Financial Highlights
· Revenue increased 32% to £21.9m (FY17: £16.2m)
· Strong business performance, with Low-code and Liberty Cloud service revenues increasing organically by 25% and 30% respectively
· Annualised Cloud Revenues at 30 June 2018 increased by 321% to £4.80m (30 June 2017: £1.14m)
· Recurring revenue(1) strengthened to 71% (FY17 70%)
· Adjusted EBITDA(2) increased by 21% to £5.42m (FY17: £4.49m)
· Adjusted diluted earnings per share increased by 5% to 2.04p (FY17: 1.95p)
· Profit before tax was £45,000 (F17: £1.68m) after acquisition related expenses
· Diluted earnings per share was 0.09p (FY17: 1.03p) after acquisition related expenses
· Net debt of £0.74m (30 June 2017: cash £12.7m) after acquisition consideration and dividend payments
Operational Highlights
· Completed the acquisition of MatsSoft Limited ('MatsSoft'), a market leading Low-code software provider
· Successfully completed first steps of MatsSoft integration
· MatsSoft achieved key targets including:
o Renewal of key accounts at higher revenue levels
o Secured cross-sales into Liberty customers
o Won new customers, both in the UK and internationally, directly and via new partners
· Continued investment into product innovation, resulting in the release of Liberty version 4 and MATS version 10
· Recognised as a leader by Forrester in its Low-Code Platforms for Business Developers report (Q4 2017) and included by Gartner in its Magic Quadrant for Enterprise High Productivity Application Platform-as-a-Service (2018)
Henrik Bang, CEO of Netcall, commented,
“We are delighted to report on a significant year for Netcall. The acquisition of MatsSoft, the market leading Low-code software provider,has broadened our proposition and expanded the addressable market opportunity into a high growth sector. The acquisition and revenue growth in the existing business has led to a strong Group performance with revenue 32% higher at £21.9m and adjusted EBITDA 21% higher at £5.42m.
“As we enter the new financial year we do so with increased confidence in the growth prospects for Netcall. We believe that our Liberty customer engagement platform together with our Low-code platform provides an attractive proposition to help organisations transform their customer engagement and implement their digital transformation strategies. The scale of the potential opportunity can be seen in the size of the recently announced multi-million pound Low-code contract wins and the significant increase in our Annualised Cloud Revenue.
“We are a cash-generative business with an extensive customer base and significant growth opportunity ahead of us. Our high levels of revenue visibility and sales pipeline give the Board confidence in the enhanced prospects for the Group, for this year and beyond.”
Outlook
As we enter the new financial year we do so with renewed confidence in the growth prospects for Netcall. The Board believes that the Group's platforms address a significant market opportunity; helping organisations transform their customer engagement and implement their digital transformation strategies. The scale of the potential opportunity can be seen in the size of the recently announced multi-million pound Low-code contract wins and the significant increase in our Annualised Cloud Revenue.
Since the year-end Annualised Cloud Revenue has continued to grow, increasing to £5.25m as a result of new bookings and we have a growing pipeline of opportunities across our customer base and with new prospects, both in the UK and internationally.
We are a cash-generative business with an extensive customer base and significant growth opportunity ahead of us. Our high levels of revenue visibility and record sales pipeline give the Board confidence in the enhanced prospects for the Group, for this year and beyond.