Preliminary Results - Year Ended 30 June 1999
Netcall PLC
1 November 1999
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 1999
Netcall plc is quoted on the Alternative Investment Market ('AIM') of The London
Stock Exchange and is the World's leading provider of Internet Controlled
Telephony.
Highlights
* New subscribers being added at a steadily increasing rate - household
names using NetCall 800
* Telewest Imminus Ltd and NetCall co-operating to produce a portfolio of
enhanced e-commerce solutions
* NetCall Classified - 'Pay Per Lead' option now being offered to
advertisers by Newspaper and Web site proprietors.
* Successful Institutional Placing £2.6 million (net) raised to repay short-
term borrowings and to finance product and service expansion in Europe and
US.
* Bell Lawrie Wise Speke the company's Nominated Advisor has been appointed
Nominated Broker with immediate effect.
Jeffrey Rubins, Chairman of Netcall plc, commented:
'The Board considers that NetCall offers a range of innovative telephony-based
services possessing depth and relevance to commerce conducted both on and off
the Internet. It has developed and continues to expand a powerful and scalable
infrastructure and the market for our services is large and increasing in size
daily'.
'With additional funds now available to enable an acceleration of the marketing
effort, especially in the USA, there is every reason why a sustained stream of
revenue can be developed from the valuable services NetCall is able to deliver.
Prospects for the company are exciting'.
Enquiries to:
Jeffrey Rubins - Chairman ) Tel: 0171 256 5756 (on 1.11.99)
David Rothschild - Chief Executive ) Tel: 001480 495300 (thereafter)
Simon Rothschild/Tarquin Edwards
Millham communications Tel: 0171 256 5756
Netcall plc web address: www.netcall.com
NETCALL plc
STATEMENT ACCOMPANYING PRELIMINARY ANNOUNCEMENT OF FIGURES
FOR THE YEAR ENDED 30 JUNE 1999
Results
The impact of the decision to focus on our technology based service business has
proved to be well founded. Whilst turnover overall has been reduced, during the
transition phase, we are most encouraged by the progress made at our chief
operating subsidiary NetCall Telecom Limited. The notes attached to the accounts
will enable shareholders to distinguish between the emerging business carried on
by NetCall Telecom Limited, described as internet-related telephony services,
and the historic activities that have been or are in the process of being
discontinued or sold.
Current Trading
NetCall Telecom Limited
Netcall plc's chief operating subsidiary, NetCall Telecom Limited ('NetCall'),
has developed and owns an infrastructure capable of delivering significant
volumes of telephone calls requested by visitors to web sites or recipients of
emails. These calls, which are usually free to the requesting party and
delivered using conventional telephony, are designed not only to connect
potential customers or those seeking advice or assistance to qualified personnel
but also to deliver valuable marketing and other information to the web site
owner. New subscribers are being added at a steadily increasing rate and
those now using NetCall 800 include: - AutoGlass, BUPA, Bank One,
Citroen, Dialog, Dialogic, Dixons Partmaster, Greenflag, HSA
Healthcare, Nissan, Personal Number Co., RAC, Tiny Computers, Thomas
Cook, Uunet, & Vauxhall.
This sector of NetCall's business is now mainly handled by channel partners
allowing our in-house team to concentrate on building relationships with system
builders and integrators who are more likely to utilise the advanced
applications in Netcall's portfolio of services as well as NetCall 8OO.
Relationships are ongoing with companies with a significant presence in their
particular market places including US Web/CKS, Candle UX, Desc NV and The
Personal Number Company Plc. In addition an agreement has recently been signed
with Telewest Imminus Limited, a subsidiary of Telewest Communications plc, and
the two companies will be working together to produce a portfolio of enhanced
e.commerce solutions - joint marketing has already commenced.
Product and Service Developments
A most important development took place towards the end of the
financial year when NetCall's infrastructure was made accessible from
'off the page' as well as the Internet. NetCall has developed several
applications, three of which were highlighted in the Trading Update
sent to shareholders on 19th August 1999. Although these applications are
different in content and complexity they share certain key characteristics: -
* they all run on NetCall's existing infrastructure, which uses the Internet
for signalling and passing information between remote databases.
* they all use conventional telephony and in 2 cases can be accessed by
dialling a (free) phone number or clicking on a NetCall link/button on the
World Wide web.
* they are all replicable by NetCall for system/web integrators or service
providers in multiple territories.
These applications have now been packaged and branded as separate services to
address particular market opportunities. Examples of these include: -
* Netcall Classified - handling responses to classified advertisements in
newspapers together with AdCall 800, a related service, which monitors
responses to advertisements carried in various media formats.
* Asset Manager - monitors and controls the distribution and servicing
of valuable equipment such as laptop computers on a world wide
basis.
* NetCall Alerts - utilising 'push telephony' and used for example at
the core of e-callT, a service created and run for PNC Tele.com. Using Text
to Speech technology it allows their mobile telephone customers to be
alerted when an email has been received and to be given the option of
listening to a message wherever they are or having it sent to a convenient
fax machine.
Whilst these services have only been running for a relatively short time it is
becoming clear that they have the potential to make a positive impact on
Netcall's future earnings.
Netcall Classified
This application warrants particular mention because as further newspapers are
added to the service they are demonstrating similar characteristics. Several
system integrators are now promoting NetCall Classified to regional and national
newspapers and it is possible, within 12 months, that up to 200 newspapers of
varying size and format could be utilising our services to monitor and deliver
responses to classified advertisements displayed in their columns and on their
web pages. These advertisements are likely to cover
employment, automotive, property and personal/dating and NetCall estimates that
in the UK alone the potential market for this type of service could be as high
as £60 million. Given the strength of NetCall's infrastructure. its experience
in delivering telephony together with on line, real time information and billing
systems, it should be possible to obtain a reasonable share of this market.
This unique service has enabled newspapers to charge advertisers by response
('pay per lead') and could have an even greater significance when applied to
selling advertising space on the Web. There currently appears to be a great
reluctance on the part of advertisers to pay for space in an environment where
there is so much competition for attention. NetCall Classified offers a facility
for advertisers to be charged on a results only basis and also delivers an
independent audit trail of each call with appropriate billing information.
Following very favourable initial response it is considered that these and
certain other applications are worthy of serious promotion both in Europe and
the USA and marketing spend will be increased accordingly to maximise return
from the competitive lead NetCall has established.
Placing of New Shares
The company's stockbroker, Bell Lawrie Wise Speke, has completed the placing of
4,022,217 new shares at a price of 67p each raising £2,694,885 gross before
expenses for the company. This placing is subject to shareholder approval at an
EGM, scheduled for 24 November 1999. These funds will be used to repay
short-term borrowings and to finance, particularly, the expansion of our
marketing and sales efforts especially in Europe and the USA. A circular has
today been
posted to shareholders with full details of the issue.
Appointment of Nominated Broker
Bell Lawrie Wise Speke the company's Nominated Advisor, has been appointed
Nominated Broker with immediate effect.
Prospects
NetCall are world leaders in internet controlled telephony and offers a range of
innovative telephony based services possessing depth and relevance to commerce
conducted both on and off the Internet. It has developed and continues to expand
a powerful and scalable infrastructure, forged relationships with Tier One
Telco's and possesses considerable expertise in delivering billing systems and
other applications. The markets for our services are large and
increasing in size daily - we offer solutions to several of the problems that
have been affecting the business models of many companies, especially those
attempting to generate, monitor and collect advertising revenue from their web
sites.
With additional funds now available to enable an acceleration of the marketing
effort, especially in the USA, there is every reason why a sustainable stream of
revenue can be developed from the valuable services NetCall are able to deliver.
Prospects for the company are exciting.
Notes to Editors
Enquiries to:
Jeffrey Rubins - Chairman ) Tel:0171 256 5756 (on 1.11.99)
David Rothschild - Chief Executive ) Tel:01480 495300 (thereafter)
Simon Rothschild/Tarquin Edwards Tel: 0171 256 5756
Millham communications
Netcall plc web address: www.netcall.com
Full web addresses of reference sites
AutoGlass http://www.autoglass.co.uk/index.html
BUPA http://www.bupa.co.uk
Bank One http://www.bankone-uk.com/apply/index.html
Citroen http://www.citroen.co.uk click 'Business Users'
Dialog http://www.dialog.com/info/support/index_phone.shtml
Dialogic http://www.dialogic.com/dconnect.htm
Dixons http://www.partmaster.co.uk/asp/ctc_part.asp?udo_partcode
=COM12345&udr_make=3+Com
Greenflag https://secure.zestmedia.com/Greenflag/rapid/
apply/total/lvehicle.asp
HSA Healthcare http://www.hsaonline.co.uk/
Nissan http://www.nissan.co.uk/showroom/modelrange/
skyline/enquiries.htm
Personal Number http://www.personal-number.co.uk/default.htm
RAC http://www.rac.co.uk/join/netcall.htm
Tiny computers http://www.uk.tiny.com/products/homeoffice.html
Thomas Cook http://www.tch.thomascook.com/may/default.htm
Uunet http://www.uk.uu.net/products/access/dialup/pipexdial/
Vauxhall http://buypower.vauxhall.co.uk/framesets/custassist.jhtml
Consolidated Profit and Loss
Year ended 30th June 1999
1999 1998
Turnover- continuing operations 539,568 705,316
acquisitions - 74,691
-------- ---------
539,568 780,007
-------- ---------
Operating loss- continuing operations (1,761,397) (910,880)
acquisitions - (81,651)
(1,761,397) (992,531)
Profit on sale of investments - 100,736
---------- ----------
Loss on ordinary activities before (1,761,397) (891,795)
interest
Interest receivable 24,465 22,925
Interest payable (52,234) (42,373)
----------- ---------
Loss on ordinary activities before (1,789,166) (911,243)
taxation
Taxation on loss on ordinary activities - -
----------- ---------
Loss for the financial year (1,789,166) (911,243)
----------- ---------
Loss per ordinary share (9.72p) (5.95p)
NOTES TO THE PRELIMINARY ANNOUNCEMENT
1. Analysis of turnover by class of business
1999 1998
£ £
Supply and maintenance of computer software 76,077 356,451
Internet related telephony services 106,241 3,155
Customer support and response centre 121,422 74,691
Head office activities 235,828 345,710
------- --------
539,568 780,007
------- ---------
2. For the purposes of section 240 Companies Act 1985:
(a) This Preliminary Announcement does not constitute statutory
accounts.
(b) Statutory accounts in respect of the year ended 30th June 1998 have been
delivered to the Registrar of Companies and those accounts were subject to
an unqualified report by the Auditors. Copies of the Report and Accounts
will be sent to shareholders and will be available from the Registered
Office, 5th floor, Tricorn House, Hagley Road, Birmingham, B16 8TP.
Consolidated Balance sheet
Year ended 30th June 1999
1999 1998
£ £ £ £
Fixed assets
Tangible assets 266,674 348,761
Current assets
Stocks - 4,288
Debtors due within one year 364,912 395,824
Debtors due after more
than one year 169,778 169,778
Cash at bank and in hand 128,255 28,530
------- -------
662,945 598,420
------- -------
Creditors: amounts falling due
within one year
Bank loan and overdrafts 10,153 205,195
Trade creditors 204,277 71,407
Other creditors including
taxation and social security 434,274 290,727
------- -------
648,704 567,329
------- -------
Net current assets 14,241 31,091
------ ------
Total assets less current
Liabilities 280,915 379,852
Creditors: amounts falling due
after more than one year (7,558) (22,599)
-------- --------
273,357 357,253
======== ========
Capital and reserves
Called up share capital 1,079,920 824,363
Share capital to be issued - 23,264
Special and capital reserves 2,977,667 1,504,690
Profit and loss account (3,784,230) (1,995,064)
---------- ----------
Equity shareholders' funds 273,357 357,253
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