Netcall Plc - Trading Update Year Ended 30 June 2020
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("Netcall", the "Company", or the "Group")
Strong trading performance delivers double-digit growth in revenue and adjusted EBITDA
Netcall plc (AIM: NET), a leading provider of Low-code and customer engagement solutions, today announces its trading update for the year ended 30 June 2020.
The Board anticipates full year revenue to be £25.1m corresponding to 10% growth (FY19: £22.9m) and adjusted EBITDA(1) growth of approximately 29% to £4.4m (FY19: £3.4m), in line with market expectations.
Cloud annual contract value(2) ('ACV') increased 25% to £7.5m (FY19: £6.0m) contributing to a 7% growth in total ACV to £16.8m (FY19: £15.7m).
Group cash increased significantly to £12.7m at 30 June 2020 (31 December: 2019: £6.5m) of which £2.2m was deferred VAT payments, resulting in a normalised cash position of £10.5m which exceeds debt of £6.7m (31 December 2019: £6.7m) and is ahead of market expectations.
Response to COVID-19
Our workforce has been working from home since March and responded fantastically to the changes asked of them, with no negative impact on productivity or ability to support and market to customers.
Due to the pandemic's impact on our customers, we adjusted our roadmap priorities to focus on the rapid development of new applications to support them. This included areas such as home working, assisting hospitals in managing changes to outpatient processes and COVID-19 responses, as well as supporting councils in providing enhanced citizen and local business support. Today, we have more than 10 new applications available in our AppShare and more in development.
These activities helped underpin continued good demand in the final quarter with, in particular, the healthcare sector performing strongly. As a result, the Group has not been required to introduce pay-cuts, furlough staff or make redundancies.
Moving forward, the Board anticipates that the disruptions caused by the pandemic will accelerate organisations' digital transformation initiatives, supporting this long-term growth driver for Netcall.
Henrik Bang, Chief Executive, said:
"Netcall had an excellent year, with double digit revenue and profit growth. Both our Low-code and Customer Engagement business areas delivered a good performance, contributing to strong cash generation.
Netcall weathered the impact from the pandemic well in the final quarter and the strong trading performance underlines the resilience of the business, the agility and dedication of our teams and the strength of the Liberty platform. Our staff responded well to the needs of our customers, rapidly deploying new applications to assist them in the support of their patients, citizens and customers.
"The strength of our Liberty portfolio, high levels of recurring revenue, strong balance sheet and breadth of customer base, provide the Board with confidence in Netcall's ability to continue to navigate the challenging environment, supporting our customers in their digital transformation."