Security products supplier Newmark Security was hit by weak trading and one-off costs in 2011-12.
In the year to April 2012, revenues edged ahead from £12.7m to £13.1m, while pre-tax profit slumped from £706,000 to £62,000. This was after an increase in legal costs from £40,000 to £176,000 and an impairment charge of £194,000 relating to development costs.
Revenues fell in the electronic security division, where there were delays in US sales, but they rose in the asset protection division from £6.51m to £7.06m. There was a small decline in profit from asset protection because customers were putting pressure on long-term contract margins.
Capitalised R&D spending was maintained at £1.13m. Net debt was £471,000 at the end of April 2012. Newmark has used £105,000 of a £300,000 convertible facility provided by directors. There is no dividend, whereas 0.0275p a share was paid for the previous financial year.
Maurice Dwek has become executive chairman.
At 0.65p a share, Newmark is valued at £2.93m.
Newmark has won a £3.4m order from the Post Office for time delay safes and further orders are expected. Sales of the new SATEON access control system should start to build up.
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