REG - Netcall PLC - Trading Update and Notice of Results

NetcallAnnouncement

20/07/2022 07:00

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RNS Number : 0405T  Netcall PLC  20 July 2022

20 July 2022

NETCALL PLC

 

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

 

Trading Update and Notice of Results

 

Strong demand driving results above FY22 market expectations

 

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 year ended 30 June 2022.

 

Following a strong trading period with good demand across our product
portfolio, the Board expects full year results to be ahead of market
expectations((1)).

 

Revenue is expected to grow by 12% to £30.5m (FY21: 8% and £27.2m) and
adjusted EBITDA((2)) by 20% to £6.4m (FY21: 21% and £5.3m). This includes a
£0.3m contribution from the significant $19m financial services contract win
announced on 10 June 2022 ("Contract Win"), with the vast majority of the
revenue from the contract to be recognised in future periods.

 

Netcall's cloud offerings continued to grow strongly and cloud revenue is
expected to increase by 30% to £10.7m (FY21:26% and £8.3m).

 

Cloud annual contract value((3)) ('ACV') increased by 60% to £15.0m (FY21:
25% to £9.4m) contributing to total ACV growth of 31% to £24.2m (FY21: 10%
to £18.5m). Excluding the Contract Win, cloud and total ACV showed continued
strong momentum with 26% and 14% growth respectively.

 

The Group's cash position at year end was £17.6m (30 June 2021: £14.5m)
reflecting strong trading and after the payment of £5.2m for early redemption
of loan notes announced on 9 November 2021 and the remaining deferred VAT due
to Covid-19 and excludes any contribution from the Contract Win. This more
than offsets borrowings of £3.5m (30 June 2021: £6.9m) resulting in net
funds increasing by 97% to £13.4m (30 June 2021: £6.8m).

 

Henrik Bang, Chief Executive, commented:

 

"We continued to see strong demand across our key market segments, especially
for cloud-based solutions which resulted in double-digit revenue and
profitability growth.

 

"Netcall has a significant and growing market opportunity as organisations
increasingly implement digital strategies and business models. Our solutions'
market relevance and potential are illustrated by the increasing growth rates
and was further demonstrated by the significant $19m global contract win
announced in June 2022 which resulted in a material upgrade to the Company's
FY23 expectations(.(4)).

 

"We continue to invest in our business to ensure it remains well positioned to
take advantage of the market 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 audited results for the year ended 30 June 2022 on
5 October 2022.

 

 

((1)) Netcall believes that consensus market expectations for the year ending
30 June 2022 is revenue of £29.8m, adjusted EBITDA of £6.0m and Net cash of
£8.0m.

((2)) 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.

((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 (save
that the contract win announced on 10 June 2022 is included in FY22 ACV as its
first-year contribution).

((4)) Netcall believes that market expectations for the year ending 30 June
2023 were upgraded by 10% for revenue to £36.0m and 17% for Adjusted EBITDA
to £7.6m on 10 June 2022

 

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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