REG - Netcall PLC - Final Results for the Year Ended 30 June 2025
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RNS Number : 4566C Netcall PLC 08 October 2025
8 October 2025
NETCALL PLC
("Netcall", the "Company" or the "Group")
Final Results for the Year Ended 30 June 2025
Accelerated growth with a record pipeline driven by rising demand for digital
automation and AI enhanced solutions
Netcall plc (AIM: NET), an enterprise software company that unites automation
and customer engagement in one AI-powered platform, today announces its
audited results for the year ended 30 June 2025.
Financial highlights
FY25 FY24
Total Revenue £48.0m £39.1m +23%
Cloud services revenue £29.3m £19.8m +48%
Total annual contract value((1)) ("ACV") £42.2m £32.2m +31%
Cloud services ACV £33.9m £22.3m +52%
Adjusted EBITDA((2)) £9.8m £8.4m +17%
Adjusted profit before tax £8.3m £7.7m +8%
Profit before tax £5.1m £6.3m -19%
Adjusted basic earnings per share 3.75p 3.57p +5%
Group cash at period end £27.2m £34.0m -20%
Net funds at period end £26.1m £33.5m -22%
Final ordinary dividend per share 0.94p 0.89p +6%
Operational highlights
· Revenue grew 23% to £48.0m, accelerating as demand for the Liberty cloud
platform gained pace with organisations advancing automation and AI adoption;
organic growth of 10%
· Cloud ACV increased 52% to £33.9m, of which half was organic, and has
expanded fivefold in five years, demonstrating sustained momentum in the
Liberty cloud platform
· Total ACV rose 31% to £42.2m. Cloud ACV now accounts for 80% of total ACV, up
11 percentage points year on year
· Recurring revenue represented 80% (FY24: 76%) of total revenue, enhancing
revenue quality
· Cloud comprised 94% of new bookings, with strong uptake across Liberty modules
and growing AI adoption, around three‑quarters of ConverseCX customers also
purchased Liberty AI products
· New customer acquisition increased, with new logos contributing a larger share
of ACV growth as enterprises move to platforms that unify automation, AI and
customer engagement
· Cloud net retention rate((3)) maintained at 118% (FY24: 117%), reflecting
deeper adoption and strong expansion of cloud subscriptions across the Liberty
platform
· Govtech and Parble acquisitions integrated and already delivering cross-sell,
broadening local government solutions and adding proven IDP capability to
expand the addressable market
· The Group ended the period with £27.2m net cash and no debt after making
£12.5m of acquisition payments, providing flexibility for organic investment
and further selective M&A
· Momentum continued into the new financial year, which opened with a record
pipeline and a contracted revenue order book((4)) of £79m
James Ormondroyd, Chief Executive, said:
"Revenue grew 23% to £48m, driven by strong demand for our Liberty cloud
platform and rising AI adoption across our customer base. Organisations are
making an ongoing shift to automation and AI as they modernise operations,
reduce complexity, and move from fragmented systems to unified platforms for
customer engagement and workflow. Liberty is designed for this transformation
and delivered another year of strong momentum.
"Cloud ACV rose by more than 50% and now accounts for 80% of total ACV,
strengthening the visibility of our recurring revenue, while cloud net
retention reached 118%. New customer acquisition delivered a higher share of
growth and around three-quarters of Liberty ConverseCX clients also purchasing
Liberty AI products.
"We entered the new financial year with a record pipeline and a contracted
revenue order book of £79m, improving visibility. With the cloud investment
programme complete, a strong balance sheet and clear momentum from expanding
automation and cloud migrations, the Group is well positioned to capitalise on
the AI- and automation driven opportunities."
((1)) ACV, as at 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 was included in FY23 ACV
at the annual amount of $4m), plus the annualised value of recurring IDP
revenue.
((2)) Profit before interest, tax, depreciation and amortisation adjusted to
exclude the effects of share-based payments, impairment, profit or loss on
disposals, and acquisition, contingent consideration and non-recurring
transaction costs.
((3)) Cloud net retention rate is calculated by starting with the Cloud ACV
from all customers twelve months prior to the period end and comparing it to
the Cloud ACV from the same customers at the current period end. The current
period ACV includes any cross- or upsells and is net of contraction or churn
over the trailing twelve months but excludes ACV from new customers and
acquisitions in the current period. The Cloud net retention rate is the total
current period ACV divided by the total prior period ACV.
((4)) being the total Group Remaining Performance Obligations that represent
future contracted revenue not yet recognised, including deferred income.
For further enquiries, please contact:
Netcall plc Tel. +44 (0) 330 333 6100
James Ormondroyd, CEO
Richard Hughes, CFO
Henrik Bang, Non-Executive Chair
Canaccord Genuity Limited (Nominated Adviser and 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 (AIM: NET) is a UK-based enterprise software company that unites
automation and customer engagement in one AI-powered platform. Its Liberty
platform makes work easier by digitising processes and simplifying customer
interactions in a single, easy-to-use solution that reduces complexity. Today,
around 600 organisations across healthcare, government and financial services
rely on Netcall for mission‑critical workflows, including two‑thirds of
NHS Acute Health Trusts and major enterprises such as Legal & General,
Baloise 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.
Overview
The Board is pleased to report a year of accelerated growth, with clear
progress on key financial metrics and strategic priorities. Revenue rose 23%
to £48.0m (FY24: 9% growth), including 10% organic growth (FY24: 8% organic
growth), alongside contributions from FY25 acquisitions. Adjusted EBITDA
increased 17% to £9.8m (FY24: 5% growth), reflecting operating leverage while
sustaining investment in the Liberty platform.
Growth was broad-based, driven by robust demand for Liberty amid a structural
shift towards automation and AI. New cloud bookings made up 94% of new
business signed during the year, lifting Cloud ACV by 52% to £33.9m, of which
27% was organic. Cloud ACV now represents 80% of total ACV (FY24: 69%). Total
ACV increased 31% to £42.2m, further improving the recurring revenue mix to
80% (FY24: 76%). Over the past five years, Cloud ACV has grown fivefold,
underlining sustained top-line momentum driven by industry-wide migration to
cloud subscriptions and the Group's planned pivot towards automation and
workflow.
Growth came from new logos and deeper adoption of Liberty among existing
customers, with a larger share than prior years from new customer wins. Sales
momentum strengthened in the second half, supported by new AI capabilities and
upgraded modules, as organisations move to flexible, lower-cost, AI-enabled
platforms.
The accelerated cloud investment programme to launch and scale ConverseCX is
now complete, and the Group is leveraging that investment into sales growth.
Cloud contact centre revenue rose 34% year-on-year, and around three-quarters
of ConverseCX customers also purchased Liberty AI products, highlighting that
AI is increasingly integral to customer engagement.
Cloud net retention rate rose to 118% (FY24: 117%), meaning existing cloud
customers spent, on average, 18% more year-on-year, showing sustained customer
revenue expansion and platform stickiness. The breadth of the customer base
provides substantial runway for further revenue expansion as clients increase
their use of the platform over time. When customers add Liberty's Intelligent
Automation tools for the first time, ACV typically triples, yet automation
modules currently reach only around 31% of customers with engagement modules.
In parallel, around 20% of ACV comes from on-premises support contracts that
are steadily migrating to the cloud, which typically drives increased annual
spend by around 50%. Converting the remaining on-premises customer base
represents a material additional Cloud ACV opportunity, before further
potential AI and automation upsells.
The Group continued to execute its M&A strategy, building on last year's
activity, and delivered early cross-sell synergies. Govtech (acquired in
August 2024) and Parble (acquired in September 2024) were integrated
successfully, adding depth to local government solutions and AI-powered
intelligent document processing ("IDP"). Initial cross-sales include Liberty
solutions introduced to Govtech's council clients, and Parble's IDP sold to
existing Netcall customers. These acquisitions expand the Group's reach and
addressable market, positioning the platform for further ACV growth.
Netcall's SaaS model continues to generate healthy cash flow. The Group ended
the period with net cash of £27.2m (FY24: £34.0m) after £12.5m of
acquisition-related payments, and remains debt-free. The balance sheet
provides flexibility to continue investing in organic initiatives and targeted
acquisitions in line with the Group's growth strategy.
Current Trading and Outlook
Netcall enters the new financial year with strong momentum and a record
pipeline, supported by rising demand for digital automation and AI-enabled
solutions across enterprise and public sector markets. Recent acquisitions and
a robust product roadmap extend Liberty's capabilities, opening up new market
segments and increasing cross-sell opportunities.
Market trends continue to move in the Group's favour as organisations
increasingly explore replacing fragmented legacy systems with integrated
platforms that unify AI, automation and customer engagement. With the cloud
investment programme now complete, operating leverage is anticipated to
improve over time, while a resilient recurring revenue base and debt-free
balance sheet provide scope for continued innovation and selective
acquisitions.
Customer validation is strengthening with growing customer references and ROI
case studies generating more inbound interest. Combined with a growing
pipeline, this improves visibility into future bookings, while a contracted
revenue order book, now £79m, underpins future revenue. With favourable
market dynamics, an expanded platform and an established growth strategy, the
Board remains confident in the Group's continued success.
Business Review
Netcall unites automation and customer engagement on Liberty, its AI-powered
platform. Liberty digitises and orchestrates processes and customer
interactions without adding complexity, making work easier for teams and
customers alike. Built on a low-code foundation with embedded AI, Liberty is
easy to use, enabling business users, not just IT teams, to deploy solutions
quickly. This supports faster time-to-value and modernisation without
wholesale system replacement.
The Group serves around 600 organisations, ranging from NHS hospitals and
local councils to banks and insurers. Customer advocacy remains strong;
surveys show more than nine in ten would recommend Netcall. Every day, people
in the UK interact with Liberty - managing hospital appointments, applying for
mortgages or accessing council services - showing its role in modernising
essential operations and supporting retention and expansion.
Many organisations rely on a patchwork of legacy tools that are hard to scale
and adapt. Liberty offers a single, composable platform that consolidates
these workflows and provides a foundation for ongoing innovation. Once on
Liberty, customers can scale and adapt solutions quickly as needs change.
Prebuilt, industry-specific packages are designed to accelerate time-to-value.
For example, Citizen Hub offers ready-made modules for common council
services, and Patient Hub, used by around three million patients, helps manage
appointments and has delivered an estimated £90m in savings for the NHS to
date.
As AI adoption grows, organisations are rethinking how they deliver customer
service and application development. Many recognise that layering stand-alone
AI tools onto legacy systems adds complexity and creates silos, and industry
analysts note a shift towards modular, integrated ecosystems that evolve as
technologies mature. Liberty's low-code architecture with embedded AI
positions Netcall to support customers through this shift, helping business
teams to deliver change quickly and safely.
With automation extending across more processes, governance and security are
critical. Liberty provides enterprise-grade control for governed automation,
with AI embedded in the same framework, enabling compliance and cost
efficiency. The architecture supports AI today and is designed to absorb
emerging generative capabilities within the same framework, so customers are
able to benefit from future innovation, without the burden of
re‑engineering.
Strategy
Netcall's growth engine is built on four pillars: Land (new customer
acquisition), Expand (growth within the existing customer base), Innovate
(ongoing product innovation), and Acquire (selective M&A). Together, these
levers continue to deliver growth and position the Group for further
expansion.
Land: New customer acquisition
FY25 delivered a step change in new customer growth, with over 50 new clients
added, ahead of prior years. Direct sales benefited from strong customer
advocacy and improved go-to-market programmes, underpinned by Netcall's
reputation in core markets.
Indirect channels contributed around 17% of order bookings (FY24: 20%). The
partner ecosystem expanded further, with 16 additional firms joining during
the year, including technology specialists and communication service
providers. Partners have extended reach into new segments and geographies and
Liberty ConverseCX has proven popular with resellers due to its
partner-friendly, cloud-native model, enabling partners to deploy new services
quickly.
Wins spanned public and private sectors. In local government, adoption
accelerated, with more new council wins. Following the Govtech integration,
Liberty now handles council tax enquiries for around a quarter of UK
dwellings. Recent wins include the London Borough of Haringey, which purchased
Liberty Create, ConverseCX, Citizen Hub and RPA, and New Forest District
Council, which adopted a similar product suite. Both also opted for Liberty's
AI capabilities, signalling a shift toward multi-module adoption from the
outset, lifting initial ACV and increasing total contract value.
In healthcare, Liberty's sector solutions continued to attract NHS
organisations, with strong uptake of Liberty ConverseCX and Patient Hub to
improve access, reduce waiting times and streamline patient engagement. The
Christie NHS Foundation Trust, Europe's largest single-site cancer centre,
implemented Liberty Spark's process-mapping solution to build consistency,
visibility and efficiency across operations.
Private sector additions included a major live entertainment and venue
management company adopting Liberty ConverseCX and a global advisory, broking
and risk management firm selecting Liberty Create to accelerate internal
development. Early international activity included new customers in South
Africa, Canada, the US, Australia and New Zealand. Examples include several
financial services firms and a large retail chain in South Africa, an
insurance agency in Queensland, and a major pharmaceutical company with global
operations, all choosing Liberty Spark, demonstrating the platform's global
appeal.
Even with the growing footprint, penetration within core UK sectors is around
15% of target accounts, leaving substantial headroom for new logos. Digital
transformation remains a priority across sectors, with AI adoption increasing
urgency for modern solutions. At the same time, a widening digital skills gap
increases demand for tools that democratise technology, such as low-code
platforms. Combined with ongoing product innovation and a focus on customer
success, these factors underpin continued new customer acquisition and market
share gains.
Expand: Growth within the existing customer base
The 'land-and-expand' model continues to deliver. After Liberty is deployed,
customers broaden usage across departments and processes through cross-sell,
upsell and by scaling workflows within existing modules. In FY25, this
expansion was a major growth driver. The cloud net retention rate was 118%
(FY24: 117%) meaning that on average existing cloud customers spent about 18%
more year-on-year, even after churn. This reflects high satisfaction, strong
module relevance, and the advantage of a unified platform for adjacent use
cases.
Expansion wins included a multi-year £3m renewal with a leading UK bank
adding Liberty IDP, ConverseCX and Spark to their subscription. In local
government, follow-on sales featured a £1.6m contract with a city council for
Liberty's Citizen Hub and ConverseCX. In healthcare, multiple NHS trusts
upgraded to the new Liberty ConverseCX contact centre; for example, University
Hospitals Sussex NHS Foundation Trust adopted it to improve patient access and
experience.
Tewkesbury Borough Council is an illustration of our expand strategy. Starting
with a single workflow, the council rolled out Citizen Hub and Liberty Create
to redesign additional services and improve citizen engagement (for example,
planning applications and reporting). It subsequently added Liberty ConverseCX
with AI, which went live during the year, to handle enquiries more
efficiently, and most recently added Liberty Spark for process mapping and
discovery. Each step solved a new challenge and delivered incremental value,
turning Liberty into an essential platform across their operations. This
progressive, multi-module pattern has recurred across many accounts and
remains a core driver of net revenue retention and ACV growth.
To support expansion, Netcall invests in customer enablement. The Netcall
Community grew to over 10,000 members, providing a forum for knowledge
sharing, best practice and reusable application components. The Netcall
Academy expanded to 240 courses with over 5,000 courses completed in FY25,
helping customers build internal capability. These initiatives enable
customers to get more out of Liberty, promote feature attach, reduce
time‑to‑value, and support both expansion and retention.
Innovate: Ongoing product innovation
Netcall maintained a high pace of innovation in FY25, delivering features
that expand Liberty's reach and deepen customer value.
Liberty IDP, launched after the Parble acquisition, automates document-heavy
workflows using AI to extract and process information. Early uptake is
encouraging and the roadmap includes human-in-the-loop exception handling and
document generation to increase value in complex environments. IDP opens new
entry points such as claims and case intake, digital mailroom, and
back‑office processing, supporting both land and expand strategies.
Liberty Create, the platform's low-code engine, was enhanced to better support
enterprise case management. As part of the Govtech integration, Netcall
developed a new multi-tenant forms and workflow suite for local government,
built on Liberty Create and integrated with Govtech's automation service.
These enhancements improved margins on existing Govtech deployments (now using
Liberty as the front-end) and are creating cross-sell opportunities.
Liberty ConverseCX, Netcall's next-generation cloud contact centre launched
late in the prior financial year, gained traction. The platform blends AI and
intelligent automation to improve customer experience and agent productivity.
Embedded generative AI enables virtual agents to manage routine enquiries
using natural language Q&A, while human agents benefit from AI-assistance
including guidance, translation and call summarisation. These capabilities
support faster, more accurate service and are driving migrations from
on-premises systems to the cloud.
AI enhancements were and continue to be introduced across the Liberty suite.
Liberty RPA now includes AI-assisted bot creation, allowing users to describe
tasks in plain language to generate automation scripts. Within Patient Hub, a
new machine-learning model predicts the likelihood of missed appointments and
offers tailored reminder plans to help providers reduce patient no-shows.
These upgrades make Liberty automation tools smarter and more predictive,
while remaining accessible through its no-/low-code interface.
Netcall has now also begun introducing agentic AI. Within Liberty ConverseCX,
a new Agent Step for voice and chat uses autonomous reasoning to guide
customer interactions, request information, escalate to people or retrieve
knowledge as needed. A new AI-driven knowledge management system combines
static documentation and case data with AI to enable dynamic, conversational
support that improves accuracy and context.
To meet sector-specific needs, Netcall released several additional modules. In
healthcare, the Clinic Utilisation app helps hospitals manage ad-hoc clinic
capacity and reduce waiting lists, while a Directory app streamlines staff
directory management. For local government and housing providers, rent arrears
can be managed using Rent-IQ that offers AI-driven tools, automated processes,
streamlines workflows and makes managing tasks and tenant engagement easier.
These targeted solutions are generating incremental revenue and expanding the
sales pipeline.
Acquire: Expansion through selective M&A
Netcall's acquisition strategy complements organic growth, targeting
opportunities that fast-track Liberty's roadmap, expand the customer base and
create cross-sell paths that increase ACV and strengthen recurring revenue.
In FY25, Netcall completed two acquisitions, Govtech and Parble, both of which
were successfully integrated into Liberty and are contributing to Group
revenue and ACV growth. These deals have already unlocked cross-sell and
upsell wins: Liberty is now adopted by customers previously using only Govtech
solutions, while Liberty IDP has been deployed by local council clients. In
financial services, a leading firm signed up for Parble's IDP alongside
Liberty ConverseCX and Liberty Spark, demonstrating the platform's ability to
drive multi-product adoption.
M&A remains a strategic growth lever to accelerate innovation and extend
Liberty's capabilities. Management focuses on targets with valuable
intellectual property or niche capabilities that enhance the platform and
strengthen the value proposition. This approach aligns with ongoing industry
consolidation as organisations simplify and modernise fragmented software
portfolios.
ESG Initiatives
Environmental commitment and progress
Netcall remains committed to achieving carbon neutrality by the end of 2026.
Since the 2020 baseline, Scope 1 and Scope 2 emissions have reduced by 1.5% to
33.8 tCO2e in FY25. Emissions intensity improved by 20% to 0.70 tCO2e per £m
of revenue (FY24: 0.88).
The Group's transition plan to Net Zero is validated by the Science Based
Targets initiative (SBTi). Netcall continues to invest in woodland creation
and uses its Environmental Management System ("EMS") built on the Liberty
platform to manage actions and improvements. The EMS app is also available to
customers via the Netcall AppShare to support their sustainability goals.
Netcall's digital transformation solutions help customers cut carbon
emissions, leveraging AI and RPA to streamline processes, digitise systems and
reduce resource use, including a shift to electronic communications.
Social value and community impact
Guided by value-based operating principles and regular Social Value Policy
reviews, Netcall focuses on creating social value and serving communities. The
Group supports many UK public-sector organisations, from local councils to NHS
trusts, and its technology is used by around three million patients to manage
appointments, helping thousands access care sooner.
Netcall also supports digital inclusion, ensuring tools are accessible for
everyone, for example, by offering digital services such as incorporating
audio transcripts and British Sign Language videos, as well as offering
digital training and support to those at risk of exclusion. A recent example
is the launch of an accessible Patient Engagement Portal for Liverpool Women's
NHS trust, enabling patients to embrace digital tools without the barriers.
People and culture
Internally, the focus is on building capability and engagement. This year, the
Group launched an early-careers programme, bringing seven graduates into the
business, and initiated the second cohort of its Management Development
Programme to develop leadership skills.
Employee engagement remains high. Netcall was named one of the Financial Times
Best Employers 2025, placing the Group in the top 25 companies in its sector
based on a survey of approximately 20,000 employees. These outcomes underscore
Netcall's commitment to a positive workplace culture with high employee
satisfaction.
Financial Review
ACV remains a core key performance indicator for the Group and a lead
indicator of revenue visibility. The Board closely monitors year-on-year ACV
growth as a key financial metric. ACV reflects the annualised value of new
customer contracts together with upsell and cross-sell within the existing
base, net of reductions or cancellations.
At 30 June 2025, Cloud ACV was £33.9m, up 52% year on year (FY24: £22.3m).
This performance reflects the Group's effective land-and-expand strategy,
stronger new logo momentum, and the positive contribution from acquisitions
completed during the year. Total ACV increased by 31% to £42.2m (FY24:
£32.2m).
On an organic basis (excluding acquisitions), Cloud ACV grew by 27% and Total
ACV by 13%. FY25 acquisitions added £5.5m to Cloud ACV at year-end (FY24:
£0.4m), highlighting the way targeted acquisitions continue to strengthen the
Group's growth platform.
The table below sets out ACV by component at the end of the last three
financial years:
£'m ACV FY25 FY24 FY23
Cloud services 33.9 22.3 18.1
Product support contracts 8.3 9.9 9.8
Total ACV 42.2 32.2 27.9
Group revenue increased 23% to £48.0m (FY24: £39.1m), reflecting an
underlying organic increase of 10% (£4.00m) alongside contributions from
acquisition completed during the year.
Revenue from Intelligent Automation solutions rose 39% to £28.0m (FY24:
£20.1m), of which £4.90m was attributable to acquisitions. Customer
Engagement solutions revenue grew 5% to £19.4m (FY24: £18.5m), with Customer
Engagement Cloud services delivering a significant increase of 34% to £7.35m
(FY24: £5.50m).
The table below sets out revenue by component for the last three financial
year ends:
£'m Revenue FY25 FY24 FY23
Cloud services 29.3 19.8 16.6
Product support contracts 9.2 9.9 9.4
Total Cloud services & Product support contracts 38.5 29.7 26.0
Communication services 2.6 2.5 2.6
Product 1.0 1.8 2.2
Professional services 5.9 5.1 5.2
Total Revenue 48.0 39.1 36.0
Supported by strong growth in ACV, Cloud services revenue (subscription and
usage fees of our cloud-based offerings) was 48% higher at £29.3m (FY24:
£19.8m), of which £4.61m was attributable to acquisitions.
Product support contract revenue was £9.22m (FY24: £9.89m), reflecting the
continued customer migration to cloud and the retirement of certain legacy
products. As a result, recurring revenues from Cloud services and Product
support contracts increased to 80% of total revenue (FY24: 76%).
Communication services revenue was £2.57m (FY24: £2.46m), reflecting
increases in both call-back and automation-driven messaging transactions.
Product revenue, comprising software license sales with supporting hardware,
was £1.03m (FY24: £1.83m), in line with the expected shift in customer
preference towards cloud-based solutions over on-premises deployments.
Professional services revenue increased by 17% to £5.91m (FY24: £5.07m), of
which £0.29m was contributed by acquisitions. The level of professional
services varies with the mix of direct and indirect sales, scope of delivery
(from full application build to enablement of in-house teams), and the extent
to of partners-delivered services.
Group Remaining Performance Obligations ("RPO"), representing future
contracted revenue not yet recognised, including deferred income, increased by
24% to £78.9m at year end (FY24: £63.8m). This highlights the substantial
revenue already secured and available for recognition in future periods.
Revenue expected to be recognised within the next 12 months ("Current RPO"),
rose by 30% to £41.7m (FY24: £32.0m). Acquisitions contributed £6.2m to RPO
at the year-end, of which £3.9m was Current RPO.
Adjusted EBITDA increased 16% to £9.82m (FY24: £8.44m), representing a 20.5%
margin on revenue (FY24: 21.6%). The margin reflects the full-year effect of
the Group's now complete investment programme in its Cloud Customer Engagement
offering, announced in October 2023.
Following recent acquisitions, the Group recorded higher acquisition-related
expenses, including amortisation on acquired intangibles of £1.16m (FY24:
£0.58m) and post-completion services costs of £0.80m (FY24: £0.16m). In
addition, the launch of new share schemes during the year resulted in a higher
share-base payment charge of £0.93m (FY24: £0.65m). These factors
contributed to an operating profit of £4.65m (FY24: £5.43m).
Adjusted profit before tax increased by 7% to £8.28m (FY24: £7.73m),
reflecting lower net interest income.
Profit before tax was £5.07m (FY24: £6.33m) following the same profile as
operating profit, primarily reflecting acquisition-related costs and
share-based payment charges.
The Group recorded a tax charge of £1.02m (FY24: £0.48m), benefiting from
tax relief available from the exercise of share options during the period.
Basic earnings per share was 2.45 pence (FY24: 3.61 pence) and increased by 5%
to 3.75 pence on an adjusted basis (FY24: 3.57 pence). Diluted earnings per
share was 2.41 pence (FY24: 3.46 pence) and increased by 8% to 3.70 pence on
an adjusted basis (FY24: 3.42 pence).
Cash generated from operations before acquisition-related payments decreased
by 27% to £10.1m (FY24: £13.8m) due to the timing of customer receipts in
both the current and prior years. This represents a conversion of 103% (FY24:
164%) of adjusted EBITDA.
Research and development expenditure, including capitalised software
development, was 28% higher at £7.26m (FY24: £5.66m), of which capitalised
software expenditure was £3.23m (FY24: £2.32m). The increase in research and
development expenditure of £1.6m maintains a total spend in line with revenue
growth.
Total capital expenditure was £3.64m (FY24: £2.57m); with the balance after
capitalised development, £0.42m (FY24: £0.25m) primarily relating to IT
equipment and software.
Year-end Group cash was £27.2m (30 June 2024: £34.0m) after £12.5m of
acquisition-related payments (net of cash acquired) during the year. Net
funds, after lease liabilities and borrowings, were £26.1m at 30 June 2025
(30 June 2024: £33.5m).
Contribution from Acquisitions
On 6 August 2024, the Company acquired Govtech for a total consideration of up
to £13.0m (see note 8 for further information). During the reporting period,
Govtech generated £3.72m in revenue and an adjusted EBITDA of £0.84m.
Consideration paid in the period was £9.15m in cash, with a further £0.54m
accrued as post-completion services under IFRS 3, reflecting the continued
involvement of the former owners.
On 13 September 2024 the Company acquired Parble for a total consideration of
up to €8.7m (£7.4m) (see note 8 for further information). During the
reporting period, Parble generated £1.18m in revenue and an adjusted EBITDA
of £0.35m. The consideration paid in the period was £3.49m in cash, with an
additional £0.18m accrued as post-completion services under IFRS 3.
Dividend
In line with the Company's dividend policy to pay-out 25% of adjusted earnings
per share, the Board is proposing a final dividend for this financial year of
0.94p (FY24: 0.89p). If approved at the Company's 2025 Annual General Meeting,
the final dividend will be paid on 9 February 2026 to shareholders on the
register at the close of business on 30 December 2025.
Audited consolidated income statement for the year ended 30 June 2025
2025 2024
£'000 £'000
Revenue 47,961 39,057
Cost of sales (8,092) (5,612)
Gross profit 39,869 33,445
Administrative expenses (34,939) (28,050)
Other gains/(losses) - net (285) 31
Adjusted EBITDA 9,819 8,440
Depreciation (507) (398)
Net gain on disposal of property, plant and equipment 20 -
Amortisation of acquired intangible assets (1,164) (581)
Amortisation of other intangible assets (1,546) (1,228)
Non-recurring transaction costs (see note 4) (229) -
Post-completion services and fair value adjustments (see note 4) (819) (156)
Share-based payments (929) (651)
Operating profit 4,645 5,426
Finance income 568 943
Finance costs (142) (40)
Finance income - net 426 903
Profit before tax 5,071 6,329
Tax charge (1,021) (475)
Profit for the year 4,050 5,854
Earnings per share - pence
Basic 2.45 3.61
Diluted 2.41 3.46
All activities of the Group in the current and prior periods are classed as
continuing. All of the profit for the period is attributable to the
shareholders of Netcall plc.
Audited consolidated statement of comprehensive income for the year ended 30
June 2025
2025 2024
£'000 £'000
Profit for the year 4,050 5,854
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences arising on translation of foreign operations 35 (5)
Total other comprehensive income for the year 35 (5)
Total comprehensive income for the year 4,085 5,849
All of the comprehensive income for the year is attributable to the
shareholders of Netcall plc.
Audited consolidated balance sheet at 30 June 2025
2025 2024
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 613 685
Right-of-use assets 849 357
Intangible assets 51,145 33,596
Deferred tax assets 357 876
Financial assets at fair value through other comprehensive income 100 72
Total non-current assets 53,064 35,586
Current assets
Inventories 23 36
Other current assets 2,798 2,313
Contract assets 365 207
Trade receivables 4,753 4,752
Other financial assets at amortised cost 88 139
Cash and cash equivalents 27,159 34,008
Total current assets 35,186 41,455
Total assets 88,250 77,041
Liabilities
Non-current liabilities
Contract liabilities 325 806
Borrowings - 9
Lease liabilities 777 358
Deferred tax liabilities 2,386 1,407
Total non-current liabilities 3,488 2,580
Current liabilities
Trade and other payables 11,266 7,841
Contract liabilities 28,199 26,009
Current tax liabilities 1,045 -
Borrowings - 10
Lease liabilities 266 104
Total current liabilities 40,776 33,964
Total liabilities 44,265 36,544
Net assets 43,986 40,497
Equity attributable to owners of Netcall plc
Share capital 8,432 8,339
Share premium 5,574 5,574
Other equity 4,900 4,900
Other reserves 969 403
Retained earnings 24,111 21,281
Total equity 43,986 40,497
Audited consolidated statement of cash flows for the year ended 30 June 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Profit before income tax 5,071 6,329
Adjustments for:
Depreciation and amortisation 3,216 2,207
Share-based payments 929 651
Finance income - net (426) (903)
Net gain on disposal of property, plant and equipment (20) -
Other non-cash expenses 14 -
Changes in operating assets and liabilities, net of effects from purchasing of
subsidiary undertaking:
Decrease/ (increase) in inventories 13 (5)
Decrease/ (increase) in trade receivables 594 (249)
(Increase)/ decrease in contract assets (126) 393
Decrease/ (increase) in other financial assets at amortised cost 74 (77)
(Increase)/ decrease in other current assets (48) 29
Increase in trade and other payables 1,310 182
(Decrease)/ increase in contract liabilities (686) 5,249
Cash flows from operations 9,915 13,806
Analysed as:
Cash flows from operations before payment of non-recurring transaction 10,144 13,806
costs
Non-recurring transaction cost payments (229) -
Interest received 568 943
Interest paid (17) (10)
Income taxes paid (132) (11)
Net cash inflow from operating activities 10,334 14,728
Cash flows from investing activities
Payment for acquisition of subsidiary, net of cash acquired (12,007) (1,633)
Payment for property, plant and equipment (222) (252)
Payment of software development costs (3,226) (2,322)
Payment for other intangible assets (194) -
Payment for financial assets at fair value through other comprehensive income (28) -
Proceeds from sale of property, plant and equipment 21 -
Net cash outflow from investing activities (15,656) (4,207)
Cash flows from financing activities
Proceeds from issues of ordinary shares 93 231
Repayment of borrowings (19) (4)
Lease payments (163) (152)
Dividends paid to Company's shareholders (1,470) (1,338)
Net cash outflow from financing activities (1,559) (1,263)
Net increase in cash and cash equivalents (6,881) 9,258
Cash and cash equivalents at beginning of the financial year 34,008 24,753
Effects of exchange rate on cash and cash equivalents 32 (3)
Cash and cash equivalents at end of financial year 27,159 34,008
Audited consolidated statement of changes in equity for the year ended 30 June
2025
Share capital Share premium Other equity Other reserves Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 8,108 5,574 4,900 3,056 13,739 35,377
Proceeds from share issue 231 - - - - 231
Increase in equity reserve in relation to options issued - - - 740 - 740
Tax credit relating to share options - - - (362) - (362)
Reclassification following exercise or lapse of options - - - (3,026) 3,026 -
Dividends paid - - - - (1,338) (1,338)
Transactions with owners 231 - - (2,648) 1,688 (729)
Profit for the year - - - - 5,854 5,854
Other comprehensive income - - - (5) - (5)
Total comprehensive income for the year - - - (5) 5,854 5,849
Balance at 30 June 2024 8,339 5,574 4,900 403 21,281 40,497
Proceeds from share issue 93 - - - - 93
Increase in equity reserve in relation to options issued - - - 991 - 991
Tax charge relating to share options - - - (210) - (210)
Reclassification following exercise or lapse of options - - - (250) 250 -
Dividends paid - - - - (1,470) (1,470)
Transactions with owners 93 - - 531 (1,220) (596)
Profit for the year - - - - 4,049 4,049
Other comprehensive income - - - 35 - 35
Total comprehensive income for the year - - - 35 4,049 4,084
Balance at 30 June 2025 8,432 5,574 4,900 969 24,110 43,985
Notes to the financial information for the year ended 30 June 2025
1. General information
Netcall plc (AIM: "NET", "Netcall", or the "Company"), is a leading provider
of intelligent automation and customer engagement software. It is a public
limited company and is quoted on AIM (a market of the London Stock Exchange).
The Company's registered address is Suite 203, Bedford Heights, Brickhill
Drive, Bedford, UK MK41 7PH and the Company's registered number is 01812912.
2. Basis of preparation
The Group financial statements consolidate those of the Company and its
subsidiaries (together referred to as the 'Group').
The financial information set out in these final results has been prepared in
accordance with UK-adopted International Accounting Standards in conformity
with the requirements of the Companies Act 2006. The accounting policies
adopted in this results announcement have been consistently applied to all the
years presented and are consistent with the policies used in the preparation
of the statutory accounts for the period ended 30 June 2025.
The consolidated financial information is presented in sterling (£), which is
the Company's functional and the Group's presentation currency.
The financial information set out in these results does not constitute the
Company's statutory accounts for 2025 or 2024. Statutory accounts for the
years ended 30 June 2025 and 30 June 2024 have been reported on by the
Independent Auditors; their report was (i) unqualified; (ii) did not draw
attention to any matters by way of emphasis; and (iii) did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 30 June 2024 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 30 June 2025
will be delivered to the Registrar in due course. Copies of the Annual Report
2025 will be posted to shareholders on or about 14 November 2025. Further
copies of this announcement can be downloaded from the website www.netcall.com
(http://www.netcall.com) .
As a result of the level of cash generated from operating activities the Group
has maintained a healthy liquidity position as shown on the consolidated
balance sheet. The Board has carried out a going concern review and concluded
that the Group has adequate cash to continue in operational existence for the
foreseeable future. To support this the Directors have prepared cash flow
forecasts for a period in excess of 12 months from the date of approving the
financial statements. When preparing the cash flow forecasts the Directors
have reviewed a number of scenarios, including the severe yet plausible
downside scenario, with respect to levels of new business and client
retention. In all scenarios the Directors were able to conclude that the Group
has adequate cash to continue in operational existence for the foreseeable
future.
3. Segmental analysis
Management considers that there is one operating business segment being the
design, development, sale and support of software products and services, which
is consistent with the information reviewed by the Board when making strategic
decisions. Resources are reviewed on the basis of the whole of the business
performance.
The key segmental measure is adjusted EBITDA which is profit before interest,
tax, depreciation, amortisation, acquisition and reorganisation expenses and
share-based payments, which is set out on the consolidated income statement.
Reconciliation of profit before tax to adjusted profit before tax
The table below reconciles profit before tax to adjusted profit before tax by
excluding share-based payments and acquisition-related items:
£'000 30 June 2025 30 June 2024
Profit before tax 5,071 6,329
Share-based payments 929 651
Post-completion services (see note 4) 819 156
Non-recurring transaction costs (see note 4) 229 -
Amortisation of acquired intangible assets 1,164 581
Unwinding of discount - contingent consideration 69 10
Adjusted profit before tax 8,281 7,727
4. Material profit or loss items
The Group identified the following items which are material due to the
significance of their nature and/or their amount. They are listed separately
here to provide a better understanding of the financial performance of the
Group in this and the prior year.
2025 2024
£'000 £'000
Non-recurring transaction costs((1)) (229) -
Post completion services expense((2)) (819) (156)
(1,048) (156)
((1)) The Company incurred professional advisor fees of £0.23m in connection
with the acquisition of Govtech Holdings Limited and Smart & Easy NV all
of which was paid in the period. These costs are included in 'administrative
expenses'.
( )
((2)) The former owners of Skore Labs Limited (acquired in January 2024),
Govtech Holdings Limited (acquired in August 2024), and Smart and Easy NV
(acquired in September 2024) continued to work in the business following their
acquisitions and in accordance with IFRS 3 a proportion of the contingent
consideration arrangement is treated as remuneration and expensed in the
income statement.
5. Earnings per share
The basic earnings per share is calculated by dividing the net profit
attributable to equity holders of the Company by the weighted average number
of ordinary shares in issue during the year, excluding those held in treasury.
30 June 2025 30 June 2024
Net earnings attributable to ordinary shareholders (£'000) 4,050 5,854
Weighted average number of ordinary shares in issue (thousands) 165,473 162,293
Basic earnings per share (pence) 2.45 3.61
The diluted earnings per share has been calculated by dividing the net profit
attributable to ordinary shareholders by the weighted average number of shares
in issue during the year, adjusted for potentially dilutive shares that are
not anti-dilutive.
30 June 2025 30 June 2024
Weighted average number of ordinary shares in issue (thousands) 165,473 162,293
Adjustments for share options (thousands) 2,397 7,021
Weighted average number of potential ordinary shares in issue (thousands) 167,870 169,314
Diluted earnings per share (pence) 2.41 3.46
Adjusted earnings per share have been calculated to exclude the effect of
acquisition, contingent consideration and reorganisation costs, share-based
payment charges, amortisation of acquired intangible assets and with a
normalised rate of tax. The Board believes this gives a better view of
on-going maintainable earnings. The table below sets out a reconciliation of
the earnings used for the calculation of earnings per share to that used in
the calculation of adjusted earnings per share:
£'000 30 June 2025 30 June 2024
Profit used for calculation of basic and diluted EPS 4,050 5,854
Share-based payments 929 651
Post-completion services (see note 4) 819 156
Non-recurring transaction costs (see note 4) 229 -
Amortisation of acquired intangible assets 1,164 581
Unwinding of discount - contingent consideration 69 10
Tax effect of adjustments (1,049) (1,457)
Profit used for calculation of adjusted basic and diluted EPS 6,211 5,795
30 June 2025 30 June 2024
Adjusted basic earnings per share (pence) 3.75 3.57
Adjusted diluted earnings per share (pence) 3.70 3.42
6. Dividends
Year to June 2025 Paid Pence per share Cash flow statement Statement of changes in equity June 2025 balance sheet
(£'000) (£'000) (£'000)
Final ordinary dividend for the year to June 2024 7/2/25 0.89p 1,470 1,470 -
Year to June 2024 Paid Pence per share Cash flow statement Statement of changes in equity June 2024 balance sheet
(£'000) (£'000) (£'000)
Final ordinary dividend for the year to June 2023 9/2/24 0.83p 1,338 1,338 -
1,338 1,338 -
It is proposed that this year's final ordinary dividend of 0.94p pence per
share will be paid to shareholders on 9 February 2026. Netcall plc shares will
trade ex-dividend from 29 December 2025 and the record date will be 30
December 2025. The estimated amount payable is £1.57m. The proposed final
dividend is subject to approval by shareholders at the Annual General Meeting
and has not been included as a liability in these financial statements.
7. Net funds reconciliation
£'000 30 June 2025 30 June 2024
Cash and cash equivalents 27,159 34,008
Borrowings - fixed interest - (19)
Lease liabilities (1,043) (462)
Net funds 26,116 33,527
8. Business combinations
Acquisition of Govtech Holdings Limited
On 6 August 2024, the Company acquired 100% of the issued share capital of
Govtech Holdings Limited ('Govtech'), a provider of digital process automation
solutions.
On acquisition of a business, IFRS 3 'Business Combinations' requires the
Group to assess the fair value of the consideration transferred and the fair
value of the assets acquired.
The fair value of the consideration transferred is:
£000
Initial cash consideration 9,150
Deferred cash consideration 433
Contingent cash consideration 415
Contingent share consideration 11
10,009
The consideration for the transaction comprised:
· cash consideration of £9.15m paid on completion;
· deferred cash consideration of £0.45m (undiscounted) payable and paid in
August 2025; and
· contingent consideration of up to £2.73m in cash and £0.67m in Netcall
shares, payable upon achievement of specific performance targets within the
two-year period following the completion date. As the arrangement requires
on-going provision of services to the Group by a number of the previous
shareholders of Govtech then: the cash components will be recognised in the
income statement as services are rendered, in line with the requirements of
IAS 19 'Employee benefits'; and the share components will be recognised in the
income statement based on the volume of shares that are ultimately expected to
vest, in line with the requirements of IFRS 2 'Share based payments'.
The assets and liabilities recognised as a result of the acquisition are as
follows:
£000
Intangible assets - proprietary software 1,200
Intangible assets - customer relationships 3,350
Intangible assets - brand 300
Property, plant and equipment 35
Right-of-use assets 225
Other current assets 433
Trade receivables 561
Cash and cash equivalents 1,689
Trade and other payables (575)
Contract liabilities (2,225)
Lease liabilities - current liabilities (27)
Lease liabilities - non-current liabilities (207)
Deferred tax liabilities (1,221)
Net identifiable assets acquired 3,538
Goodwill 6,471
Net assets acquired 10,009
The goodwill recognised is attributable to the future economic benefits
expected to be obtained from the integration of Govtech's solutions into the
Liberty product and to the workforce.
Subsequent to the date of acquisition, Govtech generated £3.72m of revenue
and profit after tax of £0.79m during the reporting period, which is included
within the Consolidated income statement. If the acquisition had occurred at
the beginning of the reporting period, Govtech would have generated £3.94m of
revenue and a £0.43m profit after tax.
During the year, the post completion services expense recognised in relation
to contingent consideration required to be settled in cash was £0.50m. This
has been included within 'Post completion services' in the income statement.
The post completion services expense recognised in relation to contingent
consideration required to be settled in equity was £0.10m. This has been
included within 'Share based payments' in the income statement.
During the year, an expense of £0.02m has been recognised in relation to the
unwinding of discounting on contingent consideration payable in cash and an
expense of £0.02m in relation to the unwinding of discount on deferred
consideration. The deferred consideration balance is included within 'Other
liabilities'
The cash outflow as a result of the transaction is as follows:
£000
Initial cash consideration 9,150
Less: cash acquired (1,689)
Net cash outflow from investing activities 7,461
Acquisition of Smart & Easy NV
On 13 September 2024, the Company acquired 100% of the issued share capital of
Smart & Easy NV (trading as 'Parble'), a provider of digital process
automation solutions.
The fair value of the consideration transferred is:
£000
Initial cash consideration 3,489
Deferred cash consideration 490
Contingent cash consideration 42
Contingent share consideration 67
4,088
The consideration for the transaction comprised:
· cash consideration of €4.13m (£3.49m) paid on completion. Additionally,
€1.01m (£0.86m) in net debt was assumed and repaid at completion;
· deferred cash consideration of €0.60m (undiscounted) payable and paid in
September 2025; and
· contingent consideration of up to €2.00m in cash and €2.00m in Netcall
shares, payable upon achievement of specific performance targets within the
three-year period following the completion date. As the arrangement requires
on-going provision of services to the Group by a number of the previous
shareholders of Parble then: the cash components will be recognised in the
income statement as services are rendered, in line with the requirements of
IAS 19 'Employee benefits'; and the share components will be recognised in the
income statement based on the volume of shares that are ultimately expected to
vest, in line with the requirements of IFRS 2 'Share based payments'.
The assets and liabilities recognised as a result of the acquisition are as
follows:
£000
Intangible assets - proprietary software 1,985
Intangible assets - customer relationships 279
Property, plant and equipment 3
Other current assets 24
Trade receivables 35
Contract assets 40
Cash and cash equivalents 481
Trade and other payables (333)
Contract liabilities (168)
Borrowings (1,338)
Deferred tax liabilities (161)
Net identifiable assets acquired 847
Goodwill 3,241
Net assets acquired 4,088
The goodwill recognised is attributable to the future economic benefits
expected to be obtained from the integration of Parble's digital process
automation solutions into the Liberty product and to the workforce.
Subsequent to the date of acquisition, Parble generated £1.18m of revenue and
profit after tax of £0.35m during the reporting period, which is included
within the Consolidated income statement. If the acquisition had occurred at
the beginning of the reporting period, Parble would have generated £1.49m of
revenue and a £0.26m loss after tax.
During the year, the post completion services expense recognised in relation
to contingent consideration required to be settled in cash was £0.14m. This
has been included within 'Post completion services' in the income statement.
The post completion services expense recognised in relation to contingent
consideration required to be settled in equity was £0.11m. This has been
included within 'Share based payments' in the income statement.
During the year, an expense of £0.01m has been recognised in relation to the
unwinding of discounting on contingent consideration payable in cash and an
expense of £0.01m in relation to the unwinding of discount on deferred
consideration. The deferred consideration balance is included within 'Other
liabilities'
The cash outflow as a result of the transaction is as follows:
£000
Initial cash consideration 3,489
Less: cash acquired (481)
Add: debt assumed and repaid in full at completion 1,338
Net cash outflow from investing activities 4,346
Acquisition payments
Total cash outflow relating to acquisition in the year was
£000
Payments for acquisition of subsidiaries, net of cash acquired/ debt assumed 12,007
Non-recurring transaction fees 229
Payment of pre-acquisition tax and other payables 266
Total net cash outflow 12,502
Other payables - acquisition-related liabilities
£'000 30 June 2025 30 June 2024
Opening balance 483 -
Acquisition of Skore - 317
Acquisition of Govtech 848 -
Acquisition of Parble 532 -
Charged/ (credited) to profit or loss:
- Post-completion services expense 819 156
- Unwinding of discount 69 10
- Effect of exchange rate 7 -
Amounts paid during the year:
- Payment for acquisition of subsidiaries (200) -
Closing balance 2,558 483
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