**Summary of Newmark Security PLC Half-Year Financial Report (H1 FY26)**
**Overview**
Newmark Security PLC, a global leader in secure people-data solutions for human capital management (HCM) systems, reported its unaudited results for the six months ended 31 October 2025. The Group demonstrated strong performance, particularly in its HCM division, with overall revenue growth, improved profitability, and strategic progress in key markets.
**Financial Highlights**
**Group Revenue**Increased by 13% to £11.6 million (H1 FY25: £10.2 million), driven by a 20% rise in HCM revenue to £7.9 million.
**Gross Profit Margin**Improved by 1.3 percentage points to 39.4%.
**EBITDA**Rose to £0.9 million (H1 FY25: £0.5 million).
**Operating Profit**Turned positive at £0.1 million (H1 FY25: loss of £0.3 million).
**Loss After Tax**Significantly reduced to £0.1 million (H1 FY25: £0.4 million).
**Cash Position**Net cash inflow from operations was £0.6 million, with cash at bank at £0.4 million as of 31 October 2025.
**Business Performance**
1. **Human Capital Management (HCM) Division**
Revenue grew by 20% to £7.9 millionaccounting for 68% of Group revenue.
North America revenue increased by 32% to £6.0 million.
Annualised Recurring Revenue (ARR) rose by 30% to £3.9 million.
Monthly device subscriptions for GT Connect and other services increased by 30% to over 45,000.
First sale of the new GT Tablet monthly subscription application.
Strategic partnerships with Synerion, Protime NV, and Legion expanded market reach and recurring revenue streams.
2. **Safetell Division**
Revenue grew by 3% to £2.5 million, with service revenues up 43% to £1.8 million.
Annualised salary costs reduced by 15% through operational restructuring.
Expected to move from an operating loss in H1 to a profit in H2 FY26.
3. **Strategic Initiatives**
Focus on direct-to-end-user (D2E) strategy, integrating products with major software houses like Oracle, SAP, and Workday.
Strategic review of Safetell progressing, with further updates expected.
**Outlook**
The Group anticipates stronger H2 FY26 performance, with both divisions expected to surpass H2 FY25 revenues and operating profits.
Full-year profit is projected to be ahead of FY25, driven by HCM growth and Safetell’s recovery.
Continued investment in research and development to support innovation and growth.
**Corporate Governance**
Appointment of David Marks as Independent Non-Executive Director, with a second appointment in progress.
Board strengthening aligns with shareholder feedback and strategic focus.
**Conclusion**
Newmark Security PLC delivered a robust H1 FY26 performance, underpinned by strong HCM growth, strategic partnerships, and operational efficiencies. The Group is well-positioned for continued growth in H2 FY26 and beyond, with a focus on recurring revenue, market expansion, and profitability.
| Metric | H1 FY26 (Oct 2025) | H1 FY25 (Oct 2024) | Change | % Change |
|---|---|---|---|---|
| Group Revenue | £11.6 million | £10.2 million | £1.4 million | 13% |
| Gross Profit Margin | 39.4% | 38.1% | +1.3% pts | N/A |
| EBITDA | £0.9 million | £0.5 million | £0.4 million | 80% |
| Operating Profit/(Loss) | £0.1 million | (£0.3 million) | £0.4 million | N/A |
| Loss After Tax | (£0.1 million) | (£0.4 million) | £0.3 million | 75% reduction |
| Net Debt (incl. leases) | £4.0 million | £3.8 million | £0.2 million | 5% |
| Cash at Bank | £0.4 million | £0.3 million | £0.1 million | 33% |
| HCM Revenue | £7.9 million | £6.5 million | £1.4 million | 20% |
| Safetell Revenue | £2.5 million | £2.4 million | £0.1 million | 3% |