Newmark Security plc (LSE:NWT), a provider of secure people-data solutions for human capital management (HCM) systems, reported a 13% year-on-year increase in annualised recurring revenue (ARR) from its HCM business to £4.3 million in September 2026, compared with £3.8 million a year earlier.
The company expects HCM revenue for the six months ended 31 October 2026, the first half of its 2027 financial year, to exceed the corresponding prior-year period. Newmark also reiterated that revenue is expected to be weighted towards the second half of the financial year, consistent with previous years.
HCM Recurring Revenue Increases 26% on an Underlying Basis
Newmark attributed the increase in HCM annualised recurring revenue primarily to its GT Tablet workforce management solution.
Reported ARR rose 13% to £4.3 million in September 2026. Excluding the impact of a short-term Mexican services contract that was phased out during the previous year, underlying ARR growth reached 26%.
The company said its HCM operations continued to secure customer contracts and product orders during the first half, including transactions involving existing enterprise customers and new direct-to-end-user relationships.
U.S. Airline and Enterprise Customers Contribute to HCM Orders
Newmark reported several commercial developments during the six-month period, including its first substantial order from a customer secured in FY26 to supply a large U.S. airline.
The company also received an additional order from a global home furnishings business through Legion, which became a customer during the previous financial year.
In the United States, Newmark secured a new direct-to-end-user (D2E) customer, representing its first customer win involving Workday.
Separately, the company extended its relationship with its largest HCM customer through a significant agreement to supply workforce management clocks.
Newmark described the agreement as its largest clock order to date and expects delivery to be completed before the end of the current financial year.
AI Workforce Management Tools and New Clock Development
Newmark provided an update on its product development programme, including the introduction of artificial intelligence capabilities across its workforce management technology.
The first version of an AI agent embedded within the company’s cloud-based GT Connect platform went live in May 2026, in line with its development schedule.
The software enables users to query real-time workforce operations data.
As part of its five-year technology roadmap, Newmark is developing AI-enabled hardware capabilities for an existing workforce management clock, with release planned for mid-2027.
Development is also continuing on GT1, a lower-cost clock designed for the HCM market. The company expects to launch the product in 2027 and reported receiving positive initial feedback from customers regarding its design.
Safetell Disposal Completed as Access Control Sale Progresses
Newmark confirmed that the disposal of Safetell was completed on 30 September 2026, following a government review conducted under the National Security and Investment Act.
The transaction forms part of the company’s strategy to concentrate its operations and investment on the HCM business.
Newmark is also progressing the proposed disposal of its Access Control business following the completion of a strategic review.
The Board determined that further investment in Access Control would require management resources and capital that it intends to allocate to HCM operations.
Management confirmed that discussions are underway with a prospective purchaser, although no completed transaction has been announced.
Alongside these disposals, Newmark is reviewing additional cost-reduction opportunities at Group level as it moves towards an HCM-focused operating structure.
CEO Comments on Trading and Strategic Priorities
Marie-Claire Dwek, CEO of Newmark Security, commented:
“We have made an encouraging start to the year as we continue to successfully execute our strategy. HCM annualised recurring revenue has grown 13% year-on-year to £4.3 million and by 26% on a underlying basis. We have won further new contracts and product orders, which includes another U.S. enterprise customer through our D2E strategy and securing our largest clocks order ever with an existing key customer.
“Following the recent disposal of Safetell and the sale process of Access Control having commenced, we are now firmly focused on HCM and realising our sales pipeline and the growth opportunities we see ahead.”
More About Newmark Security PLC
Newmark Security plc provides secure people-data and workforce management technology for human capital management systems.
Its HCM business includes workforce management clocks, GT Tablet solutions and the cloud-based GT Connect platform, with customers including enterprise organisations in the United States.
The company is implementing a strategy focused on expanding its HCM operations, developing additional software and hardware capabilities, and divesting businesses outside its core activities.
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