(Alliance News) - Netcall PLC on Wednesday reported continued sales momentum and a positive outlook for 2021 in its interim results.
In the six months ended December 31, the Hemel Hempstead, Hertfordshire-based customer engagement software firm recorded a revenue increase of 8.9% to GBP13.4 million from GBP12.3 million in 2019.
Netcall said these increases are due to a "strong" revenue growth achieved in key market segments of financial services, healthcare, and government, contributing more than 85% of total revenue.
The company said its annual revenue run-rate from Intelligent Automation now exceeds GBP10 million, representing more than 40% of group revenue. Recurring revenue from cloud and support contracts is 65% of the total revenue, up from 64% a year before.
Pretax profit in the period multiplied to GBP960,000 from GBP140,000 in 2019, while adjusted earnings before interest, tax, depreciation and amortisation rose 39% to GBP3.0 million from GBP2.1 million.
This was driven by 28% growth cloud services revenue, underpinned by a 25% increase in cloud annual contract value to GBP8.4 million from GBP6.7 million in 2019, from both Intelligent Automation and Customer Engagement offerings.
"Whilst the board are mindful of the ongoing impact of the pandemic, the combination of strong current trading, improved forward revenue visibility and a healthy sales pipeline, means the board now believes that adjusted Ebitda for the full year will be ahead of its previous expectations," said Chief Executive Henrik Bang.
"The acceleration of organisations' digital transformation initiatives represents a significant and rapidly growing market opportunity for Netcall. Therefore, looking further ahead, the board remains confident that the strength of the group's product offering, combined with its solid balance sheet and high levels of recurring revenue, position Netcall well for continued success."
Shares in Netcall were up 3.0% at 68.50 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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