Newmark Security (NWT) Q4 25/26 TU earnings summary

Executive summary

• HCM revenue rose 27% to £19.5 million, with North America up 43% year-over-year.

• Strategic review led to decision to dispose of Safetell, with advanced negotiations underway.

• HCM's sales pipeline and recurring revenues are growing, supported by new partnerships and product launches.

• Investments in people, systems, and inventory position the group for further growth in FY27.

Financial highlights

• Group revenue for FY26 expected to be at least £26 million, up over 13% from FY25.

• HCM annualised recurring revenue increased 8% to £3.9 million; underlying ARR up 26% excluding a phased-out Mexican customer.

• HCM operating profit increased by more than 30% year-over-year.

• Group net debt (excluding leases) rose to £4.8 million from £2.1 million, driven by inventory investment and Safetell funding.

Outlook and guidance

• FY27 outlook is positive, with a strong start to the year and a robust HCM sales pipeline.

• Strategic investments in HCM expected to drive further growth.

• Board focused on HCM expansion and resolving Safetell and Access Control strategies.