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."
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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.
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