Business
Trading Statement
Trading Statement.
About this update from Newmark Security Plc
[{"type":"text","content":"\n \nRNS Number : 3308D Newmark Security PLC 06 July 2016 \n\n6 July 2016\n \nNEWMARK SECURITY PLC\n(\"Newmark\" or the \"Group\")\n \nTrading Update\n \nNewmark Security plc (AIM: NWT), the leading provider of electronic and physical security systems, provides the following trading update.\n \nWhilst the Group recently updated the market that trading for the year ended 30 April 2016 (\"FY16\") was in line with market expectations, trading conditions have become increasingly difficult and the budgeted operating profit for the current year is expected to be significantly less than FY16. \n \nThe Board still expects to maintain the dividend at the time of the final results due for release in August 2016.\n \nCurrent trading and outlook of the individual operating segments of the Group is set out below.\n \nAccess Control Review\nDuring FY16 there was a clear divergence of revenue between the JANUS and SATEON product lines. Sales of JANUS declined more quickly than anticipated due in part to the retirement of older Microsoft platforms. SATEON revenues however increased significantly overall although revenue from the mid-tier customers has not grown as quickly as expected. The overall increase in SATEON sales has been partly attributable to the adoption of SATEON by new clients, but also to the migration of existing clients from the JANUS to SATEON product. Our migration campaign is helping to ensure that customers can migrate from JANUS to SATEON. As previously announced, the SATEON range was enhanced during FY16 and further enhanced with a new release in June 2016 that simplifies the installation and management of SATEON.\n \nAlso a new sales office was opened in Hong Kong last year and staff were hired locally and in greater China to support sales in the APAC region. Whilst the pipeline of opportunities in these countries has grown, meaningful revenues are yet to be generated. Sales in the US have also not matched expectations.\n \nWorkforce Management Review\nOwing to a decline in sales of the legacy RS series of products and a slowdown of the rollout across the estate of one of the world's largest apparel retailers, revenues in the UK business softened during last year.\n \nIn addition, sales in support of a Workforce Management contract (worth US$6m over five years)...