Newmark Security (NWT) H2 25/26 earnings summary

Executive summary

• FY26 marked a strategic shift toward HCM: record HCM revenue, first GT Tablet sales and growing subscriptions; Safetell was sold after year-end and the Access Control sale process began.

• Total revenue rose 15% to £26.4m; continuing-operations revenue increased 21% to £21.9m, led by HCM.

Financial highlights

• Total revenue £26.4m, up 15% YoY; continuing-operations revenue £21.9m, up 21% YoY.

• Continuing-operations EBITDA rose 19% to £3.5m; EBIT increased 23% to £2.1m.

• Continuing-operations profit after tax was £1.3m versus £1.1m; continuing-operations basic EPS rose to 13.79p from 11.60p.

• Group profit attributable to equity holders was £0.584m, after a £0.716m discontinued-operations loss.

• Cash generated from operations was £0.023m versus £2.17m; net debt excluding leases increased to £4.8m from £2.1m.

Outlook and guidance

• FY27 outlook for HCM is positive; new partners are generating pipeline and early orders, D2E channels are producing multinational RFPs, and GT Tablet is building recurring revenue.

• Q1 FY27 revenue and operating cash flow were above budget and prior year; a significant order from the largest customer is due for delivery before FY27 year-end.

• Base-case forecasts assume HCM revenue growth at a similar rate to FY26 and improved cash generation from Safetell disposal, higher HCM operating profit and inventory unwinding.