Full Year Trading Update

Newmark Security PLC

21 May 2026

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse (amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

21 May 2026

Newmark Security plc

("Newmark", the "Company" or, together with its subsidiaries, the "Group")

Full Year Trading Update

Total HCM revenue up 27% to £19.5 million driven by 43% growth in North America

Further expansion of HCM partner network and investment in people and systems to support growth

Newmark Security plc (AIM: NWT), a global leader in secure people-data solutions for human capital management ("HCM") systems, is pleased to provide an unaudited update on its trading for the year ended 30 April 2026 ("FY26") in advance of the publication of the Group's audited FY26 results in early September 2026.

Financial Highlights:

§ Group revenue for FY26 expected to be no less than £26 million, up over 13% (FY25: £23 million)

§ HCM revenue up 27% to £19.5 million (FY25: £15.4 million)

§ Revenue from HCM North America up 43% to £14.1 million (FY25: £9.9 million)

§ HCM annualised recurring revenues* ("ARR") increased by 8% year-on-year to £3.9 million as of April 2026 (April 2025: £3.6 million)

§ FY26 HCM operating profit increased by more than 30% year on year

Operating Highlights:

§ Signed agreements with three new large HCM channel partners in North America  

§ Launched new GT Tablet application and achieved first sales

§ Monthly subscriptions for GT Connect and other GT Services as of April 2026 increased by 137% to 97,000 (April 2025: 41,000) driven by new GT Tablet per employee per month subscriptions

§ Successful completion of key SOC 2 Type 2 and SOC 1 Type 2 certifications

§ Safetell losses in H2 FY26 exacerbated by slippage of orders into FY27

§ Group in exclusive negotiation for disposal of Safetell

§ Appointments of David Marks and Jonathan Kempster as Non-Executive Directors

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

Commenting on the FY26 performance, Marie-Claire Dwek, Chief Executive Officer of Newmark, said:

"HCM represents the future of the Group and, having undertaken a strategic review of Safetell during FY26, the Board has concluded that a disposal of Safetell is the best option. We are now in advanced discussions with a prospective buyer and are hopeful this will lead to a definitive transaction.

"HCM has continued to execute its growth strategy to great effect, with North America, HCM's largest market, delivering 43% year-on-year (YoY) growth. Our second half sales performance was by some distance our best to date, with H2 FY26 HCM revenue up 31% YoY. Other strategic highlights include adding three Tier-1 HCM North America partners and beginning to receive RFPs from large international corporates through our direct-to-end-user ("D2E") partnerships.

"We are excited by the immediate outlook for FY27 and have invested in people and systems to support HCM's growth. HCM's sales pipeline is growing and we have ensured good levels of microchips and product in stock, enabling us to deliver on customer demand. We also anticipate more HCM news in due course and look forward to providing shareholders with further updates."

Human Capital Management (HCM)

North America driving significant growth and new customer opportunities

HCM has successfully delivered in accordance with its growth strategy, which has resulted in revenue increasing by 27% to £19.5 million. This performance was led by North America, where sales grew 43%, whilst ARR at April 2026 increased by 8% YoY, further improving HCM's profitability and growth moving into FY27. This growth in ARR was achieved despite the anticipated phasing out of a large Mexican customer, to which HCM provided clock managed services as part of a transition period, with their longer-term preference being to use an in-country services provider. On an underlying basis (excluding the loss of the Mexican partner), ARR grew 26% YoY. Whilst the business remains second half weighted, HCM delivered its strongest H2 to date, with total H2 FY26 revenues growing 31% YoY to £11.6 million. Moving forward, as HCM's sales channels become further diversified and ARR grows, we expect revenues to become more evenly weighted from H1 to H2, which will improve financial visibility.

In North America, we continued to drive sales growth through our existing channel partners whilst also adding three new Tier-1 partners during H2, including Legion Technologies, a provider of AI-powered workforce management solutions, through whom HCM has already secured a large new customer. We will be working closely with these new partners through the course of FY27 to establish new sales channels and build future pipeline.

Following Paychex's acquisition of Paycor, which, as previously announced, caused some short-term disruption to sales in FY25, we are now benefiting from its greater reach and the pipeline is building for FY27. After the successful launch in H1 FY26 of GT Tablet, the Group's workforce management solution for remote and temporary locations, recurring revenues have continued to grow with the support of Paychex, with further customer interest building through our other HCM partnerships.

Sales from the Rest of the World were slightly lower (down 5%) due to our largest partner taking longer than anticipated in bringing its business back to normal after completing a series of acquisitions. There has been recent evidence of improvement, which we now expect to see as FY27 progresses. The long-term positive is that these acquisitions have taken our partner into new European territories, presenting a wider network of new sales opportunities.

Direct-to-end-user ("D2E") strategy is building pipeline for FY27 following first sales

The D2E marketplace route represents HCM's most direct engagement with enterprise-level end users. Over the past year we have made a series of strategic investments whilst working closely with Oracle and Workday to build our pipeline. We are excited by the immediate outlook for FY27 and expect the work done through FY26 to deliver sales through the new financial year. Request for proposals ("RFPs") have also been received from large, multinational companies, illustrating the calibre of customers we are targeting through this channel. Our agreement with a large North American partner, signed at the start of the year, combining our GT Clock devices with its software for customers in the D2E SAP market, delivered its first sales in H2 and we are encouraged by the pipeline for FY27.

Safetell and Access Control - Strategic Reviews

Safetell

The Board is clear in its view that HCM represents the Group's future, offering the most attractive long-term growth prospects and shareholder returns. A strategic review of Safetell was therefore commenced earlier in FY26, which has included a process to seek a buyer for the business.

As part of an ongoing efficiency drive, £0.5 million of annualised costs were removed from Safetell in FY26 and further cost reductions are being made. Revenue for door services increased by over 30% during the year, with demand continuing to grow. However, delays outside the Group's control on several contracts have led to £1.2 million of confirmed project installations moving from H2 FY26 into FY27.  This has resulted in a material and adverse impact on both profit and cashflows and has contributed to the increase in Group net debt.

Given this, and Safetell's further funding requirements, the Board has accelerated the disposal of Safetell. Having approached many prospective buyers, we are now in advanced discussions with one party and are hopeful this will lead to a definitive transaction in the short term. However, it is not expected that this transaction will result in any net cash inflow to the Group at completion.

Access Control

As announced at the half year, ongoing delays with Access Control's software partner continued to hold back the division's ability to bring Janus C4 Ultra to market. The Board therefore took the decision to focus all investment within Grosvenor on HCM and commenced a strategic review of Access Control. This review is now concluding and the Company intends to provide a more detailed update on its plans for Access Control when it publishes the FY26 Annual Report in September.  

Financing

Group net debt (excluding leases) as at 30 April 2026 was £4.8 million, up from £2.1 million at 30 April 2025, due to significant planned inventory investment, the timing of Q4 FY26 sales and additional Safetell funding draw down. Additional financing has been provided from a new £1 million HSBC UK trade credit facility based on inventory purchases and a $1 million increase in the HSBC US revolving credit facility.

Corporate Developments and Governance

During FY26, David Marks and Jonathan Kempster joined the Board as Independent Non-Executive Directors, bringing extensive public company and advisory experience. In conjunction with Jonathan's appointment in February 2026, Michel Rapoport stepped down as a Non-Executive Director.

The newly constituted Remuneration Committee is undertaking a review of the Group's existing remuneration and incentivisation arrangements. Changes to the performance criteria will need to be made following the sale of Safetell. Following feedback regarding the performance criteria relating to the Equity LTIP in particular, these are being reviewed by the Remuneration Committee.  It is expected that the results of this review and any new arrangements will be announced by the end of September 2026.

The Company is also pleased to confirm that it has, once again, completed both SOC 1 Type 2 and SOC 2 Type 2 certifications. These validate the effectiveness of the Company's internal controls, data processing and security measures over a sustained period. These certifications assure clients of secure data handling and operational integrity and are essential for operating with our HCM partners. 

Current Trading & Outlook

The outlook for FY27 is exciting. We have made a good start to the new financial year after concluding FY26 with the strongest period to date. HCM's sales pipeline continues to build, and we expect the strategic investment made across the HCM business during the year to drive further growth in FY27.

Noting the impact of the Middle East conflict on global markets and data centres increasingly absorbing global semi-conductor supplies, HCM is holding a good level of microchips and components and currently sees no issues with fulfilling orders. The Board notes that there have been cost increases in recent months and these are being passed onto customers where possible until prices normalise.

Moving into FY27, the Board is fully focused on the growth and expansion of HCM and delivering necessary strategic solutions for Safetell and Access Control as soon as possible in the best interest of shareholders.

ENDS

Newmark Security plc Marie-Claire Dwek, Chief Executive Officer Paul Campbell-White, Chief Financial Officer	Tel: [phone] www.newmarksecurity.com
Allenby Capital Limited (Nominated Adviser and Broker) James Reeve (Corporate Finance) Amrit Nahal, Tony Quirke (Sales & Corporate Broking)	Tel: [phone]
Yellow Jersey PR Charles Goodwin	Tel: [phone]

About Newmark Security plc

Newmark Security plc is a global leader in secure people-data solutions for human capital management (HCM) systems, trusted by leading enterprise and software providers. For nearly 30 years, the firm has delivered technology that captures and manages 'people flow' - from identity and access to time and attendance: Bridging the gap between physical and digital workplaces with speed, security, and compliance.

The Company's integrated hardware and secure cloud software generate actionable workforce data, enabling enterprises to monitor staff efficiently, protect employees, and optimise operational productivity. Its end-to-end technology and service solutions are designed to lower total cost of ownership while providing lifecycle support that drives sustainable ARR growth.

Led by security-tech entrepreneur Marie-Claire Dwek, Newmark is trusted by some of the world's largest retailers, law enforcement agencies and defence organisations, and is supported by enterprise reseller software partners, Oracle, SAP and Workday. With its award-winning technology 'powering people flow', Newmark Security remains essential to enterprise security, compliance, and workforce management worldwide.

For more information, please visit: www.newmarksecurity.com

Safe. Seamless. Secure

 

END