Newmark Security Share Discussion Threads

[el1te] 13/8/2014 15:06

Yes, and a nice continued breakout - great stuff. Pleased that the management took on the message from investors to bump up the divi, as it was easily coverable and gives the market increased confidence

El1te

[battlebus2] 13/8/2014 08:07

EX dividend today :))

[battlebus2] 06/8/2014 13:22

Plenty of buyers today after yesterday's selling on news.

[russman] 05/8/2014 00:18

Need to keep an eye on the recurring impairments. I thought that they kitchen sinked them last year.

[mjcferguson] 04/8/2014 11:38

Only 37% of shares are held publicly so perhaps providing info to shareholders not high up on priorities.

[el1te] 04/8/2014 10:45

Good point mjc - just did a quick search of google too:

Did ask them to put out an investor presentation post-results to start a round of news flow so will see what materialises

El1te

P.S. 4% yield now is pretty good

[battlebus2] 04/8/2014 10:43

Good luck to those who sold, i know some big names Sailing John etc have exited, i'm in at just under 1.8p so no rush to sell as yet given their confidence for 2015.

[battlebus2] 04/8/2014 10:41

Newmark Security (LON:NWT)'s stock had its "buy" rating reiterated by research analysts at Cantor Fitzgerald Europe in a report released on Monday. They currently have a GBX 2.50 ($0.04) target price on the stock. Cantor Fitzgerald Europe's price target would suggest a potential upside of 20.77% from the stock's previous close.

[mjcferguson] 04/8/2014 10:38

Hong Kong launch announced on Newmark website.

[el1te] 04/8/2014 10:04

Yep, classic sell on news, probably not aided by the Faraday tip. Chart still looks good though.

I note that the new IR guy said that Grosvenor Tech were launching in Hong Kong a few weeks back

El1te

[mjcferguson] 04/8/2014 09:13

Agree that the electronic division is where the growth is going to come from.The asset protection looks to be a pretty mature business.£1m development expenditure again this year which is a substantial sum for this Company.Benefit seems to be starting to come through and hopefully we will see more evidence of this in the next set of figures.Hopefully USA sales continue to gain traction.
Thanks El1te for encouraging Co to improve news flow.

[battlebus2] 04/8/2014 09:01

I'm also continuing to hold though as seems to be the norm now a few are selling on results.

[el1te] 04/8/2014 08:27

Grosvenor Tech interests me a lot more than Safetell at the moment, and reckon that could be the growth drive going forward. Have encouraged the new IR guy to improve news flow and investor communications, so should see a better effort on that front soon. Is thwt the right strategy? Maybe not so might cut if I don't think they are doing enough

Easy sell (to new investors) at this price anyway - forecasts are for growth at the top line again this year, although EPS estimates for 2014 moved to 0.35p. If, as I suspect, they make that without incurring any exceptionals, then it has a bit further to go yet.

Best,
El1te

[shanklin] 04/8/2014 08:19

Thank you El1te,

You make some very good points.

Best wishes, Martin

[battlebus2] 04/8/2014 08:15

Newmark Security Plc. (NWT.L), a provider of electronic and physical security systems, Monday said full year profit attributable to equityholders of the parent surged to 857,000 pounds from 140,000 pounds last year. Earnings per share improved to 0.17 pence from 0.03 pence.

Profit from operations before exceptional items was 1.84 million pounds, while it totaled 2.48 million pounds last year.

Pre-tax profit was 906,000 pounds, compared to 71,000 pounds last year.

Turnover increased 4.7 percent to 19.2 million pounds from 18.3 million pounds.

Revenue in the electronic division increased by 9.4 percent to 7,234,000 pounds, whilst the asset protection division revenue increased by 2 percent to 11,937,000.

The firm proposed dividend of 0.075 pence per share, compared to 0.0333 pence in 2013.

The company looks forward to another successful year in 2015.

[ted1066] 04/8/2014 08:06

EPS(Basic) UP 533% ( 0.03p TO 0.19p) AND GOOD DIVI.

[el1te] 04/8/2014 08:02

Hi Martin,

It stems out of them capitalising some of the development costs - thus they have to write down the value of certain intangible assets when they become 'worth less'

As has certainly been the case this year, it was a definite exceptional cost driven by the future move to polymer notes, but importantly, this was an acquired part of the business - i.e. they acquired the cash in transit box stake a few years back for a cash payment, so it wasn't an impairment on organically developed products, and that's quite important in classing it as a one-off. After all, had they not had made that acquisition, then there wouldn't have been any exceptionals last year and the reported figures would have been much higher

Would expect them to be exceptional exceptionals personally, as most of the products they develop themselves are not of high risk - most don't really require large cash outlays. In the event that some of their own development does become impaired, then the exceptional costs would certainly be much lower than the cash in transit - CIT was a fairly large risk

Dividend and upbeat outlook statement are both encouraging

Best,
El1te

[battlebus2] 04/8/2014 07:56

Yes a lot going on with this company which on first glance at the results wasn't transparent.

[el1te] 04/8/2014 07:20

Results look to be in-line with expectations, and show that Newmark looks very undervalued still, compared to peers. I note that the 0.38p pre-exceptional EPS was even before the delayed completion of a major contract.

Dividend comfortably beat what was forecast, so looks as if a near 4% yield now being offered. That dividend is well covered. Good to see the focus switching to the electronics division too, as that is recurring.

Good stuff
El1te

[el1te] 01/8/2014 08:52

Hi mjc,

I totally agree that shareholder communications have been poor pretty much the whole of this year. However, I have been in touch with their new head of investor communications (who was given the task recently) and reckon they'll improve them over the coming months. He seems receptive of improving the investor relations front - after all, it's in the company's best interests

If you wish to shoot over an email to [e-mail], then I can forward you his email address.

El1te

[battlebus2] 01/8/2014 08:49

Could be a case of results with an accompanying RNS that they are working on.

[mjcferguson] 01/8/2014 08:45

Results last year were on 30 July and previous year 3 August,hopefully 2014 imminent.
Disappointing not even a trading update this year.Hopefully the figures are a bit bigger this year and therefore taking a bit longer to add up.
You feel that f this co was interested in it's share price it would make a bit more effort to keep shareholders updated.

[marmiesz] 24/7/2014 16:43

Nice and quiet here until the results which should be out by the end of the month.

[mjcferguson] 24/7/2014 08:33

It looks like I am not the only one looking for a good profit from the second half,very strong cash-flow and an increased dividend.
It will be interesting to learn what the Company has been up to for the last six months and whether the Gunnebo acquisition has helped.