Trading Update

Netcall plc (AIM:NET), a leading provider of intelligent automation and customer engagement software, today provides the following update on trading for the year ended 30 June 2024 (FY24).

The Board is pleased to confirm strong trading in FY24, with results expected to be in line with market expectations(1). Subject to audit, revenue is anticipated to increase by 9% to £39.1m (FY23: £36.0m), including revenue from Cloud customers up 19%, with Group adjusted EBITDA(2) growth of 5% to £8.4m (FY23: £8.0m).

Cloud momentum remains strong, including robust demand from new customers, with Cloud annual contract value ('ACV')(3) growing 23% to £22.3m, contributing to total ACV growth of 15% to £32.2m.

In order to service a growing pipeline and provide an improved proposition, the Group delivered significant advancements to the Liberty platform through the increase in investment into areas such as Cloud contact centres (with the launch of Liberty Converse CX in April 2024), the integration of AI capabilities across the Group's offering, as well as other ongoing customer-led innovations and developments.

The Group generated strong cash flow in FY24, ahead of expectations, resulting in an improved year-end cash position of £34.0m (30 June 2023: £24.8m).

James Ormondroyd, Chief Executive, commented:

"This year has been another period of strong trading for the Group. The increasing demand for our Cloud offerings has resulted in double-digit growth in both underlying revenues and ACV. Our growing base of subscription revenues and strong cash generation enable us to continue driving growth through innovation, with several new developments in our product roadmap.

"The successful integration of the recent acquisition of Skore Labs has expanded our market opportunity and provided increased cross-sell potential, which are pivotal to our growth strategy. Looking ahead, favourable market drivers, a growing customer base, and our strong balance sheet underpins the Board's confidence in the Group's continued success."

• Netcall believes that consensus market expectations for the year ended 30 June 2024 is revenue of £39.1m, adjusted EBITDA of £8.1m and net cash of £28.9m.
• 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 which is included in FY23 ACV at the new annual amount of $4m).