REG - Netcall PLC - Trading Update

NetcallAnnouncement

23/01/2025 07:00

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RNS Number : 3579U  Netcall PLC  23 January 2025

23 January 2025

 

NETCALL PLC

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

 

Trading Update and Notice of Results

Strong double-digit growth driven by enhanced platform offering

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 2024 (H1 FY25).

The Board is pleased to report on a positive trading period, with H1 FY25
results expected to be in line with management expectations.

Revenue is anticipated to increase by 22% to £23.0m (H1 FY24: £18.9m),
driven by organic growth of 12% and revenue contribution from complementary
acquisitions. Adjusted EBITDA((1)) is expected to grow by 18% to £5.7m (H1
FY24: £4.8m), reflecting continued profit growth and investment in the
Group's Cloud offering. Group cash at 31 December 2024 was £22.0m (30 June
2024: £34.0m) after acquisition-related payments of £12.1m (net of cash
acquired). The Group has no debt.

Demand for the Group's Liberty Cloud solutions remains robust with the
platform's broad capabilities and industry-specific solutions well positioned
to support customers' ambitions to drive increased efficiencies and better
outcomes. As a result, Cloud Annual Contract Value ('ACV') grew 47% to £29.9m
(underlying organic growth of 20%), now representing 76% of total ACV which
grew 31% to £39.4m.

Ongoing advancement of the product roadmap continues in line with the Group's
cloud investment programme, addressing growing interest for automation and AI
capabilities. The convergence of automation and AI with contact centre
solutions has driven a strong uptake of our Liberty cloud contact centre,
Converse CX, with two-thirds of Converse CX customers also opting for AI
products.

The Group continues to see enhanced new customer and cross-sales opportunities
following the recent acquisitions of GovTech and Parble. In addition to the
first sale of Parble's Intelligent Document Processing solution into the
existing Netcall customer base, the Group has also secured its first
cross-sale of the Netcall Liberty platform into the GovTech customer base and
is building a growing pipeline.

James Ormondroyd, Chief Executive, commented:

 

"I am pleased to report that trading for the first half of FY25 is expected to
be in line with expectations, reflecting the increased strength of our cloud
services offering. We continue to see robust demand from new customers, along
with continued cross and up-sell to existing customers, as organisations
increasingly seek to adopt modern digitalisation and AI technologies to drive
operational improvements. Our ongoing strategy of targeted acquisitions to
expand our product offering has delivered positive results, significantly
enhancing our market proposition and opening up new opportunities.

 

"We remain well-positioned for growth as we enter the second half, with a
strong pipeline, expanding product roadmap and a growing base of recurring
revenue, all supported by a healthy cash position. The Board remains confident
in the Group's continued success."

 

 

Notice of Results

Netcall expects to announce interim results for the six-month period ended 31
December 2024 on 5 March 2025.

 

((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 FY24 ACV at
the new annual amount of $4m), plus the annualised value of recurring IDP
revenue.

 

 

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

 Singer Capital Markets (Joint Broker)                              Tel. +44 (0) 20 7496 3000
 Charles Leigh-Pemberton / Asha Chotai

 Alma Strategic Communications                                      Tel. +44 (0) 20 3405 0205
 Caroline Forde / Hilary Buchanan / Emma Thompson

 

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)
.

 

 

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