REG - Netcall PLC - FY25 Trading Update

NetcallAnnouncement

Tue 07:00

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RNS Number : 9266R  Netcall PLC  22 July 2025

22 July 2025

 

NETCALL PLC

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

 

FY25 Trading Update

Momentum accelerates as Cloud and AI adoption deepen across sectors

Cloud ACV increased by 52% and is now 80% of total ACV

 

Netcall plc (AIM:NET), a leading provider of intelligent automation and
customer engagement software, today issues a trading update for the year ended
30 June 2025 ("FY25").

The Board is pleased to report another year of strong performance, with
results expected to be comfortably in line with market expectations((1)).

Subject to audit, revenue is anticipated to increase by 23% to £48.0m (FY24:
£39.1m), driven by a combination of organic growth of 10% and contributions
from acquisitions completed in FY25. Adjusted EBITDA((2)) is expected to
increase by 17% to £9.8m (FY24: £8.4m), underpinned by continued profit
growth alongside investment in the Group's Cloud offering.

The Liberty Cloud platform is the Group's primary growth engine, as
organisations increasingly adopt and integrate AI and automation capabilities
into their workflows. Cloud Annual Contract Value ('ACV')((3)) rose strongly,
increasing by 52% to £33.9m, including 26% organic growth. This was supported
by good momentum in the second half in cloud subscriptions, highlighting the
success of the Group's Cloud investment programme and the growing adoption of
the enhanced AI capabilities across the Liberty platform. Cloud now accounts
for 80% of total ACV, which grew by 31% to £42.2m, further strengthening the
Group's base of predictable, recurring revenues.

This performance reflects both sustained strong expansion within the existing
customer base and a notable uplift in new customer wins, particularly in the
Public Sector, where Liberty's ability to deliver rapid, measurable outcomes
is resonating, with customers responding well to the recent acquisitions and
expanded product offerings.

The integration of Govtech and Parble, both acquired early in FY25, has
expanded Netcall's addressable market and unlocked substantial cross-selling
opportunities. These acquisitions, alongside the growing momentum for new
products, are extending the Group's reach in key verticals and contributing to
a strong and growing pipeline.

Netcall remains highly cash generative. Year-end cash stood at £27.2m (30
June 2024: £34.0m) after acquisition-related payments of £12.5m (net of cash
acquired) during FY25. The Group remains debt-free and well-positioned to
support further organic and inorganic growth.

James Ormondroyd, Chief Executive, commented:

 

"This year's performance reflects the successful execution of our strategy,
delivering accelerating cloud growth of over 50%, broadening our product
suite, and integrating strategic acquisitions to strengthen our market
position.

 

"We are beginning to see the full benefits of our enhanced Liberty platform
following organic and inorganic investment. Innovations, such as our embedded
AI capabilities are driving faster adoption and helping to effectively deliver
more aspects of our customers' digitalisation and automation strategies.

 

"As we enter the new financial year, we do so with a strong base of recurring
revenue, a record pipeline, an increasingly powerful platform and supportive
market tailwinds, which together with a healthy cash position, leave us well
positioned for the next stage of growth."

 

 

((1)) Netcall believes that consensus market expectations for the year ended
30 June 2025 is revenue of £47.4m, adjusted EBITDA of £9.7m and net cash
(cash less borrowings) of £26.9m.

 

((2)) Profit before interest, tax, depreciation and amortisation adjusted to
exclude the effects of share-based payments,  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 plus the
annualised value of recurring Intelligent Document Processing ("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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