Cloud services growth boosts Netcall profits

(Sharecast News) - Netcall on Wednesday reported a leap in annual profit as revenue was driven by growth from its cloud services business.
Profit before tax came in at £800,000m for the year ended 30 June, up from £45,000 the year before, as revenue climbed by 5% to £22.9m.

The customer engagement software provider proposed a final dividend of 0.20p per share, down from 0.53p last year but in line with Netcall's policy to payout 25% of adjusted earnings per share.

The increase in revenue came as revenue from cloud services rose 34% to £5.7m, as it remained the AIM-listed company's company's key strategic focus.

Revenue from product support contracts and professional services increased 4% and 15% respectively, while the smaller product sales and communications services operations saw revenues decline by 25% and 20% respectively.

Henrik Bang, chief executive of Netcall, said: "The strategy remains to invest in our cloud offering underpinned by a highly profitable, cash generative core business. The group enters the new year in a healthy financial position, combining growing recurring revenues with a compelling proposition in a significant growth market."

Netcall shares were up 2.12% at 26.04p at 0936 BST.