REG - Netcall PLC - Trading Update and Notice of Results

NetcallAnnouncement

20/01/2022 07:05

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RNS Number : 0188Z  Netcall PLC  20 January 2022

20 January 2022

NETCALL PLC

 

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

 

Trading Update and Notice of Results

 

Acceleration of cloud uptake driving increased 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 2021.

 

Netcall traded comfortably in line with management expectations during the
first half of the year, with cloud services being the primary driver for the
Group's double-digit revenue and profitability growth.

 

Revenue for the first half of the year is expected to show growth of 10% to
£14.7m (H1 FY21: £13.4m) with anticipated adjusted EBITDA((1)) growth of 17%
to £3.4m (H1 FY21: £2.9m) following good trading across the Group's key
market segments with healthy demand for both Intelligent Automation and
Customer Engagement solutions.

 

Netcall's cloud offerings continued to grow strongly with cloud annual
contract value((2)) ('ACV') increasing 29% to £10.8m (H1 FY21: 25% and
£8.4m) contributing to total ACV growth of 12% to £19.8m (H1 FY21: 7% and
£17.7m).

 

The Group's cash position at period end was £10.7m (30 June 2021: £14.5m)
after the payment of £4.9m for early redemption of  loan notes and deferred
VAT due to Covid-19. This more than offsets borrowings of £3.4m (30 June
2021: £6.9m).

 

Henrik Bang, Chief Executive, commented:

 

"We continued to see good demand across our key market segments for both
cloud-based Intelligent Automation and Customer Engagement solutions resulting
in double-digit revenue and profitability growth.

 

"Netcall has a significant market opportunity as organisations from our target
sectors increasingly implement digital strategies and business models. This
underpinned trading in the first half of the year with growth derived from
both new customer acquisitions and cross sales to existing customers.

 

"As we enter the second half of the year, we continue to invest in our
business to ensure we remain well positioned in our key markets to take
advantage of the opportunity. The Group's strong trading momentum coupled with
a robust balance sheet, growing recurring revenues and advanced digital
solutions, 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 2021 on 23 February 2022.

 

((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.

 

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 Nationwide Building
Society.

 

 

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.

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