Newmark Security H1 Revenue Rises 13% on HCM Growth

Key Financial Highlights

Newmark Security (AIM:NWT) announced a 13% increase in group revenue to £11.6 million for the six months ending October 31, 2025. This growth was primarily fueled by a strong performance in its Human Capital Management division. The company successfully shifted to an operating profit of £0.1 million, a significant turnaround from a £0.3 million loss in the same period last year.

Divisional Performance Breakdown

The Human Capital Management (HCM) division was the standout performer, with revenue growing 20% to £7.9 million. Sales in North America surged by 32%, reaching £6.0 million. This was complemented by a 30% year-on-year increase in annualized recurring revenue to £3.9 million. In contrast, the Physical Security Solutions division, Safetell, recorded a modest 3% revenue increase to £2.5 million, though its service revenues grew by a notable 43%.

Company Outlook and Financial Position

Newmark's management expressed confidence in a stronger second-half performance for both divisions. The company projects that the Safetell division will return to profitability and anticipates that the full-year profit will surpass the £0.7 million reported in fiscal year 2025. As of October 31, 2025, the company held £0.4 million in cash with a net debt of £4.0 million. To support future expansion, its invoice financing facility was recently increased by £0.2 million.

Summary and Future Projections

Newmark Security has delivered a robust first-half performance, marked by significant revenue growth and a return to operating profitability. The sustained expansion of the HCM division, particularly in the North American market, positions the company for continued growth. The focus now turns to maintaining this momentum and achieving the projected return to profitability for the Safetell division in the second half of the fiscal year.

FAQ

Q: What was the main driver of Newmark Security's revenue growth?
A: The primary driver was a 20% revenue increase in its Human Capital Management (HCM) division, which was largely propelled by a 32% sales surge in North America.

Q: What is Newmark's profit outlook for the full fiscal year?
A: The company anticipates its full-year profit for FY26 will exceed the £0.7 million reported in the previous fiscal year, FY25.

Q: How did the Physical Security Solutions division perform?
A: The Safetell division saw a 3% revenue increase to £2.5 million, with a strong 43% growth in service revenues. The company expects this division to return to profitability in the second half of the year.

Source: Investing.com