NETCALL PLC
(“Netcall”, the “Company” or the “Group”)
Trading Update and Notice of Results
Acceleration of cloud uptake driving increased revenue and profit growth
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 2021.
Netcall traded comfortably in line with management expectations during the first half of the year, with cloud services being the primary driver for the Group's double-digit revenue and profitability growth.
Revenue for the first half of the year is expected to show growth of 10% to £14.7m (H1 FY21: £13.4m) with anticipated adjusted EBITDA(1) growth of 17% to £3.4m (H1 FY21: £2.9m) following good trading across the Group's key market segments with healthy demand for both Intelligent Automation and Customer Engagement solutions.
Netcall's cloud offerings continued to grow strongly with cloud annual contract value(2) ('ACV') increasing 29% to £10.8m (H1 FY21: 25% and £8.4m) contributing to total ACV growth of 12% to £19.8m (H1 FY21: 7% and £17.7m).
The Group's cash position at period end was £10.7m (30 June 2021: £14.5m) after the payment of £4.9m for early redemption of loan notes and deferred VAT due to Covid-19. This more than offsets borrowings of £3.4m (30 June 2021: £6.9m).
Henrik Bang, Chief Executive, commented:
“We continued to see good demand across our key market segments for both cloud-based Intelligent Automation and Customer Engagement solutions resulting in double-digit revenue and profitability growth.
“Netcall has a significant market opportunity as organisations from our target sectors increasingly implement digital strategies and business models. This underpinned trading in the first half of the year with growth derived from both new customer acquisitions and cross sales to existing customers.
“As we enter the second half of the year, we continue to invest in our business to ensure we remain well positioned in our key markets to take advantage of the opportunity. The Group's strong trading momentum coupled with a robust balance sheet, growing recurring revenues and advanced digital solutions, provide the Board with confidence in the Group's continued success.”
Notice of Results
Netcall expects to announce interim results for the six-month period ended 31 December 2021 on 23 February 2022.