Netcall Plc - Half-Year Report
- Entry into the high growth, low-code software market via the acquisition of MatsSoft, enhancing the Group's product portfolio and increasing its addressable market
- Significant growth in cloud business including new international customer wins
- Continued high level of up-sales and customer retention, now enhanced with the initial low-code cross-sale
- Significant low-code pipeline from new and existing customers
- Continued product development including the release of:
- Liberty 4, a powerful new version of our customer engagement platform; and
- a significantly enhanced new version of our low-code platform
- MatsSoft recognised as a leader by Forrester in its 2017 Low-Code Platforms for Business Developers report
- Revenue increased 32% to £10.7m (H1 2017: £8.09m)
- Recurring revenue strengthened to 71% (H1 FY17 69%)
- Annualised recurring revenues(1) increased by 39% to £15.7m (H1 2017: £11.3m)
- Adjusted EBITDA(2) increased by 22% to £2.69m (H1 FY17: £2.21m)
- Adjusted diluted earnings per share increased by 5% to 1.03p (H1 FY17: 0.98p)
- Profit before tax was £0.28m (H1 F17: £ 0.92m) after acquisition related expenses
- Diluted earnings per share was 0.12p (H1 FY17: 0.58p) after acquisition related expenses
- Net debt of £0.8m (31 December 2016: cash £14.6m) after acquisition consideration and dividend payments
1) annualised revenue from cloud services and support contracts as at 31 December 2017
2) profit before interest, taxation, depreciation, amortisation, non-recurring transaction expenses and share-based charges
Henrik Bang, CEO of Netcall, commented:
"Customers, who today expect new levels of service, are at the forefront of businesses' technology priorities. Organisations across industries are digitally transforming their operations, leveraging software to enhance customer experiences, drive competitive differentiation and automate processes.
"The combination of our powerful low-code and Liberty customer engagement platforms creates a unique offering and significantly increases our addressable market. Low-code is accelerating digital transformation by putting the power of software creation into the hands of business users so that they, without traditional coding, can rapidly implement the business applications they need to improve and automate their customer engagement activities.
"Our Liberty business continues its successful transition to the cloud, delivering good growth in revenues and profits and we enter the second half with a considerably increased sales pipeline and much excitement for the accelerated growth opportunity available."