REG - Netcall PLC - Trading Update and Notice of Results

NetcallAnnouncement

23/01/2024 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:20240123:nRSW5246Aa&default-theme=true

RNS Number : 5246A  Netcall PLC  23 January 2024

23 January 2024

 

NETCALL PLC

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

 

Trading Update and Notice of Results

Cloud momentum driving double-digit growth in ACV

Netcall plc (AIM:NET), a leading provider of intelligent automation and
customer engagement software, today provides the following update on trading
for the six months ended 31 December 2023 (H1 FY24).

The Board is pleased to confirm that the Group experienced good trading in H1
FY24 with results expected to be in line with management expectations. Revenue
is anticipated to increase by 8% to £18.9m (H1 FY23: £17.5m) with adjusted
EBITDA((1)) growth of 9% to £4.8m (H1 FY23: £4.4m).

Cloud annual contract value ('ACV')((2)) has grown 19% to £20.3m,
contributing to total ACV growth of 14% to £30.1m. On an underlying basis,
these growth rates are 28% and 18% respectively, excluding the effect of the
significant contract win announced in June 2022 and renewed in July 2023.

In order to service a growing pipeline and deliver an improved proposition,
the Group's investment programme into its cloud Customer Engagement offering
has commenced as planned.

The Group generated strong cash flow in the period, resulting in a period end
cash position of £28.6m (30 June 2023: £24.8m). The Group has no debt.

James Ormondroyd, Chief Executive, commented:

 

"The positive trading momentum has continued through the first half period
with demand for our Cloud offerings continuing to grow at pace, including
particularly strong uptake from new customers. This continues to drive
double-digit growth in annual contract value, an increasing base of recurring
revenues and good cashflows.

 

"We remain well positioned as we enter the second half, with our innovative
product roadmap continuing to unlock new opportunities in a structurally
growing market. Underpinned by a robust balance sheet, healthy orderbook and
clear investment strategy, we remain confident in the Group's long-term growth
prospects."

 

Notice of Results

Netcall expects to announce interim results for the six-month period ended 31
December 2023 on 6 March 2024.

 

((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 (save
that the contract renewal announced on 20 July 2023 is included in FY23 ACV at
the new annual amount of $4m).

 

 

For further enquiries, please contact:

 

 Netcall plc                                                  Tel. +44 (0) 330 333 6100
 James Ormondroyd, CEO
 Henrik Bang, Non-Executive Chair
 Richard Hughes, CFO

 Canaccord Genuity Limited (Nominated Adviser and 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 Strategic Communications                                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 (http://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  TSTGZGZMRZNGDZM