Newmark Security posts profits increase

By MoneyWeek

published 29 January 2013

in Features

Newmark Security showed recovery in trading Tuesday as the security systems provider announced its half year results.

The AIM-listed group posted a 32% increase from £6.2m to £8.2m in revenues for the six months to October 31st, 2012.

Profit from operations was £0.8m, up from nil for the same period the previous year.

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The asset protection division contributed to a majority of results with revenues up 55% to £5.5m, driven by large orders from the Post Office for cash handling equipment and from financial institutions for Eclipse Rising Screens.

Orders increased 67% for the Eclipse screens, a window allowing easy communication between staff and customers across an open counter.

The group's electronic business saw an 8.0% rise in revenues to £3.3m following a strong performance in the OEM clocks division which attracted new customers throughout Europe.

Earnings per share for the period was 0.14p compared to a 0.02p per share loss in 2011.

"The board is delighted with the recovery in trading profits in the period and anticipates that the results for the full year will be materially above market expectations," Chairman of Newmark Security Maurice Dwek said.

"The board expects that it will recommend the payment of a final dividend for the full year."

Shares soared 21.74% to 1.40p at 13:22 Tuesday.