Newmark Security PLC on Tuesday announced a swing to profit as revenue showed a healthy climb, amid a sound outlook.

The London-based designer and manufacturer of specialist products and services that ensure safe and secure workplaces said it swung to a pretax profit of £388,000 in the financial year that ended April 30 from a loss of £64,000 a year ago.

Newmark shares were up 1.2% to 91.11 pence each late Tuesday morning in London. Earlier Tuesday, the stock hit an intraday high of 99.14p.

Revenue grew 9.7% to £22.3 million from £20.3 million. The company highlighted rising demand from existing customers as well as three new large client wins.

Cost of sales increased 8.0% to £13.7 million from £12.7 million, while administrative expenses were 6.2% higher, at £7.8 million from £7.4 million.

Newmark recommended no dividend, unchanged from a year ago.

Looking ahead, Chair Maurice Dwek said the company is in good health, with its divisions set to benefit from new relationships and set to make positive contributions to its margins.

Dwek said Newmark is ‘outgrowing previous losses and legacy transitions, and out-competing numerous other suppliers to win more business with our partners’.

‘The broadening array of opportunities this presents us with enables us to drive forward with great confidence and address an exciting market opportunity,’ he said.

Newmark said it has started implementing a new five-year business plan to drive further growth in recurring revenue streams and service offerings.

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