18 July 2024
NETCALL PLC
("Netcall", the "Company" or the "Group")
Trading Update
Strong year of growth driven by increased Cloud uptake
Netcall plc (AIM:NET), a leading provider of intelligent automation and customer engagement software, today provides the following update on trading for the year ended 30 June 2024 (FY24).
The Board is pleased to confirm strong trading in FY24, with results expected to be in line with market expectations(1). Subject to audit, revenue is anticipated to increase by 9% to £39.1m (FY23: £36.0m), including revenue from Cloud customers up 19%, with Group adjusted EBITDA(2) growth of 5% to £8.4m (FY23: £8.0m).
Cloud momentum remains strong, including robust demand from new customers, with Cloud annual contract value ('ACV')(3) growing 23% to £22.3m, contributing to total ACV growth of 15% to £32.2m.
In order to service a growing pipeline and provide an improved proposition, the Group delivered significant advancements to the Liberty platform through the increase in investment into areas such as Cloud contact centres (with the launch of Liberty Converse CX in April 2024), the integration of AI capabilities across the Group's offering, as well as other ongoing customer-led innovations and developments.
The Group generated strong cash flow in FY24, ahead of expectations, resulting in an improved year-end cash position of £34.0m (30 June 2023: £24.8m).
James Ormondroyd, Chief Executive, commented:
"This year has been another period of strong trading for the Group. The increasing demand for our Cloud offerings has resulted in double-digit growth in both underlying revenues and ACV. Our growing base of subscription revenues and strong cash generation enable us to continue driving growth through innovation, with several new developments in our product roadmap.
"The successful integration of the recent acquisition of Skore Labs has expanded our market opportunity and provided increased cross-sell potential, which are pivotal to our growth strategy. Looking ahead, favourable market drivers, a growing customer base, and our strong balance sheet underpins the Board's confidence in the Group's continued success."
(1) Netcall believes that consensus market expectations for the year ended 30 June 2024 is revenue of £39.1m, adjusted EBITDA of £8.1m and net cash of £28.9m.
(2) Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of share-based payments, acquisition, impairment, profit or loss on disposals, contingent consideration and non-recurring transaction costs.
(3) 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 (save that the contract renewal announced on 20 July 2023 which is included in FY23 ACV at the new annual amount of $4m).
For further enquiries, please contact:
Netcall plc |
Tel. +44 (0) 330 333 6100 |
James Ormondroyd, CEO |
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Richard Hughes, CFO |
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Henrik Bang, Non-Executive Chair |
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Canaccord Genuity Limited (Nominated Adviser and Broker) |
Tel. +44 (0) 20 7523 8000 |
Simon Bridges / Andrew Potts |
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Singer Capital Markets (Joint Broker) |
Tel. +44 (0) 20 7496 3000 |
Charles Leigh-Pemberton / Asha Chotai |
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Alma Strategic Communications |
Tel. +44 (0) 20 3405 0205 |
Caroline Forde / Hilary Buchanan / Emma Thompson |
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About Netcall
Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations digitally 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 including Legal and General, Lloyds Banking Group, Aon and Santander.
For further information, please go to www.netcall.com.
Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information for the purposes of article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No 2019/310 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.