Netcall PLC Trading Update and Contract Renewal (5847G)
20 Julio 2023 - 1:00AM
UK Regulatory
TIDMNET
RNS Number : 5847G
Netcall PLC
20 July 2023
20 July 2023
NETCALL PLC
("Netcall", the "Company" or the "Group")
Trading Update and Contract Renewal
Strong cloud momentum and $20m contract extension
Netcall plc (AIM: NET), the leading provider of intelligent
automation and customer engagement software , today provides an
update on trading for the year ended 30 June 2023 and announces the
renewal of a significant contract.
Trading Update
The Board is pleased to confirm that positive trading has
continued through the second half of the financial year. Revenue is
expected to have grown by 18% to GBP36.0m (FY22: GBP30.5m) and
adjusted EBITDA(1) by 25% to GBP8.0m (FY22: GBP6.4m).
The main growth driver continues to be sales of the Group's
cloud offerings, with cloud annual contract value ('ACV')(2)
increasing by 21% to GBP18.1m (FY22: GBP15.0m), contributing to
total ACV growth of 15% to GBP27.9m (FY22: GBP24.2m). Underlying
cloud ACV (excluding the significant contract announced in June
2022) increased 32% and underlying total ACV grew 21%.
This strong business performance generated excellent cash flow
in the year, resulting in a year end net cash position of GBP24.8m
(30 June 2022: GBP14.1m). The Group has no debt.
Contract Renewal
On 10 June 2022, Netcall announced a significant $19m three-year
cloud subscription contract with a S&P 500 financial services
firm (the "Customer") and Netcall's Liberty platform is now live
with the Customer in more than 60 countries. Following a strategic
review by the Customer to rationalise its vendor landscape,
Netcall's Liberty platform has been re-selected to support the
Customer's digital transformation ambitions. As a result of which,
the Group has now agreed a replacement five-year contract valued at
$20m in total (the "Contract Renewal") representing a $6m uplift to
the remaining contract value, with an expected revenue contribution
of $4m per annum over the new term.
Henrik Bang, Chief Executive, commented:
"We continue to see healthy demand for the Group's Intelligent
Automation and Customer Engagement solutions, resulting in double
digit revenue growth and enhanced profitability. We saw strong
uptake from new customers as they look to streamline their
organisations to improve efficiencies and reduce costs.
"The renewal of our landmark contract with a large global
financial services firm is a strong endorsement of the quality of
our solutions and we look forward to supporting the Customer's
digital transformation ambitions.
"Underpinned by a robust balance sheet, strong pipeline of new
business and increasing visibility, we look forward with confidence
in the Group's long-term prospects."
(1) Profit before interest, tax, depreciation and amortisation
adjusted to exclude the effects of acquisition, impairment,
contingent consideration, share-based payments and non-recurring
transaction costs.
(2) ACV, as at 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 is included at the new
annual amount of $4m).
For further enquiries, please contact:
Netcall plc Tel. +44 (0) 330 333 6100
Henrik Bang, CEO
Michael Jackson, Chairman
James Ormondroyd, Group Finance Director
Canaccord Genuity Limited (Nominated Tel. +44 (0) 20 7523 8000
Adviser and Joint Broker)
Simon Bridges / Andrew Potts
Singer Capital Markets (Joint Broker) Tel. +44 (0) 20 7496 3000
Harry Gooden / Asha Chotai
Alma PR Tel. +44 (0) 20 3405 0205
Caroline Forde / Hilary Buchanan
/ Matthew Young
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.
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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END
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