Newmark Security (NWT) H1 25/26 earnings summary

Executive summary

• Group revenues increased 13% year-on-year to £11.6 million in H1 FY 2026, with adjusted EBITDA doubling to £1 million, driven by strong HCM and service revenue growth.

• HCM revenues rose 20% to £7.9 million, with annual recurring revenues up 30% to £3.9 million and device subscriptions exceeding 45,000.

• Gross profit margin increased by 1.3 percentage points to 39.4%.

• Safetell, the physical security division, saw a 3% revenue increase and a 43% rise in service revenues, despite an H1 operating loss of £400,000, with expectations for improvement in H2.

• Operating profit was £0.1 million, reversing a prior loss, and loss after tax reduced to £0.1 million.

Financial highlights

• HCM revenue up 20% to £7.9 million, accounting for 68% of group revenue.

• HCM annual recurring revenues up 30% to £3.9 million; device subscriptions up 30% to over 45,000.

• Safetell revenues up 3% to £2.5 million; service revenues up 43% to £1.8 million.

• Net cash inflow from operations was £0.6 million, slightly down from £0.7 million due to inventory investment.

• Cash at bank at period end was £0.4 million.

Outlook and guidance

• H2 FY 2026 has started strongly, with both divisions expected to surpass prior year H2 revenues and operating profits.

• Management expects to exceed H2 2025 EPS in H2 2026 and full year profit to surpass FY25 profit after tax of £0.7 million.

• Strong revenue pipeline and new partnerships expected to drive further growth in H2 and FY27.

• Continued investment in R&D and innovation, with a focus on expanding recurring revenue streams and scaling through partnerships.