Netcall Regulatory News (NET)

7 Jul 2008 07:00



7th July 2008

NETCALL PLC

("Netcall" or "the Company")

Trading Update

Netcall plc (AIM:NET), a leading provider of callback, auto-messaging and contact solutions, today gives an update on trading for the year ended 30 June 2008. 

The prevailing difficult market conditions have resulted in reduced activity for a number of our customers, primarily in the Financial Services sector with a consequent impact on Netcall. Accordingly, revenue and profits for the full year will be below market expectations. Netcall has continued to win new customers and the business has performed more strongly in the second half of the year, with increased revenue and cash generation. The Company's cash position as at 31 June 2008 was £2.9m (FY07: £2.4m). The combination of these ongoing customer wins and the continued cash generation of the business is encouraging for the future. 

Revenue and profits increased in the second half of the year through an increase in licence revenues compared to the first half. As indicated in our Interim Results statement, the decline in licence sales in the first half was due to a number of customers delaying purchasing decisions. At the time of the Interim Results Netcall had a strong pipeline and the Board was optimistic that the purchases would come through in the second half. Licence revenue improved markedly in the second half albeit still falling short of expectations.

In our hosted business Netcall saw no decline in the rate of new customer signings. However, lower activity levels in these customers resulted in a decline in Services revenue in the second half. 

Due to the continuing robust management of costs, margins have improved in the second half compared to that achieved in the first half and profits in the second half rose.

Netcall continues to extend the use of its products within its current customer base and to sign up additional blue chip organisations and the pipeline remains strong. 

Ron Elder, Chairman of Netcall commented, "Whilst Netcall has made good progress operationally this year it is clear that we have not been immune to the wider downturn experienced within our industry. Consequently, our revenues and profits have been affected. Whilst this is not the financial result we would have liked to achieve for the year we are well positioned to achieve growth in the future and the Board continues to explore all avenues to deliver increased shareholder value."

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About Netcall

Netcall is a U.K. company listed on the AIM market of the London Stock Exchange. Based near Cambridge, Netcall develops and supplies innovative communication solutions to organisations of all sizes, including many blue-chip companies with global contact centre operations. As the leading specialist in callback, auto-messaging and contact solutions, Netcall helps organisations globally to increase profits and productivity while improving customer satisfaction and employee morale. 

Solutions are deployed either onsite or as hosted managed services using Netcall's Intelligent Communications Platform (ICP). The company has more than a decade's experience owning and running a high-availability service platform co-located with international carriers. Netcall's customer list includes Anglian Water, Birmingham City Council, BT, BUPA, First Direct, Halifax, London Borough of Islington, Lloyds TSB, McAfee, npower, Oracle, Prudential, RBS (The Royal Bank of Scotland Group), United Utilities and Vertex.

Please visit www.netcall.com for more information.