Newmark Security Share Discussion Threads

[hedgehog 100] 25/11/2022 13:02

Thanks for that, Melloteam.

Good to see that NWT will be engaging in this sort of promotional activity after its imminent final results.

It's a sign that the company will have a very appealing investment case to publicise, and that the company is attempting to enhance its investment appeal.


"MelloMonday, 12th December 2022, 5pm - 9pm"

"Company presentation – Newmark Security plc

Newmark Security PLC (AIM:NWT) delivers long-term shareholder value through the provision of products and services that protect both personnel and their data while ensuring security for an organisation’s physical assets. Listed on the AIM market of the London Stock Exchange since 1997, we design and manufacture a range of specialist products and services that ensure safe, secure and productive workplaces. From its locations in the UK and the US, the organisation operates through subsidiary businesses positioned in specialist, high-growth markets.

Safetell provides physical security installations to numerous end-user sectors. Products and services range from Asset Protection Solutions to Counter Terror Deployments. Grosvenor Technology serves the Access Control and Human Capital Management markets globally providing both hardware and software to collect and secure data while maintaining privacy, ensuring compliance and reducing operating costs for its clients. This is typically provisioned through a recurring software as a service model.

Generating a great proportion of its revenues from recurring services through Software as a Service (SaaS) and Clock as a Service (ClaaS) provisioning is part of Newmark’s overarching strategy which is dedicated to building a business that has long-term stability and sustainability at its core."

[melloteam] 24/11/2022 21:47

Just to let shareholders and prospective investors know that Newmark Security, Tharisa and Duke Royalty will be presenting on the MelloMonday webinar at 5pm on Monday 12th December 2022.

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

[hedgehog 100] 23/11/2022 19:16

There's been an interesting NWT share price rise today, closing up 0.5p at 33p, on no buy volume.

Just one sell for 32p after the initial price rise, compared to the opening bid price of 30p.

This suggests that there is a substantial worked buy order in the background, with the price being raised in order to try to fill it; &/or that a market maker has got wind of good news (market makers sometimes also act as brokers).

It certainly wouldn't take much buying to move NWT sharply back into the 40s, and with the company's final results due in a few days the current upward momentum could well have legs.

[hedgehog 100] 23/11/2022 18:27

Russman,

Firstly, invoice discounting is far less expensive than invoice factoring.
In invoice factoring, the customer pays the factor company directly. Whereas in invoice discounting, the customer doesn't pay the discounter company, but pays the same company as normal (i.e. NWT in this case).
Invoice discounting is typically used by larger companies than with invoice factoring, and with more creditworthy customers.

Secondly, NWT arranged the $2 million US invoice discounting facility in February of this year.
Since then, i.e. from the end of their last financial year ending 30.4.22, the group has undergone a hugely impressive turnaround, as RNSed in their trading update a month ago:-

27/10/2022 07:00 UK Regulatory (RNS & others) Newmark Security PLC Trading Update LSE:NWT Newmark Security Plc
" ... The Group's working capital level is expected to ease as the amount of inventory held is reduced, allowing for improved cash flow generation. We are fully utilising our recent investments in products and infrastructure to enhance future growth and increase recurring revenues.
Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023, whilst also continuing to grow revenues. ..."


So NWT may no longer actually need the invoice discounting facility, or not for much longer.

[russman] 23/11/2022 17:00

so why do NWT need an invoice discount facility; a very expensive financing option.

[hedgehog 100] 21/11/2022 09:43

Interesting to see tech company EnSilica (ENSI) up 10p (20.4%) to 59p already today, after a press tip this weekend:-

" ... EnSilica chips also allow firms to monitor the safety of their appliances and carmakers turn to it as they become increasingly high-tech. ...
Brokers expect a 30 per cent increase in revenues to £19.8million for the year to May 2023, rising to £23million in 2024 and more than £30million the following year. Profits are around £1million today but should rise sharply over the next three years.
Midas verdict: Lankshear and Hodgkins combine tech know-how with commercial nous and EnSilica is well-positioned in a growing market. The shares are 49p and deserve to move higher. Buy.
Traded on: AIM Ticker: ENSI Contact: ensilica.com or 0118 321 7310"


This followed the company's final results last month:-



ENSI's turnover is currently significantly lower than NWT's, but its market cap. at 59p is £44.4M.: nearly fifteen times higher than NWT's current market cap. of c. £3M. at 32.5p.


Ensilica (ENSI):-

[hedgehog 100] 20/11/2022 13:35

From NWT's website:-

"Security has evolved. Once, providing security for employees, staff and visitors meant providing a safe physical environment. Today that environment includes and extends beyond physical security to online as people are equally concerned about the security of their data and identity.

Newmark plans to continue its strategy of investing heavily in research and development allowing the Company to stay ahead of the curve and ensure the highest levels of secure technologies for its customers. The Company is continually innovating in fields such as biometrics, cloud services and mobile authentication to ensure its products are at the forefront of the sectors it operates in.

We will realise this mission by continuing to develop exceptional and secure products and services backed up by industry leading support."

"Generating long-term, recurring revenue streams is part of an overarching strategy that is dedicated to building a business that has stability and sustainability at its core.

Marie-Claire Dwek"




10/09/2021 07:00 UK Regulatory (RNS & others) Newmark Security PLC Final Results LSE:NWT Newmark Security

"... In a year when everything seemed to stop, the evolution in some of our markets gained pace, spurred on by the challenges presented by the pandemic. There is growing demand for new technologies to handle things like touchless entry and facial recognition, with or without masks; and for systems that can be maintained effectively without a physical on-site presence. There are also new opportunities as customers turn their attention to creating safer workspaces.

The market is moving away from stand-alone Access Control solutions, towards integrated Access Control, Intruder, CCTV, Fire and Building Management, all of which can be provided within a single platform. Since COVID-19, there has been a push for smarter devices that can carry out contactless temperature checks for employees, visitors and customers to identify abnormal body temperatures, and so reduce the risk of infection.

We put a strong focus on developing our market intelligence during the year. It's through a continuous and thorough understanding of our markets that we can target the product developments and offerings that will make a difference for our customers. There are a number of important trends we seek to address, with one of the most important being data protection and quality. This is driven not just by stronger legislation in the US and Europe, but also by the increasing need for companies to present themselves as responsible and trustworthy in a competitive market.

We continue to see growth in the Human Capital Management (HCM) market being facilitated through the technology 'drivers' of high-speed internet availability and the subsequent mass shift to Cloud based computing. We are developing our HCM software platforms with a Cloud and Application Programming Interface ("API") first approach. This approach prioritises the use of a Cloud infrastructure along with APIs to provide seamless connectivity and integration between back-end and front-end systems for customers.

...That's why I am so excited about our newly developed Cloud platform, which we expect to launch in the winter. This will enable us to focus on both Security as a Service (SaaS) and our unique offering, Clock as a Service (ClaaS), which allows customers to choose any clock, bundled with our GT Services, and benefit from one low-cost monthly fee, with a no-quibble lifetime warranty. ...

Managing data privacy and security

Another element of building a strong reputation is how we manage data privacy and data security, in particular biometric data, such as fingerprints and face identification. In the US, there are different rules for biometric data capture and what you can do with it, depending on which state you are in, while in Europe and the UK, we have to adhere to General Data Protection Regulation ("GDPR") rules.

It is complex, which is why we have also invested significantly in our workflow management of biometric data. That has meant gathering the consent of people for using their data in the US and Europe, and ensuring that we have annual penetration testing of our systems - both our timeclocks and our Cloud platforms. We are dealing with this ahead of any potential Federal legislation in the US, reassuring our customers that we are secure, and future proofing our systems. ...

New Cloud platform

With our newly developed Cloud platform due to launch in the winter, we are using a Cloud and Application Programming Interface ("API") first approach. This means we can prioritise the use of a Cloud infrastructure along with APIs to provide seamless connectivity and integration between back-end and front-end systems for customers. We have incorporated new technologies to support Internet of Things (IoT) connectivity to the platform, and we have significantly expanded its middleware capabilities - which will enable smoother integration with our partners' time management platforms, and help us onboard customers, as our systems will talk to each other better. ..."




NWT's developments in Security as a Service (SaaS), Clock as a Service (ClaaS), and biometrics points to another potentially huge opportunity: Biometrics-as-a-Service (BaaS):-

"Global Biometric-as-a-Service (BaaS) Market Research Report: Forecast (2022-2027)

ICT & Electronics Jan 2022 Pages 223 Report Code IT77025

Market Definition

Biometrics involves using a person's biological & physical characteristics, such as the face, fingerprints, or iris, to recognize them in a reliable & automated manner. Biometrics as a Service (BaaS) is a cloud-based framework to promote new biometric recognition for law enforcement, access control, healthcare, financial services, etc. The use of the BaaS model to enhance cybersecurity across end-users like offices, hospitals, airports, defense, etc., is significantly supporting the growth of the BaaS market globally.

Market Insights

The Global Biometric-as-a-Service (BaaS) Market is projected to grow at a CAGR of around 19.78% during the forecast period, i.e., 2022-27. The market growth imputes primarily to the increasing use of Bring-Your-Own-Devices (BYOD) in organizations, coupled with the mounting data security issues globally, which have led to an increased usage of cloud-based mobile biometric services. ..."



"Biometrics-as-a-Service (BaaS) applies the well-established benefits of Software-as-a-Service (SaaS) to biometrics. Its cost-effectiveness is fueling its rapid growth, as the BaaS market is projected to be worth $2.9 billion by 2022.

As with SaaS, BaaS offers a means for a company to incur the expenses of a biometric system as stable, predictable operating costs paid for by subscription, instead of larger upfront capital expenditures with unpredictable maintenance costs. As with SaaS, setup of BaaS is relatively fast and inexpensive compared to purchase of hardware and software,, and so there’s less risk. Customers can generally unsubscribe from the service at any time. The lower upfront costs and risks make the capabilities of biometrics available to more organizations.

Maintenance expenses can be unpredictable, and this is also curbed in a BaaS model. Infrastructure costs such as hardware and software maintenance, updates and security are are managed by the BaaS provider.

Biometrics-as-a-Service offerings are also inherently scalable. Pricing can be based on actual consumption, not on forecasted consumption. This “pay-as-you-grow” model makes it easier to scale biometrics needs of an organization cost-effectively and with less risk. ..."

[hedgehog 100] 19/11/2022 13:01

From TradingView.com:-

"NEWMARK SECURITY PLC ORD GBP0.05"

"NWT technical analysis"

"Oscillators Summary Moving Averages"

"Buy Strong buy Strong buy"

[hedgehog 100] 13/11/2022 14:23

"acquisitions - biometrics topics

Biometric Update regularly publishes articles about acquisitions. The following set of links is available to help you find biometrics news related to acquisitions. ..."




Companies operating in biometrics seem to be very popular takeover targets at the moment, with three such acquisition being reported already this month on the above website.

Probably due to the very compelling combination of depressed valuations and exciting growth prospects.

NWT scores exceptionally highly on both these fronts, and the partners it works with provide a range of quite possible bidders, well aware of its capabilities.

[hedgehog 100] 12/11/2022 21:50

From Investing.com:-

"Newmark Security ... Technical Analysis"

"Summary: STRONG BUY
Moving Averages: STRONG BUY Buy (11) Sell (1)
Technical Indicators: STRONG BUY Buy (9) Sell (1)"

[hedgehog 100] 01/11/2022 18:25

"Biometric Technologies and data protection
Date 1 November 2022
Type Event

Processing biometric data comes with challenges and complexities. As part of our ongoing work on biometric data and biometric technologies, we will be hosting a series of workshops to allow organisations who either develop biometric technologies or procure externally provided biometric solutions to share their views on the practical opportunities and challenges in this area.

These workshops are part of a wider piece of public engagement on biometric data that we will be conducting between now and Summer 2023.

The workshop is aimed at individuals with responsibility for and expertise in data protection, within organisations that develop or use biometric technologies. We also encourage applications from industry groups, consultants or other advisors with expertise in data protection in the context of biometric data processing. ..."




Looks like biometric security is really coming of age, with the UK's Information Commissioner's Office (ICO) hosting this series of workshops on the subject.

NWT's innovation and expertise in this area is likely to become increasingly valuable and sought after.

[hedgehog 100] 31/10/2022 18:34

LSE % Gainers Top Lists
EPIC Name %
TPG Tp +181%

Today's top riser TP Group has nearly trebled today on an agreed takeover of the company:-

31/10/2022 11:17 Alliance News Alliance NewsTOP NEWS: TP Group shares soar as Science Group to buy consulting firm LSE:TPG Tp Group Plc
31/10/2022 07:00 UK Regulatory (RNS & others) Science Group PLC Recommended Cash Aquisition of TP Group plc LSE:TPG Tp Group Plc

"... -- The Acquisition Price of 2.25 pence per Share represents a premium of approximately 190 per cent. to the Closing Price per Share of 0.78 pence on 28 October 2022 (being the latest practicable date prior to the date of this announcement).

-- The Acquisition values TP Group's entire issued, and to be issued, ordinary share capital at an equity value of approximately GBP17.53 million. ..."




But the company still looks to have been taken over on the cheap, due to its financing needs.

NWT's more robust financial position means that it could potentially hold out for a better offer than that which TPG have agreed to.

[hedgehog 100] 30/10/2022 13:49

Conor McCarthy's tech investment approach is based on the principles set out in the classic 1984 book "Super Stocks" by Kenneth Fisher.

This is the book that McCarthy recommends to his subscribers.
(And perhaps it also inspired him to start "Techinvest" the same year?)

And a good example of a low PRR recovery-growth stock of his is mentioned in "Beyond The Zulu Principle" (1996) by Jim Slater:-

"I asked Conor McCarthy to give me a good example of Techinvest's success using Fisher's approach. He mentioned Kewill Systems which went astray a few years ago by making an unfortunate acquisition in Germany. The company began to make substantial losses and the shares fell from 318p in 1992 to a low of 49p in 1993. At this point, the PRR of 2 was astoundingly attractive. The Germany subsidiary was sold shortly afterwards and by the end of 1993 Kewill Systems had risen to 265p."

Kewill Systems (KWL):-

[hedgehog 100] 29/10/2022 15:31

The investment case for NWT is looking more compelling than ever, especially given the quite bearish outlook for many other shares.

Investors should be flocking to the few 'safe havens' with attractive growth potential, such as NWT.


From NWT's website:-

"Our Investment Case

We aim to deliver sustainable value for our shareholders and our broader stakeholder community through our position in high-growth, specialist markets in data and security and our long-term outlook.

✔ High growth technology and data business operating in rapidly evolving global markets
✔ Strong competitive position offering differentiated solutions with high barriers to entry
✔ Continued reinvestment delivering innovative, class-leading product portfolios
✔ Strategy to transition to a recurring revenue model in the medium-long term
✔ Long-standing customer relationships and high degrees of repeat business
✔ Experienced management team and a long history in established markets"




A "Strategy to transition to a recurring revenue model in the medium-long term" has the potential to give a significant rerating upwards, as also noted by Conor McCarthy:-

"Recurring revenue streams, the larger the better, are very attractive.
They provide predictability of sales and profits going forward and reduce the likelihood of nasty earnings surprises . Companies that change to a business model which steadily increases the recurring proportion of revenue are likely to undergo a market rerating."



NWT's current financial year, to 30.4.22, is clearly looking great at approaching the half year stage, with both a return to profitability and positive operating cashflows for the first five months, as well as continued revenue growth:-

27/10/2022 07:00 UK Regulatory (RNS & others) Newmark Security PLC Trading Update LSE:NWT Newmark Security Plc
" ... Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023, whilst also continuing to grow revenues. ..."



That being the case, you would think that million pound annual profitability could be possible in the medium term, on revenues of tens of millions.

Which, combined with the sort of rating that exciting tech growth stocks often achieve, could potentially make this a ten-bagger from current levels.

[hedgehog 100] 29/10/2022 12:19

24/10/2022 14:27 UK Regulatory (RNS & others) Newmark Security PLC 2022 Annual Report & Accounts update LSE:NWT Newmark Security Plc
"Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, announces that the publication of the Company's audited annual report and accounts for the year ended 30 April 2022 ("2022 Accounts") has been delayed due to the impact of a number of Covid-19 cases within the finance team at one of its subsidiaries. This has subsequently led to a number of delays with completing the audit.
Pursuant to temporary Covid-19 regulations, the Company has been granted an extension to 31 January 2023 for the publication and filing of its 2022 Accounts. Accordingly, the Company is now expecting to publish its 2022 Accounts at the end of November. The Company will provide an update on trading for the year ended 30 April 2022 prior to the end of October."



I look forward to NWT's final results next month, which should include exhaustive info. on the company's operations.

It will be interesting for example to see the level of NWT's R&D spending, compared to the previous year (£731K.):-


10/09/2021 06:00 UK Regulatory (RNS & others) Newmark Security PLC Final Results LSE:NWT Newmark Security Plc

"... The future
In 2021, we have invested in our business, bolstered our strategy and built the momentum we need to push for growth in the year ahead.
Although we expect to see some progress in Access Control, and the business is in a good place, the biggest opportunities are likely to come in our HCM businesses. We have ambitious growth plans in the UK and the EU, where we have onboarded new clients, with more good prospects lined up.
However, the real step change for Grosvenor Technology could come in the US, where we will grow our business with existing partners and look to onboard new Tier 1 clients with a compelling offering that encompasses a combination of market-leading technology, products and services. ...

Research & Development
The Group has reduced its investment by GBP142,000 to GBP731,000 (2020: GBP873,000) in the People and Data Management division. The investment has been focused on the cloud development of GT Connect, our SaaS platform. Clock development continued with enhancements to our existing GT10 offering and we launched the next generation device GT8 during the year being more compact with enhanced capabilities. The level of investment reduced year on year owing to an intentional slowing down of development activity with the onset of COVID-19 to safeguard our cash position and we were pleased to recommence development once additional financing was in hand. ..."




NWT's R&D investment is a major bull point here.

NWT market capitalisation at the current share price of 31.5p: £2.95M.

Divided into NWT's year end 30.4.21 R&D spending of £0.731M.

= PRR (price-to-research ratio) of 4.04.

This highlights NWT's bullish growth prospects.


From the legendary tech stocks guru Conor McCarthy:

"Calculate annual R & D expenditure per share and compare it to the share price.
If the PRR (price-research ratio - share price divided by R and D per share) is 5 or less it is nearly always worth buying the shares. This applies particularly to recovery situations. As long as an exploration company has the wherewithal to drill holes, there is always the possibility it will strike it lucky. The same goes for an out-of-favour technology company. As long as it can continue to invest in R and D there is the chance it will come up with a blockbuster product. The lower the PRR the more development bang you get for your buck."

[hedgehog 100] 28/10/2022 17:50

From yesterday:-

"AIM round-up: Cloudcoco, Newmark Security, ITM Power
By Tony Cross 27th October 2022

... Newmark Security [LON:NWT] added 24%, again off a trading update. Revenues are pointing higher and although the inflationary environment has boosted costs, prices have simultaneously been hiked to account for this. This is something of a minnow, trades were limited and the spread is as a result wide, but given the numbers involved here, some investors may be smelling a bargain. ..."

[hedgehog 100] 28/10/2022 17:00

Pldazzle,

I think that it's some others who are wearing negative-tinted glasses.

NWT's positive operating cash flow is the situation AFTER financing inventory etc., so allows for those things.

And it's now able to REDUCE its amount of inventory held, having increased stocks previously to cope with supply chain challenges which are now diminishing.

In addition, the new (February 2022) $2 million US invoice discounting facility provides significant ongoing working capital headroom.

The Group had GBP0.2m of cash and cash equivalents at 30 April 2022.
So with the five months of positive operating cashflow since then, the level of cash should now be significantly higher.



Moreover, the level of growth looks more than manageable. The company's revenues have grown from £17.6M. in the year to 30.4.22 to £19M. in the year to 30.4.22, an increase of about 8%.

This is a nice level of growth in a challenging period, but it's not exponential, and may have required little or nothing in terms of additional staff and premises to achieve.

The growth has really been driven by the company's substantial investment into R&D over multiple years, in order to provide what customers want:-

"Newmark plans to continue its strategy of investing heavily in research and development allowing the Company to stay ahead of the curve and ensure the highest levels of secure technologies for its customers. The Company is continually innovating in fields such as biometrics, cloud services and mobile authentication to ensure its products are at the forefront of the sectors it operates in.

We will realise this mission by continuing to develop exceptional and secure products and services backed up by industry leading support."




This R&D should enable higher margin revenues, and indeed the company said yesterday:-

"Grosvenor is launching a new HCM SaaS Cloud Control platform in FY 2023 which is expected to increase high-margin, recurring revenues."

That being the case, very substantial profitability should be possible even just on annual revenue of about the current level.

[pldazzle] 28/10/2022 15:27

hedgehog - I have been a holder of NWT for many years and have no intention of selling, but please do watch out for those rose-tinted spectacles - 2 + 2 doesn't make 5. While positive operating cashflow naturally adds to working capital, it doesn't automatically follow that it reduces illiquidity. Most expanding businesses will need much of the additional operating cashflow - possibly even all of it and then some - to finance increased stocks, work in progress and trade debtors. So although the noises in the statement are positive, it would be rash to assume that NWT is out of the woods at this stage.

[hedgehog 100] 28/10/2022 13:26

No Russman, it needs 'less' working capital.

Yesterday's RNS is very clear on this point:-

27/10/2022 12:22 Alliance News Alliance NewsNewmark Security revenue grows and returns to profit after year-end LSE:NWT Newmark Security Plc
27/10/2022 07:00 UK Regulatory (RNS & others) Newmark Security PLC Trading Update LSE:NWT Newmark Security Plc

" ... The Group's working capital level is expected to ease as the amount of inventory held is reduced, allowing for improved cash flow generation. We are fully utilising our recent investments in products and infrastructure to enhance future growth and increase recurring revenues.

Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023, whilst also continuing to grow revenues. ..."




So five months of positive operating cashflow.

With each month of positive operating cashflow adding to the available working capital.

And with the amount of working capital needed expected to reduce.

In simple terms, NWT's available money is increasing, whereas the money it actually needs is expected to reduce.


So well done to NWT for doing such a superb job.

Their decades of experience have doubtless been invaluable in navigating the challenging trading environment, as they have seen challenging times before, and successfully come through them.

[russman] 28/10/2022 03:55

Needs more working capital.

[hedgehog 100] 27/10/2022 18:24

Today's NWT rise has held firmly, finishing at the day's high of 31.5p.

Unsurprisingly so, because we couldn't really have asked for much more in today's
trading update.

The recovery is clearly progressing superbly, with very exciting growth prospects, and at a dirt cheap price.

So a recovery-growth-value-takeover play all rolled into one, and in a nicely defensive sector for today's challenging times.

It looks a great candidate for a medium term multibagger (or even short term in the event of a bid), and with great downside protection too.


The company has been investing heavily into its research and development, which is the lifeblood of any tech company, and this now looks to be paying dividends.

Which is something the company could potentially do as well, as it has in the past (with its most recent dividend payout being in 2014).


Note that NWT's last placing of new shares was eighteen years ago; and moreover, at a 'old' price of 1.25p/share (in 2004), which equates to a 'new' price 62.5p/share consolidation-adjusted.

23/06/2004 15:23 UK Regulatory (RNS & others) Placing of New Shares LSE:NWT Newmark Security Plc
"Newmark Security is pleased to announce that it has raised #1.0 million (before
expenses) through a private placing by Seymour Pierce Ellis of 80,000,000
ordinary shares at 1.25p per share. The Company is in advance negotiations to
acquire a business, further details of which are anticipated to be announced
shortly.
Application has been made for the 80,000,000 new ordinary shares to be admitted
to trading on AIM and admission is expected to take place on Tuesday 29 June
2004."

[hedgehog 100] 27/10/2022 15:56

"Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023, whilst also continuing to grow revenues."


NWT's trading update today is quite outstanding, given the challenging trading environment.

A return to profitability and positive cashflow, and for a full five months, in today's markets: how many companies are saying that?

The share price at just 25.5p prior to today was pricing in disaster, whereas the company actually seems to be navigating things very skilfully and well.

And the outlook going forward is even more exciting:-

• "Grosvenor is launching a new HCM SaaS Cloud Control platform in FY 2023 which is expected to increase high-margin, recurring revenues."

• " ... the Group is well positioned to accelerate and scale to meet the increase in demand. Safetell is in the process of introducing new products, new strategic partnerships and improvements throughout the business which are expected to support its growth."

• "We are fully utilising our recent investments in products and infrastructure to enhance future growth and increase recurring revenues."


And yet the market cap. is still below £3M.! (£2.95M. at 31.5p.)

The company looks like a sitting duck for a takeover at this price, so some near term action on this front could be very possible.


Maytrees,

NWT is an overlooked and illiquid stock, and as is usual with such stocks it can be hard to trade at times, which I think helps to explain why it has fallen down to this level.

But illiquidity is a double-edged sword: when a company is doing well, and people are looking to buy, it can help to fuel and sustain a rise.

[hedgehog 100] 27/10/2022 15:33

LSE % Gainers Top Lists
EPIC Name %
DKE Dukemount Capital +42%
MBO Mobilityone +40%
CLCO Cloudcoco +39%
NWT Newmark Security +24%

NWT is currently fourth on the top risers board today, up 6p to 31.5p.

The market obviously likes today's NWT trading update:-

27/10/2022 12:22 Alliance News Alliance News Newmark Security revenue grows and returns to profit after year-end LSE:NWT Newmark Security Plc
27/10/2022 07:00 UK Regulatory (RNS & others) Newmark Security PLC Trading Update LSE:NWT Newmark Security Plc

"Newmark Security plc (AIM: NWT), a leading provider of electronic, software and physical security systems, today provides an update on trading ahead of the publication of its results for the year-ended 30 April 2022 ("FY 2022"), subject to finalisation of the audit.

Highlights:

-- Strong revenue growth, with revenue of approximately GBP19 million (2021: GBP17.6 million), driven by Human Capital Management ("HCM") sales in the US and customer uptake of new products

-- Enhanced product offering and end-to-end solutions driving client base expansion

-- Delivering recurring income and optimising product mix provides for sustainable growth

As announced on 24 October 2022, the Company expects to release its FY 2022 results at the end of November.

As noted in the Company's year-end trading update, announced on 24 May 2022, sharp increases in componentry and freight costs impacted the Group's margins. However, we have implemented a programme of strict cost control and increased prices to mitigate the effect of higher costs to the extent possible, which has resulted in reduced losses for the second half of FY 2022. The full benefits of price increases and cost measures will be seen in the current financial year.

Operations

People and Data Management division - Grosvenor Technology ("Grosvenor")

Significant process was made during the year in the evolution of Grosvenor's business model, which now encompasses hardware-enabled software and services centres focused on providing customers with 'secure cloud control'. There was ongoing success in the North American HCM operations, which continued to deliver double-digit growth. Grosvenor is launching a new HCM SaaS Cloud Control platform in FY 2023 which is expected to increase high-margin, recurring revenues.

Physical Security Solutions division - Safetell

The Group's strategy is to build the services side of the business and took initiatives during FY 2022 to implement this, which are delivering positive results and supporting the return of Safetell to growth. Demand for security products and services partially recovered during the year compared to the prior year, where demand had been significantly impacted by the effects of the COVID pandemic, and the Group is well positioned to accelerate and scale to meet the increase in demand. Safetell is in the process of introducing new products, new strategic partnerships and improvements throughout the business which are expected to support its growth.

Current trading and financial position

The Group secured a $2 million US invoice discounting facility in February 2022 to provide additional working capital headroom and successfully managed supply chain challenges by building inventory to satisfy ongoing customer demand and stay ahead of the competition.

The Group had GBP0.2m of cash and cash equivalents at 30 April 2022.

The Group's working capital level is expected to ease as the amount of inventory held is reduced, allowing for improved cash flow generation. We are fully utilising our recent investments in products and infrastructure to enhance future growth and increase recurring revenues.

Post period end, the Group returned to profitability and positive operating cashflows during the first five months of FY 2023, whilst also continuing to grow revenues.

A full update on our financial performance for FY 2022 and progress in the current year will be provided in the upcoming annual report."