23 January 2024

NETCALL PLC

("Netcall", the "Company" or the "Group")

Trading Update and Notice of Results

Cloud momentum driving double-digit growth in ACV

Netcall plc (AIM:NET), a leading provider of intelligent automation and customer engagement software, today provides the following update on trading for the six months ended 31 December 2023 (H1 FY24).

The Board is pleased to confirm that the Group experienced good trading in H1 FY24 with results expected to be in line with management expectations. Revenue is anticipated to increase by 8% to £18.9m (H1 FY23: £17.5m) with adjusted EBITDA⁽¹⁾ growth of 9% to £4.8m (H1 FY23: £4.4m).

Cloud annual contract value ('ACV')⁽²⁾ has grown 19% to £20.3m, contributing to total ACV growth of 14% to £30.1m. On an underlying basis, these growth rates are 28% and 18% respectively, excluding the effect of the significant contract win announced in June 2022 and renewed in July 2023.

In order to service a growing pipeline and deliver an improved proposition, the Group's investment programme into its cloud Customer Engagement offering has commenced as planned.

The Group generated strong cash flow in the period, resulting in a period end cash position of £28.6m (30 June 2023: £24.8m). The Group has no debt.

James Ormondroyd, Chief Executive, commented:

"The positive trading momentum has continued through the first half period with demand for our Cloud offerings continuing to grow at pace, including particularly strong uptake from new customers. This continues to drive double-digit growth in annual contract value, an increasing base of recurring revenues and good cashflows.

"We remain well positioned as we enter the second half, with our innovative product roadmap continuing to unlock new opportunities in a structurally growing market. Underpinned by a robust balance sheet, healthy orderbook and clear investment strategy, we remain confident in the Group's long-term growth prospects."     

Notice of Results

Netcall expects to announce interim results for the six-month period ended 31 December 2023 on 6 March 2024.

⁽¹⁾ 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.

⁽²⁾ 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 (save that the contract renewal announced on 20 July 2023 is included in FY23 ACV at the new annual amount of $4m).

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About Netcall

Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations digitally transform their businesses faster and more efficiently, empowering them to create a leaner, more customer-centric organisation.

Netcall's customers span enterprise, healthcare and government sectors. These include two-thirds of the NHS Acute Health Trusts and leading corporates including Legal and General, Lloyds Banking Group, Aon and Santander.

For further information, please go to www.netcall.com.

Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information for the purposes of article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No 2019/310 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.