01 Feb Newmark Security eyeing the counter-terrorism solutions market
The Electronics Division saw strong growth but the Asset Protection arm has been hit hard by reduced sales to the Post Office.
The security systems provider had previously warned that it would make a loss over the full-year, and the first half performance underlined the difficult market conditions, with the group posting a loss from operations of £816,000 in the six months to the end of October, versus a profit of £765,000 the year before.
Loss per share was 0.17p versus earnings per share the previous year of 0.15p.
Business has been hit by economic uncertainty in the UK following the Brexit vote, and an anticipated decline in sales of time-delay cash handling equipment to the Post Office.
The latter has been a decent earner for the Asset Protection division, and the group is looking to replace the lost revenue by switching focus to the provision of counter-terrorism solutions.
Meanwhile, management remains committed to reducing costs to minimise losses until trading conditions improve and the group’s new products achieve success in the market.
Half-year revenue fell to £8.37mln from £11.18mln the year before, as a result of a 39.4% decrease in the turnover of the Asset Protection division, from £7.6mln to £4.6mln.
The Electronic Division, meanwhile, saw revenue rise from £3.6mln last year to £3.8mln this time round.
It was the Electronics Division that had the two product launches (SATEON 3.0 software and SATEON Advance hardware) in the second half of 2016, albeit after the end of the reporting period.
“Both products have been well received and several potentially high volume, early stage enquiries have been received. SATEON Advance was also short-listed for an award at the prestigious Security and Fire Excellence Awards,” said Maurice Dwek, chairman of Newmark.
“In the asset protection division, business development activities have shifted focus towards the provision of counter-terrorism solutions, where the business is well positioned to drive sales and create new opportunities. This strategy will offset any sector specific downturns as the counter-terror market spans multiple sectors. The group’s expertise in ballistic resistant products will be a key advantage in responding to the rapidly increasing demand for physical security from corporates around the world,” Dwek added.
Shares in Newmark were up 4.2%