Business
Trading Update and Contract Renewal
Trading Update and Contract Renewal.
About this update from Netcall Plc
[{"type":"text","content":"\n\n20 July 2023\n \nNETCALL PLC\n \n(\"Netcall\", the \"Company\" or the \"Group\")\n \nTrading Update and Contract Renewal\nStrong cloud momentum and $20m contract extension\n \nNetcall plc (AIM: NET), the leading provider of intelligent automation and customer engagement software, today provides an update on trading for the year ended 30 June 2023 and announces the renewal of a significant contract.\n \nTrading Update\n \nThe Board is pleased to confirm that positive trading has continued through the second half of the financial year. Revenue is expected to have grown by 18% to £36.0m (FY22: £30.5m) and adjusted EBITDA(1) by 25% to £8.0m (FY22: £6.4m).\n \nThe main growth driver continues to be sales of the Group's cloud offerings, with cloud annual contract value ('ACV')(2) increasing by 21% to £18.1m (FY22: £15.0m), contributing to total ACV growth of 15% to £27.9m (FY22: £24.2m). Underlying cloud ACV (excluding the significant contract announced in June 2022) increased 32% and underlying total ACV grew 21%.\n \nThis strong business performance generated excellent cash flow in the year, resulting in a year end net cash position of £24.8m (30 June 2022: £14.1m). The Group has no debt.\n \nContract Renewal\n \nOn 10 June 2022, Netcall announced a significant $19m three-year cloud subscription contract with a S&P 500 financial services firm (the \"Customer\") and Netcall's Liberty platform is now live with the Customer in more than 60 countries. Following a strategic review by the Customer to rationalise its vendor landscape, Netcall's Liberty platform has been re-selected to support the Customer's digital transformation ambitions. As a result of which, the Group has now agreed a replacement five-year contract valued at $20m in total (the \"Contract Renewal\") representing a $6m uplift to the remaining contract value, with an expected revenue contribution of $4m per annum over the new term.\n \nHenrik Bang, Chief Executive, commented:\n \n\"We continue to see healthy demand for the Group's Intelligent Automation and Customer Engagement solutions, resulting in double digit revenue growth and enhanced profitability. We saw strong uptake from new customers as they look to streamline their organisations to improve efficiencies and reduce costs.\n \n\"The ren...