Netcall posts adjusted earnings and revenue growth; buys Skore Labs

(Alliance News) - Netcall PLC on Tuesday said its financial first half was in line with its own expectations, as it announced the acquisition of a process-improvement software company.

The Bedford, England-based customer engagement software provider said revenue rose 8.0% to GBP18.9 million in the six months that ended December 31 from GBP17.5 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation climbed 9.1% to GBP4.8 million from GBP4.4 million.

Netcall highlighted that cloud annual contract revenue jumped 19% to GBP20.3 million.

Looking ahead, Chief Executive James Ormondroyd said: "We remain well positioned as we enter the second half, with our innovative product roadmap continuing to unlock new opportunities in a structurally growing market. Underpinned by a robust balance sheet, healthy orderbook and clear investment strategy, we remain confident in the Group's long-term growth prospects."

Further, the company said it is buying Skore Labs Ltd, a Portsmouth, England-based process improvement software company, for an initial GBP2 million, with additional earn-out raising the consideration to a maximum of GBP6.3 million.

Skore was founded in 2014 and counts retailer Holland & Barrett, aerospace firm Northrop Grumman, and University College London NHS Trust among its about 120 customers. Skore was marginally loss-making on an adjusted basis in 2023 on GBP449,000 in revenue.

Netcall CEO Ormondroyd said: "The acquisition of Skore fits excellently within our stated acquisition rationale, bringing a highly complementary technology offering. Business process improvement is seen as an increasingly important part of the puzzle for companies wishing to improve their interactions with customers, and we believe this acquisition accelerates our position in a rapidly growing market for digital transformation and automation."

Netcall shares were 1.0% higher at 89.35 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

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