Final Results

Netcall PLC
26 September 2007


26th September 2007
                                  NETCALL PLC
                          ('Netcall' or 'the Company')
               Preliminary Results for Year Ended 30th June 2007

Netcall plc (AIM:NET), a leading provider of callback, auto-messaging and
contact solutions, today announces its financial results for the year ended 30th
June 2007.

Financial Highlights

   •  Turnover up 31% to £4.11 million (2006: £3.13 million)

   •  Hosted services growth of 51% to £2.0 million (2006: £1.33 million)

   •  Operating profits before FRS 20 charges increases 121% to £0.81 million
      (2006: £0.37 million)

   •  Operating margin before FRS 20 charges of 20% (2006: 12%)

   •  Profit before tax increased by 115% to £0.77 million

Operational Highlights

   •  New customers include Fortis Insurance, Birmingham City Council and
      McAfee

   •  Growing footprint within existing customer base including Lloyds TSB,
      Oracle and nPower

   •  Revenues from distribution channels grow by 65% accounting for 45% of
      total revenues (2006: 37%)

   •  QueueBuster saved millions of callers from more than 400 years of
      telephone queuing

Ron Elder, Chairman of Netcall, commented: 'Today's results reflect a growing
demand in the market for Netcall's products and solutions. When combined with
the effective working relationship we have established with our distribution
partnerships, this allows Netcall to deliver recurring revenues and significant
increases in profitability.'

For further enquiries, please contact:

Netcall plc                                     Tel. [phone]
Ron Elder, Chairman / Henrik Bang, CEO

Evolution Securities                            Tel. [phone]
Simon Leathers / Tim Redfern

ICIS Limited                                    Tel. [phone]
Tom Moriarty / Caroline Evans-Jones



CHAIRMAN'S STATEMENT

Results

I am very pleased to report that the financial results for the year ended 30th
June 2007 were ahead of expectations and continue to confirm the acceptance by
the market of Netcall's technology and equally the strategy pursued since 2004
which is delivering profit, cash and consistent growth.

The figures reported today show a 51% increase in service revenues and a 17%
increase in product revenues resulting in total revenue for the year of £4.11
million, a 31% growth on the year to 30th June 2006. Gross margins were slightly
ahead at 87% (2006 : 86%); with operating profits before FRS 20 charges of £0.81
million (2006 : £0.37 million) the business achieved an operating margin of 20%.

Business focus

As detailed in the Chief Executive's review we continue to successfully pursue
our strategy of increasing our market presence, principally through our flagship
product QueueBuster, both as a hosted service provider and as a seller of
licenced software. We have increased our channel partners during the year and
will continue to deepen our relationship with them as we identify new
opportunities to extend the use of our products.

Since my last report the Company has undertaken a capital restructuring which
allows us to better utilise our distributable reserves and cash not required for
planned business growth for the benefit of shareholders. This could take the
form of a limited share buyback program, recently authorised by shareholders, or
by way of a dividend. Following the announcement of these results the Board will
determine the appropriate action.

During the year Brian Gowers resigned his directorship to pursue other interests
and the Board would like to thank him for his contribution over his many years
of service.

We continue to strengthen the management team at Netcall and advance the
capabilities of the entire company for the benefit of our existing and
prospective customers. This year's performance is a testament to the execution
of a clear strategy under the leadership of our Chief Executive Henrik Bang and
I would like to thank him and the entire staff for their dedication and support
in delivering these results.

Ron Elder, Chairman
26th September 2007



CHIEF EXECUTIVE'S REVIEW

Netcall continued to make significant progress during the year. The Company
accelerated its turnover growth and achieved another year with a significant
increase in profitability. The main areas of the business improved with
continued emphasis on hosted services growth and increasing revenues from
distribution channels.

The overall long term health of the Company continues to strengthen with
improving profits which generate a growing cash position. This has been driven
by the ongoing growth in both hosted services and revenues from distribution
channels, underwritten by a significant increase in the Company's recurring
revenue streams.

Netcall has continued to broaden its customer base and expand its footprint
within existing customers, mainly due to increased market demand for its
flagship product QueueBuster.

Financial results

Operating profits before FRS 20 charges increased by 121% to £0.81 million
(2006: £0.37 million) corresponding to a profit margin of 20% (2006: 12%). This
result was achieved by a combination of revenue growth and improving margins
through the close monitoring and control of costs.

Turnover increased by 31% to £4.11 million (2006: £3.13 million) with growth in
both product and services revenues. Hosted services reported its seventh
consecutive six month period of growth and reached £2.00 million (2006: £1.33
million), contributing 49% (2006: 42%) towards total revenues. Product sales
increased to £2.11 million (2006: £1.81 million), and both revenue streams
contributed to a significant increase in the Company's recurring revenue.

The majority of Netcall's cost increases were directly linked to the improvement
in revenues and profits, with only a low percentage uplift in its fixed cost
base. The leveraging of its overheads, coupled with improved organisational
capabilities resulted in a substantially increased operating margin.

Operating cash flow was strong with a net inflow of £0.63 million (after early
repayment of the balance of outstanding debt); the Company's net funds increased
to £2.36 million as at 30th June 2007 (2006: £1.73 million), the majority of
which is held on short term treasury deposits. During the early part of the new
financial year, the majority of trade debtors have been collected resulting in a
further increase in the cash position.

The balance sheet shows an increase in net assets to £2.68 million (2006: £1.80
million), reflecting Netcall's profitability. The changed composition of the
capital and reserves has arisen through the implementation of a capital
reduction scheme

Review of Operations

QueueBuster, Netcall's flagship product, gives customers waiting in call centre
queues the option of receiving a return call when a call centre agent is
available without losing their place in the queue. Our customers continue to
report excellent performance from QueueBuster in both sales and customer support
environments, confirming that the product delivers substantial productivity
improvements as well as significantly improved customer and agent satisfaction.
During the year QueueBuster saved millions of callers from more than 400 years
of telephone queuing.

Expanded QueueBuster customer base
The Company acquired several new customers including Fortis Insurance,
Birmingham City Council, McAfee, Anglian Water and STA Travel. Netcall also
expanded its footprint within the existing customer base including Lloyds TSB,
Prudential, nPower and Oracle.

Channel partnerships
Netcall continued to focus on expanding its market reach via distribution
partners which grew revenues by 65% and accounted for 46% of turnover (2006:
37%). Netcall's key distribution partners include Affiniti, BT and Cable &
Wireless Europe, Asia and US, with whom the Company in August this year
announced a new partnership agreement which sees the integration of a
QueueBuster hosted services platform into their existing infrastructure.

Accounting Standards

In this financial year the Company adopted FRS 20 which deals with share based
payments. The fair value of share options is spread over the period from the
date of grant until the date it is anticipated the options will become
exercisable. The prior year comparative figures have been restated in accordance
with the new standard. The Group's assets and cash flow statement were
unaffected.

For the year ending 30th June 2008 Netcall will adopt International Financial
Reporting Standards (IFRS) in accordance with the AIM Rules.

Strategy

Netcall's ambition is to continue to increase the market acceptance of its
products and to work with distribution partners to achieve this. The Company
will continue its focus on business models which generate a high element of
recurring revenue improving future visibility.

By working closer with partners while also strengthening the Company's
organisational capabilities, the aim is to improve and extend Netcall's ability
to execute.
With continued focus on executing Netcall's key strategies the Board is
confident that Netcall will continue to improve its financial performance
resulting in increased shareholder value.

Current Trading

Netcall have had a good start to the year and the directors believe that the
outlook for the year is very positive.

I would like to take this opportunity to thank the staff and our partners for
their continued support and contribution.




CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30th June 2007

                                              Note         2007           2006
                                                          £'000      (restated -
                                                                        note 6)
                                                                         £'000

Turnover                                      2         4,112.3        3,134.5

Cost of sales                                            (535.2)        (449.9)

Gross profit                                            3,577.1        2,684.6
                                          
Administrative expenses before share based
charges                                                (2,765.4)      (2,317.0)
Share based charges                                      (131.4)         (65.5)
                                          

Administrative expenses                                (2,896.8)      (2,382.5)

                                          
Operating profit before share based charges               811.7          367.6
Share based charges                                      (131.4)         (65.5)
                                          

Operating profit                                          680.3          302.1

Interest receivable                                        92.0           63.6
Interest payable and similar charges                       (5.3)          (9.4)

Profit on ordinary activities before taxation             767.0          356.3
Tax on profit on ordinary activities                          -              -

Profit for the financial year                             767.0          356.3

Earnings per share
Basic                                         3            1.16p          0.54p

Diluted                                       3            1.12p          0.54p

All activities derive from continuing operations.



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 30th June 2007
  
                                                          2007            2006
                                                         £'000     (restated -
                                                                        note 6)
                                                                         £'000

Profit for the financial year                            767.0           356.3
Currency translation differences on foreign
currency net investments                                     -             0.1

Total recognised gains and losses for the year           767.0           356.4
Prior year adjustment                                    (94.0)              -

Total recognised gains and losses since last
annual report                                            673.0           356.4

In the year ended 30th June 2007 the Company was obliged to make a prior year
adjustment (as explained in note 1) amounting to £94,000 against the reserves
for the year ended 30th June 2006 as a consequence of a change in accounting
policy on the implementation of FRS 20 'Share based payments'.


RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS
Year ended 30th June 2007  
                                                          2007            2006
                                                         £'000      (restated -
                                                                         note 6)
                                                                         £'000

Profit for the financial year                            767.0           356.3
Currency translation differences on foreign
currency net investments                                     -             0.1
New shares issued net of issue costs                     (18.4)           16.8
FRS 20 share based charges                               131.4            65.5

Net addition to shareholders' funds                      880.0           438.7
Opening shareholders' funds                            1,797.9         1,359.2

Closing shareholders' funds                            2,677.9         1,797.9



CONSOLIDATED BALANCE SHEET
As at 30th June 2007

                                                           2007           2006
                                                          £'000     (restated -
                                                                        note 6)
                                                                         £'000
Fixed assets
Tangible assets                                           158.5          154.3
Investments                                                   -              -

                                                          158.5          154.3

Current assets
Stocks                                                     38.1           62.2
Debtors                                                 1,622.8        1,052.5
Cash at bank and in hand                                2,360.5        1,819.5

                                                        4,021.4        2,934.2

Creditors: amounts falling due within one year         (1,502.0)      (1,233.1)

Net current assets                                      2,519.4        1,701.1

Total assets less current liabilities                   2,677.9        1,855.4

Creditors: amounts falling due after more than
one year                                                      -          (57.5)

Net assets                                              2,677.9        1,797.9

Capital and Reserves
Called up share capital                                 3,302.5        3,297.1
Share premium account                                       2.4       15,125.2
Special and capital reserves                                  -          245.1
Employee share schemes reserve                            290.9          159.5
Profit and loss account                                  (917.9)     (17,029.0)

Shareholders' funds                                     2,677.9        1,797.9




CONSOLIDATED CASH FLOW STATEMENT
Year ended 30th June 2007

                                                                 2007     2006
                                                                £'000    £'000

Net cash inflow from operating activities                       642.3    468.7

Returns on investments and servicing of finance                  86.7     54.2

Capital expenditure and financial investment                    (82.1)   (83.6)

Net cash inflow before management of liquid resources and
financing                                                       646.9    439.3

Management of liquid resources                               (2,000.0)       -

Financing                                                      (105.9)   (13.2)

(Decrease) increase in cash                                  (1,459.0)   426.1


Reconciliation of net cash flow to movement in net funds
Year ended 30th June 2007
                                                               2007       2006
                                                              £'000      £'000

(Decrease) increase in cash in the year                   (1,459.0)      426.1
Decrease in bank loans                                        87.5        30.0
Increase in short term treasury deposits held at bank      2,000.0           -

Movement in net funds in the year                            628.5       456.1

Net funds at 1st July 2006                                 1,732.0     1,275.9

Net funds at 30th June 2007                                2,360.5     1,732.0




NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

The financial statements are prepared in accordance with applicable United
Kingdom accounting standards. The particular accounting policies adopted are
described below. The Company has adopted in the year FRS 20 - Share based
payment - restatement of the comparatives was required.

Share-based compensation
The Company issues share options to certain employees. The fair value of such
options granted is calculated using the Black-Scholes option pricing model. The
expense is spread over the period from the date of grant to the date the options
vest and are exercisable, based on the best estimate of the number of shares
that will eventually vest. The prior year comparative figures have been restated
- see note 6. The effect of FRS20 was to increase administrative expenses for
the year ended 30th June 2006 by £35,600. The group net assets and the cash flow
were unaffected. Additionally, the group is obliged to make a prior year
adjustment totalling £94,000 as a result of this.

2.       Analysis of turnover
                                                           2007          2006
                                                          £'000         £'000
Class of business
Products                                                2,107.3       1,807.7
Services                                                2,005.0       1,326.8

                                                        4,112.3       3,134.5

Geographical analysis by destination
United Kingdom                                          3,751.9       2,961.5
Rest of Europe                                            161.2         142.5
North America                                              21.2          23.3
Rest of the World                                         178.0           7.2

                                                        4,112.3       3,134.5

3.       Earnings per share
Earnings per share has been calculated in accordance with Financial Reporting
Standard 22 (FRS 22). The calculation of earnings per share is based on the
profit attributable to equity shareholders of £767,000 (2006 (restated - note 6)
- £356,300) and 66,014,672 (2006 - 65,813,224) shares being the weighted average
of the number of shares in issue during that period.
The diluted earnings per share take into account the potentially dilutive effect
of share options, this is based on a diluted weighted average of 68,500,526
(2006 - 66,166,558) shares.

4.       The Directors do not currently recommend paying a dividend.

5.       The financial information set out in the announcement does not
constitute the Company's statutory accounts for the years ended 30th June 2007
or 2006. The financial information for the year ended 30th June 2006 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under s237(2) or (3) Companies
Act 1985. The statutory accounts for the year ended 30 June 2007 will be
delivered to the Registrar of Companies after the Company's Annual General
Meeting on 15 November. The auditors have reported on those financial
statements; their report was unqualified and did not contain a statement under
S237(2) or (3) of the Companies Act 1985.

Copies of the full statutory accounts will be despatched to shareholders in due
course. Further copies will be available from the Registered Office of the
Company at 10 Harding Way, St Ives, Cambs PE27 3WR.

6.       Restatement of comparatives
 
Profit and loss account                    Share based                  Total
                                               charges         administrative
                                                                     expenses
                                                 £'000                  £'000
Administrative expenses

As previously reported
at 30th June 2006                                 29.9                2,346.9
Additional charge arising from 
adoption of FRS 20                                35.6                   35.6

At 30th June 2006
restated                                          65.5                2,382.5


Profit and earnings per share           Operating    Profit for  Earnings per
                                           profit     financial         share
                                            £'000          year         pence
                                                          £'000
As previously
reported at 30th
June 2006                                   337.7         391.9          0.59
Additional charge arisi
from adoption of FRS 20                     (35.6)        (35.6)        (0.05)

At 30th June
2006 restated                               302.1         356.3          0.54


Shareholders' funds                            Employee share  Profit and loss
                                              schemes reserve          account
                                                        £'000            £'000

As previously
reported at 30th
June 2006                                                29.9       (16,899.4)
Additional charge arising
from adoption of FRS 20                                  35.6           (35.6)
Prior year adjustment
arising from
adoption of FRS 20                                       94.0           (94.0)

At 30th June
2006 restated                                           159.5       (17,029.0)

The restatement has no net impact on net assets or shareholders' funds. The
restatement establishes a new employee share scheme reserve with a corresponding
reduction in the profit and loss account reserve.



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