personnel teams to handle onboarding, employee communications, and payroll functions efficiently.

HCM solutions have aided the continuation of businesses’ operations and allowed them to stay connected to their employees during a time of real upheaval.

Having experienced the benefits of HCM, the business world welcomes these solutions in increasing numbers. By the end of this year, Gartner predicts organisations will retain the majority of solutions deployed to support new ways of working.

If you’d like to join the ranks of the many businesses that have embraced HCM solutions to streamline and manage their HR processes, contact one of our team today."

http://www.grosvenortechnology.com/insights/hcm-growth-expected-to-hit-an-all-time-high/

Also from the website of Grosvenor Technology, NWT's Human Capital Management (HCM) and access control subsidiary, another excellent article by GT's MD:-

"Insights | Human Capital Management

HCM Growth Expected To Hit An All-Time High

With such widespread adoption of HCM solutions, the market will likely enjoy significant growth over the next few years

Colin Leatherbarrow
Managing Director

HCM market value is tipped to soar, with growth being guided by technological leaps and a move towards a distributed workforce.

Increasingly, organisations are seeing the advantage of centring human capital management technology (HCM) within their HR, payroll, and recruitment functions.

With such widespread adoption of HCM solutions, the market will likely enjoy significant growth over the next few years. There are variances when assessing just how much the sector will increase in value. However, according to the vast majority of recent HCM forecasts, billions of dollars are expected to be added to its value over the next decade, with the US and North America leading the charge.

Technavio’s May 2022 report predicts that the global HCM market will increase by $12.16 billion between 2020 and 2025.

The HCM market observed year-on-year growth of 9.52% in 2021, and it’s thought that we’ll see that growth momentum accelerating at a CAGR of 10.57% during the forecast period. North America is anticipated to have the largest market share, with around 34% of the overall market growth.

The longer-term forecast is also optimistic. A report by Fortune Business Insights predicted the following: “The global HCM market size was $23.6 billion in 2021. The market is expected to grow to $25.53 billion by 2029, exhibiting a CAGR of 9.1% during the forecast period.

“The global impact of COVID-19 has been unprecedented and staggering, with HCM experiencing high-than-anticipated demand across all regions compared to pre-pandemic levels.”

North America has accounted for nearly half the market for the past two years, with an estimated value of over $10 billion – a trend that’s likely to continue. The report noted: “North America is anticipated to hold a dominant position in the global market. The rising adoption of advanced technologies, smartphones, and workforce analytics solutions is expected to spur the region’s market growth.”

So, the rapid and sustained growth value of Human Capital Management over the next ten years looks assured, but what is the motivation behind this surge in ongoing demand? ..."

http://www.grosvenortechnology.com/insights/hcm-growth-expected-to-hit-an-all-time-high/

Latest Share Chat

Member Info for Hedgehog100

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Latest Share Chat

Member Info for Hedgehog100

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending