REG - Netcall PLC - Trading Update

NetcallAnnouncement

18/07/2024 07:00

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RNS Number : 8377W  Netcall PLC  18 July 2024

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
 Richard Hughes, CFO
 Henrik Bang, Non-Executive Chair

 Canaccord Genuity Limited (Nominated Adviser and Broker)     Tel. +44 (0) 20 7523 8000
 Simon Bridges / Andrew Potts

 Singer Capital Markets (Joint Broker)                        Tel. +44 (0) 20 7496 3000
 Charles Leigh-Pemberton / Asha Chotai

 Alma Strategic Communications                                Tel. +44 (0) 20 3405 0205
 Caroline Forde / Hilary Buchanan / Emma Thompson

 

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 (http://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.

 

 

 

 

 

 

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