Newmark Security maintains dividend despite drop in full year earnings

17th Aug 2016 10:25

(ShareCast News) - Newmark Security shares jumped on Wednesday after the company maintained its full year dividend due to an "optimistic" outlook on trading.The group, which provides electronic and physical security systems, reported a 4.5% decrease in revenue to £22.9m in the year to 30 April 2016.Newmark said the decline in revenue was in line with expectations and reflected lower volumes of some major customer programmes in asset protection division, which saw revenue fall 7.2% to £14.18m. In the electronic division, revenue increased 0.8% to £7.6m.Profit from operations for the year dropped to £1.19m from £2.2m the previous year, due to the cost of new market and product developments and the expense involved in opening a new office in Hong Kong.Earnings per share dipped to 0.26p from 0.48p while gross margins decreased to 41.7% from 42.5%.Nevertheless, the group maintained its dividend of 0.10p per share and raised its cash position to £4.3m from £4.2m."The group retains a significant cash position and the Board remains optimistic about trading in future years and has therefore maintained the proposed dividend for the year at the same level as last year," said Chairman Maurice Dwek.Shares rose 18.26% to 2.04p at 1049 BST.