Trading Update and Notice of Results

RNS Number : 4529N

Netcall PLC

01 February 2021

 

1 February 2021

NETCALL PLC

("Netcall", the "Company" or the "Group")

Half Year Trading Update and Notice of Results

Continued sales momentum delivers strong growth in revenue and profits

Netcall plc (AIM: NET), a leading provider of intelligent automation and customer engagement software, is pleased to provide the following update on trading for the six months ended 31 December 2020.

Netcall traded comfortably in line with management expectations during the first half of FY21, mainly as a result of growing demand for cloud services, across both its Intelligent Automation and Customer Engagement offerings.

As a result, the Board anticipates first half revenue growth of 9% year over year to £13.4m (H1 FY20: £12.3m) and adjusted EBITDA⁽¹⁾ growth of approximately 38% to £2.9m (H1 FY20: £2.1m).

C loud annual contract value⁽²⁾ ('ACV') increased by 25% to £8.4m (H1 FY20: £6.7m), contributing to a 7% growth in total ACV to £17.7m (H1 FY20: £16.6m).

The Group's cash position increased to £12.9m (30 June 2020: £12.7m), after the initial payment of £1.0m for the acquisition of Automagica, which more than offsets borrowings of £6.8m (30 June 2020: £6.7m). The Group deferred £2.2m of VAT payments in FY20 due to COVID-19, which are repayable from March 2021, resulting in a normalised cash position of £10.7m (30 June 2020: £10.5m).

Henrik Bang, Chief Executive, said:

"Netcall enjoyed another strong trading performance in the first half of the year, with good demand for both our Intelligent Automation and Customer Engagement offerings across our main markets of Financial Services, Healthcare and Public Sector.

During the period we successfully completed the acquisition of RPA provider, Automagica, and its solution is an important addition to our automation capabilities. Following the completion of its integration onto our Liberty platform it will be released in early 2021, strengthening our product offering and our ability to help organisations with their growing digital transformation requirements.

Looking ahead, the Board remains confident that the strength of the Group's product offering, combined with its solid balance sheet and high levels of recurring revenue, position  Netcall well for continued success. We will provide an update on outlook and guidance for the remainder of the financial year at the time of the interim results."

Notice of Results

Netcall expects to announce interim results for the six-month period ended 31 December 2020 on 24 February 2021.

Notes

⁽¹⁾  Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of acquisition, impairment, contingent consideration and non-recurring transaction costs. The trading performance is based on unaudited management accounts for the six months ended 31 December 2020.

 ⁽²⁾ ACV, as of 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.

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

For further enquiries, please contact:

Netcall plc	Tel. [phone]
Henrik Bang, CEO
Michael Jackson, Chairman
James Ormondroyd, Group Finance Director
Canaccord Genuity Limited  (Nominated Adviser and Broker)	Tel. [phone]
Simon Bridges / Andrew Potts
Alma PR	Tel. [phone]
Caroline Forde / Helena Bogle / Robyn Fisher

About Netcall

Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations transform their businesses faster and more efficiently, empowering them to create a leaner, more customer-centric organisation. 

Netcall's customers span enterprise, healthcare and government sectors. These include two-thirds of the NHS Acute Health Trusts and leading corporates such as Legal and General, Lloyds Banking Group, ITV and Nationwide Building Society.

 

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