Netcall PLC

Latest Results (02.02.2026):

Netcall PLC — Interim results for the six months ended 31 December 2024 (H1 FY25). The Group reported a strong first half driven by cloud adoption and two complementary acquisitions: revenue rose 22% to £23.0m, adjusted EBITDA increased 18% to £5.70m, and cloud services and contract metrics showed marked acceleration (Cloud services revenue £13.4m; Cloud ACV £29.9m). Management reports growing recurring revenue, expanding ACV/RPO and positive trading momentum into H2 with confidence in delivering the year’s expectations.

Revenue and growth

Group revenue +22% y/y to £23.0m (H1 FY24: £18.9m). Organic revenue growth was 12% excluding acquisitions. Intelligent Automation revenue rose 33% to £12.8m; Customer Engagement revenue up 10% to £10.0m.

Cloud performance

Cloud services revenue up 44% to £13.4m (H1 FY24: £9.28m). Cloud ACV increased 47% to £29.9m (organic Cloud ACV growth 20%), now 76% of total ACV — signalling a continued shift to subscription-based cloud business.

Contract metrics and forward visibility

Total ACV £39.4m (+31% y/y). Remaining Performance Obligations (RPO) rose 23% to £71.1m, with current RPO (next 12 months) £37.1m — providing material contracted revenue visibility.

Profitability and EPS

Adjusted EBITDA £5.70m (+18%). Profit before tax £3.69m (down 5% on prior period due to acquisition-related charges and lower finance income). Adjusted basic EPS 2.22p (+7%).

Cash, acquisitions and balance sheet

Cash at period end £22.0m (30 June 2024: £34.0m). Net funds £20.9m (after lease liabilities). Cash reduced primarily by acquisition-related payments (~£12.1m net). The Group remains debt-free.

Acquisitions and integration

Completed acquisitions of Govtech (Aug 2024) and Parble (Sept 2024). Early cross-sells reported (Parble IDP into Netcall customers; Liberty into a Govtech customer). Acquisitions added targeted capabilities (IDP, local-government automation) and contributed to ACV/revenue.

Recurring revenue, retention and product investment

Recurring revenue now 79% of total (H1 FY24: 75%). Cloud net retention 115% (H1 FY24: 111%), showing strong upsell/expansion. Continued investment in cloud and generative AI features (RAG, conversational AI) underpin product-led growth.

Sales momentum and customer wins

Liberty cloud contact centre (Converse CX) uptake strong — Converse CX subscription revenue +41% and two-thirds of Converse CX customers opting for AI products. Notable new wins include a £1.8m 3‑year TPA contract with a global law firm and several NHS/public sector contracts.

Cash flow, R&D and dividend

Operating cash flow (excluding non-recurring acquisition costs) £1.63m (H1 FY24: £4.71m); cash conversion typically stronger in H2. R&D and capitalised development spend increased (total R&D £3.38m; capitalised £1.51m). Final dividend for year ended 30 June 2024 of 0.89p paid in Feb 2025.

Outlook

Board reiterates confidence: positive H2 trading momentum, strong market tailwinds from cloud and AI adoption, growing contracted revenue base (>£71m RPO) and a healthy pipeline — Netcall expects to capitalise on these trends to deliver another successful year.