Netcall Share News (NET)

(Alliance News) - Netcall PLC said Wednesday it expects to report an increase in interim revenue driven by double-digit growth in cloud annual contracts.

The customer engagement software provider said for the six months to December 31, trading was in line with management expectations

Netcall anticipates first-half revenue growth of 8% to GBP12.3 million from GBP11.4 million a year ago. Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation is expected to rise 5% to GBP2.1 million from GBP2.0 million.

The company said annual contract value increased 9% to GBP16.6 million compared to GBP15.1 million a year ago. Within that, cloud annual contract value rose 22% to GBP6.7 million from GBP5.5 million, "providing the group with high levels of revenue visibility".

Henrik Bang, chief executive, said: "We are currently trading in line with our full year expectations, underpinned by our key sales metrics and a solid pipeline."

"The strength of our solution portfolio, our high levels of recurring revenue and strong balance sheet, provide the board with confidence in the continued success of Netcall," Bang added.

In its financial year that ended June 30, Netcall reported pretax profit of GBP750,000 and revenue of GBP22.9 million.

Netcall shares were down 8.4% in London at 35.25 pence each on Wednesday. Results for the first half will be announced February 27.

By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com

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