REG - Netcall PLC - Trading Update and Notice of Results

NetcallAnnouncement

29/01/2019 07:00

RNS Number : 3204O
Netcall PLC
29 January 2019
 


           
 
29 January 2019 
NETCALL PLC
 
("Netcall", the "Company", or the "Group")
 
Half Year Trading Update and Notice of Results
 
Netcall plc (AIM: NET), a leading provider of Low-code and customer engagement software, today announces its trading update for the six month period ended 31 December 2018.
The Board anticipates first-half revenues of approximately £11.4m (H1 2017: £10.7m) and adjusted EBITDA(1) of approximately £2.0m.
Cloud and product bookings(2) in the period increased by 96% year over year to £5.2m of which cloud alone increased by 818% to £4.0m. As a result, the Group, in line with its strategy, reached an inflection point where the Annual Contract Value ('ACV')(3) of new cloud bookings exceeded product sales for the first time in a six month reporting period.
Total Low-code ACV as at 31 December 2018 increased by 40% year over year to £4.2m (H1 2017: £3.0m) and the total ACV increased by 10% year over year to £15.1m (H1 2017: £13.7m).
The Group held cash of £5.8m and net debt was £0.8m as at 31 December 2018.
Henrik Bang, Chief Executive, said:
"We have seen double-digit growth in our key financial measures of order bookings and Annual Contract Value. This was driven by strong growth in Low-code sales, increasing the forward visibility of our revenue.
"Accelerated investment into our cloud Low-code offering is further enhancing our ability to address considerable and growing demand for our full range of customer engagement solutions. We have seen substantial growth in our cloud business over the period and signed a number of notable multi-year contracts.
"We are trading in line with our expectations for the year. As a result of the transition to a cloud-based recurring revenue model, and the timing of product sales, the Board expects revenues for the year to be more weighted toward the second half."
Notice of Results
Netcall will be announcing interim results for the six-month period ended 31 December 2018 on 5 March 2019.
(1) Profit before interest, tax, depreciations and amortisation adjusted to exclude the effects of acquisition, impairment, contingent consideration and non-recurring transaction costs. The forecast is based on unaudited management accounts for the 6 months ended 31 December 2018.
(2) Cloud and product bookings is the total of all new orders received classified as cloud subscription and support,  product and first year support contract revenues.
(3) 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


 




 


 




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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