REG - Netcall PLC - Trading Update and Contract Renewal

NetcallAnnouncement

20/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230720:nRST5847Ga&default-theme=true

RNS Number : 5847G  Netcall PLC  20 July 2023

20 July 2023

 

NETCALL PLC

 

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

 

Trading Update and Contract Renewal

Strong cloud momentum and $20m contract extension

 

Netcall plc (AIM: NET), the leading provider of intelligent automation and
customer engagement software, today provides an update on trading for the year
ended 30 June 2023 and announces the renewal of a significant contract.

 

Trading Update

 

The Board is pleased to confirm that positive trading has continued through
the second half of the financial year. Revenue is expected to have grown by
18% to £36.0m (FY22: £30.5m) and adjusted EBITDA((1)) by 25% to £8.0m
(FY22: £6.4m).

 

The main growth driver continues to be sales of the Group's cloud offerings,
with cloud annual contract value ('ACV')((2)) increasing by 21% to £18.1m
(FY22: £15.0m), contributing to total ACV growth of 15% to £27.9m (FY22:
£24.2m). Underlying cloud ACV (excluding the significant contract announced
in June 2022) increased 32% and underlying total ACV grew 21%.

 

This strong business performance generated excellent cash flow in the year,
resulting in a year end net cash position of £24.8m (30 June 2022: £14.1m).
The Group has no debt.

 

Contract Renewal

 

On 10 June 2022, Netcall announced a significant $19m three-year cloud
subscription contract with a S&P 500 financial services firm (the
"Customer") and Netcall's Liberty platform is now live with the Customer in
more than 60 countries. Following a strategic review by the Customer to
rationalise its vendor landscape, Netcall's Liberty platform has been
re-selected to support the Customer's digital transformation ambitions. As a
result of which, the Group has now agreed a replacement five-year contract
valued at $20m in total (the "Contract Renewal") representing a $6m uplift to
the remaining contract value, with an expected revenue contribution of $4m per
annum over the new term.

 

Henrik Bang, Chief Executive, commented:

 

"We continue to see healthy demand for the Group's Intelligent Automation and
Customer Engagement solutions, resulting in double digit revenue growth and
enhanced profitability. We saw strong uptake from new customers as they look
to streamline their organisations to improve efficiencies and reduce costs.

 

"The renewal of our landmark contract with a large global financial services
firm is a strong endorsement of the quality of our solutions and we look
forward to supporting the Customer's digital transformation ambitions.

 

"Underpinned by a robust balance sheet, strong pipeline of new business and
increasing visibility, we look forward with confidence in the Group's
long-term prospects."

 

 

((1)) Profit before interest, tax, depreciation and amortisation adjusted to
exclude the effects of acquisition, impairment, contingent consideration,
share-based payments and non-recurring transaction costs.

((2)) ACV, as at 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 is included at the new annual amount of $4m).

 

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 Joint Broker)     Tel. +44 (0) 20 7523 8000
 Simon Bridges / Andrew Potts

 Singer Capital Markets (Joint Broker)                              Tel. +44 (0) 20 7496 3000
 Harry Gooden / Asha Chotai

 Alma PR                                                            Tel. +44 (0) 20 3405 0205
 Caroline Forde / Hilary Buchanan / Matthew Young

 

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.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDBGDRLBBDGXC