NETCALL PLC
(“Netcall”, the “Company” or the “Group”)
Final Results for the Year Ended 30 June 2021
Cloud business driving revenue growth and enhanced profitability
Netcall plc (AIM: NET), a leading provider of intelligent automation and customer engagement software, today announces its audited results for the year ended 30 June 2021.
Financial Highlights
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Revenue up 8% to £27.2m (FY20: £25.1m) |
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Cloud business revenue growth of 26% to £8.3m (FY20: £6.6m) |
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Total annual contract value(1) ('ACV') at 30 June 2021 up 10% year over year to £18.5m (30 June 2020: £16.8m) |
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Cloud services ACV at 30 June 2021 up 25% year over year to £9.4m (30 June 2020: £7.5m) |
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Adjusted EBITDA(2) up 21% to £5.34m (FY20: £4.41m). |
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Profit before tax up 98% to £0.99m (FY20: £0.50m) |
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Group cash at 30 June 2021 was £14.5m (FY20: £12.7m) more than offsetting borrowings of £6.86m (FY20: £6.75m) |
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Final ordinary dividend of 0.37p proposed, an increase of 48% (FY20: 0.25p) |
Operational Highlights
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Significant cloud business growth, with cloud contracts now contributing over half of total ACV providing improved visibility of future revenues |
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New customer wins from various verticals including Financial Services, Utilities, Healthcare and Public Sectors |
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Cloud net retention rate(3) increased to 116% (FY20: 113%) |
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Continued cross-selling success with 22% total ACV from customers who have purchased both Intelligent Automation and Customer Engagement solutions |
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Increased momentum in existing customer migrations from on-premise to cloud solutions |
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Annual revenue run-rate from Intelligent Automation now exceeds £10.8m, representing 40% of Group revenue |
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Ongoing platform innovation with new products launched, including AI-powered robotic process automation, providing customers with increasingly powerful automation capabilities
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Greenhouse Gas emissions(4) reduced by 31% over the year and on track to be carbon neutral for Scope 1 and 2 emissions by end of 2022 and Scope 3 net zero by end of 2026
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Henrik Bang, Chief Executive, said:
“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. 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 has 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.
“The Group's target markets represent a substantial and growing opportunity with our Liberty platform being well positioned to support customers' digital transformation strategies. 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.”
(1) ACV, as of 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.
(2) Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of share-based payments, acquisition, impairment, profit or loss on disposals, contingent consideration and non-recurring transaction costs.
(3) Cloud net retention rate is calculated by starting with the Cloud ACV from all customers twelve months prior to the period end and comparing it to the Cloud ACV from the same customers at the current period end. The current period ACV includes any upsells and is net of contraction or churn over the trailing twelve months but excludes ACV from new customers in the current period. The Cloud net retention rate is the total current period ACV divided by the total prior period ACV.
(4) Based on Scope 1 emissions (direct emissions from owned or controlled sources) and Scope 2 emissions (indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the Company) following the UK Government GHG Conversion Factors for Company Reporting, 2020.