Netcall Regulatory News (NET)

23 January 2025

NETCALL PLC

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

Trading Update and Notice of Results

Strong double-digit growth driven by enhanced platform offering

Netcall plc (AIM:NET), a leading provider of intelligent automation and customer engagement software, today provides the following update on trading for the six months ended 31 December 2024 (H1 FY25).

The Board is pleased to report on a positive trading period, with H1 FY25 results expected to be in line with management expectations.

Revenue is anticipated to increase by 22% to £23.0m (H1 FY24: £18.9m), driven by organic growth of 12% and revenue contribution from complementary acquisitions. Adjusted EBITDA(1) is expected to grow by 18% to £5.7m (H1 FY24: £4.8m), reflecting continued profit growth and investment in the Group's Cloud offering. Group cash at 31 December 2024 was £22.0m (30 June 2024: £34.0m) after acquisition-related payments of £12.1m (net of cash acquired). The Group has no debt.

Demand for the Group's Liberty Cloud solutions remains robust with the platform's broad capabilities and industry-specific solutions well positioned to support customers' ambitions to drive increased efficiencies and better outcomes. As a result, Cloud Annual Contract Value ('ACV') grew 47% to £29.9m (underlying organic growth of 20%), now representing 76% of total ACV which grew 31% to £39.4m.

Ongoing advancement of the product roadmap continues in line with the Group's cloud investment programme, addressing growing interest for automation and AI capabilities. The convergence of automation and AI with contact centre solutions has driven a strong uptake of our Liberty cloud contact centre, Converse CX, with two-thirds of Converse CX customers also opting for AI products.

The Group continues to see enhanced new customer and cross-sales opportunities following the recent acquisitions of GovTech and Parble. In addition to the first sale of Parble's Intelligent Document Processing solution into the existing Netcall customer base, the Group has also secured its first cross-sale of the Netcall Liberty platform into the GovTech customer base and is building a growing pipeline.

James Ormondroyd, Chief Executive, commented:

"I am pleased to report that trading for the first half of FY25 is expected to be in line with expectations, reflecting the increased strength of our cloud services offering. We continue to see robust demand from new customers, along with continued cross and up-sell to existing customers, as organisations increasingly seek to adopt modern digitalisation and AI technologies to drive operational improvements. Our ongoing strategy of targeted acquisitions to expand our product offering has delivered positive results, significantly enhancing our market proposition and opening up new opportunities.

"We remain well-positioned for growth as we enter the second half, with a strong pipeline, expanding product roadmap and a growing base of recurring revenue, all supported by a healthy cash position. The Board remains confident in the Group's continued success."

Notice of Results

Netcall expects to announce interim results for the six-month period ended 31 December 2024 on 5 March 2025.

(1) 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.

(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 (save that the contract renewal announced on 20 July 2023 is included in FY24 ACV at the new annual amount of $4m), plus the annualised value of recurring IDP revenue.

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About Netcall

Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations digitally 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 including Legal and General, Lloyds Banking Group, Aon and Santander.

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