Newmark Security Regulatory News (NWT)

12 Aug 2005 12:33

Newmark Security PLC12 August 2005 Newmark Security PLC ("Newmark" or the "Company") Trading Update Newmark today announces a trading update in advance of the release in Septemberof its final results for the year ended 30 April 2005. Trading in the two core divisions, being Asset Protection (Safetell) andElectronic (Grosvenor Technology and Custom Micro Products), has been buoyantwith both turnover and operating profit above management expectations. TheSecure Locking division (NSP Europe) has however continued to perform belowexpectations with higher than anticipated losses. A decision has therefore beentaken by the Board to sell NSP Europe to CS (London) Limited for a nominal sumand close Concept Hardware & Security Solutions, a subsidiary of NSP Europe. Theloss on disposal of NSP Europe will be reflected in the financial year ended 30April 2006. NSP Europe had net assets at the date of disposal of approximately£0.2m. It is now anticipated that the final results for the year ended 30 April2005, subject to the completion of the annual audit, will be a profit onordinary activities from continuing businesses before amortisation of goodwill,interest discount adjustment, exceptional items and taxation in the region of£1.5m (before losses from the discontinued businesses of £0.8m). Therefore theGroup profit on ordinary activities before amortisation of goodwill, interestdiscount adjustment, exceptional items and taxation is anticipated to be in theregion of £0.7m. The Company has made an encouraging start to the new financial year which willbe mainly reflected in the second half, experiencing a high level of interest inits products and services, particularly within Grosvenor Technology, with anumber of new contracts with major companies in advanced stages of discussion. Commenting on trading, Maurice Dwek, Chairman, noted "NSP Europe has incurredlosses for some time and was unlikely to move to profitability in the immediatefuture. By disposing of this division we are able to fully focus management timeand resources on the Asset Protection and Electronic divisions where we areseeing good growth potential, both in the UK and overseas. A number ofpotentially interesting contracts should be concluded in the coming months andwe look forward to the future with confidence." Enquiries: Maurice Dwek, Chairman, Newmark Security PLC Brian Beecraft, Finance Director, Newmark Security PLC 020 7355 0070 Mark Percy, Seymour Pierce Limited 020 7107 8000 This information is provided by RNS The company news service from the London Stock Exchange