5 October 2022
NETCALL PLC
(“Netcall”, the “Company” or the “Group”)
Final Results for the Year Ended 30 June 2022
Accelerating organic growth and higher profitability
Netcall plc (AIM: NET), a leading provider of intelligent automation and customer engagement software, today announces its audited results for the year ended 30 June 2022.
Financial highlights
| FY22 | FY21 | ||
| Revenue | £30.5m | £27.2m | +12% |
| Cloud services revenue | £10.7m | £8.3m | +30% |
| Total annual contract value (“ACV”) (1) | £24.2m | £18.5m | +31% |
| Cloud services ACV | £15.0m | £9.4m | +60% |
| Adjusted EBITDA(2) | £6.4m | £5.3m | +20% |
| Profit before tax | £2.3m | £1.0m | +130% |
| Adjusted basic earnings per share | 2.15p | 1.49p | +44% |
| Group cash at period end | £17.6m | £14.5m | +21% |
| Net funds at period end | £13.4m | £6.8m | +97% |
| Final ordinary dividend per share | 0.54p | 0.37p | +46% |
Operational highlights
| · | Continued strong trading throughout the year with significant Cloud services momentum |
| · | Growth in ACV to £24.2m (FY21: £18.5m), driven by Cloud subscription contracts |
| · | Cloud services is now the Group’s largest revenue stream and comprising approximately 90% of new product bookings |
| · | Landmark $19m initial three-year Cloud subscription contract with a S&P 500 international financial services firm, of which £0.3m revenue was recognised in FY22 |
| · | Annual revenue run-rate from Intelligent Automation solutions is now 13.8m (FY21: £10.8m), representing approximately 45% (FY21: 35%) of Group revenue |
| · | Continuing cross-sales with 15% of Customer Engagement customers now having purchased Intelligent Automation solutions (FY21: 12%) |
| · | Cloud net retention rate(3) up to 152% (FY21: 116%) or 117% excluding the effect of the landmark contract win, supported by high customer satisfaction rates of 99% |
| · | Ongoing platform enhancements, including launch of Liberty AI adding machine learning functionality to the Liberty platform |
| · | Greenhouse Gas emissions reduced by 30% over the year for Scope 1 and Scope 2 emissions(4), and commenced measurement of Scope 3 emissions with ambition to be carbon neutral by end of 2026 |
| · | The Group’s trading momentum, particularly for Cloud solutions, has continued at the start of the new financial year |
Henrik Bang, Chief Executive, said:
“We are pleased with the strong performance achieving double digit organic growth in revenue and profitability combined with an accelerated growth rate of our annualised contract value, pointing to continued positive momentum.
” Netcall has a significant and growing market opportunity as organisations increasingly implement digital strategies and business models. The market relevance and potential of our solutions are illustrated by the increasing growth rates and was further demonstrated by the important $19m global contract win announced in June 2022 which resulted in a material upgrade to the Company’s FY23 expectations.
“We continue to invest in our business to ensure it remains well positioned to take advantage of the market opportunity. The Group’s trading momentum, which has continued at the start of the new financial year, coupled with a growing order book and higher recurring revenues provide the Board with confidence in the Group’s continued success.”