LONDON (ShareCast) - (Sharecast News) - Automation and customer engagement software company Netcall reported an 8% improvement in revenue in its final results on Wednesday, to £27.2m, as revenue from its cloud business grew 26% to £8.3m.
The AIM-traded firm said its total annual contract value at year-end on 30 June was up 10% year-on-year at £18.5m, with cloud services annual contract value 25% higher at £9.4m.

Adjusted EBITDA grew by 21% to £5.34m, and the company's profit before tax surged 98% to £0.99m.

Group cash at year-end totalled £14.5m, up from £12.7m a year earlier, "more than offsetting" borrowings of £6.86m, which had widened slightly from £6.75m over the year.

The board proposed a final ordinary dividend of 0.37p per share, making for an increase of 48% over its 0.25p distribution for the 2020 financial year.

"We are pleased with the solid performance for the year driven by demand for our cloud-based Liberty offering, resulting in 26% growth in cloud business revenue and a significant increase in profitability as Netcall continues the transition to a cloud business model," said chief executive officer Henrik Bang.

"In addition to new customer momentum, we see a greater number of customers expanding their engagement with the enlarged Liberty platform, contributing to growth in average contract values and recurring revenue.

"Trading conditions in the new financial year have remained positive, with a healthy pipeline of new business combined with a growing cloud business revenue stream underpinned by the increase in annual contract value."

Bang said the group's target markets represented a "substantial and growing" opportunity, with its Liberty platform being "well-positioned" to support the digital transformation strategies of clients.

"Our growing cloud business is delivering enhanced profitability and revenue visibility which, combined with our product innovation, produces new growth opportunities.

"This, combined with a robust foundation of recurring revenues and a cash generative business model, provides the board with confidence in the group's growth prospects."

At 1424 BST, shares in Netcall were down 4.58% at 81.58p.

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