Interim Results - 6 Months to 31 December 1999
Netcall PLC
14 February 2000
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999
* Results reflect the continued concentration of the business on core
NetCall, Internet Controlled Telephony, services and supplies, with turnover
up 38 per cent compared to first six months of 1999 and 370 per cent
compared to 1998 interims
* Subscriber base up from 700 to 1500 over the period with daily call traffic
doubling
* Reduction in overall turnover reflects wind down of discontinued
operations and other activities
* Proceeds from placing being used to accelerate marketing and sales
programme in US and Europe
* Subscriber list includes many blue chip names and continues to expand
rapidly -a further 260 companies signed up to use NetCall technology in
first six weeks of the second half
* NetCall working with BSG, Cap Gemini, Opta Consulting, Telewest and USWeb to
develop bespoke e.commerce systems
* NetCall Classified service successfully piloted in north-west
Chairman Jeffrey Rubins commented:
'NetCall maintains its position as World Leader in Internet Controlled
Telephony and now offers its services not only to those operating web sites
but also to owners and users of printed media, digital television and WAP
enabled devices. The knowledge gained in designing and building our own
infrastructure leaves us in a strong position to exploit a vast market both on
and off the Web. With adequate funding now in place, together with a strong
and experienced management team, NetCall is well placed to capitalise on an
outstanding opportunity.'
Enquiries to:
Netcall plc
Jeffrey Rubins, Chairman Tel: 0171 256 5756 on 14.2.00
David Rothschild, Chief Executive 01480 495 300 (thereafter)
Millham Communications
Simon Rothschild/Tarquin Edwards Tel: 0171 256 5756
NETCALL plc
Interim Statement for the half-year to 31 December 1999
Results
The results for the six months ended 31 December 1999 have been very
encouraging. Although total turnover in the period has fallen, reflecting
lower revenues from the company's historic business activities, which are
being wound down, its principal ongoing business, NetCall Telecom, posted a
38% increase in the period compared with the immediately preceding six months.
It has experienced significant increases in both its customer base and call
traffic - the former rising from 700 at the end of June 1999 to 1500 at
31 December 1999 and the latter doubling from 450 to 900 calls per day in the
same period.
Customers
NetCall's HyperphoneLinkT solutions are being deployed by some of the most
respected names in e-commerce and the IT sector. The list of our subscribers
now comprises over 1700 companies, including the following using NetCall 800
on their web pages:-
AutoGlass, Auto Trader, Autotrader.com (USA), Autoparts.com, BUPA, Bank One,
Black Box,Citroen, Dialog, Dialogic, Dixons Partmaster, Friends Provident,
Greenflag, HSA Healthcare, Microsoft, Nissan, Penton Media, PNCTele.com, RAC,
Regus, Tiny Computers, Thomas Cook, Uunet and Vauxhall.
Included in the 260 added in the last 6 weeks alone are Alliance and
Leicester, Chrysler Jeep, Coventry Building Society, Hewlett Packard,
Johansens Directories, Lexus GB, Nestle, Staffordshire Building Society,
Virgin Direct and Ybag.
In the 5 years that the company has been involved in Computer Telephony
Integration, the majority of the effort has been focussed on designing and
building the infrastructure that now provides the backbone on which all of our
services run. It is robust, flexible and scalable and its importance and
value cannot be overstated as it enables NetCall to offer bespoke solutions to
subscribers in a fraction of the time and at a fraction of the cost
traditional suppliers, offering proprietary systems, demand.
Outlook
Following the successful placing of new shares raising £2.6M net at the end of
November 1999 we have been able to move the company into the next important
phase of its development and accelerate the sales and marketing programme.
Our policy of striving to build long term relationships with established
system and web integrators is producing results. Although most of our bespoke
work is conducted under confidentiality agreements we can state that companies
with whom we are currently working on projects include BSG, Cap Gemini, Opta
Consulting Group, Telewest Imminus and USWeb. In addition, together with
Sports Internet Group, we are actively pursuing the opportunity to implement
NetCall's technology in an important new and growing sector and we anticipate
the first results of this work to be announced shortly.
On December 16th 1999 NetCall announced it had been granted an option to
acquire a 20% equity holding in the parent company of Jobs4U which has now
launched its innovative recruitment service in 9 newspapers in the north west
of England with encouraging results. This service is delivered using Netcall
Classified which allows respondents to advertisements to be connected free to
recruitment agencies and enables Jobs4U to charge their advertisers on a 'pay
by lead' basis.
Of further significance is that this model is now being successfully
implemented by Auto Trader to sell advertising space on the Web with 24 of its
dealers currently using the system. NetCall not only connects a customer to a
dealer, using conventional telephony, after a click on a motor advertisement
but can if required announce that customer's name to the salesman and the car
that is of interest. Further customer details are delivered to the dealership
by fax or email so that, as usual with all NetCall services, a customer
contact is never lost. An audit trail of completed calls is delivered for
billing purposes to Auto Trader who have informed Netcall that it is their
intention to expand the use of the service on its UK site and offer a similar
service to their customers in France, Belgium and Holland.
Shareholders
The number of shareholders in the company has increased dramatically in the
last 3 months to over 2000 with a backlog developing at the company's
registrars due to the sheer volume of registrations being received. This
problem should be alleviated by the recent move to Crest. Shareholders will
find additional background information on the company and its services on our
web pages at www.netcall.com
The Future
NetCall maintains its position as World Leader in Internet Controlled
Telephony and now offers its services not only to those operating web sites
but also to owners and users of printed media, digital television and WAP
enabled devices.The knowledge gained in designing and building our own
infrastructure leaves us in a strong position to exploit a vast market both on
and off the Web. With adequate funding now in place, together with a strong
and experienced management team, NetCall is well placed to capitalise on an
outstanding opportunity.
For further information on NetCall services and HyperphoneLinkT solutions
please visit our web site www.netcall.com
To contact Jeffrey Rubins Chairman, or David Rothschild, Chief Executive
please call 0171 256 5756 (Monday 14th February) and 01480 495300 thereafter.
INTERIM RESULTS (Unaudited)
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six Six Year
Months to Months to ended
31 Dec 31 Dec 30 June
1999 1998 1999
£ £ £
TURNOVER
Netcall services and 113,911 30,660 106,241
supplies
Discontinued operations 52,935 85,586 197,499
Other activities 33,402 201,930 235,828
-------- --------- ---------
200,248 318,176 539,568
OPERATING COSTS
Administration and other
operating expenses 1,363,032 970,744 2,300,965
--------- ------- ---------
OPERATING (LOSS)/PROFIT
Continuing operations (1,087,666) (611,515) (1,638,202)
Discontinued operations (75,118) (41,053) (123,195)
Expenses relating to share
placing (95,256) - -
---------- --------- ----------
(LOSS)/PROFIT BEFORE
INTEREST (1,258,040) (652,568) (1,761,397)
Interest receivable
17,680 10,104 24,465
Interest payable
(34,523) (19,130) (52,234)
---------- ---------- ----------
(LOSS)/PROFIT BEFORE
TAXATION (1,274,883) (661,594) (1,789,166)
Taxation - - -
--------- ----------- ---------
NET (LOSS)/PROFIT (1,274,883) (661,594) (1,789,166)
======== ========= ========
Loss per ordinary share (5.64p) (3.75p) (9.72p)
INTERIM RESULTS (Unaudited)
CONSOLIDATED BALANCE SHEET
31 December 31 December 30 June
1999 1998 1999
£ £ £
Fixed assets
Tangible assets 230,482 298,852 266,674
--------- --------- ---------
Current assets
Debtors due within
one year 485,943 703,036 364,912
Debtors due after
more than one year 169,778 169,778 169,778
Cash at bank and
in hand 1,856,101 22,832 128,255
---------- --------- ---------
2,511,822 895,646 662,945
---------- --------- ---------
Creditors: amounts falling due
within one year
Bank loans and
overdrafts 38,495 239,923 10,153
Trade creditors 147,131 252,871 204,277
Other creditors
including taxation
and social security 170,160 527,830 434,274
--------- ---------- ---------
355,786 1,020,624 648,704
--------- ---------- ---------
Net current assets 2,156,036 (124,978) 14,241
--------- ---------- ---------
Total assets less
current Liabilities 2,386,518 173,874 280,915
Creditors: amounts
falling due after
one year (5,666) (13,996) (7,558)
--------- ---------- ---------
2,380,852 159,878 273,357
====== ======= =======
Capital and Reserves
Called up share capital 1,331,941 941,182 1,079,920
Share premium account 5,862,976 1,630,300 2,732,612
Special and
capital reserves 245,055 245,055 245,055
Profit and loss account (5,059,120) (2,656,659) (3,784,230)
----------- ----------- ----------
2,380,852 159,878 273,357
======== ======== =========
NOTES TO THE INTERIM STATEMENT
1. For the purposes of Section 240 of the Companies Act 1985:
(a) this Interim Statement does not constitute statutory accounts;
(b) statutory accounts in respect of the year to 30th June 1999 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 1998 and 31st
December 1999 have not been delivered to the Registrar of
Companies.
2. The loss per ordinary share is calculated on the weighted average number
of 22,592,908 ordinary shares in issue during the six months ended 31
December 1999 (31 December 1998: 17,633,461 and 30 June 1999:
18,410,009).
3. Copies of this announcement are available from the company's registered
offices: Tricorn House, Hagley Road, Birmingham B16 8TP and from the
company's web site at www.netcall.com