Newmark Security Regulatory News (NWT)

19 May 2016

NEWMARK SECURITY PLC

("Newmark" or the "Group")

Trading Update

Product Updates and Contract Wins

Newmark Security plc (AIM: NWT), the leading provider of electronic and physical security systems, is pleased to provide the following trading update for the year ended 30 April 2016 and also announces a number of product updates and contract wins for its Electronic Security division, Grosvenor Technology Limited ("Grosvenor").

The Group's financial performance in the second half of the year has broadly followed that of the first half, with revenues expected to be not less than £22.0 million (2015: £22.9 million) and profit after tax in line with market expectations at around £1.2 million. The Board expects to recommend a dividend at the time of the Final Results, due for release in August 2016. 

As a natural step in any businesses operating at the forefront of technology, the Group will continue to selectively invest in technology over the upcoming year in order to create a robust pipeline for the future.

As highlighted in the Group's Interim Results on 28 January 2016, Newmark's strategy in the Middle East is proving successful with increasing traction being gained in the region, evidenced in part by the recent signing of Abu Dhabi National Oil Company ("ADNOC") as a client. Beyond the Middle East, Grosvenor has also achieved a number of new client wins, including the Bank of Tokyo-Mitsubishi UFG and the Royal Albert Hall.

Three major product developments from Grosvenor include a combined hardware and software access control range in addition to a completely new Workforce Management terminal built on the burgeoning Android platform. Grosvenor has also announced a unique opportunity to upgrade existing customers from its JANUS to its Sateon platforms.

Sateon's new advanced range will provide customers with a seamless access control solution. It combines hardware and software in one package, and helps deliver smart, low energy environments. Customer benefits include easier installation, enhanced reliability, lower cost per door and future proofing, while Grosvenor installers will benefit from quicker installation times. Grosvenor expects to launch the new product during the summer of 2016.

Grosvenor's workforce management business is pleased to announce that it will be launching its first Android based terminal. The new terminals enable customers to expand their use of work force management beyond 'clocking in/clocking out' - for example by providing staff training and work scheduling with advanced end user features like delegating holiday booking to staff and central management of an organisation's entire terminal estate. The system also offers biometric fingerprint readers, which help to prevent 'buddy punching'.

The new product range will facilitate quicker and easier integration with other applications, requiring less development time and cost, which the board of directors believe will consolidate Grosvenor's position as a leading hardware provider for software partners. Grosvenor hopes to increase both market share and growth into adjacent new markets such as aviation, which require robust, trustworthy kiosk terminals.

Finally, Grosvenor is also developing new business from existing clients. Its JANUS access control product is no longer supported by Microsoft, providing an opportunity for JANUS clients to migrate to updated Sateon access control solutions. Grosvenor customers can take advantage of the fact that Sateon is a cost effective and easy way to upgrade; with less disruption and fewer cost implications compared to competitors, who would need to roll out new hardware.

Marie-Claire Dwek, Newmark CEO, commented: "These new offerings are part of our on-going drive to create an excellent product pipeline that will deliver for customers for years to come. As anticipated in January, our products are gaining traction in the Middle East and we are delighted to announce several new client wins in this expansive region where the market never stands still, and demands products that respond to new requirements as they arise. We look forward to delivering products that offer benefits for end users and new opportunities for intermediaries in our supply chain.

"I look forward to updating the market further at the time of the Group's full year results."

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