Business
Trading update, AGM, Investor Meet, capital reorg
Trading update, AGM, Investor Meet, capital reorg.
About this update from Newmark Security Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1599P\n Newmark Security PLC\n 15 October 2021\n \n \n \n \n Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.\n \n \n \n \n \n Newmark Security plc\n \n \n \n \n \n (\"Newmark\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Trading update, notice of AGM, capital reorganisation and Investor Meet Company presentation \n \n \n \n \n \n Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, announces the following trading update and notice of its annual general meeting and a proposed capital reorganisation.\n \n \n \n \n \n Trading update\n \n \n \n \n \n As noted in the Group's final results for the year ended 30 April 2021 (\"FY 2021 results\"), the Company has maintained a key focus on cash in light of the challenges faced in managing inventory levels and dealing with the global shortage of components needed to build products. The worsening supply chain issues facing multiple sectors and businesses of all sizes have been well documented in recent weeks and, unfortunately, Newmark has not been immune to these challenges. These issues include material increases in freight costs and shipping timeframes, as well as increasing component costs and reduced availability.\n \n \n \n \n \n The Company has sought to bolster levels of stock held in order to build in a buffer to ensure that the global supply chain issues do not impact the Group's ability to fulfil existing and anticipated client orders, and to better withstand the risk of future supply-chain disruption. This increased working capital outlay, coupled with the significantly higher freight costs and increased component costs, has negatively impacted gross margins and cashflows in the first four months of the year ending 30 April 2022.\n \n \n \n \n \n As a result of this, the Company has instigated a number of initiatives to improve profitability and cashflows. These initiatives, together with increasing demand from the United States and an improvement in revenues and margins in September, provides the Board with...