Newmark Security Share Discussion Threads

[hedgehog 100] 16/5/2024 17:46

Today a Safetell team has been here:-




As Retail's Best exclusive Security Screens & Doors Sub-Partner:-






"Strengthening Retail Security: Safetell Sub-Partners with Retail’s Best

14 February, 2024

Safetell, a leader in physical security solutions for retailers and forecourt operators, is pleased to announce its sub-partnership with Retail’s Best, a premier platform connecting retailers with innovative solutions and industry expertise.

Safetell’s decision to sub-partner with Retail’s Best demonstrates its commitment to addressing the evolving challenges of retail security, particularly within the petrol forecourt sector. Leveraging Retail’s Best’s extensive network and resources, Safetell aims to provide tailored security solutions that meet the unique needs of retailers and forecourt operators. ..."




The event looks liked it was packed out, and I'm sure it will have been a very valuable day for Safetell.

Demonstrating once again what a go-getting and dynamic Group Newmark Security is.

[hedgehog 100] 16/5/2024 16:42

Hedgehog 100 14 May '24 - 14:45 - 492 of 507 Edit 0 1 0
"Thanks for that excellent analysis Dab2, and I totally concur. ..."


Fft,

Dab did such an excellent job in analysing NWT's trading update, as I made plain, that I didn't see any point in 'reinventing the wheel' immediately afterwards. It's nice that someone else is sharing the work!

But I've just given you some financial thoughts, haven't I, and I will probably add some more over the coming days.

Of course NWT will make a profit on the inventory sales, but the same would apply if they were having to replace that inventory rather than not doing so.

So the fact is, running down the inventory should not have a great impact on profitability, regardless of how it is valued.

[fft] 16/5/2024 16:12

Don't nwt value inventory at the lower of cost or net realisable value ? That is the normal way as far as I know If they do, which is the prudent thing to do, then the cash in the bank after selling would be more than the inventory value, unless inventory is very old.But, you seem to have forgotten the p and L ! That would see a gain (looking at it basically) from the difference between the inventory value and the sales value. Unless, again, the sales price is less than the inventory value. Which I doubt.Btw, hedgehog, do you only copy and paste from the nwt website or make up playlists ? A few financial thoughts would be appreciated- not just copy from dabs.

[hedgehog 100] 16/5/2024 15:52

14/05/2024 07:00 RNS Regulatory News Newmark Security PLC Full year trading update LSE:NWT Newmark Security Plc
" ... Financial Position
The Group's cash at 30 April 2024 was £1.1 million (30 April 2023 cash: £0.6 million). This increase was due to an improvement in operating cashflows driven by higher revenues and increased margin percentage, particularly in the second half of the year.
FY24 cashflows were also helped by an easing of inventory levels following the building up of positions over the last couple of years to mitigate against the supply chain challenges which have now eased.
The Group currently has capacity within its UK and US invoice financing facilities to provide further working capital headroom as the Group continues to grow. Banking net debt at 30 April 2024 was £2.0 million (30 April 2023: £3.0 million). ..."



fft 14 May '24 - 12:21 - 486 of 505 0 1 1
"Dab808, thanks for the update.
However, the reductions in inventory, and thus conversion to both cash and profits will probably be a one off, unless they still have excess inventory in which case it will be a 2 year one off (if you get me !). The underlying cash and profits increases will be a lot lower. ..."


Fft,

An easing of inventory levels should be largely profits-neutral, other things being equal: i.e. simply a change from one type of current asset (inventory), to another type or types (i.e. cash etc.)

It's an understandable misperception, as cash generation is associated with profits, but no, this shouldn't have any great impact on the profitability, I wouldn't have thought.

Though there could potentially be some lesser impact on profitability, depending upon the speed of inventory turnover, & prices paid.

Cash is different, and inventory reduction has helped the cash position, as the company has stated: but it makes it plain that this was quite a subsidiary factor in the cash increase, so not the major factor that you are suggesting.

And to the extent that it's a 'one-off' it's still a useful contribution; and as cash-generation tends to lag profits in a growth business, and profits are increasing, cash-generation should continue to increase.

[hedgehog 100] 16/5/2024 15:12

Thanks to Dab808 on LSE for flagging up this new NWT video interview on Proactive Investors today:-

"Newmark Security wraps up strong year as positive momentum continues"

"Newmark Security PLC CEO Marie-Claire Dwek takes Proactive's Stephen Gunnion through the company's trading update for the year to 30 April 2024 following a strong second-half performance.

The UK-based firm, specialising in electronic software and security systems, has observed a positive revenue trajectory, reaching over £22 million. This increase was complemented by significant improvements in EBIT, EBITDA, and cash flow figures, with year-end cash rising to £1.1 million from £600,000 in the previous year. Growth was recorded across both divisions—People and Data Management and Physical Security—with Human Capital Management (HCM) posting a 28% increase in recurring revenues to £2.9 million for the year.

Dwek highlighted the company's expansion in the US market, including setting up a US headquarters and internalising logistics operations, which has enhanced service responsiveness and operational efficiency.

Looking ahead, Dwek remains optimistic about the new financial year, pointing to a strong sales pipeline with potential in both hardware and software, indicating a continued upward trend in growth and expansion for Newmark Security."

[hedgehog 100] 15/5/2024 16:03

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[hedgehog 100] 15/5/2024 16:03

Another new article just added to Grosvenor Technology's website: & it's another excellent one from Paul Smith, Head of Quality & Compliance:-

"Insights

Security Trends: Six Ways to Improve Safety in 2024

In an era of rapid technological advancement, the security landscape is in a perpetual state of flux, with new threats and bad actors constantly emerging.

Paul Smith
Head of Quality & Compliance

In an era of rapid technological advancement, the security landscape is in a perpetual state of flux, with new threats and bad actors constantly emerging. In response, the security industry is continuing to push into new frontiers, with digital solutions driven by the likes of artificial intelligence (AI), biometrics, and multi-factor authentication.

Enterprises are facing ever-evolving challenges in safeguarding their physical and digital infrastructure. Understanding the dynamics behind new threats is key to fortifying defences and requires staying on top of emerging trends to make better-informed decisions. Therefore, the 2024 State of Security and Identity report, commissioned by HID, is an essential read for the industry.

The report surveyed over 2,600 end users and industry partners worldwide and identified the six major trends currently shaping security and identity.

Let’s take a look.

Trend 1: Multi-factor authentication

A large majority (85%) of respondents rated multi-factor authentication (MFA) among the most important trends for the coming year, while 83% of end-user respondents said their organisation uses MFA.

This widespread adoption of MFA is a clear signal that we are on a journey towards Zero Trust, a worst-case scenario approach that verifies every request with the assumption that it came from an uncontrolled source or network. While Zero Trust can appear overwhelming to implement, MFA is a relatively simple stepping stone for organisations with medium- or long-term Zero Trust goals.

Unsurprisingly, the report found that larger organisations are further down the path towards Zero Trust: 16% of enterprises with over 100,000 employees and 14% of those with 5,001 to 9,999 employees have implemented Zero Trust, while only 5% of those with under 100 employees have done so.

Trend 2: Mobile identities

Nearly three-quarters of respondents (72%) said mobile identity was a top 3 trend, while 64% of organisations reported some level of mobile ID deployment, with that number expected to increase to 79% within the next five years. Industry partners are particularly optimistic, stating that 94% of their customers will have deployed mobile IDs.

It is easy to see why mobile ID adoption is rising, because the convenience of authenticating themselves using a device they already carry is attractive for end users. Also appealing is that security safeguards mean identities can be protected even if the mobile device is lost or stolen. “A significant value proposition for mobile ID authentication comes from a powerful combination of the convenience provided to users together with the enhanced data available from smart devices,” the Mobile Technology Alliance told the report.

Trend 3: Sustainability

The critical path towards net zero set out by the Paris Agreement means strategies that drive more sustainable practices are increasingly important across all industries. Security is no different, with 56% of survey respondents rating sustainability as a top priority for 2024, while 74% of end users say they’ve seen the importance of sustainability increasing over the past year, and 80% of partners report the trend growing in importance among their customers.

Advancements in technology enable organisations to embrace more energy-friendly security and identity practices. The rise of mobile device usage and the shift towards cloud-based solutions reduce waste and minimise energy use, helping to meet sustainability goals.

Trend 4: Biometrics

Facial recognition, fingerprint and palm print authentication, and voice authentication remain an area of top interest for 50% of respondents. While there are ongoing concerns over privacy that must be addressed through regulation, biometrics’ efficiency, security, and variety of use cases mean it is increasingly popular among organisations of all sizes.

The report states that the global market for biometrics is expected to grow from $47.8 billion in 2023 to $86.1 billion by 2028, and its survey backs that up: 8% of end users plan to test or implement some form of biometrics in the next year and 22% plan to do so in the next three to five years.

Trend 5: The Cloud

Over a third of respondents (36%) said the rise of cloud-based authentication or identity management delivered as a subscription service is an important trend. These services simplify the process of creating and managing identities through a secure cloud delivery model. Currently, 24% of end users use cloud-based identity management, while another 24% are in the process of implementing systems.

This rise of centralised platforms for identity data, user authentication, and resource-access authorisation delivered as a service is aligned with the rise of mobile access technologies and Zero Trust goals.

Trend 6: AI in analytics

While AI has quietly been revolutionising industries for decades, the launch of ChatGPT in November 2022 thrust AI into the mainstream. In security, AI has emerged as a trend for the first time this year. Its ability to enable richer and faster insights is a key tool to drive better decision-making, and this is reflected in 44% of respondents already using AI analytics tools through third-party as-a-service offerings.

AI-powered analytics tools can identify threats automatically, reducing the amount of manual work required and improving the accuracy of threat detection by analysing patterns from vast amounts of data. It isn’t only analytics where AI is being used, though: 11% of respondents said they are using AI-enabled RFID devices, 15% are using AI-enabled biometrics, and 18% use AI to support their physical security solutions.

Securing the future

It is clear that innovation in security must not only keep pace with emerging threats, but stay ahead of them. Bad actors do not sit still, and security professionals must embrace sustainable solutions that deliver outstanding physical and digital security.

Grosvenor Technology is committed to innovation that aligns with industry trends, mitigating evolving security threats by using forward-thinking technology to keep workplaces safe worldwide."

[dab2] 15/5/2024 10:00

So there seems to be quite a bit of dissatisfaction here. Who'd be a CEO when you can't make shareholders happy when the price has doubled in the last 6 months from 50p to 100p, the business is now making profits that are underpinned by a working growth strategy and the outlook has never been better in both businesses?

Yes, I have been buying. Clearly others have as well. The investors I speak to (and I attended the AGM) are all very pleased with our investment. I am an active investor who has understood the challenges, fed back and helped where I can. If you want to help please feedback positively what you think will help.

I have no shame in asking us to promote what we do and get a realistic valuation for our business - I am here to make money. Plus we pay Allenby Capital to do exactly that! Chatting with Marie-Claire yesterday - who reads these boards by the way. Plans are afoot to maximise this at the FY results. We're not yet talking to investment trusts, family trusts and other investors. These results, our improving market cap and our strategy now allow us to talk seriously to new investors.

Marie-Claire and Paul are working on the next 5 year view. You might recall if you have been here long enough that this strategy plan is almost done. This will include projections, of where we can go. FFT100 they get what you want but don't want to get hanged with profit warnings if we miss, so I suggested we use ranges and directional numbers, not firm plans. Let's see, if you have further thoughts add them here, they will get read.

My numbers are my own. I estimate we lost c£3.5m of revenue when we lost UKG. All businesses win and lose customers I get that but in Newmark's case it was unfortunate timing. Had we not lost UKG we would be reporting c£25.5+m of revenues for FY24 which would have smashed all previous numbers. I believe revenues are growing a 5% a quarter, if we can do that over 5 years we'll all get a lot richer.

I don't usually post here, and this one will be my last until September. If you are still here great, let's make money, tell your friends, and be nice to each other.

[russman] 15/5/2024 06:25

positive update as always.
Bit short on profit figures.

[smithie6] 14/5/2024 20:57

dab2 wrote

..to the CEO

& then posted it here

".....

Driving our social media reach to investors, reaching out to Investors Chronicle, Proactive Investor (I’ve seen Ian’s coverage but it is matter of fact), Motley Fool etc. etc.

A market valuation of £20m, 200p is in reach this year if we get this right.

Happy to chat as always.

Regards

David "

=======

I think I might vomit !!

Maybe said 'David' is related to Hedgehog.
said David seems to be encouraging the CEO to concentrate her effort to push propaganda via all possible channels to get the share price up.

"200p is in reach this year if we get this right."

Unhealthy imo.
and if such 'pushing' were to happen, would the pushing be illegal ?
would it cross the line of what is legal ?

The market wants companies to report its accounts, & any trading updates, & any material contract win
& perhaps a director interview or 2 just after results.

And then leave it up to the market to decide what price to give to the shares.

Writing to the CEO asking them to do promotion methods A,N & C to get the share price to Xp/share
.....is it illegal ??
or illegal if it is done ?

=====

this share is not for me.
...doesn't sit well with me.

and who can cope with blind ramping posts, day in day out !

[arthur_lame_stocks] 14/5/2024 18:15

I'm not sure Mr Mojo Rising sets a good example for us all.

[hedgehog 100] 14/5/2024 17:28

So after closing at 100p exactly yesterday, NWT has today 'broken on through to the other side', recording its first ever close ABOVE the £1 level.

A major technical milestone, of which Jim Morrison himself would be proud, and one which is certainly 'lighting my fire'!

And let me just add this:-

You know that it would be untrue
You know that I would be a liar
If I was to say to you
Girl, we couldn't get much higher

[hedgehog 100] 14/5/2024 16:50

Fft,

If you look back to 2005, you will see that Treatt (TET) didn't actually issue a trading update at all between its interim results (23.5.05) and its full year results (12.12.05), so NWT is ahead of TET on that score.

And you can't expect enormous detail in a full year trading update issued just two weeks after the company's year end.

So you either wait until more detail is available, or you tell investors 'the basics' ASAP, rather than keeping them hanging on.

But NWT's final results are always wonderfully detailed, including a break down by business type and geography, and very extensive commentary.

[fft] 14/5/2024 16:39

Yes, I have done ok, but that is way more luck than judgement. At one point over exuberance meant I had about 1% of the company. But the results last year and this have led me to cut back. With the info I have - and I don't mean the PR stuff put out by the company - I don't really have a handle on where the business is. For example I was expecting higher grovesnor business. But we are told that they and safe tell both contributed to growth. So, imho, both didn't really take off. Not compared to the PR puff pieces put on this board at regular intervals But.... Someone, somewhere does believe, or has more info, because the price has been rising, and that doesn't happen without someone buying ! They must have modelled better prospects than dab, because 20% a year revenue growth doesn't really get me too excited when cash flow is fairly neutral (except the one off gain on selling inventory). Inventory in tech products tends to date quite quickly. Have they had to write some down ? When does operational gearing kick in ? We now have to wait for 3 months plus for the real data. Far larger companies do it in less.

[fft] 14/5/2024 16:24

Hedgehog, I suggest you go back to 2005 and have a look at the information contained in the treatt filings. Way more info than NWT. Oh, and a nice dividend, and 3m plus profits etc etc. something for a potential investor to get their teeth into. They even flag up one off profits, and concentrate on the underlying growth. It would be interesting to know how much the one off inventory sales improved cash flow and /or profits.

[hedgehog 100] 14/5/2024 16:00

fft 29 Oct '23 - 13:09 - 206 of 493 0 0 0
"Whilst proving estimates to brokers may be thought of providing rope to hang yourself, that is one of the main things about being a quoted company. ...
If not, then unfortunately, the company becomes almost uninvestable unless you like guessing. ..."



Well done on your locked-in NWT profit (of c. £5K.) Fft.

To have doubled your money on an 'almost uninvestable' share, in bad markets, isn't bad going!

[hedgehog 100] 14/5/2024 15:41

Note that Lord John Lee of Trafford, the UK's first ISA millionaire, is a big fan of 'family' businesses ... and flags up one in particular that has worked a Treatt:-






Treatt (TET):-

[dab2] 14/5/2024 14:31

Thanks pldazzle, I'll clarify. Call at 3.45 today.

[arthur_lame_stocks] 14/5/2024 14:29

I've just been reading the comments and looking back at the old accounts and my feeling is they're possibly busy fools and the company never really generates any real cash. Arguably very expensive at the current price. Still, daddy's little princes gets £300k a year.

[pldazzle] 14/5/2024 13:09

As I read it, *net* debt is down by £1m, meaning total cash swing is £1m (not £2m) and gross debt is unchanged from a year ago.

"Banking net debt at 30 April 2024 was £2.0 million (30 April 2023: £3.0 million)."

[dab2] 14/5/2024 12:36

I've sent the above to Marie-Claire. No doubt we'll have a call as I also speak for Benedikt and between us we hold around 7.5% of the business. If anyone else has anything useful to add please post it. I have 350,000 reasons why I want this to succeed so let's keep going...

[dab2] 14/5/2024 12:33

Hi Marie-Claire,

Congratulations to you and the team on today’s trading update.  It is fantastic and our approaching £10m valuation is deserved.

Here’s my highlights of todays announcement played back.  I’ve also been in touch with some other investors today, so there is some feedback from them as well.

Revenue >£22m. This is an important statement.

Revenue for 2H 2023 was £9.7m. So 2H 24 at £11.6m is 20% higher. The issue with a 2H comparison is that we cannot see when in Q3 UKG stopped so this is somewhat more impressive than it appears.  1H 24 revenues stood at £10.4m, so 2H 24 revenues are up 12%. It appears we have steady growth embedding at around 5% a quarter.  If we continue on this basis revenues for FY 25 will likely be in the region of £26.8m! As the £22m is a minimum revenue number, we have to wait for the results to see how much higher this projection will go!

Subscriptions to £2.9m (28% growth). This is a fantastic result. We need more information on the length of these subscriptions and forward projections but this is now 15% of revenues and growing.  This is guaranteed income (less a customer goes into administration, or cancels for which there will be penalties?).  Our investor presentations should be looking to forecast the growth of this model out at least 5 years, let’s show how it underpins our business.

The statement of winning three new customers earlier in the year, which contributed to a stronger H2, is a powerful one.  More growth to come from these, again how can we get this across to shareholders?  I’ve been chatting with Benedikt Bessmann (via X).  He is keen to know which three HCM partners we have, can we talk about them, do we have any giants like Paychex?

Financial position. Cash at £1.1m is up £1m in the 2H. Debt down by £1m. This is a £2m swing. Suggesting the balance sheet will be improving significantly each period. Some of this will be inventories running down but cash in the bank is good.

Profit - So no doubt there will be a significant profit. Inventory levels dropping have added to the cash flow but should also add to the profit as less new inventories have been purchased. Last year there were references to under deployed resources, what might be good about that is revenue growth falls straight to the bottom line. I’m predicting a profit in excess of £1.2m-£1.5m for the 2H. So £1.1m to £1.4m for the FY 24 (taking into account £0.1 loss in 1H 24.  But FY 25 is looking like £3m+ and thus a PE of 3 on a business growing at 20%+ a year.

Outlook, one of our investors sold 10,000 shares today.  Whilst not many it was on the back of the fact that we are acting like a private business and just not promoting our story enough.  We need to be more confident in our outlook and provide forecasts.  I’m with them, there is a big opportunity to further promote ourselves, consider what would we be doing if we were a US business?  Driving our social media reach to investors, reaching out to Investors Chronicle, Proactive Investor (I’ve seen Ian’s coverage but it is matter of fact), Motley Fool etc. etc.

A market valuation of £20m, 200p is in reach this year if we get this right.

Happy to chat as always.

Regards

David 

[fft] 14/5/2024 12:21

For.completeness, I will also post what I put on LSE. Dab808, thanks for the update.However, the reductions in inventory, and thus conversion to both cash and profits will probably be a one off, unless they still have excess inventory in which case it will be a 2 year one off (if you get me !). The underlying cash and profits increases will be a lot lower.Again, the TU gave no indication of 2025 activity and new sales/contracts going forward. Lots of nebulous puff comments. I have written to them before about this, but they seem intent on running it as a private business.