Interim Results
Netcall PLC
12 February 2001
NETCALL PLC
('Netcall' or 'the Company')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
Netcall invests in, develops and manages advanced internet-based technologies
that enhance the value of communication. Netcall today announces interim
results for the six months ended 31 December 2000.
HIGHLIGHTS
* Turnover on continuing operations increased three-fold to £
341,000 (1999: £118,000)
* Loss before tax of £1.4 million (1999: £1.2 million), mainly due
to increased sales and marketing activity
* Strategic investments by Netcall and Trinity Mirror plc in All4U
Limited, to exploit the NetCall ClassifiedTM pay-per-lead advertising
model in the UK
* Significant international follow-on sales of QueueBusterTM, a
revolutionary customer service solution for call and contact centre
management
* Continued steady growth in the in the service business with
monthly call volumes up by over 330 per cent.
* Successful placing in November 2000 to raise £4.4 million (net
of expenses) through the issue of 6.7 million new ordinary shares at a
price of 70p per share
Jeffrey Rubins, Chairman of Netcall, said today:
'With proven technology, established business models and respected strategic
partners, Netcall is well placed to continue to widen its application and
customer base. The company is progressing its business plan and the Board
continues to view the future with confidence.'
12 February 2001
Enquiries:
Netcall plc Tel: 01480 495 300
(www.netcall.com)
David Rothschild, CEO E-mail: david.rothschild@netcall.com
Caroline Brown, CFO E-mail: caroline.brown@netcall.com
College Hill Tel: 020 7457 2020
Nicola Weiner E-mail: nicola.weiner@collegehill.com
Archie Berens E-mail: archie.berens@collegehill.com
NETCALL PLC
('Netcall' or 'the Company')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
CHAIRMAN'S STATEMENT
The six months ended 31 December 2000 has seen further significant progress
made towards Netcall's goal of becoming a leader in intelligent communication
through investing in, developing and managing technology at the customer
response interface.
Trading Results
Netcall's underlying service business has continued to grow with monthly call
volumes up by over 330 per cent. on a seasonally-adjusted basis. Growth is
being generated through new and existing relationships with systems
integrators and indirect sales channels. We are finding that our solutions are
gaining recognition and acceptance by a wide range of customers, who currently
number over 4,000.
NetCall Telecom has recently installed another international telephony node,
in Australia, increasing further the scope of the group's global telephony
network spanning the UK, US, South Africa and Australia. These telephony
nodes, together with new QueueBusterTM installations (see below) and new
customer relationships, are building the group's annuity revenue stream.
In the six months to 31 December 2000, turnover from continuing operations
increased by three fold to £340,691 from £117,748 during the same period in
1999. The loss before taxation was £1.4 million (1999: £1.2 million), mainly
due to the increased costs associated with sales and marketing activity.
QueueBusterTM
Since June 2000, Netcall has successfully introduced QueueBuster TM, a
revolutionary new product for call centre management. As its name implies,
QueueBusterTM reduces customer queuing in call centres resulting in superior
customer service and satisfaction. In the first half of 2000, Netcall
developed and successfully trialed QueueBusterTM with One.Tel, the low cost
long distance telecoms operator.
Further sales of QueueBusterTM as an installed solution have demonstrated its
appeal in sales, customer service and regulated environments. Netcall is
currently trialing QueueBusterTM as a service with several customers and we
hope to be able to launch this service on the market in the next few months.
QueueBusterTM continues to present Netcall with significant new business
opportunities in the rapidly growing call and contact centre market.
All4U and Trinity Mirror
In December 2000, Netcall and Trinity Mirror plc simultaneously invested in
All4U Limited, a business which is using NetCall ClassifiedTM to revolutionise
newspaper advertising, both off the newspaper page and off the web. This
investment follows the highly successful trialing of All4U's interactive
pay-per-lead advertising service over the previous year and the commencement
of a closer relationship between All4U and Netcall.
The All4U business model uses Netcall's intelligent telephony to route and
track calls between responders to classified advertisements and the agencies
placing those advertisements. It is thus able to provide feedback both on the
callers themselves and on response volumes and times.
All4U's recruitment service has been extended to 18 regional newspaper titles,
including the Newcastle Evening Chronicle, Birmingham Evening Mail, Liverpool
Echo, the North West News the Chester Chronicle Series and the Stoke Sentinel.
As a result of this, Netcall has seen considerable growth in usage of NetCall
ClassifiedTM.
Fund Raising
In November 2000, Netcall successfully completed a placing of new ordinary
shares to raise £4.4 million (net). The proceeds are being used to expand the
sales and marketing programme, for technology and new product development and
for working capital purposes. The funds raised will provide the Company with
the necessary resources to continue its development plan and should be
sufficient to take the business through to positive cash flow.
Freeserve
In April 2000, Freeserve, the UK's largest Internet Service Provider, acquired
an 8.6 per cent. interest in Netcall. Netcall also acquired a 19.9 per cent.
interest in Telepost Inc., a US based provider of conference calling on
Freeserve's portal. Netcall, Freeserve and Telepost continue to work together
on a range of operational and marketing initiatives.
Current Trading and Outlook
Netcall's portfolio of solutions, supported by its exceptional technological
experience and expertise, is highly attractive to all types of business
looking to be one step ahead in the battle to capture and retain customers. As
more businesses wake up to this commercial reality, they are finding it
increasingly important to have in place the necessary technology and
infrastructure to enable them both to recognise real customers and to respond
to them swiftly and imaginatively. We are therefore confident that our
solutions are becoming more widely acknowledged as essential business tools,
giving scope for significant growth in the future.
Jeffrey Rubins
Chairman
12 February 2001
e-mail:jrubins@netcall.com
www.netcall.com
NETCALL PLC
Consolidated Profit and Loss Account
Six Months Six Months Year Ended
to to
31st Dec 31st Dec 30th June
2000 1999 2000
£ £ £
TURNOVER
Continuing operations 340,691 117,748 705,494
Discontinued operations 23,000 82,500 110,681
363,691 200,248 816,175
OPERATING COSTS
Administration and other operating 1,787,888 1,363,032 3,040,138
expenses
OPERATING (LOSS)/PROFIT
Continuing operations (1,369,725) (1,060,050) (2,334,134)
Discontinued operations (54,472) (102,734) (132,223)
Loss on disposal of discontinued (45,856)
operations
(LOSS)/PROFIT BEFORE INTEREST (1,424,197) (1,162,784) (2,512,213)
Interest receivable 16,077 17,680 60,073
Interest payable (22,853) (35,523) (39,663)
(LOSS)/PROFIT BEFORE TAXATION (1,430,973) (1,180,627) (2,491,803)
Taxation
NET (LOSS)/PROFIT (1,430,973) (1,180,627) (2,491,803)
Loss per ordinary share (4.74p) (5.64p) (9.98p)
NETCALL PLC
Consolidated Balance Sheet
As at As at As at
31st Dec 31st Dec 30th June
2000 1999 2000
£ £ £
Fixed Assets
Intangible assets 11,652 - 7,513
Tangible assets 269,408 230,482 291,149
Investments 4,650,000 - 4,550,000
4,931,061 230,482 4,848,662
Current assets
Debtors due within one year 646,297 485,943 964,385
Debtors due after more than one 34,778 169,778 34,778
year
Cash and bank and in hand 3,568,654 1,856,101 393,243
4,249,729 2,511,822 1,392,406
Creditors: amounts falling due
within one year
Bank loans and overdrafts 38,495
Trade creditors 265,030 147,131 423,136
Other creditors including taxation 263,211 170,160 210,300
and social security
528,240 355,786 633,436
Net current assets 3,721,489 2,156,036 758,970
Total assets less current
Liabilites 8,652,550 2,386,518 5,607,632
Creditors: amounts falling due
after one year (3,500) (5,666) (3,784)
8,649,050 2,380,852 5,603,848
Capital and Reserves
Called up share capital 1,892,638 1,331,941 1,458,191
Share premium account 14,274,305 5,767,720 10,147,637
Special and capital reserves 245,055 245,055 245,055
Profit and Loss Account (7,762,947) (4,963,864) (6,247,035)
8,649,050 2,380,852 5,603,848
NETCALL PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
Notes to the Interim Statement
1. For the purposes of Section 240 of the Companies Act 1985:
(a) this Interim report does not constitute a set of
statutory accounts and has been reviewed, but not audited, by
the auditors. The interim financial information has been
prepared on the basis of the accounting policies which were
applied in preparation of the annual financial statements to
30th June 2000;
(b) statutory accounts in respect of the year to 30th June
2000 have been delivered to the Registrar of Companies and
those accounts were subject to an unqualified report by the
Auditors. Accounts for the six months periods ended 31st
December 1999 and 31st December 2000 have not been delivered
to the Registrar of Companies.
2. The Board has not declared a dividend to shareholders (2000: 0 pence
per share).
3. The loss per ordinary share is calculated by dividing the net loss for
the period attributable to ordinary shareholders by the weighted average
number of 30,214,549 ordinary shares in issue during the six months ended 31st
December 2000 (31st December 1999: 22,592,908 and 30th June 2000: 24,960,313).
4. Copies of this interim report are being sent to all shareholders on the
Register of Members on 12th February 2001. Further copies of the Interim
Statement are available from the Registered Office of the Company: 10 Harding
Way, St. Ives, Cambs. PE27 3WR and from the Company's web site:
www.netcall.com.