LONDON (ShareCast) - (Sharecast News) - Netcall reported a strong full-year performance on Tuesday, with cloud adoption and AI integration driving significant revenue growth and a sharp increase in annual contract value.
In a trading update for the year ended 30 June, the AIM-traded software group said it expected revenue to rise 23% to £48m, with adjusted EBITDA up 17% to £9.8m.

The results were anticipated to be comfortably in line with market expectations.

Growth was underpinned by a 52% increase in cloud annual contract value (ACV) to £33.9m, including 26% organic growth, reflecting rising demand for intelligent automation and customer engagement tools.

Cloud contracts now represented 80% of total ACV, which rose 31% to £42.2m, strengthening Netcall's base of recurring revenue.

"This year's performance reflects the successful execution of our strategy, delivering accelerating cloud growth of over 50%, broadening our product suite, and integrating strategic acquisitions to strengthen our market position," said chief executive James Ormondroyd.

"Innovations, such as our embedded AI capabilities, are driving faster adoption and helping to effectively deliver more aspects of our customers' digitalisation and automation strategies."

The company noted strong customer expansion across sectors, particularly in the public sector, where its Liberty platform had gained traction.

It said the acquisitions of Govtech and Parble, completed early in the financial year, had expanded Netcall's addressable market and opened up cross-selling opportunities.

Netcall said it remained debt-free and highly cash generative, ending the year with £27.2m in cash after £12.5m in acquisition-related payments.

The company said it entered the new financial year with a record pipeline, a solid recurring revenue base, and a strengthened market position.

At 1132 BST, shares in Netcall were up 4.96% at 118.61p.

Reporting by Josh White for Sharecast.com.

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