Netcall's revenue on the rise as profits dented by acquisition

16th Oct 2018 09:20

(Sharecast News) - Netcall on Tuesday said full-year profits were dented by acquisition fees as the company zeroed in on cloud services. The customer engagement software provider's pre-tax profit for the year ended 30 June stood at £45,000, down from £1.7m the year before, though the company's revenue increased by 32% to £21.9m.The fall in profit was primarily attributed to acquisition costs, with the company having purchased low-code software provider MatsSoft and completed the first steps of its integration.With this purchase and Netcall's subscription-based Liberty and low-code platforms, the AIM traded company is increasing its focus on cloud services and saw a 297% increase in cloud revenues to £4.3m.Chief executive Henrik Bang said: "As we enter the new financial year we do so with increased confidence in the growth prospects for Netcall. We believe that our Liberty customer engagement platform together with our Low-code platform provides an attractive proposition to help organisations transform their customer engagement and implement their digital transformation strategies."Netcall had cash and cash equivalents of £5.8m, down from £12.7m at the same point last year."We are a cash-generative business with an extensive customer base and significant growth opportunity ahead of us. Our high levels of revenue visibility and sales pipeline give the board confidence in the enhanced prospects for the group, for this year and beyond," said Bang.Netcall's shares were up 1.64% at 62.00p at 0924 BST.