Netcall shares up as profits surge

AIM-listed customer engagement specialist Netcall (LON:NET) has said that pre-tax profits for the half year ended 31st December were up by 49% and cash generation was more than six times higher than during the equivalent period of the prior year. Overall revenues were 6% above those from the first half of the previous year, but the value of cloud based services and bookings was almost doubled.

CEO Henrik Bang commented: “We are now approaching a clear inflexion point in our transition from a traditional software business to a high growth digital cloud operation, with our Cloud service bookings exceeding product sales.

“The increase in our total ACV and Low-code ACV provides a clear demonstration of the growing forward visibility of our revenue streams.

“Trading is in line with our expectations for the year so far. We expect revenues for the year to be more weighted toward the second half given the move to a recurring revenue model and the timing of product sales. Our strong sales momentum has continued into the second half with order inflow significantly ahead compared with the same period last year“.

The price of Netcall shares climbed by 15.56% to 34.90p (as of 14:30 GMT).