Netcall Plc - Trading Update
Netcall plc (AIM: NET),?the leading provider of Low-code and customer engagement software today provides an update on trading for the year ending 30 June 2019.
Cloud bookings(1) have continued their strong performance with year over year growth of 160% to £6.5m, reflecting strong Low-code cross sales to customers and the signing of new names. As a result, Low-code ACV(2) has continued its growth and is up 36% year over year to £4.4m. ACV from Support Contracts has also continued to grow, and as a result total ACV is up 10% year over year to £15.6m.
Product sales, whilst improved over the first half of the year, have been impacted by purchasing delays within the NHS coupled with public sector customers ordering the Group's newly launched Low-code cloud offerings. As a result, Product revenues for the year will be lower than expected.
As a consequence, adjusted EBITDA(3) for the year is now expected to be approximately £3.4m. Cash generation has been strong and at 30 April 2019 the Group's cash position was £6.5m offsetting the existing debt of £6.6m.
The Board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in Cloud bookings and ACV. The Group continues its transition from a traditional software business to a digital cloud operation and the Board looks forward to giving a further update at the time of its final results to be published in September 2019.