This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (amendment) (EU Exit) Regulations 2019/310.

 

4 September 2025

 

Newmark Security plc

("Newmark", the "Company" or the "Group")

 

Final Results for the year ended 30 April 2025

 

HCM drives Group growth with revenue up 14% and ARR up 24% YOY

 

 

Newmark Security plc (AIM: NWT), a leading provider of electronic, software, and physical security systems and installations is pleased to announce its audited results for the year ended 30 April 2025 (FY25).

 

Group financial highlights:

·      Revenue up 3% to £23.0 million (2024: £22.3 million)

·      Gross profit margin increased by 2.2% pts to 40.7% (2024: 38.5%)

·      EBITDA up 8% to £2.4 million (2024: £2.2 million)

·      Operating profit of £0.9 million (2024: £0.8 million)

·      Profit after tax of £0.7 million (2024: £0.1 million)

·      Earnings per share of 7.1p (2024: 1.4p per share)

·      Investments in research and development £0.5 million (2024: £0.4 million)

·      Cash generated from operations £1.8 million (2024: £2.8 million)

·      Cash at bank of £0.4 million at year end (2024: £1.1 million)

·      Total debt including leases at year end £4.0 million (2024: £4.9 million)

 

Business highlights

Grosvenor

·      Human Capital Management (HCM) revenue up 14% to £15.4 million (2024: £13.5 million)

·      HCM annualised recurring revenue* (ARR) up by 24% year-on-year to £3.6 million as of April 2025 (April 2024: £2.9 million)

·      Monthly device subscriptions for GT Connect and other GT Services up 32% to 40,635

·      Gained Oracle Integrator status following the successful testing of HCM's Clock and Cloud-based software with first D2E customers expected during FY26

·      Completed integration with SAP earlier than anticipated, with sales pipeline building for FY26

·      Workday integration on track with certification expected by mid-FY26 and pipeline to build further over remainder of FY26

·      Signed North America partnership agreement with Synerion to combine GT Clock devices with Synerion's software, targeting the direct-to-end-user (D2E) market

·      Post year-end, signed new five-year supply agreement with Protime NV, to continue to supply GT Connect cloud services, clock hardware and OEM access control equipment

 

Safetell

·      Revenue down 15% to £4.9 million (April 2024: £5.8 million) after expected contracts were pushed into FY26

·      Service revenues grew substantially by 30% to £2.7 million, representing 56% of annual income for the division

·      Commencing strategic review of division to deliver improved sales growth and shareholder value  

 

Outlook

·      Group has made a good start to FY26 with sales building across both divisions

·      First HCM partner already committed to onboarding new GT Tablet with others expected to follow in FY26

·      Post year-end, completed software and hardware integration process with SAP and now building sales pipeline whilst Workday on track for mid-FY26

·      Group is seeing minimal impact from tariff changes, with HCM terminals currently exempt due to classification as data terminals

 

*ARR is calculated by annualising revenue recognised in a given month from all clients on deployed HCM subscription contracts

 

Maurice Dwek, Chairman of Newmark, commented:

 

"The Group delivered another robust full year performance with revenues and profitability improving in the second half as anticipated. 

"HCM strengthened its position as the Group's primary growth engine and now accounts for 67% of total Group revenue. The division's KPIs included a 24% increase in recurring revenues, whilst device subscriptions increased by 32% to over 40,000. This growth is helping to increase HCM's cash flow and profitability. The introduction of the new GT Tablet in FY26 will only strengthen our service offering and help drive further recurring revenues.

"Given the strong momentum in the HCM market, we took the decision to accelerate our Direct-to-End-user strategy, completing the integrator processes for Oracle and SAP, whilst Workday is expected to be completed in mid-FY26. First D2E sales are expect in FY26. Our North America partnership with Synerion is another exciting development, with GT Clocks being combined with Synerion's workforce management software to deliver complete solutions directly to end-users.

"Access Control and Safetell both saw revenues increase in the second half after previously expected new customer contracts were pushed into the latter part of FY25 and FY26. Whilst management is undertaking a strategic review of both these divisions, judging by the stronger contract pipelines that are building, we anticipate both delivering improved performances in 2026, with higher demand for door services and entrance control products..

"With a robust pipeline, proven execution, and a clear five-year technology roadmap, we are confident in meeting our targets for the coming year and delivering sustained value for shareholders."

 

Investor Webinar

 

As announced on 11 August 2025 (see RNS), Marie-Claire Dwek (CEO) and Paul Campbell White (CFO) will provide a live presentation relating to the FY25 results via Investor Meet Company today at 10:00am BST. Investors can sign up to Investor Meet Company for free and add to meet Newmark Security plc via: https://www.investormeetcompany.com/newmark-security-plc/register-investor

 

 

Newmark Security plc Marie-Claire Dwek, Chief Executive Officer Paul Campbell-White, Chief Financial Officer	Tel: +44 (0) 20 7355 0070 www.newmarksecurity.com
Allenby Capital Limited (Nominated Adviser and Broker)	Tel: +44 (0) 20 3328 5656
James Reeve / Lauren Wright (Corporate Finance) Amrit Nahal / Tony Quirke (Sales & Corporate Broking)

 

 

 

 

About Newmark Security plc

 

Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely.

 

From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets.

 

We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers.

 

Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and Physical security installations to various sectors.

 

Newmark Security plc is admitted to trading on AIM (AIM: NWT).

 

For more information, please visit: www.newmarksecurity.com

 

Safe. Seamless. Secure

CHAIRMAN'S STATEMENT

Overview

The year to 30 April 2025 (FY25) marked another solid year of progress for Newmark in pursuit of its current five-year plan, once again achieving record revenues. Despite several external project and partner delays causing a bounce effect for both divisions, shifting orders into a stronger second half of the year and in some cases into the first half of FY26, every area is now in a greater position of confidence and opportunity than at any former time in our history. Sitting beneath the headlines, many separate factors are beginning to align for what will be a significant scaling opportunity ahead, in a year where the combination of sales progress and operational preparation was of equal importance.

Developing strong partnerships that drive recurring revenues continues to be the central focus across both divisions, as we look to improve visibility and reduce exposure to external project cycles. Once again, human capital management (HCM) provided the engine for growth across the Group, with positive developments in every territory from North America to Europe and the Rest of the World. The M&A environment for many of our strategic partners has accelerated, providing an opportunity for our team to organise for greater scale to come, now that many of these organisations have themselves multiplied in size and geographic reach. Previous efforts to capture greater share-of-wallet have had a material impact and now position us perfectly for the enlarged partnerships that lie ahead. The instinct to lead the market with innovation has once again seen the team make exciting progress with the launch of GT Tablet, opening a new category of opportunity to serve organisations with mobile and dispersed teams where fixed terminals cannot operate. Both our sales and technical teams have been busy organising around the growing Direct-to-End-user (D2E) opportunity, making excellent progress in developing our partnerships with some of the world's leading HCM software providers. All of this, against a backdrop of global uncertainty that the team continues to ably navigate is strengthened by the resilience measures put in place as part of the previous five-year strategic plan.

As we continue to reap the benefits of our efforts through 2025, the team has emerged better prepared and already looking forward to the numerous scaling opportunities to come in FY26 and beyond. Being increasingly well-positioned to make the most of these opportunities, our focus will remain disciplined in keeping to the strategic pillars of our growth strategy that have proven so successful.

Board and governance

The Board and its Committees continue to maintain a robust governance framework, led by our Chief Financial Officer, Paul Campbell-White, who continues to be supported by a strong leadership team providing independent challenge and ensuring good governance is sustained across the Group.

We follow the Quoted Companies Alliance Corporate Governance Code (QCA Code) and have adopted the updates introduced in November 2023.

Going concern

The Board continues to have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. We continue to deliver year-on-year revenue growth and generate healthy operating cashflows. Growing levels of recurring revenues provide increasing stability in our outlook and, whilst we continue to closely monitor global macroeconomic events, supply chain issues have eased.

We are optimistic that our growth will continue in the next 12 months, supported by the investments in strategic initiatives. A full analysis of the Group's going concern assessment is included in the Directors' Report in the Annual Report. Accordingly, the directors consider it appropriate to prepare the accounts on a going concern basis.

Dividend

The Board is not recommending the payment of a dividend for the year ended 30 April 2025 (2024: £Nil).

Outlook

The Group continues to be in good health and performing well in all of the areas identified as priorities for our strategic growth. Whilst strategic reviews are being conducted across Access Control and Safetell, two areas where we will seek to achieve greater value for shareholders, overall, I am delighted with the enormous discipline, effort and resilience displayed by the whole team as we continue expanding our opportunities and driving growth across the board.

As evidenced by group revenues rising consecutively for the past five years in a row, our strategies have proven highly effective, and I remain entirely convinced of the team's positive outlook for further growth ahead. The Executive Team and our many talented employees continue to work extremely hard to put both divisions in the strongest possible position in each of their markets. With significant gains to come, once again, we are forecasting revenue growth for the coming year, having already made a strong start to FY26.

On behalf of the Board, I would like to extend my thanks for all the hard work and dedication shown by our teams in what has been another highly productive year where we have continued to out-compete many larger suppliers and incumbents with our higher quality products and services. The expanding array of opportunities this presents us with enables us to drive forward with great confidence and address exciting market opportunities that we have carefully targeted. I look forward to building on our success and adding 2026 to a series of many successful years ahead.

 

Maurice Dwek
Chairman

3 September 2025

CHIEF EXECUTIVE OFFICER'S REVIEW

Overview

At the outset of our new five-year 2029 Strategic Growth Plan, it was clearly important that 2025 provided a solid first-year foundational platform for our scaling ambitions, as we strive to accelerate growth. Our aim is to deliver quality innovation to more customers at every level of the market. I am delighted that this year has indeed provided the positive start we had hoped for, and a base on which we can build, with notable gains in all key areas at the core of our plan. Once again, this is a result of the tireless efforts of our team, who continue to pursue our clearly defined strategy with enormous focus and dedication.

As anticipated, Group sales and profitability strengthened in the second half of the year. Our HCM business went from strength to strength, with revenue growing 14% and now accounting for nearly 67% of total Group revenue. It also grew recurring revenues by 24% and achieved a number of important new subscription milestones.

In line with our HCM plan, we have grown recurring revenues through services, displaced clock competitors, and are diversifying our sales channels through our D2E strategy as we integrate our clock and cloud-based software with world-leading HCM platforms. As a result, we are expecting HCM growth momentum to build through FY26, particularly in North America given the size of the market and the progress already being made with our D2E strategy. We are already working hard to develop our D2E sales pipeline with Oracle, Workday and SAP, and we expect to secure our first customers in FY26.

Meanwhile, delivering strong growth in recurring revenues across an even broader base of strategic partnerships raises our confidence for both the short and long-term. Our model of hardware-enabled software and services and clear quality leadership combine to drive highly 'sticky' customer relationships. Our consistent approach has been to broaden the trusted partnerships we have established and capture full share-of-wallet across the breadth of our product range.

Across the rest of the Group, both Access Control and Safetell also reported stronger revenues in H2, particularly after several contract start dates were deferred to later in the year and into FY26. Whilst these businesses are moving in the right direction, HCM has become our primary focus given its growth and the scale of commercial opportunities that lie ahead. As such, we are reviewing the growth strategies of both Access Control and Safetell to assess how we can best drive value for the Group and ultimately our shareholders.

Performance

The combination of strategic activities contributed to another year of steady growth across the Group. Group revenue grew by 3% year-on-year to £23.0 million (April 2024: £22.3 million) with gross profit also increasing, up 9% to £9.4 million (April 2024: £8.6 million). This marks four years of consecutive year-on-year growth, rising 31% from £17.6 million in 2021 to £23.0 million in FY25, representing a compound annual growth rate (CAGR) of 6.9% - see Chart 1 above.

Within this total, our HCM opportunity continues to expand and accelerate, with FY25 performance being driven by executing with strategic focus on this market. HCM sales grew by 14% year-on-year to £15.4 million (April 2024: £13.5 million), representing nearly double the Group compound growth rate, of 12.3% over the same period between FY21 (£9.7 million) and FY25 - see Chart 2 above.

HCM annualised recurring revenue (ARR) increased by 24% year-on-year (YOY) to £3.6 million (April 2024 ARR: £2.9 million), positively contributing to profit margin growth and reaching a record number of subscriptions which grew by 32% to 40,635 monthly device subscriptions. This included the first new subscriptions under the Per-Employee-Per-Month (PEPM) model, designed specifically for the D2E market.

In 2025, GT clocks handled over 12 million monthly transactions, and in almost all cases now generate hardware, software and warranty revenues from each device. Our compound growth in subscriptions over the last 5 years has been running at 57% growth per annum, with annual recurring revenues rising from £0.15 million in 2021 to £3.6 million this year. This represents an even more impressive 121.3% compound growth, with more to come in FY26 and beyond - see Chart 3 above.

Access Control delivered a stronger second-half performance; however, this was not quite sufficient to offset an overall decline of 10%, achieving full-year revenues of £2.7 million. This was due to slower than expected migrations and further delays from our software partner in the development and launch of our new Janus C4 Ultra product. Whilst the regional focus did not produce the additional growth we had hoped for, to balance the upgrade delays, progress in this area was deprioritised in favour of increased focus and investment in our rapidly expanding D2E opportunity. For FY26, a number of mitigations are currently being undertaken to refocus the sales team and accelerate the development project, whilst completing a strategic review to ensure we identify the optimum growth strategy for the group.

This divisional combination delivered a net positive full-year result for Grosvenor, with an improved gross margin of 42.5% contributing a gross profit of £7.7 million (FY24: 39.7%, £6.5 million). Topline revenues increased by 10% to £18.1 million (April 2024: £16.5 million), which now accounts for nearly 80% of Group turnover.

Safetell wrestled with the dual macro-economic effects of 2025, with delays in public sector project cycles and the impact of significant inflationary pressures in retail, both of which combined to cause a slowdown in projects that dampened another excellent year of progress in growing services. Whilst total revenues declined by 15% to £4.9 million (April 2024: £5.8 million), service revenues grew substantially, increasing by 30% to £2.7 million, representing 56% of annual income for the division. Passing this important service-oriented tipping point marks a critical milestone in a business that continues to prioritise the creation of long-term value, executing in line with the groupwide strategy to grow recurring revenues. Once again, the focused approach to broadening our service operations gained further traction in FY25, driven by new strategic accounts and a greater share-of-wallet from existing customers. This was evidenced by notable growth in Door Services which grew by 49% to £1.0 million.

With an improved second-half performance for both products and services, the prospects in FY26 are extremely positive, with delayed projects now resuming and feeding into a strong, well-balanced pipeline. A number of exciting and substantial new opportunities add to our confidence of a welcome return to growth, whilst we assess the strategic priorities and growth plan to ensure value for shareholders.

Financial

The Group's cash at 30 April 2025 was £0.3 million, a decrease of £0.8 million on the prior year (30 April 2024 cash: £1.1 million). This decrease was primarily due to Coronavirus Business Interruption Loan Scheme (CBILS) bank loan and invoice financing repayments.

Group debt (including leases) reduced by a further £0.9 million to £4.0 million (April 2024: £4.9 million). Bank net debt at 30 April 2025 was £2.1 million (30 April 2024: £2.0 million).

Amidst global concerns over changes to US tariffs, it is reassuring to note that the Group is seeing minimal impact, with HCM terminals currently exempt from tariffs because of their classification as data terminals. As in previous years, inventory and supply levels are being managed effectively, in line with revenues, to ensure we have sufficient stock to cover forecast demand. As we continue to monitor macroeconomic events closely, we are leveraging the expert systems and processes we use to monitor our supply chain and control inventory to maintain our competitive edge in customer delivery. This has been made much easier through the expanded footprint of our US location, always taking the opportunity to improve stock turnover and cashflow where possible.  This is evidenced by the stock turn ratio steadily improving throughout the year and is now above the 3.5 target we set.

With the oversight of our CFO, Paul Campbell-White, we continue to ensure investment decisions are aligned with our strategic goals, exercising sound financial discipline with strong governance and appropriate commercial controls commonly embedded across the Group.

Strategy & Outlook

Newmark will continue into FY26 by executing the strategy that has proven highly effective throughout the previous five-year growth plan, with new emphasis on those areas where our scaling potential is demonstrably increasing. A detailed explanation of each divisional strategy and its performance can be found in the respective sections of this report. At a Group level the direction remains consistent, engaging new partners, increasing share-of-wallet through existing partners, investing in channel development with new product and service innovation, and prioritising the growth of recurring revenues through service-based subscriptions at a range of price points.

The Group has already made a good start to FY26 with sales building across both divisions and a well-qualified pipeline of opportunities that are beginning to recover the handful of delays experienced in FY25.

For HCM, the D2E Oracle partnership is our immediate focus. During the second half of FY25 we gained Oracle Integrator status following the successful testing of HCM's Clock and Cloud-based software. The sales pipeline is building, and we expect to secure our first D2E customers during FY26.

We are also now integrated with SAP earlier than anticipated and are targeting our first sales during FY26. The recently announced exclusive partnership agreement with Synerion, a global provider of cloud workforce management software, underlined further rapid progress with our D2E strategy. The partnership will see HCM's GT Clock devices combined with Synerion's workforce management software and integrated into several of Synerion's HCM partner platforms in North America, enabling us to deliver comprehensive hardware and software solutions directly to end-users by the end of FY26.

Our Workday integration is also progressing well, and we plan to achieve certification by mid-FY26, which will enable us to build additional pipeline over the remainder of the year.

In each of these areas, D2E remains an exciting space and a huge opportunity for Newmark. Activity and interest are building strongly at global trade show events with Oracle, Workday and SAP, with each marketplace containing an abundance of potential enterprise customers.

Innovation leadership has always been a key focus for Newmark as we seek to differentiate and win great customer relationships based on our reputation for delivering high quality, complete solutions, quickly and reliably. I am particularly excited to report that the division is now launching GT Tablet in FY26, extending HCM past hardware with our first software-only clock solution. With similar functionality to fixed clock devices, now in tablet-compatible form, GT Tablet can link existing customer tablets through our secure cloud platform, GT Connect, and to GT Services.

GT Tablet will be launching on Google Play Store and IOS App Store in FY26, although the division has already begun marketing and selling GT Tablet directly, with initial engagements receiving significant early interest from our existing HCM partners. We anticipate this will be an important incremental source of recurring revenue at the end of FY26, with one HCM partner already committed to onboarding GT Tablet, whilst discussions with others are progressing well.

Altogether, there is strong evidence of growing demand for our HCM products and services, giving us the confidence to think 5-years ahead. Increasing cyber focus and regulatory pressure raise data security and compliance as board-level priorities that continue to drive enterprise opportunities globally. With AI being rapidly embedded and deployed across enterprise systems, we know we must keep innovating to remain at the forefront of our market. To bring greater focus and control to this endeavour, I am delighted to announce that we have promoted Simon Poole-Anderson to the role of Technical Director to create a new 5-year technology roadmap that puts both AI and development scalability at the heart of our R&D investment. Further growing subscriptions via GT Tablet is just part of that strategy, as we also look to update our full range of devices, advance our secure cloud control software GT Connect, and extend our array of HCM system integrations so that Newmark continues to define the leading standard for state-of-the-art quality and protection at the HCM Edge.

Safetell too, has already had a more confident start to the year with a good pipeline building and a proportion of the deferred orders being delivered in H1 FY26. It also expects to continue to grow its services revenues through its Door Services offering, noting the excellent growth in FY25 that extended our capability to include the servicing of security shutters, with plans to further expand the range of products and services we can offer to attract a similarly strong recurring profile.

As we press ahead with our 2029 Strategic Growth Plan, we are constantly challenging ourselves to set and meet stretching internal targets for revenue and EBITDA growth, to help meet our scaling ambitions. We are already benefitting from the many operational improvements of recent years and have an excellent team in place following clearly defined strategies that have proven successful.

Marie-Claire Dwek
Chief Executive Officer

3 September 2025

OUR DIVISIONS - People and Data Management

Revenue information

£'000	2025	2024	Increase/ (decrease)	% change
HCM North America	9,902	9,443	459	5%
HCM Rest of World	5,478	4,009	1,469	37%
Total HCM	15,380	13,452	1,928	14%
Total Access Control	2,719	3,017	(298)	(10%)
Division Total	18,099	16,469	1,630	10%

 

Performance overview

2025 was another year where Grosvenor Technology (Grosvenor/GT) continued its innovation leadership in high quality timeclocks, access and identity data control for the Human Capital Management (HCM) and Access Control markets. A strategic priority guiding our dedicated and experienced team is our central focus on protecting human capital by controlling the people data that powers HCM - people's identity, time, access, and security.  We focus on transacting and protecting this data to drive efficiency, productivity and security in the systems that manage people, keeping their data safe and ensuring companies are compliant.

In FY25, we continued to deliver on this focus, achieving top-line revenue growth of 10% to £18.1 million (FY24 GT Revenue: £16.5 million), a gain of £1.6 million on FY24 and now accounting for nearly 80% of group turnover. This growth was driven by the strong performance of the HCM business and another substantial increase in annualised recurring revenue (ARR). As we build our offering in the Direct-to-End-user (D2E) space through partnerships with some of the world's largest HCM software companies, the HCM business also recorded its first per-employee subscriptions, establishing the necessary foundations to position the business for even stronger growth in the months and years ahead.

HCM

Delivering strong growth through disciplined strategic execution

Executing our strategy to focus on HCM, this business continued to lead our growth with revenue increasing by 14% year-on-year (YOY) to £15.4 million (FY24 HCM Revenue: £13.5 million). ARR increased by 24% YOY to £3.6 million (April 2024 ARR: £2.9 million), further improving HCM's profitability and reaching a new subscription milestone. Achieving 40,635 monthly device subscriptions for GT Connect and other GT Services, up 32% YOY with an additional 9,942 subscriptions (April 2024 subscriptions: 30,693). For the first time, this included 3,027 subscriptions under the new PEPM model, designed specifically for the D2E market.

Strategy

Once again, by consistently pursuing our five-pillar growth strategy, in FY25 we delivered important operational progress to create the environment for sustained and incremental performance, with highlights as follows:

1. Continue: Our team continued to build strategic partnerships across the industry to open new sales channels, working with a number of new partners due to be announced in FY26, and adding to an already healthy and growing pipeline expanding through our existing partnerships.

2. Attach: GT Services provides a compelling all-round proposition that adds significant value to our subscriptions that is hard for competitors to match. As previously announced, in FY25 we also began to offer customers "direct-to-customer" fulfilment from our logistics centres in the US and UK, effectively allowing our partners to fully outsource all aspects of fulfilment to us. This differentiated positioning, beyond device manufacturer to trusted solutions and biometric data service provider, is building incremental future performance by accelerating growth in recurring revenue-based subscriptions as well as increasing customer stickiness through long-term partnerships. As a key pillar of our growth strategy, we expect this to be directly reflected through our newly established framework of Customer Experience measures with services providing the key link to demonstrate ongoing added value.

3. Push: Continuing a campaign that started in FY24, we are successfully converting existing HCM customers who had previously only purchased hardware products, upgrading them to a recurring services model with GT Protect and GT Connect. Now every customer in the North American region with one exception has attached recurring services, making a significant contribution to the forward outlook through higher value service-based contracts.

4. Displace: Demand for the GT4 and lower-cost GT4-Lite devices was particularly strong in North America, with orders for the latter helping to displace its main low-cost clock competitor in this market. This has been at the heart of our plan to target full share-of-wallet, enabling us to expand key partnerships by offering the full range of clocks, with services attached that drive recurring revenues.

5. Diversify: With further details below, our efforts to develop and launch GT Tablet in FY25 open a significant channel of opportunity, expanding our target market to dispersed mobile workforces on a global scale, and providing new routes to explore software-only revenue-sharing arrangements with our partners. This presents a tremendously exciting opportunity for FY26.

Meanwhile, benefitting from our efforts in FY24, we have begun marketing our new offering, GT Time, shaped to target the HCM Direct to End-user (D2E) market opportunity by combining the flexibility of choosing entry or premium products with services attached and per-employee-per-month pricing. Our D2E strategy involves selling to end-users through large HCM partner platforms, unlocking enterprise-sized customers and larger orders for GT Time products and services. Building on our Partnership Programme with the first one of these brand leaders, Oracle, during the second half of the year we gained Oracle Integrator status following the successful testing of our clock and cloud-based software. The sales pipeline is building, and we expect to secure our first D2E customers during FY26.

We have also been busy establishing new sales channels for GT Time and now expect to be integrated with SAP earlier than anticipated, targeting the first sales during FY26. Our Workday integration is progressing according to plan, and we aim to achieve certification by mid-FY26, which will enable us to build our sales pipeline over the remainder of the year.

The recently announced partnership with Synerion, a global provider of cloud workforce management software, marks a significant step forward in our D2E strategy. Under this agreement, Synerion will exclusively partner with Grosvenor Technology on D2E opportunities involving integration of GT Clock devices into market-leading third-party HCM systems across North America. This collaboration positions Grosvenor to deliver comprehensive hardware and software solutions directly to end-users by the end of FY26.

Software market consolidation creates the opportunity to scale-up partnerships

With M&A-based consolidation a frequent feature of the highly active HCM software marketplace, this can present significant partner scaling opportunities to introduce the acquiror's broader range of customers to our products and services. In 2025, this took place on both sides of the acquisition equation.

In North America, our partner Workforce Software was acquired by ADP, an employee management solutions company, whilst another partner, Paycor, was acquired by Paychex, a payroll and HR solutions company. The disruption caused by these acquisitions impacted orders received during the second half of FY25. However, we believe that these acquisitions are an extremely positive development for us, with early discussions to introduce their large customer base to our products and services, and we are excited by the potential new sales opportunities that lie ahead.

In the Rest of the World region (ROW), revenue growth was achieved despite our largest European partner completing its own series of acquisitions in H1, which caused a temporary slow-down in orders. However, these acquisitions have led to our partner expanding into new European territories and this provides a much-enlarged scope of opportunity, having recently secured an exclusive position as their sole provider of timeclock software and hardware solutions. Sales activity through this partner bounced back to deliver a strong H2, with the pipeline building strongly for FY26.

We also delivered a series of upgrades for existing long-term UK retail clients, with two of the leading supermarket brands placing substantial orders. The breadth of our client portfolio and increasing scope of opportunities has given us greater capability to absorb the impact of these M&A-related delays, underlining the strength of our customer relationships and the broad appeal of our products and services.

Extending beyond hardware with GT Tablet

The most exciting product announcement of FY25 was the launch of GT Tablet, enabling us to extend HCM past hardware with our first software-only clock solution.

With similar functionality to fixed clock devices, now in tablet-compatible form, GT Tablet can link existing customer tablets through our secure cloud platform, GT Connect, and to GT Services. This opens an exciting new category of application that expands our market opportunity on a global scale.

Whilst tablets cannot replace our high-specification hardware devices that are always-on and optimised for the rapid, high-volume throughput that is essential in office and industrial environments, our new tablet-based development is ideal to target specific mobile use cases that fixed devices cannot support. This opens a substantial opportunity to broaden the applicability of our services, being particularly well-suited to the many non-office and locally distributed settings where dispersed workforces need to operate, such as in retail, medical or crew-working scenarios.

As part of this plan, GT Tablet will be launching on Google Play Store and IOS App Store in FY26, unlocking the product's global distribution potential for customers. This is already generating significant interest from our HCM partners, and we anticipate this will be an important incremental source of recurring revenue at the end of FY26, with one HCM partner already committed to onboarding GT Tablet alongside positive discussions with several others.

Investing in platform growth and innovation with a new five-year Technical Roadmap

With the technology landscape shifting ever faster, a vital attribute that has sustained Newmark's market leadership over three decades has been its continuous investment in innovation to remain at the forefront of delivering to customer needs.

At the end of FY25, we promoted Simon Poole-Anderson to the role of Technical Director who will now, in addition to Product Management, be responsible for R&D. Simon will focus on closely aligning Product and R&D, developing a five-year technology roadmap, putting both AI and development scalability at the heart of R&D. The move has dual benefits, and is designed to apply his dedicated skills, experience and product knowledge to the R&D function, whilst freeing-up additional capacity for Colin Leatherbarrow, Grosvenor's MD. This will enable him to accelerate our divisional scaling plans and support our evolving operations to meet the new opportunities our product and market innovations are rapidly creating.

Further growing subscriptions via GT Tablet is just part of the new roadmap. Our enhanced strategy includes providing resource scaling to support faster delivery of more Professional Services to accelerate order take-up, as well as removing the technical barriers to winning D2E business. Our innovation leadership now encompasses the addition of new and updated timeclocks at both ends of the portfolio, the combination of Neural Processing Units (NPUs) alongside updated Central Processors (CPUs) to ensure our devices remain future-proofed, highly performant and AI-ready. Our planned investment programme covers updates across our full range of devices, secure cloud control software, and array of HCM system integrations so that Newmark continues to define the leading standard for state-of-the-art quality and protection at the HCM edge.

Optimising operations and measuring customer experience

Together with some minor team realignment to provide adequate focus and support for the emerging D2E opportunities, we continued to upgrade inventory and manage stock smartly to keep pace with growing customer requirements, whilst at the same time carefully navigating a fast-changing tariff environment. The impact of new US tariffs was minimised by optimising the use of correct product classifications, qualifying exemptions and increasingly agile stock management. We have also taken additional steps to reinforce the credentials of our secure operating practices, having started System and Operating Controls (SOC) compliance, preparing for both SOC 1 financial reporting controls and SOC 2 data processing controls focused on security, availability, processing integrity, confidentiality, and privacy. We are anticipating gaining certification in FY26, in an initiative designed to further reassure clients of the quality of our approach.

During FY25 we completed a customer journey mapping exercise and used this to implement a new framework of Customer Experience measures. Aligning with best practice in recurring subscription-based businesses, this is an essential collection of KPIs delivered in real-time via an online management dashboard. In addition to systems performance, this will help us to monitor satisfaction, increase retention and prevent churn. As our tools and rich data sets mature, we anticipate driving new insights, enabling new services and identifying opportunities to extend Customer Lifetime Value (CLTV) through our subscriptions.

Access Control

As communicated at the half year, Access Control experienced a slower start to FY25, with sales impacted by delays from our software partner in the development of our new Janus C4 Ultra product, as well as to several upgrade projects. The division did see sales improve in the second half as anticipated, although full-year revenue of £2.7 million (April 2024, £3.0 million), was 10% down on last year.

Whilst not Grosvenor's primary strategic focus, the drop in performance has triggered important changes. In addition to mitigating tactical measures, reorganising and focusing sales on high-value opportunities where returns remain strong, alongside various initiatives to accelerate new product development and migrations. We are also reviewing the entire business strategy to assess the best options for how this unit can deliver better value for the Group. We anticipate delivering further updates in future reports.

OUR DIVISIONS - Physical Security

Revenue information

£'000	2025	2024	Increase/ (decrease)	% change
Products	2,194	3,690	(1,496)	(41)%
Service	2,744	2,118	626	30%
Division Total	4,938	5,808	(870)	(15)%

 

Performance overview

Safetell continues to grow long-term value through services, prioritising the shift to an increasing proportion of recurring services according to its long-term strategy, and having crossed a tipping point with services now accounting for 56% of total revenues at £2.7 million. This valuable progress was achieved despite a disappointing year in projects, where a number of substantial public sector contracts were deferred into FY26 due to extended building schedules and procurement cycles. Whilst these delays have created a 'rebound effect' for the forthcoming year, with a robust FY26 forecast alongside a solid pipeline of opportunities, FY25 products were also supressed in the retail sector, where clients responded to squeezed profit margins from high inflation and a broader slowdown in consumer spending, which also resulted in delays in planned roll-out programs. This combination led to a drop in overall revenues of 15% year-on-year to £4.9 million, however we remain confident that the completion of deferred projects, together with several exciting and substantial new pipeline opportunities, and the rising baseline of services, will deliver a positive FY26 and a welcome return to growth.

Services Business Performance

The highlight of FY25 was the continued growth of service and maintenance revenue, up by 30% year-on-year, providing increased forward visibility that adds significant value and reflects the advantage of our high-quality operations in this space. With the completion of another year of solid execution, scaling our services business remains of crucial strategic importance, contributing visibility, revenue and enhanced profitability.

FY25 was, again, a year of notable growth in Door Services, which grew by 49% to £1.0 million, driven by new strategic accounts and a greater share-of-wallet from existing customers. Profitability of Door Services also increased as expected, with year-on-year margin expansion continuing to track in line with our five-year strategic plan. This was partly due to our previously reported capability enhancements, enabling us to service and repair roller shutters as well as doors, with one third of our engineers now fully trained and equipped. Acting as an immediate accelerator to growth, this enabled us to extend the scope of our service engagement, and has yielded several new contract opportunities, in particular with large scale FM contractors who value multi-skilled third-party providers. Learning important lessons in optimising Door Services contracts has also led to a tighter focus on expanding our footprint with organisations that are a direct strategic match for our capabilities, such as universities, railway stations, blue light portfolios and other institutions where there are high instances of automatic doors and entrances in constant use. As we gain further critical mass in our service contracts, our field force planning and service delivery can increasingly be optimised to drive material gains in efficiency and profitability, and this has been a key factor in our strategic planning.

Legacy Services remained stable throughout FY25, despite prior concerns around revenue decline, enabling the services division to meet expectations, with a positive forward outlook that combines increasing demand for Entrance Control and Door Services with an already strong and active pipeline growing through FY26.

Products (Supply-only)
Business Performance

In FY25, Supply-only product revenues exceeded expectations significantly, achieving £0.4 million in order intake - 146% of our budgeted target. This strong overperformance demonstrates a healthy demand for our standalone products and reflects effective sales and operational alignment in this high-margin segment. Although this represents a smaller proportion of total revenue, the improving performance reinforces its strategic importance and growth potential. As we reported last year, Safetell continues to benefit from new and competitive products as a result of broadening its range of suppliers in FY24, equipping it to deliver faster, at higher quality and lower cost. This also played a key role in overcoming a critical project delivery milestone for a major financial services customer in FY25, increasing the potential for extended orders and ongoing service contracts, and with further orders already being booked.

Products (Projects)
Business Performance

During FY25, a number of high-value public sector installation contracts were subject to extended building and procurement cycles, often at short notice, causing project delays from FY25 to FY26. This created an unavoidable topline drag in revenues in FY25, with anticipated reversal planned in Q1 and Q3 of FY26. A toughening of the retail environment, which led to a softening in investment, further contributed to lower-than-expected project revenues in FY25, with the overall effect of this volatility factoring strongly in our resilience planning for FY26.

However, we used this period of slower activity in the Projects Team to review and improve internal processes, project controls, and delivery execution. Both sales and delivery capability in the projects business have now been strengthened, placing a renewed emphasis on project quality and client satisfaction, with the clear goal of increasing repeat business and long-term customer relationships. Adding experienced industry sales leadership and new business development roles has enhanced our capability to focus, identify, pursue, and convert large-scale opportunities. In October, we also added experienced leadership to our customer delivery processes, leading to significantly improved project management and installation standards, as well as a streamlined Supply-Only process. This has secured Safetell as a trusted service partner with the confidence to deliver, leading to additional share-of-wallet gains and winning a number of new customers. As a result, the division saw significant margin improvements in the second half of the year, putting us in a much stronger position to deliver efficiently and profitably in FY26.

Against a backdrop of continuous transformation under MD, Nick Shannon, Safetell is also pursuing further strategic initiatives to enhance resilience and profitability, beginning the transition to a more responsive, variable cost projects business. Using trusted contractors as projects scale up or down, this will drive increased productivity, profitability and long-term business confidence through better cost control.

Each of these changes have been an important part of the strategic planning and review process in FY25, giving us a more robust and resilient platform which we anticipate will start making an impact in FY26.

Outlook for 2026

Following key customer successes in FY25 across multiple sectors, including universities, blue light, retail, financial services, construction and pharmaceuticals, Safetell is ideally positioned to capitalise on its trusted partner status with a large number of major institutions in FY26 and beyond. The combination of strong results in Service and Supply-Only segments demonstrates the underlying health, strategic value and operational adaptability of the business, while the challenges in Projects offer a clear and actionable area of focus for the year ahead. We therefore approach FY26 with a positive outlook, supported by a stable and strategically rebalanced pipeline, with a significant increase in confidence and weighting toward public sector projects due to rescheduling from FY25 into FY26.

Looking ahead, the following three areas in particular provide the basis for our sustained confidence, management focus and performance ambitions.

Accelerating Door Services growth continues to offset a slower-than-anticipated decline in Legacy Services, supporting our long-term profitability goals. As in previous years, whilst we expect our Legacy Services business to contract in FY26 in line with published bank branch closures by major clients, our expanding Door Services offering provides a robust platform to absorb this anticipated decline. Following the successful introduction of roller shutter services at the end of FY25, we are now assessing a further capability and service expansion opportunity through the potential to add servicing of barriers and automated gates and further accelerate our growing national footprint. As a result of the measures we have already taken, and with upside from service expansion, we remain on course to achieve sustainable profitability with a significantly reduced Legacy Services business exposure by the end of our five-year plan.

In addition, by recalibrating our Entrance Control offering to be more competitive, with enhancements in products, skills and training, this high-growth area is again showing very strong potential with significant increases in customer demand and orders from the start of FY26.

Finally, as part of our ongoing commitment to offer high quality, competitive products, we are reviewing and updating our entire portfolio plan to ensure we have a complete physical security product range - buying in where it makes sense to do so, and ensuring existing products meet emerging standards. With the introduction of the LPCB accreditation for screens, many public sector and security conscious commercial clients will require a newly accredited screen, giving us an opportunity to ensure our products satisfy this standard and remain the clear choice for our customers

Our demonstrably successful strategy of focused execution will continue to prioritise recurring revenues from services, which remains at the heart of our approach to growth. Balancing strong foundations and long-term visibility with more profitable short-term opportunities will help us to win tactical projects and install our latest new products. 

 

FINANCIAL REVIEW

Revenue		2025		2024		Increase/ (decrease)		Percentage change
		£'000		£'000		£'000		%
People and Data Management Division
HCM		15,380		13,452		1,929		14%
Access Control		2,719		3,017		(298)		(10%)
		18,099		16,469		1,630		10%
Physical Security Solutions Division
Products		2,194		3,690		(1,496)		(41)%
Service		2,744		2,118		626		30%
		4,938		5,808		(870)		(15%)
Group Revenue		23,037		22,277		760		3%

 

Group revenue increased by 3% to £23.0 million (2024: £22.3 million) driven by growth in HCM.  This revenue increase was due to both hardware sales and recurring revenues from Software-as-a-Service (SaaS) and Clock-as-a-Service (ClaaS). HCM recurring revenues increased by £0.8 million to £3.2 million (2024: £2.4 million). There has also been revenue increase from Services in the Physical Security Solutions Division. This growth is from traditional bank and building society clients as well as new auto-door servicing and repairs.  Further commentary and discussion can be found in the relevant divisional sections.

Gross profit margins have increased to 40.7% (2024: 38.5%) due to improvements in the People and Data Management division from enhanced product margins and an increase in higher margin recurring revenues. Their gross margins increased to 42.5% (2024: 39.7%). The Physical Security Solutions division achieved a gross profit margin of 34.1% (2024: 35.3%) the decrease primarily caused by lower Products revenues resulting in reduced utilisation of staff who are charged to cost of sales.

		2025		2024		Increase		Percentage change
		£'000		£'000		£'000		%
Gross Profit		9,385		8,585		800		9%
Gross Profit Margin		40.7%		38.5%

 

Administrative expenses and average employees

Administrative expenses have increased by 8% to £8.5 million (2024: £7.8 million). This has been driven by both inflationary cost rises and investment in strategic initiatives following the approval of a new five-year strategic growth plan in June 2024.This investment included increases in headcount, marketing and professional fees. Overall average employees have increased to 109 (2024: 102) driven by growth in Grosvenor's UK and US operations.  Staff costs (which are included in both cost of sales and administrative expenses) increased by £0.7 million or 8% to £9.0 million (2024: £8.3 million).

Finance costs

Finance costs have decreased by £0.1 million to £0.3 million (2024: £0.4 million) due to a combination of reduced invoice financing and overdraft borrowings and lower interest rates which started to fall in the UK from August 2024 and in the US from September 2024.

Profitability

The current year profit from operations was £0.9 million (2024: £0.8 million). The increase in profitability was caused by a combination of increase in gross profits from higher revenues and improved gross margins percentages, partially offset by a rise in administrative expenses.

Profit after tax for the year was £0.7 million (2024:  £0.1 million).  This is after the tax credit which is discussed in more detail below.

Taxation

A tax credit of £19,000 (2024: £254,000 charge) was recognised in the year. This resulted from a current tax charge of £12,000 (2024: £103,000 charge) due to minor prior period adjustments and a £31,000 deferred tax credit (2024: £151,000 charge) primarily due to a change capital allowance assumptions. The prior year deferred tax charge was primarily the result of adjustments to prior periods relating to a change in assumptions for the Grosvenor R&D tax claims. No corporation tax was paid in the year.

Earnings per share

Basic earnings per share for the year increased by 5.63p to 7.06p (2024: 1.43p). This was due to the increase in profitability in FY25.

Balance sheet

Net assets have increased by £0.6 million to £8.7 million (2024: £8.1 million). Intangible assets decreased by £0.2 million to £5.0 million due to the amortisation of previously capitalised assets such as GT Connect being higher than development cost additions during 2025. Property, plant and equipment was unchanged year on year at £2.7 million. Inventory decreased by £0.3 million to £2.4 million due to a temporary decline in order to fulfil high levels of April 2025 HCM orders. Trade and other receivables increased by £0.9 million to £5.4 million primarily due to a rise in trade receivables from the high level of April 2025 HCM sales. Cash and cash equivalents decreased by £0.8 million to £0.3 million (2024: £1.1 million) due to bank loan and invoice financing repayments. Trade and other payables decreased by £0.2 million primarily due to reduced Q4 Products sales in the Physical Security Solutions Division. The £0.2 million decrease in short term borrowings to £2.8 million was due to reduced use of the US facilities. The £0.7 million decrease in long term borrowings was due to CBILs and lease repayments.  Bank net debt at 30 April 2025 was £2.1 million (30 April 2024: £2.0 million).

Research & Development (R&D)

The Group has maintained its R&D investment in the People and Data Management division at broadly the same level as prior year of £0.4 million.

Cashflow

During the year cash decreased by £0.8 million to £0.3 million (2024: £1.1 million). Cash generated from operating activities decreased by £1.2 million to £1.8 million (2024: £3.0 million) mainly due to a one-off benefit in 2024 from a £1.4 million reduction in inventories built up during the pandemic. There was a £0.2 million tax receipt in FY24 from a FY22 Safetell R&D tax credit, but there were no receipts in FY25 as none had been claimed since then by Safetell. Cashflow from investing activities increased by £0.2 million to £1.0 million (2024: £0.8 million) primarily due to a higher number of ClaaS clocks purchased year-on-year. In financing, the repayment of £0.7 million of invoice financing in 2025 (2024: £0.4m repayment) is from the termination of the $2 million US invoice financing facility in February 2025.  This was replaced by a $2 million US revolving credit facility (RCF) with our relationship bank, HSBC.  The £51,000 receipt in 2025 from bank loans (2024: £400,000 payment) is the net of a £451,000 draw down of the US RCF and £400,000 of repayments from the CBILS loan which started to be paid back from September 2021 over a 5-year term. Lease principal repayments were £0.6 million (2024: £0.6 million). There was also £0.2 million of interest paid on the debt facilities (2024: £0.3 million).

Cashflow forward currency contracts

During the year we executed our foreign exchange strategy by entering into forward contracts. The strategy effectively hedges 75% of excess US Dollars (USD) and reduces the level of volatility compared to using spot rates. The contracts manage our currency mismatch between an increasing USD position from revenues and the existing cost base in both GBP and Euros. The adopted process involved currency forecasting three quarters ahead and taking out tranches of forward contracts for 25% of each of the forecasted quarters relating to our excess USD position.

 

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2025

		2025		2024
	Note	£'000		£'000
Revenue		23,037		22,277
Cost of sales		(13,652)		(13,692)
Gross profit		9,385		8,585
Administrative expenses		(8,455)		(7,811)
Profit from operations		930		774
Finance costs		(287)		(386)
Profit before tax		643		388
Tax credit/(charge)	3	19		(254)
Profit for the year		662		134
Attributable to:
- Equity holders of the parent		662		134
Earnings per share
- Basic (pence)		7.06		1.43
- Diluted (pence)		6.65		1.35

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
		2025		2024
		£'000		£'000
Profit for the year		662		134
Foreign exchange on the retranslation of overseas operation		(162)		18
Total comprehensive income for the year		500		152
Attributable to:
- Equity holders of the parent		500		152

 

The notes in the annual report and accounts form part of these financial statements.