Newmark Security (NWT) H2 23/24 earnings summary

Executive summary

• Revenue increased 10% year-over-year to £22.3 million, with both divisions contributing to growth.

• Gross profit margin improved to 38.5%, and EBITDA rose 50% to £2.2 million.

• Operating profit reached £0.8 million, but profit after tax declined to £0.1 million due to a tax charge.

• Strong cash generation and reduced net debt, with a positive outlook and a new five-year growth plan underway.

• No dividend recommended for FY24.

Financial highlights

• Revenue up 10% to £22.3 million compared to £20.3 million last year.

• Gross profit margin increased by 0.9 percentage points to 38.5%.

• EBITDA up 50% to £2.2 million; operating profit at £0.8 million.

• Profit after tax at £0.1 million, down from £0.4 million due to a £0.3 million tax charge.

• Cash at year-end £1.1 million, net debt (excluding leases) reduced to £2.0 million.

Outlook and guidance

• Cautiously optimistic outlook, supported by new partnerships and strong market demand for data security and compliance.

• Five-year business plan targets recurring revenue and service growth.

• Forecasting further revenue growth in FY25, with year-to-date results on target.