Netcall (NET) Trading Update summary

Financial performance

• Revenue for H1 FY25 expected to rise 22% to £23.0m, with 12% organic growth and contributions from acquisitions.

• Adjusted EBITDA anticipated to increase 18% to £5.7m, reflecting profit growth and cloud investment.

• Group cash at 31 December 2024 was £22.0m after £12.1m in acquisition-related payments; no debt.

Cloud and product developments

• Cloud Annual Contract Value (ACV) grew 47% to £29.9m, now 76% of total ACV, which rose 31% to £39.4m.

• Strong uptake of Liberty cloud contact centre, Converse CX, with two-thirds of customers also adopting AI products.

• Ongoing product roadmap advancement aligns with growing demand for automation and AI capabilities.

Strategic initiatives and outlook

• Recent acquisitions (GovTech and Parble) have enhanced cross-sales and new customer opportunities.

• First sale of Parble's Intelligent Document Processing and first cross-sale of Liberty platform into GovTech base achieved.

• Management reports a strong pipeline, expanding recurring revenue, and confidence in continued growth.