Newmark Security FY09 Earnings Plunge

7/20/2009 6:05 AM ET

(RTTNews) - Monday, investment holding company Newmark Security Plc (NWT.L: News ) reported a sharp fall in profit for fiscal 2009, on a 13% decline in revenues amid the current economic climate and recession. The company also recommended a maiden dividend for the year.

For the year, pre-tax profit was £1.31 million compared to £1.74 million last year. Profit attributable to shareholders declined to £1.10 million or 0.24 pence per share from £2.48 million or 0.55 pence per share in the prior year.

Profit from continuing operations were £1.14 million or 0.25 pence per share as against £1.33 million or 0.30 pence per share in fiscal 2008. For the period, loss from discontinued operations were reported as £41 thousand or 0.01 pence per share compared to a profit of £1.15 million or 0.25 pence per share a year ago.

The Buckinghamshire-based company's revenues for the year slid to £12.96 million from £14.87 million in the prior year.

Segment wise, revenues from electronic division were £6.63 million as against £7.49 million. Revenues from asset protection division fell to £6.33 million from £7.37 million last year, hurt by lack of large retail contracts due to the current economic recession.

Newmark stated that inventories in the year were down 10% from £1.90 million in fiscal 2008 to £1.71 million.

Looking forward, the company currently expects operating profits for the present year to exceed last year amid a continuing weak economy. Newmark noted that the asset protection division will benefit from a major branch refurbishment programme for an existing client valued at approximately £0.9million which starts in August and will continue until March.

The company said that the board has proposed a maiden dividend of 0.025 pence per share, payable on September 28, 2009 to shareholders on the register on August 28, 2009.

NWT is currently trading at 1.28 pence per share, up 13.51%, on the London Stock Exchange.