Financial Highlights
· Robust bookings in the period:
o Significant increase in mix of cloud services contracts
o Order book of contracted future minimum revenues increased by 13% to £17.0m (2016: £15.0m)
· Annualised recurring core revenues(1) increased by 8% to £11.8m (2016: £10.9m)
· Recognised revenue of £16.2m (2016: £16.6m) as a result of transition to a cloud revenue model
· Adjusted EBITDA(2) increased 1% to £4.49m (2016: £4.46m)
· Operating profit increased to £1.62m (2016: £1.61m)
· Diluted basic earnings per share of 1.03p (2016: 1.32p)
· Maintained strong cash conversion, with net cash generated from operations of £4.36m (2016: £4.81m)
· Net cash funds of £12.7m (2016: £14.1m) at year-end after payment of dividends of £4.16m (2016: £3.05m)
· Final ordinary dividend of 1.16p proposed, an increase of 5% (2016: 1.10p)
Operational Highlights
· Robust trading with up- and cross-sales accounting for majority of new business across both private and public sectors
· Liberty cloud platform driving new business wins with 6 of the 10 largest orders received in the period for cloud-based contracts
· Significant enhancements to the product suite released during the year including making available all substantial functionalities of Liberty in the cloud
· Major new version of Liberty Customer Engagement Centre under development to be released later this year
· The post year-end acquisition of low-code software provider, MatsSoft, to complement Netcall's Liberty platform, provides access to new markets and adds to cloud revenue stream
Henrik Bang, CEO of Netcall, commented,
“We are pleased with progress in the year which was in line with our strategy of positioning the business towards the high-growth cloud market. Netcall has enjoyed a period of robust trading resulting in an 8% increase in annualised recurring revenue and a 13% increase in our order book for contracted future minimum revenues. Furthermore, the investment we have made in the business has delivered significant progress against our technology roadmap, leaving the Group better placed to sustain long-term financial performance.
“The acquisition of MatsSoft post period end has added to our cloud business and has provided us with access to the fast-growing low-code market. Whilst only a month since the acquisition, early progress has been made and we remain excited by the synergies and prospects ahead. Netcall has started the new financial year with a considerably larger market opportunity, an advanced product offering, a resilient profitable business with high levels of revenue visibility and a growing pipeline of sales. This leaves us confident in the Group's continued growth prospects.”