LONDON (Alliance News) - Netcall PLC said Wednesday its total annual contract value has risen in financial 2019 but product sales were hurt by purchasing delays by the UK's National Health Service.
Shares in the customer engagement software provider were down 11% Wednesday morning at 50.56 pence each.
Netcall said its product sales in the year ended June 30 "will be lower than expected" due the NHS delays and Netcall public sector customers ordering the company's newly-launched low-code cloud product.
As a result, the company's adjusted earnings before interest, tax, depreciation and amortization for the period is expected to be about GBP3.4 million. In financial 2018, Netcall recorded adjusted Ebitda of GBP5.4 million.
The company said: "The board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in cloud bookings and annual contract value. The group continues its transition from a traditional software business to a digital cloud operation and the board looks forward to giving a further update at the time of its final results to be published in September 2019."
Netcall said its cloud bookings continued a "strong performance" in financial 2019, more than tripling to GBP6.5 million.
On the back of the sharp rise in cloud bookings, the company's low-code annual contract value saw a 36% year on year growth to GBP4.4 million. As a result, Netcall's total annual contract value is expected to increase 10% in financial 2019 to GBP15.6 million.
Netcall (NET)