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RNS Number : 6056N Netcall PLC 24 January 2023
24 January 2023
NETCALL PLC
("Netcall", the "Company" or the "Group")
Trading Update and Notice of Results
Healthy demand resulting in accelerated 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 2022.
Netcall experienced solid trading during the first half of FY23, comfortably
in line with management expectations. Healthy demand for its Intelligent
Automation and Customer Engagement solutions led to strong growth in revenue,
recurring revenue, annual contract value((1)) ('ACV') and profitability.
As a result, revenue for the first half of the year is expected show growth of
19% to £17.5m (H1 FY22: £14.7m) with anticipated adjusted EBITDA((2)) growth
of 29% to £4.4m (H1 FY22: £3.4m).
Netcall's main growth driver was its cloud offerings, where cloud ACV
increased 58% to £17.1m (H1 FY22: 29% and £10.8m) contributing to total ACV
growth of 34% to £26.5m (H1 FY22: 12% and £19.8m). New customer acquisition
was particularly robust in the period, as organisations look for solutions to
assist in reducing costs while also improving customer and employee
experience.
The Group's net cash((3)) at period end was £20.4m (30 June 2022: £14.1m).
Following the repayment of Loan Notes, announced on 7 October 2022, Netcall
has no debt.
Henrik Bang, Chief Executive, commented:
"We continued to see solid demand for our Intelligent Automation and Customer
Engagement offerings, in particular for cloud-based solutions, including an
increase in new customer wins. This has resulted in accelerated double-digit
revenue and profitability growth underpinned by a significant increase in
recurring revenue.
"We enter the second half in a strong position and will continue to invest in
our business to ensure we remain well positioned in our key markets to take
advantage of the opportunity. Our growing recurring revenues, healthy new
business pipeline, coupled with a robust balance sheet, 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 2022 on 8 March 2023.
((1)) 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).
((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)) Cash less Borrowings
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 Santander.
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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