Newmark Security Share Discussion Threads

[arthur_lame_stocks] 09/1/2024 19:29

Hey Hedgehog, a lot of your research is really very good and I reckon this is the best of all of the stocks you've invested in so far, but sometimes you post a bit too much and your posts are a bit too long to read. Most people find it much better to just post the relevant link and a short, important, extract. It makes the board that bit easier to read. A lot of people will choose to click the link and read the article anyway, particularly if they agree with you about the investment.

If you get more right like I think you have this one, people will come to respect you.

I guess you've just started out investing and it's ok to make a few mistakes, it just makes you a better investor when you learn from them and it's much better to learn for yourself what works for you and this can change over time anyway.

It's obvious you've already learnt some of the important fundamentals and if people disagree with you it's not because they're trying to put you down or score points, they're just trying to give you another point of view which might help you.

You've probably been reading ADVFN long enough to realise that the real idiots who get a kick out of abusing people are usually the worst investors choosing the worst frauds. They never last long.

I reckon you've got a much better chance of being here in 20 years.

[hedgehog 100] 09/1/2024 12:02

Yes Russman, that's broadly speaking correct for the NWT share price, over c. the last ten years.

Whereas during the same period, the NWT business has been quite dramatically transformed, for the better.

And note that there has been no real share price dilution during this period: NWT's last placing of new shares was nearly twenty years ago.


Here's NWT's ten-year annual revenue split: i.e. the breakdown from NWT's two subsidiaries, showing a ten-year evolution:-

Years ending 30th. April: Grosvenor Technology (people & data management) / Safetell (physical security)

30.4.13: £6.615M. / £11.701M.
30.4.14: £7.234M. / £11.937M.
30.4.15: £7.577M. / £15.277M.
30.4.16: £7.639M. / £14.184M.
30.4.17: £7.092M. / £8.944M.
30.4.18: £7.960M. / £8.092M.
30.4.19: £10.979M. / £8.604M.
30.4.20: £13.357M. / £5.410M.
30.4.21: £12.647M. / £5.011M.
30.4.22: £14.559M. / £4.586M.
30.4.23: £15.574M. / £4.74M.


I.e. a massive increase in revenues from the tech side of the NWT business, with higher margins, more recurring revenues, and better growth prospects.

That alone is a very compelling growth story, especially with the higher ratings in the tech sector, but there are two even stronger growth stories within this:-


1. AMERICAN GROWTH

From the bar graph on page 12 of NWT's annual report & accounts for the year ended 30.4.22:-
"Five years of consecutive revenue growth:
HCM in North America: £m"
2017: £0.9M.
2018: £1.2M.
2019: £4.0M.
2020: £5.9M.
2021: £6.5M.
2022: £8.7M.



And the American market is far larger and more resilient than the UK market, and with better growth prospects and higher ratings.


2. SAAS (Software as a Service) GROWTH

26/09/2023 07:00 UK Regulatory (RNS & others) Newmark Security PLC Final Results LSE:NWT Newmark Security Plc

"... -- Human Capital Management ("HCM") annualised recurring revenues* ("ARR") increased by 133% year-on-year to GBP2.1 million for April 2023, positively contributing to profit margins ...

*ARR is calculated by annualising revenue recognised in a given month from all clients on deployed HCM subscription contracts

Maurice Dwek, Chairman of Newmark, commented:

"It has been a milestone year in several ways, culminating in the Group returning to full-year profitability. What might look like modest overall top line growth hides the key story underneath, which is the launch of our strategic cloud platform, GT Connect. This is vastly more scaleable as a service offering and is accelerating GT's shift from being a 'hardware only' to a 'hardware-enabled software and services' business. This, combined with the return to growth in Safetell, shows the success of our 2025 Growth Strategy. ..." ..."



The average SaaS gross profit margin is 75%, but NWT's SaaS gross profit margin should be higher than this, because of its 'HeSaaS'* business model, its 'best-of-breed' status, and the importance of its offering.

*Hardware-enabled SaaS:-

"Hardware Enabled SaaS : Next generation of SaaS companies
Kumar Sparsh · Follow
Published in Unicornindia · 3 min read · Sep 23, 2019 ..."



In conclusion, it all points to a quite transformative breakthrough in NWT's Group revenues and profits over the next couple of years, followed by further excellent growth going forward.

And with investors in NWT getting two attractive businesses for the price of one or less.

[russman] 09/1/2024 06:23

so in 10 years NWT share price has gone up & gone down but stayed the same (or shall we say consolidated)

[hedgehog 100] 07/1/2024 11:24

NWT's striking rise is attracting new attention to the stock, including from this American defence-aerospace news portal:-

"Newmark Security (LON:NWT) Reaches New 1-Year High at $82.00

Posted by Defense World Staff on Jan 7th, 2024

Newmark Security plc (LON:NWT – Get Free Report) shares reached a new 52-week high on Friday . The company traded as high as GBX 82 ($1.04) and last traded at GBX 80 ($1.02), with a volume of 7795 shares trading hands. The stock had previously closed at GBX 74.50 ($0.95). ..."




Though they've got some of the info. wrong, e.g. reporting the share price as $82 rather than 82 pence. (Though perhaps one day ...!)

But it does draw attention to the fact that in dollar terms, the NWT share price has now passed the one dollar level: at the current US$-£ exchange rate of US$1.27 to £1, 82p equates to US$1.04.

A sign that the new, transformed NWT is now starting to 'come of age' as a stock:-

"Typically, however, the term penny stocks refers to stocks that trade for less than $1 per share ..."



And I would expect a lot more press coverage of NWT this year, as well as some long overdue press tips of the stock.

[russman] 06/1/2024 08:25

didnt NWT reach over 2p a decade ago.
1 for 50 consolidation makes 10 yr high over a quid.

[hedgehog 100] 05/1/2024 17:41

Happy Twelfth Night to one & all, and enjoy both this, and the feast of Epiphany tomorrow - the Feast of The Wise Men.

And in fine keeping with this culmination of the Christmas festivities, the NWT share price has today made an almost Falstaffian leap into the 80s!

Closing for the weekend up a rather tasty 7.5p (10.1%), to 82p (79p - 85p).

Which is a new seven year closing high, surpassing the 80p (consolidation-adjusted) reached in February 2020, and is NWT's highest closing share price since September 2016.

Good Cheer!

[hedgehog 100] 05/1/2024 13:21

"The Year Ahead: Human Capital Management Industry’s Projected Outlook Remains Bright

Spotlight Growth - Thu Dec 28, 2023

As 2023 winds down, many set aside time to reflect on the year that was, as well as the year ahead. The human capital management (HCM) industry continued to see elevated interest and importance from global businesses, as the labor and human resources (HR) landscape continued to trudge into a “new normal” in the post-pandemic climate. Whether ensuring proper payroll compliance for remote workers across various regions to attracting and retaining top-tier labor talent, HR teams have been juggling several issues throughout the year.

According to market research firms, those trends are likely to continue in 2024 and beyond. This bodes well for HCM service providers, who are projected to see their strong steady growth continue through the end of the decade. Let’s take a deeper dive into the HCM industry projections and one such company that stands to benefit from the continued demand for human capital solutions:

Research Firms: HCM Industry CAGR Estimated Between 7%-9% Starting In 2024
Several market research firms have already issued their HCM industry estimates for 2024 and beyond. While the specific estimates vary, the consensus continues to favor North America as the leading market for the HCM industry. However, the Asia Pacific market is expected to see high growth for HCM, as the region begins to adopt new technologies and policies. ...

Chief Human Resource Officers (CHROs) are stating their plans for 2024 to include continued development of employee experience, as well as investment in AI ...

Lastly, the survey points to an increased priority to utilize technologies, such as AI, to help automate more HR processes and functions. 61% of CHROs surveyed said they are investing in AI to streamline HR.

Taking a step back, the survey with CHROs across the United States appears to validate the growth estimate theses of the market research firms. Technological advancement for the goal of improving efficiencies and HR functions, combined with key employee retention are important factors for businesses heading into 2024.

Asure Software Stands To Benefit From These CHRO Priorities

Asure Software (NASDAQ: ASUR) is one such cloud-based human capital management service provider that stands to see continued benefits from overall growth in the industry. Throughout 2023, Asure has launched several new products and services specifically aimed at helping small and medium-sized businesses (SMBs) cut costs by streamlining operations, as well as improving employee retention and recruitment.

In partnership with companies like H&R Block (NYSE: HRB), Intuit (NASDAQ: INTU), Amazon’s (NASDAQ: AMZN) AWS, ZayZoon, Harbor Compliance, Lendio, and more, Asure has worked to deliver its SMB clients with a wide range of services across payroll & compliance, employee taxation, employee benefits & 401k, remote worker compliance & services, on-demand earned wage access, treasury compliance services, access to funding service providers and more.

During Asure’s recently-announced third-quarter financial results, the HCM provider reported a 34% y/y boost in revenues to $29.4 million. The company also beat its bottom-line estimates with an adjusted EBITDA of $6.2 million, which represented an improvement of $4.4 million in the third quarter of 2022. ..."




The outlook for the HCM (human capital management) sector in America this year looks very bullish, and America is also the place to be for the best AI business growth.

So this 'Double-A' combination - America & AI - is a clearly very attractive one: and one to which NWT provides strong, profitable, and undervalued exposure.


Indeed Asure Software (NASDAQ: ASUR), which is singled out in the above article, is one of Grosvenor Technology's impressive range of software partners.

From NWT's Investor Meet Company presentation slides, 8th. February 2023:-

Slide 14:-

"Our customers are blue-chip organisations from across industry providing a solid UK base, with a growing presence through US software vendors.

... SOFTWARE VENDORS

protime
workforce software
Insperity HR that Makes a DifferenceTM
attendance ON DEMAND
MHR
ASSURE
UKG
access"

[hedgehog 100] 03/1/2024 15:53

"Stock Market Forecast 2024: A Soft Landing May Not Bring The Gains You Expect

SCOTT LEHTONEN 06:15 PM ET 12/29/2023

The stock market climbed the wall of worry to impressive gains in 2023. After that big run, the stock market forecast for 2024 hinges on a key question: Will the Federal Reserve achieve a soft landing for the U.S. economy? And in a related question, can stocks extend gains?

Wall Street is mostly convinced that the Fed will reach its goal of a soft landing for the U.S. economy. That means there will be slower economic growth, but no recession, leading to interest rate cuts in 2024.

In that environment, most analysts predict improved corporate earnings growth for S&P 500 companies. As for how the stocks will perform in the coming election year, 2024 forecasts for the S&P 500 vary widely, but the consensus seems to fall in the range of 8%-9% gains, a little under the index's historical average of about 10%. Among other trends, artificial intelligence is widely considered to remain a key investing theme in 2024. ...

Stock Market Forecast 2024: AI Stocks

... "We believe a theme in 2024 will be less about AI's 'creators' and more about AI's 'adopters' — across the spectrum of industries and sectors — as companies increasingly focus their capital spending on productivity-enhancing investments," Liz Ann Sonders, chief investment strategist, and Kevin Gordon, senior investment strategist, wrote in Charles Schwab's 2024 outlook. ..."




So 2024 should also be more about AI 'adopters' rather than 'creators'; with NWT operating at the nexus between these two, and poised to profit handsomely from this in the months and years ahead:-

"The power of AI in workforce management: unlocking productivity and efficiency

... Grosvenor partners with a range of leading software channel partners who integrate their software – and all of the AI you’ll need – onto our devices. ..."

[hedgehog 100] 03/1/2024 14:40

"How Some Experts See The Future Of AI In 2024

Jennifer Kite-Powell Senior Contributor
I'm a senior tech contributor who writes about science and technology

Dec 29, 2023,06:45pm EST

... Sustainability

Kaitlyn Albertoli, CEO and co-founder of Buzz Solutions cites sustainability as a market for impact. ...

“There is a fundamental research challenge around energy use in the face of an energy crisis and climate change; it is estimated that 21% of the world’s overall energy usage by 2030 will be computing power alone, yet technologies in AI, cloud, and quantum are inherently power-hungry,” said John. ...

Security

Joseph Thacker, principal AI engineer and security researcher at AppOmni says AI security will be increasingly focused in 2024. ...

"There will be numerous startups, potentially hundreds, focused on AI security, and every major application will incorporate AI features, a shift that will inevitably introduce new vulnerabilities." ...

Commerce

Chris Anley, chief scientist at NCC Group, takes a different view and says commerce will be the most important AI trend for 2024. ...

"Organizations have struggled to keep up with the tricky balance of enabling staff to use these systems while keeping their sensitive information secure," said Anley. ...

"Businesses are seeing that there are real financial benefits to be gained – perhaps not the science fiction style capabilities predicted by some, but certainly practical, measurable improvements in productivity," said Anley. "Now that these benefits are becoming clearer - in financial terms - investment by companies in these systems will increase." ...

Enterprise

Varun Badhwar, CEO and co-founder of application security startup Endor Labs, predicts where AI will go from here. ...

Badhwar says businesses must prioritize the development of robust governance frameworks and visibility tools. "The focus should extend beyond the mere integration of AI solutions and encompass a holistic approach that addresses security, compliance, and ethical considerations," he said. ...

"In an era where data is a prized asset, and AI is a powerful catalyst for business growth, the responsibility lies with industry leaders, policymakers, and technology providers to collaboratively build a foundation for responsible AI adoption," adds Badhwar. ..."




So sustainability, security, commerce, and data protection should be key AI (artificial intelligence) drivers in 2024: all areas in which NWT is very strong.

Which further helps to help highlight what an excellent and overlooked AI play NWT is.

[hedgehog 100] 02/1/2024 20:02

"CORPORATE NEWS

Primark Set To Accelerate US Expansion Plans

Primark, the international fashion retailer, is stepping up its US expansion with the announcement of three new store locations in the New York region: City Point in Brooklyn; Roosevelt Field in Garden City, Long Island; and Crossgates Mall in Albany.

Sep 11 · 11 min read

○ Primark names three new store locations in New York taking total new leases signed in NY State to five

○ Outlines US growth ambition of 60 stores over the next 5 years

○ Strengthens US leadership team

Primark, the international fashion retailer, is stepping up its US expansion with the announcement of three new store locations in the New York region: City Point in Brooklyn; Roosevelt Field in Garden City, Long Island; and Crossgates Mall in Albany. Primark now has five new leases signed in the New York region, with its Jamaica Avenue store in Queens set to open next year, and another in Green Acres, Nassau County. These are in addition to a new store lease in Tysons Corner, Washington, signed earlier in the year.

The new Brooklyn store in the recently constructed City Point complex will have frontage onto Fulton Street, giving Primark prime access to Brooklyn’s principle retail high street. Meanwhile the Roosevelt Field location will position Primark in the pre-eminent mall serving Long Island and at Crossgates Mall the store will give Primark a foothold in the dominant shopping mall in the State’s Capital, Albany.

The new leases continue the Irish headquartered retailer’s steady US expansion path since opening its first store in Boston six years ago. In the past financial year, almost a third of Primark’s new store openings were in the US, including the most recent launch in September at Fashion District, Philadelphia, its 13th store in the country.

Looking ahead, Primark intends to accelerate the pace of expansion in the US market, building on strong trading and a growing brand awareness. Over the next five years, Primark expects the US store estate to grow to some 60 stores. The success of recent openings outside of its existing North-East footprint – in Sawgrass Mills, Florida and State Street, Chicago – has shown that Primark’s unique formula of fashion and homewares at great value low prices is resonating more widely. The US business performed well in the past financial year, delivering like-for-like sales growth of 6% (excluding its downtown Boston store) on two years ago and a good profit margin."

[hedgehog 100] 02/1/2024 18:48

Interesting to see that the owner of Primark, ABF (Associated British Foods), was one of the best-performing shares of 2023:-

"These are the FTSE 100’s best-performing shares in 2023

The FTSE 100 index is up less than 3% in the last 12 months. Meanwhile, these star stocks have thrashed the market with returns as high as 232%!

Cliff D'Arcy Published 26 December, 2023 4:09 pm GMT

... The FTSE 100’s stars

Time to reveal the five top-performing stocks in the UK’s elite index over the past year. Here they are, sorted from largest to smallest gain:

Company Sector One-year change Five-year change
Rolls-Royce Holdings Aerospace and defence 231.9% 9.6%
Marks & Spencer Group Retailing 126.6% 9.6%
3i Group Private equity 83.3% 213.0%
Sage Group Enterprise software 57.8% 100.1%
Associated British Foods Retailing and food processing 50.8% 11.7%

... Fifth and final place goes top Associated British Foods, owner of popular high-street chain Primark, as well as various food and grocery businesses. ..."




And that as well as the ABF link, NWT is active in enterprise software (like Sage), and operates in the security sector, which is related to defence (Rolls-Royce).


Associated British Foods (ABF):-

[hedgehog 100] 21/12/2023 18:03

Best wishes to anyone celebrating the winter solstice at Stonehenge tomorrow.

It should be an amazing experience, even if a bit chilly.

And fortunately people can warm up in the Stonehenge Visitors Centre afterwards, where they can then 'safely tell' about their exploits:-

"Stonehenge
Protecting Britain’s Heritage

The Stonehenge Visitors Centre in Wiltshire, England, is one of the most popular tourist attractions in the UK. With over one million visitors per year, security is a top priority. ...

Challenge
English Heritage, custodians of the prehistoric Stonehenge monument, wanted to provide greater protection for their staff and customers without hindering customer interaction. ... It was important to create a solution that protected the entire ticket office module while preserving the award-winning architecture and aesthetic of the building.

Solution
English Heritage approached Safetell, a security solutions provider ..."




"Stonehenge Winter Solstice Tour December 22nd 2023. London Departure

TOUR ITINERARY

The Winter Solstice is the most important day of the year at Stonehenge and a truly magical time to be there. It's an ad hoc celebration that brings together England's New Age Tribes (neo-druids, neo-pagans, Wiccans) with ordinary families, tourists, travellers and party people - 2 Hours inside the inner circle of Stonehenge at sunrise

Each year in December visitors from around the world gather at Stonehenge early in the morning to mark the Winter solstice and to see the sunrise above the stones. This tour will then visit Salisbury medieval city

​A sight you can't see every day, the winter solstice at Stonehenge is a great bucket list experience and will take you back to basics when it comes to human spirituality and belief.

... The sunrise on the 22nd of December at 8.04am. We will be there for sunrise!

Follow the footsteps of your ancestors and exalt in the beauty of Salisbury’s hallowed monoliths from within the inner ring; ground rarely trodden but for sacred occasions. The sun’s celestial machinations have been celebrated at this time of year for thousands of years and it is perhaps the most important time of the year to be at Stonehenge- a truly spiritual experience. So as mankind dances to the yearly rhythm of the sun- will you join them?

Join a congregation of today’s Druid community, including neo-druids, neo pagans, and wiccans at a site of unequaled religious significance, and witness the warmest of celebrations clutched from the cold heart of winter. Watch as the long night is broken by the primordial light of Ostara, or dawn, as she gives her light and colour to the painting of beauty that is Wiltshire’s countryside, and it is refracted by those most ancient stones.

... Ancients believed the winter solstice was a time of death and rebirth, where spirits roamed the lands. ..."




So it seems more than appropriate that the NWT share price is 'being reborn' at this time, reflecting the transformation of its businesses into such stellar success.

[hedgehog 100] 21/12/2023 17:08

NWT has today moved up a further 3p (4.32%), to 72.5p (70p - 75p).

That's a new three-year closing high, and indeed is NWT's highest closing high (consolidation-adjusted) since February 2020 - before COVID-19 really began to impact here.

And it marks a concerted move into the 70s; just ten days after moving into the 60s, after nine months mainly in the 50s.

So the NWT share price is clearly on a bit of a roll at the moment.

And with such strong share price momentum upwards, plenty of good news in the offing shortly, and still massively undervalued and with a huge rarity factor, the fun here should only just be starting.

80p should be cleared pretty soon I would think, with 100p then the next target looking quickly achievable; and above 100p there looks to be little chart resistance until about the 150p level.

[hedgehog 100] 20/12/2023 18:22

With NWT's further rise today to 69.5p, it looks to be heading towards a real 'Zulu Dawn'.

The company's multiple strong growth drivers give it such a powerful 'impitus':-


Hedgehog 100 16 Jul '23 - 14:01 - 152 of 270 Edit 0 0 0

"NWT'S NUMEROUS WINNING TAILWINDS DRIVING GROWTH

1. Multiple strong technological growth drivers:-

• Artificial intelligence (AI).

• Robotic process automation (RPA).

• Internet of Things (IoT) connectivity.

• Cloud-based services.

• Biometric solutions.

• Wireless systems.

2. Multiple strong business growth drivers:-

• Environmental-social-governance (ESG) demands.

• Efficiency (time, money) demands.

• Data & information demands.

• Pandemic-stimulated transitions (remote-monitoring, touchless technology).

• Post-pandemic business recovery.

• Strong US dollar, compared to sterling.

3. Multiple strong regulatory growth drivers:-

• Biometric data privacy requirement.

• Time clocks obligation.

• Automatic doors safety standards & annual maintenance.

• Fire doors safety standards & annual maintenance.

• Protect Duty legislation.

4. Multiple strong corporate growth drivers:-

• Top new management at both NWT subsidiaries appointed in 2022.

• Multi-million pound R&D investment in recent years.

• New SaaS and ClaaS (software/clocks as a service) business momentum.

• Large American business & growth momentum with top partners.

Many of these drivers are of course inter-connected, feeding into and strengthening each other; e.g. energy-saving saves money.

And they are driving a greater proportion of higher margin, recurring, and technology business for NWT."

[deepvalue2015] 20/12/2023 09:37

the biggest near term growth driver will come from the rollout of Primark stores in the US? 8 new stores this year and 60 by 2026, GT clocks etc should be added at each of these shops. [LINK REMOVED] There are 1,309 TJ Maxx stores in the United States as of December 05, 2023 so Primark needs to get a move on if it wants to be competitive. Its only a bit disappointing that NWT dont talk about this more, but I guess the lack of transparency gives insiders the chance to buy stock without telling the market where the real growth is coming from!