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29 May 2019 07:00
29 May 2019
NETCALL PLC
("Netcall", "the Company", or "the Group")
Trading Update
Netcall plc (AIM: NET), the leading provider of Low-code and customer engagement software today provides an update on trading for the year ending 30 June 2019.
Cloud bookings(1) have continued their strong performance with year over year growth of 160% to £6.5m, reflecting strong Low-code cross sales to customers and the signing of new names. As a result, Low-code ACV(2) has continued its growth and is up 36% year over year to £4.4m. ACV from Support Contracts has also continued to grow, and as a result total ACV is up 10% year over year to £15.6m.
Product sales, whilst improved over the first half of the year, have been impacted by purchasing delays within the NHS coupled with public sector customers ordering the Group's newly launched Low-code cloud offerings. As a result, Product revenues for the year will be lower than expected.
As a consequence, adjusted EBITDA(3) for the year is now expected to be approximately £3.4m. Cash generation has been strong and at 30 April 2019 the Group's cash position was £6.5m offsetting the existing debt of £6.6m.
The Board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in Cloud bookings and ACV. 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.
(1) Cloud bookings is the total of all new orders received classified as cloud subscription and support revenues.
(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.
(3) Profit before interest, tax, depreciations and amortisation adjusted to exclude the effects of acquisition, impairment, contingent consideration and non-recurring transaction costs.
For further enquiries, please contact:
Netcall plc | Tel. +44 (0) 330 333 6100 |
Henrik Bang, CEO Michael Jackson, Chairman James Ormondroyd, Group Finance Director | |
finnCap Limited (Nominated Adviser and Broker) | Tel. +44 (0) 20 7220 0500 |
Stuart Andrews / James Thompson, Corporate Finance | |
Tim Redfern, Corporate Broking | |
Alma PR | Tel. +44 (0) 20 3405 0212 |
Caroline Forde / Hilary Buchanan / Helena Bogle |
About Netcall plc
Netcall is a UK company quoted on the AIM market of the London Stock Exchange. Netcall helps organisations transform their customer engagement activities and enable digital transformation faster and more efficiently, thereby improving customer experiences and operational efficiencies. Netcall's software product portfolio comprises Liberty, a customer engagement platform, incorporating omnichannel contact centre and workforce optimisation, and MATS, a market leading Low-code platform.
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 organisations 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.
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