Newmark Security reports higher revenue, improved profitability
By Josh White
Date: Thursday 15 Jan 2026
(Sharecast News) - Newmark Security reported higher revenues and improved profitability in the first half of its 2026 financial year on Thursday, as strong growth in its human capital management business offset continued, though easing, losses at Safetell.
For the six months ended 31 October, group revenue rose 13% to £11.6m, driven by a 20% increase in HCM revenues to £7.9m, which accounted for 68% of total group sales.
Annualised recurring revenue in HCM increased 30% year on year to £3.9m, supported by growth in North America, where HCM revenues rose 32% to £6.0m.
The AIM-traded group said momentum continued to build in its direct-to-end-user strategy, alongside deeper integration with major software partners and rising subscription volumes.
Gross margin improved to 39.4% from 38.1%, while EBITDA increased to £0.9m from £0.5m a year earlier.
Adjusted EBITDA, which excludes one-off Safetell restructuring costs, rose to £1.0m.
Newmark reported an operating profit of £0.1m, compared with an operating loss of £0.3m in the prior period, while the loss after tax narrowed to £0.1m.
Net cash inflow from operations was £0.6m, following planned investment in inventory, with cash at bank of £0.4m at the period end.
Within the HCM division, monthly device subscriptions rose 30% to more than 45,000, with first revenues recorded from new direct-to-end-user arrangements and the initial sale of a new tablet-based subscription application.
The group also signed a new five-year agreement with Protime NV to continue supplying cloud services, clock hardware and OEM access control equipment.
Safetell returned to revenue growth, with sales up 3% to £2.5m, driven by a 43% increase in service revenues, which represented 71% of divisional income.
Salary costs were reduced by around 15% following restructuring, and while Safetell remained loss-making in the first half, Newmark said it is on track to deliver an operating profit in the second half.
Chairman Maurice Dwek said the group had delivered "another successful period" by executing its strategy, with HCM continuing to act as the core growth engine.
He said the board expected second-half sales to be stronger and anticipates the group would deliver full-year profit ahead of the prior year, supported by a robust pipeline and improving performance across both divisions.
At 1345 GMT, shares in Newmark Security were up 2.71% at 115.55p.
Reporting by Josh White for Sharecast.com.
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