The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse (amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

20 May 2025

Newmark Security plc

("Newmark", the "Company" or the "Group")

Full Year Trading Update

Full year Group Revenue increased to £23 million driven by strong growth at Human Capital Management ("HCM")

Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, is pleased to provide an update on its trading for the year ended 30 April 2025 ("FY25") in advance of the publication of the Group's audited FY25 results in early September 2025.

Commenting on the year, Marie-Claire Dwek, Chief Executive Officer of Newmark, said: "As anticipated, the second half of the year was much stronger in terms of Group sales and profitability, and we expect to report a slight growth in Group full year revenue and adjusted EBITDA^. HCM went from strength to strength in the period with revenue growing 14% and the division now accounting for c. 67% of total Group revenue."

"In line with our HCM plan, we have grown recurring revenues through services, displaced clock competitors and are diversifying our sales channels through our direct-to-end-user strategy as we integrate our clock and cloud-based software with world leading HCM platforms. We are expecting continued significant HCM growth through FY26, particularly in North America given the size of the market and progress being made with our Direct to End-User ("D2E") strategy. We are already building a D2E sales pipeline with Oracle and SAP and we expect to secure our first customers in FY26.

"Across the rest of the Group, both Access Control and Safetell reported stronger revenues in H2, particularly after several contract start dates were deferred to later in the year and FY26. Whilst these businesses are moving in the right direction, HCM has become our focus given its growth and the scale of commercial opportunities that lie ahead. As such, we are reviewing both Access Control's and Safetell's growth strategies to assess how we can best drive value for the Group and ultimately our shareholders."

Highlights:

·    Total Group revenue for FY25 expected to be no less than £23 million, up 3% (FY24: £22.3 million)

·    Executed strategic focus on HCM, with FY25 revenue of £15 million, up 14% year-on-year ("YOY")

·    HCM annualised recurring revenue ("ARR") increased by 24% YOY to £3.6 million in April 2025, positively contributing to profit margin growth (April 2024 ARR: £2.9 million)

·    Over 40,000 monthly device subscriptions for GT Connect and other GT Services

·    Group debt (including leases) reduced by a further £0.9 million to £4.0 million

·    Cash as at 30 April 2025 was £0.4 million, a decrease of £0.7 million on the prior year primarily due to the debt repayments

*ARR is calculated by annualising revenue recognised in a given month from all clients on deployed HCM subscription contracts.

^Adjusted EBITDA is stated after adding back LTIP and other share-based payments.

Grosvenor Technology (HCM and Access Control)

HCM

Delivering strong growth with pipeline building

HCM has continued to lead our growth, with sales of £15 million, up 14% YOY, whilst ARR for April 2025 increased by 24% YOY to £3.6 million, further improving HCM's profitability.

In North America, demand for the GT4 and lower-cost GT4-Lite devices have also been particularly strong, with orders for the latter helping to displace its main low-cost clock competitor in the North American market. Our team continues to build strategic partnerships across the industry to open new sales channels, which will help to accelerate growth. Every customer in the region with one exception now has attached recurring services.

During the year, our partner Workforce Software was acquired by ADP, an employee management solutions company, whilst another partner, Paycor, was acquired by Paychex, a payroll and HR solutions company. The disruption caused by these acquisitions impacted orders received by these partners during the second half of FY25. However, we believe that these acquisitions are a positive development for us in terms of introducing their newly acquired customers to our products and services, and we are excited by the potential new sales opportunities that lie ahead.

In the Rest of the World region ("ROW"), revenue growth was achieved despite our largest European partner completing a series of acquisitions in H1, which caused a temporary slow-down in orders. However, these acquisitions have led to our partner expanding into new European territories and HCM is negotiating to benefit directly as the sole provider of timeclock software and hardware solutions to them. Sales activity through this partner bounced-back to deliver a strong H2, with the pipeline building for FY26. We also delivered a series of upgrades for existing long-term UK retail clients, underlining the strength of our customer relationships and products.

D2E strategy establishing new sales channels for GT Time

Our D2E strategy involves selling directly to end users through large HCM partner platforms, unlocking enterprise-sized customers and larger orders for our GT Time products and services with our per-employee subscription model.

During the second half of the year, HCM gained Oracle integrator status following the successful testing of HCM's Clock and Cloud-based software. The sales pipeline is building and we expect to secure our first D2E customers during FY26. We also now expect to be integrated with SAP earlier than anticipated and are targeting first sales with them during FY26. Our Workday integration is progressing well and we plan to have certification by mid-FY26, which will enable us to build pipeline over the remainder of the year.

The recently announced partnership agreement with Synerion, a global provider of cloud workforce management software, underlined further rapid progress with our D2E strategy. The partnership will see HCM's GT Clock devices combined with Synerion's workforce management software and then integrated into several of Synerion's HCM partner platforms in North America, enabling HCM to provide a fully unified hardware and software solution.

Access Control

As communicated at the half year, Access Control experienced a slower start to FY25, with sales impacted by delays with our Janus C4 Ultras software partner and to upgrade projects. The division did see sales improve in the second half as anticipated, although full-year revenue was 10% down on last year. We are reviewing the current strategy to deliver better value for the Group.

Safetell

As previously disclosed, the business experience delayed starts to several public sector installation contracts that were originally planned for 2025. Whilst the business did see slightly higher revenues in H2 due to a strong performance from services, which grew by 30% in FY25, some of these installation contracts have been delayed further into FY26. Acknowledging that this has been frustrating for the business, the outlook for 2026 is looking more positive with a strong contract pipeline, increasing demand for entrance control products and door services. The streamlining of processes and project execution will also help to improve margin. Whilst we expect an improved 2026, the Board will be assessing Safetell's ongoing strategy in the context of the increasing focus on HCM.  

Current Trading & Outlook

The Group is making a good start to FY26 with sales building across both divisions. Acknowledging the recent concerns over changes to US tariffs, the Group is currently seeing minimal impact with HCM  terminals appearing to be exempt from tariffs.

For HCM, the D2E Oracle partnership is an immediate focus with the business in the early stages of building a sales pipeline. The division is also launching GT Tablet in FY26, which has had significant interest from our existing HCM partners. We anticipate this will be an important incremental source of recurring revenue at the end of FY26, with one HCM partner already committed to onboarding GT Tablet, whilst discussions with others are progressing well.

Safetell has had a more confident start to the year with a good pipeline building and a proportion of the deferred orders being delivered in H1 FY26. It also expects to continue to grow its services revenues through its door services offering.

ENDS

About Newmark Security plc

Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely.

From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets.

We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers.

Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and Physical security installations to various sectors.

Newmark Security plc is admitted to trading on AIM (AIM: NWT).

For more information, please visit: www.newmarksecurity.com

Safe. Seamless. Secure