Recurring revenues and earnings improve at Netcall
Customer engagement software provider Netcall announced its unaudited interim results for the six months to 31 December on Tuesday, with the board reporting robust bookings in the period, and trading in line with management expectations.
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The AIM-traded company recorded a significant increase in the mix of cloud services contracts, while its order book of contracted future minimum revenues increased by 14% to over £16.6m.
Annualised recurring core revenues improved by 8% to £11.3m, with recognised revenue falling slightly year-on-year to £8.09m from £8.13m, which the board said was a result of the change in the blend of business and a reduction in the MovieLine service.
Adjusted EBITDA increased by 5% to £2.21m, while profit before tax increased by 17% to £0.92m.
Basic earnings per share increased by 7% to 0.60p.
The company said it maintained strong cash conversion during the half, with cash generated from operating activities increasing by 58% to £2.47m.
It also reported a debt-free balance sheet, with net cash funds of £14.6m, up from £14.1m year-on-year.
Netcall declared an interim enhanced dividend of 1.05p.
“We continue to see robust demand for the Liberty suite with our cloud solutions in particular gaining traction which is underpinning our growing recurring revenues and future minimum contracted revenues,” said CEO Henrik Bang.
“In line with our stated strategy, we will continue to invest in the business to take full advantage of the high growth trends in the market.”
Bang said that was supported by the group's cash generation and balance sheet.
“With the healthy development of the business combined with our revenue visibility, the board believes Netcall is well positioned for the future and is confident in the group's prospects for the year.”