Last checked at 24 Jan 2023 07:00
24 January 2023
NETCALL PLC
("Netcall", the "Company" or the "Group")
Trading Update and Notice of Results
Healthy demand resulting in accelerated revenue and profit growth
Netcall plc (AIM: NET), a leading provider of intelligent automation and customer engagement software, is pleased to provide the following update on trading for the six months ended 31 December 2022.
Netcall experienced solid trading during the first half of FY23, comfortably in line with management expectations. Healthy demand for its Intelligent Automation and Customer Engagement solutions led to strong growth in revenue, recurring revenue, annual contract value(1) ('ACV') and profitability.
As a result, revenue for the first half of the year is expected show growth of 19% to £17.5m (H1 FY22: £14.7m) with anticipated adjusted EBITDA(2) growth of 29% to £4.4m (H1 FY22: £3.4m).
Netcall's main growth driver was its cloud offerings, where cloud ACV increased 58% to £17.1m (H1 FY22: 29% and £10.8m) contributing to total ACV growth of 34% to £26.5m (H1 FY22: 12% and £19.8m). New customer acquisition was particularly robust in the period, as organisations look for solutions to assist in reducing costs while also improving customer and employee experience.
The Group's net cash(3) at period end was £20.4m (30 June 2022: £14.1m). Following the repayment of Loan Notes, announced on 7 October 2022, Netcall has no debt.
Henrik Bang, Chief Executive, commented:
"We continued to see solid demand for our Intelligent Automation and Customer Engagement offerings, in particular for cloud-based solutions, including an increase in new customer wins. This has resulted in accelerated double-digit revenue and profitability growth underpinned by a significant increase in recurring revenue.
"We enter the second half in a strong position and will continue to invest in our business to ensure we remain well positioned in our key markets to take advantage of the opportunity. Our growing recurring revenues, healthy new business pipeline, coupled with a robust balance sheet, provide the Board with confidence in the Group's continued success."
Notice of Results
Netcall expects to announce interim results for the six-month period ended 31 December 2022 on 8 March 2023.
(1) ACV, as of a given date, is the total of the value of each cloud and support contract divided by the total number of years of the contract (save that the contract win announced on 10 June 2022 is included in FY22 ACV as its first-year contribution).
(2) Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of share-based payments, acquisition, impairment, profit or loss on disposals, contingent consideration and non-recurring transaction costs.
(3) Cash less Borrowings
For further enquiries, please contact:
Netcall plc | Tel. +44 (0) 330 333 6100 |
Henrik Bang, CEO | |
Michael Jackson, Chairman | |
James Ormondroyd, Group Finance Director | |
Canaccord Genuity Limited (Nominated Adviser and Broker) | Tel. +44 (0) 20 7523 8000 |
Simon Bridges / Andrew Potts | |
Alma PR | Tel. +44 (0) 20 3405 0205 |
Hilary Buchanan / Caroline Forde / Matthew Young |
About Netcall
Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations transform their businesses faster and more efficiently, empowering them to create a leaner, more customer-centric organisation.
Netcall's customers span enterprise, healthcare and government sectors. These include two-thirds of the NHS Acute Health Trusts and leading corporates such as Legal and General, Lloyds Banking Group, ITV and Santander.
Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information for the purposes of article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No 2019/310 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.