Newmark Security (AIM: NWT) reported record revenue of £19.5m from its human capital management (HCM) business today, up 27% for the year to the 30th of April. The AIM-listed group makes time-and-attendance clocks, software and cloud services for workforce systems, sold mainly through partners including Oracle, SAP and Workday channels.
North America led, up 43% to £14.1m, while monthly subscriptions for GT Connect and other services rose 138% to 96,578. HCM revenue outside North America slipped 2%.
Revenue from continuing operations, which exclude the discontinued Safetell business, rose 21% to £21.9m. Group revenue including Safetell was £26.4m, up 15%.
Continuing EBITDA, earnings before interest, tax, depreciation and amortisation, reached £3.5m, and profit after tax from continuing operations was £1.3m. Gross margin slipped, which the company attributed to pricing with key HCM partners and higher freight costs.
| Measure | FY26 | FY25 |
|---|---|---|
| Continuing revenue | £21.9m | £18.1m |
| HCM revenue | £19.5m | £15.4m |
| HCM North America | £14.1m | £9.9m |
| Gross margin | 40.3% | 42.5% |
| Continuing EBITDA | £3.5m | £2.9m |
| Continuing EPS | 13.79p | 11.60p |
| Net debt, excluding leases, including discontinued operations | £4.8m | £2.1m |
| Cash generated from operations | £0.02m | £2.2m |
Earnings per share and profit from continuing operations rose roughly a fifth, but the cash lines went the other way.
Net debt more than doubled, and cash generated from operations fell to almost nothing, driven by inventory, receivables and Safetell losses. Inventories rose to £4.0m from £2.4m, and no dividend is recommended while the policy is reviewed.
Safetell, which installs and services physical security systems, was sold to its Managing Director under an agreement signed on the 28th of July. The sale completed on the 30th of September, and a sale process for Access Control has started.
Chairman Maurice Dwek tied the disposals to where the company puts its resources.
FY26 has been a year of key decisions as well as record revenues. By sharpening our strategic focus decisively onto HCM, we are ensuring that Newmark’s considerable talent, resources and ambition are directed to where they will generate the greatest long-term value. The opportunity ahead for HCM is genuinely exciting, and I am confident the team has everything required to seize it.
Maurice Dwek, Chairman, Newmark Security
The company calls the HCM outlook positive, saying new partners are generating pipeline and early FY27 orders. It gave no numeric guidance.