Netcall reports strong set of full-year results
By Josh White
Date: Wednesday 09 Oct 2024
(Sharecast News) - Netcall reported a strong set of full-year results on Wednesday, driven by robust demand for its cloud-based services and enhanced product offerings.
The AIM-traded firm said total revenue for the six months ended 30 June increased 9% to £39.1m, with cloud services revenue rising 19% to £19.8m, now accounting for 90% of new bookings.
Its total annual contract value (ACV) grew 15% to £32.2m, with cloud services ACV increasing 23% to £22.3m.
Adjusted EBITDA for the year rose 5% to £8.4m, while profit before tax surged 58% to £6.3m.
The company also reported a 7% increase in adjusted basic earnings per share, now at 3.57p, and ended the period with £34m in cash, a 37% increase.
Net funds stood at £33.5m, with a final dividend of 0.89p per share, up 7% year-on-year.
Operationally, Netcall reported strong demand for its Liberty cloud solutions, contributing to a 51% growth in cloud contact centre revenues.
The integration of generative AI capabilities and the launch of Liberty Converse CX further strengthened its offering.
Net retention rates for cloud services rose to 117%, reflecting continued growth from both new and existing customers.
Additionally, the integration of Skore into the Liberty platform expanded Netcall's addressable market, with initial cross-sales already achieved.
Since the end of the financial year, Netcall completed the acquisitions of Govtech and Parble, both of which were expected to enhance earnings immediately and offer significant cross-selling potential.
The company also appointed James Platt as an additional independent non-executive director, effective 24 October.
With strong sales momentum continuing into the new financial year, Netcall remained confident in its revenue visibility for the 2025 financial year.
"This year has been another period of strong performance for Netcall," said chief executive officer James Ormondroyd.
"Our cloud services continue to receive growing demand from new and existing customers, driving increased revenue visibility and strong cash flow.
"We have made significant advancements to the product offering, including the launch of our new cloud contact centre solution, Liberty Converse CX, which has generated substantial interest as customers migrate to cloud environments to leverage advanced technologies, as well as the ongoing integration of GenAI capabilities across our broader Liberty platform."
Ormondroyd said the firm was also pleased with the progress in its acquisition strategy, with the recent acquisitions of Skore, Govtech and Parble enhancing its market position and opening new opportunities.
"Positive sales momentum has continued into the new financial year.
"Our robust pipeline and product roadmap, together with a growing base of recurring revenue and a healthy cash position, leaves us well-positioned to capitalise on the market opportunities ahead."
At 0952 BST, shares in Netcall were up 2.69% at 87.8p.
Reporting by Josh White for Sharecast.com.
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