TIDMNET
RNS Number : 1132Z
Netcall PLC
16 September 2009
?
16th September 2009
Netcall PLC
("Netcall" or the "Company")
Final Results
Netcall plc (AIM: NET), a leading provider of software solutions to the contact
centre market, announces Final Results for the year ended 30 June 2009.
Financial Highlights
* Revenue increased 9% to GBP3.93m (2008: GBP3.60m)
* Gross profit margin increased to 90% (2008: 89%)
* Profit from operations improved by 46% to GBP0.83m (2008: GBP0.57m)
* Adjusted profit* increased 38% to GBP0.98m (2008: GBP0.71m)
* Adjusted earnings per share increased 53% to 1.18p (adjusted 2008: EPS**: 0.77p)
* Cash position improved by 43% to GBP4.16m (2008: GBP2.92m), after GBP0.45m
invested in share buy-back programme during the year
* Net assets increased 14% to GBP4.49m (2008: GBP3.95m)
* before share based charges
**2008 earnings per shares adjusted for a tax credit arising from initial
recognition of deferred tax asset
Operational Highlights
* Continued broadening of the customer base, with strong growth in non-Financial
Services sectors
* Increased contribution to revenues through distribution partners such as Cable &
Wireless and BT, providing 58% of total revenues (2008: 52%)
* Appointment of Michael Jackson as Chairman in March 2009
Henrik Bang, CEO of Netcall, commented: "Netcall has made very good progress
this year, performing ahead of original expectations with the Company's strong
operational foundation and market leading products delivering both revenue and
profit growth. Combined with a strong cash position and healthy pipeline Netcall
is well placed to move ahead with its development plans and deliver significant
shareholder value in the future."
For further enquiries, please contact:
+------------------------------------+------------------------------------+
| Netcall plc | Tel. +44 (0) 1480 495300 |
+------------------------------------+------------------------------------+
| Henrik Bang, CEO | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| Evolution Securities | Tel. +44 (0) 20 7071 4300 |
+------------------------------------+------------------------------------+
| Robert Collins / Tim Redfern | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| ICIS Limited | Tel. +44 (0) 20 7651 8688 |
+------------------------------------+------------------------------------+
| Tom Moriarty / Caroline | |
| Evans-Jones | |
+------------------------------------+------------------------------------+
About Netcall
Netcall is a U.K. company listed on the AIM market of the London Stock Exchange.
Based near Cambridge, Netcall develops and supplies innovative communication
solutions to organisations of all sizes, including many blue-chip companies with
global contact centre operations. As a leading specialist in callback,
auto-messaging and contact solutions, Netcall helps organisations globally to
increase profits and productivity while improving customer satisfaction and
employee morale.
Solutions are deployed either onsite or as hosted managed services using
Netcall's Intelligent Communications Platform (ICP). The Company has more than a
decade's experience owning and running a high-availability service platform
co-located with international carriers. Netcall's customer list includes Anglian
Water, Birmingham City Council, BT, BUPA, Cable & Wireless, First Direct,
Halifax, Interflora, Lloyds TSB, McAfee, npower, Oracle, Prudential and RBS (The
Royal Bank of Scotland Group).
Please visit www.netcall.com for more information.
Chairman's and Chief Executive's Statement
Netcall made significant progress in the financial year. Against a backdrop of
economic uncertainty, Netcall's market leading products, extensive customer base
and focused operations have enabled the Company to deliver results ahead of
expectations. The Group's fundamentals have continued to strengthen with an
increasing cash balance, no debt and a high level of recurring revenues.
The Board therefore believes Netcall is well positioned for future growth,
capitalising on the Company's financial strength, established reputation and
broad customer base. We are confident that we have the team, the market position
and strong fundamentals required to deliver upon our growth strategy in the
years ahead generating increased value for our shareholders.
Financials
Revenue for the year increased by 9% to GBP3.93 million (2008: GBP3.60 million),
with our Hosted Services offering showing strong growth of 17% to GBP2.08
million (2008: GBP1.78 million).
Sales coming through our distribution partners increased by 21% to 58% (2008:
52%) of total revenue. This included a growing contribution from the hosted
platform integrated into the Cable & Wireless infrastructure.
The proportion of revenues generated in the year which are recurring in nature,
being hosted services revenue and maintenance and support agreements, grew to
79% (2008: 78%) of total revenues, thereby providing visibility for the year
ahead.
Our continued focus on cost control resulted in the gross profit margin
increasing to 90% compared to 89% in 2008. Operating costs for the year remained
steady at GBP2.69 million (2008: GBP2.64 million) with fixed costs decreasing by
9% to GBP2.32 million (2008: GBP2.55 million) and variable costs increasing to
GBP0.37 million (2008: GBP0.09 million). As a result operating costs decreased
from 73% to 69% of revenues.
The Group consequently generated a 46% growth in operating profit before
interest and share based charges to GBP0.83 million (2008: GBP0.57 million)
corresponding to an operating margin increase from 16% to 21%.
Profits including interest and before share based charges and tax grew by 38% to
GBP0.98 million compared with GBP0.71 million the previous year, resulting in a
margin improvement to 25% (2008: 20%). Profits after share based charges grew by
48% to GBP0.75 million (2008: GBP0.51million).
Adjusting for a one off tax credit in 2008 (arising from the credit created on
the initial recognition of a deferred tax asset), underlying basic earnings per
share increased 53% in the year from 0.77p in 2008 to 1.18p.
Netcall's cash position improved by 43% to GBP4.16 million at 30 June 2009
(2008: GBP2.92 million), reflecting the strongly cash-generative nature of the
business. The underlying strength of the business also resulted in a 14% growth
in net assets which increased to GBP4.49 million (2008: GBP3.95 million).
During the year, Netcall invested GBP0.45 million in a share buy-back programme
resulting in the Group purchasing and applying for cancellation of 3,750,206
ordinary shares of 5p each purchased at a weighted average price of 11.77p.
Operations
Our flagship product, QueueBuster, continues to be well received in its market.
Together with the rest of the Company's portfolio of call centre offerings,
Netcall continues to deliver strong performance metrics on both our customer
premises and hosted platforms, enabling our customers to reduce costs and
increase operational efficiencies whilst continuing to provide high levels of
customer service and satisfaction.
Waiting to speak to a call centre agent remains one of the greatest causes for
customer dissatisfaction among the public and during the year QueueBuster
continued to handle millions of calls where callers, rather than waiting on the
line, received a call back when an agent was free, resulting in improved call
centre efficiencies and customer satisfaction while saving the public from
hundreds of years of telephone queuing.
One of the key strengths of the Company continues to be its extensive, high
calibre customer base. During the year we experienced growth across several
sectors, with the addition of new key customers in the government and
communication sectors in particular. In addition, there was an increase in
international revenues which included new customer acquisitions in Europe and
North America.
The development in customer mix resulted in an improved balance in sector
revenue generation, with non-financial services sector revenue growing from 45%
to 59% of total revenues. Additionally, a number of our existing customers
continued to expand the use of Netcall's products and services rolling out our
solutions to additional parts of their businesses. During the year, Netcall also
renewed its Maintenance & Support agreement for installations used by BT for a
further three years.
The revenue from our distribution partners continued to increase and in line
with our strategy represents an increasing share of Netcall's total revenues,
complementing our direct sales team. Our key distribution partners, BT and Cable
& Wireless, secured several significant new customers during the year and we
continued to build our third party network of call centre specialists which also
had a positive effect on revenues.
On 23 March 2009, Netcall announced the appointment of Michael Jackson as
non-executive Chairman and the reinstatement of Roger Allsop as non-executive
Director following his time as transitional Chairman. Michael Jackson founded
Elderstreet Investments Limited in 1990 and is its Executive Chairman. For the
past 25 years, he has specialised in raising finance and investing in the
smaller quoted and unquoted companies sector. Michael has been Chairman of two
FTSE 100 companies and from 1997 until August 2006 was Chairman of The Sage
Group plc.
Growth strategy
Netcall has, over the last few years, been fundamentally transformed into a
profitable and highly cash generative business which has created a solid
financial platform for the Company. In addition, Netcall has established a
strong position in its market niches within the call centre space. We are today
considered a trusted partner by our broad customer base and are well positioned
to offer additional products and capabilities to both existing and future
customers. The Board therefore believes that the Company is well positioned to
generate long-term growth and take advantage of any opportunities resulting from
industry consolidation.
Outlook
The Company has made very good progress this year, performing ahead of original
expectations in a challenging market and we continue to see good opportunities
across various sectors moving forward. The Board is encouraged by a healthy
pipeline which, combined with Netcall's strong operational foundation and
financial position, mean the Company is well placed to move ahead with its
development plans. Whilst market conditions undoubtedly remain challenging,
these factors give the Board confidence in Netcall's future performance and
ability to deliver long term growth.
The Board would like to thank all the staff at Netcall and our partners for
their continued hard work and support. It is their energy and commitment which
form the foundations of Netcall's success.
+----------------------+--------------------------+
| Michael Jackson | Henrik Bang |
+----------------------+--------------------------+
| Chairman | CEO |
+----------------------+--------------------------+
| | |
+----------------------+--------------------------+
| 16 September 2009 | |
+----------------------+--------------------------+
Consolidated Income Statement
+---------------------------------------+----------+--------------+-------------+
| | | 2009 | 2008 |
+---------------------------------------+----------+--------------+-------------+
| | Notes | GBP'000 | GBP'000 |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Revenue | 2 | 3,931.1 | 3,600.5 |
+---------------------------------------+----------+--------------+-------------+
| Cost of sales | | (405.2) | (386.6) |
+---------------------------------------+----------+--------------+-------------+
| Gross profit | | 3,525.9 | 3,213.9 |
+---------------------------------------+----------+--------------+-------------+
| Administrative charges before share | | (2,693.4) | (2,643.1) |
| based charges | | | |
+---------------------------------------+----------+--------------+-------------+
| Share based charges | | (221.0) | (200.0) |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Total administrative expenses | | (2,914.4) | (2,843.1) |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Profit before share based charges | | 832.5 | 570.8 |
+---------------------------------------+----------+--------------+-------------+
| Share based charges | | (221.0) | (200.0) |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Profit before interest and tax | | 611.5 | 370.8 |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Finance income receivable | | 143.2 | 138.6 |
+---------------------------------------+----------+--------------+-------------+
| Finance costs payable | | - | - |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Profit for the year before taxation | | 754.7 | 509.4 |
+---------------------------------------+----------+--------------+-------------+
| Taxation | | - | 560.0 |
+---------------------------------------+----------+--------------+-------------+
| Net profit for year | | 754.7 | 1,069.4 |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Attributable to shareholders of | | 754.7 | 1,069.4 |
| Netcall plc | | | |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Earnings per share | 3 | | |
+---------------------------------------+----------+--------------+-------------+
| Basic | | 1.18p | 1.62p |
+---------------------------------------+----------+--------------+-------------+
| | | | |
+---------------------------------------+----------+--------------+-------------+
| Diluted | | 1.17p | 1.61p |
+---------------------------------------+----------+--------------+-------------+
All activities derive from continuing operations.
Consolidated Balance Sheet
+-------------------------------------------------+--------------+--------------+
| | 2009 | 2008 |
+-------------------------------------------------+--------------+--------------+
| | GBP'000 | GBP'000 |
+-------------------------------------------------+--------------+--------------+
| Assets | | |
+-------------------------------------------------+--------------+--------------+
| Non-current assets | | |
+-------------------------------------------------+--------------+--------------+
| Intangible assets | 33.2 | 37.9 |
+-------------------------------------------------+--------------+--------------+
| Property, plant and equipment | 62.6 | 69.7 |
+-------------------------------------------------+--------------+--------------+
| Deferred tax asset | 560.0 | 560.0 |
+-------------------------------------------------+--------------+--------------+
| | 655.8 | 667.6 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Current assets | | |
+-------------------------------------------------+--------------+--------------+
| Inventories | 28.8 | 77.6 |
+-------------------------------------------------+--------------+--------------+
| Trade and other receivables | 1,056.5 | 1,534.1 |
+-------------------------------------------------+--------------+--------------+
| Cash and cash equivalents | 4,162.8 | 2,915.3 |
+-------------------------------------------------+--------------+--------------+
| | 5,248.1 | 4,527.0 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Total assets | 5,903.9 | 5,194.6 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Equity | | |
+-------------------------------------------------+--------------+--------------+
| Share capital | 3,130.0 | 3,302.5 |
+-------------------------------------------------+--------------+--------------+
| Share premium account | 2.4 | 2.4 |
+-------------------------------------------------+--------------+--------------+
| Capital reserve | 187.5 | - |
+-------------------------------------------------+--------------+--------------+
| Employee share schemes reserve | 227.0 | 441.0 |
+-------------------------------------------------+--------------+--------------+
| Profit and loss account | 942.4 | 201.4 |
+-------------------------------------------------+--------------+--------------+
| Total Equity | 4,489.3 | 3,947.3 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Current Liabilities | | |
+-------------------------------------------------+--------------+--------------+
| Trade and other payables | 1,414.6 | 1,247.3 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Total equity and liabilities | 5,903.9 | 5,194.6 |
+-------------------------------------------------+--------------+--------------+
Consolidated Cash Flow Statement
+-------------------------------------------------+--------------+--------------+
| | 2009 | 2008 |
+-------------------------------------------------+--------------+--------------+
| | GBP'000 | GBP'000 |
+-------------------------------------------------+--------------+--------------+
| Net cash generated from operations | 1,578.7 | 434.7 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Investing activities | | |
+-------------------------------------------------+--------------+--------------+
| Additions to property, plant and equipment | (25.0) | (6.2) |
+-------------------------------------------------+--------------+--------------+
| Purchase of intangible assets | (15.9) | (12.3) |
+-------------------------------------------------+--------------+--------------+
| Proceeds from disposal of tangible assets | 0.2 | - |
+-------------------------------------------------+--------------+--------------+
| Interest received | 143.2 | 138.6 |
+-------------------------------------------------+--------------+--------------+
| Cash inflow from investing activities | 102.5 | 120.1 |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Financing activities | | |
+-------------------------------------------------+--------------+--------------+
| Proceeds from share issues | 15.0 | - |
+-------------------------------------------------+--------------+--------------+
| Purchase of own shares | (448.7) | - |
+-------------------------------------------------+--------------+--------------+
| Cash outflow from financing activities | (433.7) | - |
+-------------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------------+--------------+--------------+
| Net changes in cash and cash equivalents | 1,247.5 | 554.8 |
+-------------------------------------------------+--------------+--------------+
| Cash and cash equivalents, beginning of year | 2,915.3 | 2,360.5 |
+-------------------------------------------------+--------------+--------------+
| Cash and cash equivalents, end of year | 4,162.8 | 2,915.3 |
+-------------------------------------------------+--------------+--------------+
Cash generated from operating activities
+-------------+-------------+-------------+-------------+-------------+-------------+
| | 2009 | 2008 |
+---------------------------+---------------------------+---------------------------+
| | GBP'000 | GBP'000 |
+---------------------------+---------------------------+---------------------------+
| | | |
+---------------------------+---------------------------+---------------------------+
| Profit after taxation | 754.7 | 1,069.4 |
+---------------------------+---------------------------+---------------------------+
| Adjustments for: | | |
+---------------------------+---------------------------+---------------------------+
| Deferred tax | - | (560.0) |
+---------------------------+---------------------------+---------------------------+
| Depreciation and | 52.5 | 76.8 |
| amortisation | | |
+---------------------------+---------------------------+---------------------------+
| Share based payment | 221.0 | 200.0 |
| charge | | |
+---------------------------+---------------------------+---------------------------+
| Interest received | (143.2) | (138.6) |
+---------------------------+---------------------------+---------------------------+
| Decrease in trade and | 477.6 | 81.3 |
| other receivables | | |
+---------------------------+---------------------------+---------------------------+
| Decrease /(increase) in | 48.8 | (39.5) |
| inventories | | |
+---------------------------+---------------------------+---------------------------+
| Increase) /(decrease) | 167.3 | (254.7) |
| in trade and other | | |
| payables | | |
+---------------------------+---------------------------+---------------------------+
| Cash generated from | 1,578.7 | 434.7 |
| operating activities | | |
+-------------+-------------+-------------+-------------+-------------+-------------+
Notes to the Financial Statements
1. Nature of operations and general information
Netcall plc and its subsidiaries are a group of companies which design, develop
and market advanced technologies that enable businesses to integrate and manage
telephony efficiently.
Netcall plc, a limited liability company, is the Group's ultimate parent
company. It is registered in England and Wales. The address of Netcall plc's
registered office, is also its principal place of business.
The financial statements for the year ended 30 June 2009 were approved by the
Board of Directors on 16 September 2009.
Netcall plc's shares are listed on the AIM market of the London Stock Exchange's
(AIM). Netcall plc's consolidated full year financial statements are presented
in British pounds (GBP), which is also the functional currency of the ultimate
parent company.
2. Segmental analysis
Management consider that there is one primary business segment being the
management of telephony efficiency. Analysis of turnover in its primary business
is summarised below:
+---------------------------------------------------+----------+----------+
| | 2009 | 2008 |
+---------------------------------------------------+----------+----------+
| Geographical analysis by destination | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+
| United Kingdom | 3,426.5 | 3,329.1 |
+---------------------------------------------------+----------+----------+
| Rest of the World | 504.6 | 271.4 |
+---------------------------------------------------+----------+----------+
| | | |
+---------------------------------------------------+----------+----------+
| | 3,931.1 | 3,600.5 |
+---------------------------------------------------+----------+----------+
3. Earnings per share
The calculation of the basic earnings per share is based on the profits
attributable to the shareholders of Netcall plc divided by the weighted average
number of shares in issue during the year. All earnings per share calculations
relate to continuing operations of the Group.
+-----------------------+--------------+------------+------------+------------+
| | Profits | Weighted | Basic | Adjusted |
| | attributable | average | earnings | basic |
| | to | number of | per share | earnings |
| | shareholders | shares | amount | per share |
| | GBP'000 | | in pence | amount in |
| | | | | pence* |
+-----------------------+--------------+------------+------------+------------+
| | | | | |
+-----------------------+--------------+------------+------------+------------+
| Year ended 30 June | 754.7 | 63,924,700 | 1.18 | 1.18 |
| 2009 | | | | |
+-----------------------+--------------+------------+------------+------------+
| Year ended 30 June | 1,069.4 | 66,050,937 | 1.62 | 0.77 |
| 2008 | | | | |
+-----------------------+--------------+------------+------------+------------+
* The adjusted basic earnings per share is computed on profits before a tax
credit arising from the initial recognition of the deferred tax asset.
The diluted earnings per share take into account the potentially dilutive effect
of share options, this is based on a diluted weighted average of 64,410,811
(2008: 66,463,922) shares.
4. Dividends
The dividends proposed after the year end GBPnil (2008: GBPnil).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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