Netcall Regulatory News (NET)

22 January 2020

NETCALL PLC

("Netcall", the "Company", or the "Group")

Half Year Trading Update and Notice of Results

Netcall plc (AIM: NET), a leading provider of Low-code and customer engagement solutions, today announces its trading update for the six month period ended 31 December 2019.

Trading in the six-month period was in line with management expectations and the Board anticipates first-half revenue growth of 8% to approximately £12.3m (H1 FY19: £11.4m) and adjusted EBITDA(1) growth of 5% to approximately £2.1m (H1 FY19: £2.0m).

Total annual contract value(2) ('ACV') increased 9% year over year to £16.6m (H1 FY19: £15.1m) and within that, cloud ACV increased 22% year over year to £6.7m (H1 FY19: £5.5m), providing the Group with high levels of revenue visibility.

Netcall continues to benefit from the growing demand for Low-code platforms, with Low-code ACV growing 21% year over year to £5.1m (H1 FY19: £4.2m).

Group cash at 31 December 2019 was £6.5m (30 June 2019: £7.8m), after the final payment of £1.7m to the former shareholders of MatsSoft Limited acquired in 2017, offsetting debt of £6.7m (30 June 2019: £6.6m).

Henrik Bang, Chief Executive, said:

"Netcall delivered a solid performance in the first half of the year, driven by double-digit growth in cloud ACV as we continue the transition to a growing digital cloud business. In addition, we saw increased revenue from product sales and professional services, reflecting a broad demand for our solutions.

"During the period we continued the investments in the Group's Low-code offering and integration with our customer engagement solutions to provide customers with a complete customer engagement solution suite.

"We are currently trading in line with our full year expectations, underpinned by our key sales metrics and a solid pipeline. The strength of our solution portfolio, our high levels of recurring revenue and strong balance sheet, provide the Board with confidence in the continued success of Netcall."

Notice of Results

Netcall will be announcing interim results for the six-month period ended 31 December 2019 on 27 February 2020.

(1) Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of acquisition, impairment, contingent consideration and non-recurring transaction costs. The trading performance is based on unaudited management accounts for the six months ended 31 December 2019.

 (2) 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.

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About Netcall

Netcall helps organisations transform their customer engagement activities and enable digital transformation faster and more efficiently, empowering them to improve customer experiences and operational efficiencies.

We achieve this by delivering powerful and intuitive software that addresses the core elements of best-in-class customer experience and digital process automation. Our industry leading Liberty platform is a suite of Low-code, customer engagement and contact centre solutions which empowers business users and IT developers to collaboratively develop products and systems that 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, major telecoms operators such as BT, and leading corporates including Lloyds Banking Group, ITV and Nationwide Building Society. 

For further information, please go to www.netcall.com.

Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.