Netcall PLC

Latest Results (13.06.2024):

Overview

Netcall PLC reported a robust financial performance for the fiscal year ended 30 June 2023, with total revenue increasing by 18% to £36.0 million compared to £30.5 million in the previous year. This growth was significantly driven by the company's cloud services, which saw a 55% increase in revenue, amounting to £16.6 million. The company's transition to a predominantly cloud-based business model has been a key factor in this growth, with cloud services now representing a larger portion of total revenue.

Profitability

Netcall PLC's profitability also saw a notable improvement in FY23, with adjusted EBITDA rising by 25% to £8.0 million from £6.4 million in FY22. Profit before tax more than doubled, reaching £4.0 million compared to £2.3 million in the previous year. This increase in profitability reflects the company's successful execution of its strategic initiatives and operational efficiency.

Dividends and Financial Position

The company declared a final ordinary dividend of 0.83p per share for FY23, which represents a 54% increase from 0.54p per share in FY22. Netcall PLC's strong financial performance is also evident in its improved liquidity position, with group cash at the period end standing at £24.8 million, up from £17.6 million the previous year. Net funds increased significantly to £24.3 million from £13.4 million as of 30 June 2022.

Cloud and Contract Value Growth

Netcall PLC's focus on cloud solutions continues to pay off, with Cloud annual contract value (ACV) growing by 21% to £18.1 million. Total ACV also saw a healthy increase of 15% to £27.9 million. The company's strategic shift towards cloud-based offerings is aligning well with market trends, which favor automation and enhanced customer engagement solutions.

Future Outlook

Looking ahead, Netcall PLC remains optimistic about its future prospects. The company has a strong sales pipeline, particularly for its cloud solutions, and expects to see continued growth in contracted revenue, which is projected to be £31.4 million in FY24. The ongoing investment in technology and development is set to further enhance its offerings and meet the growing demand for cloud-based solutions, ensuring sustained growth and profitability.