Netcall delivers 'strong' FY24 performance as cloud uptake grows

18th Jul 2024 10:07

(Sharecast News) - Software firm Netcall said on Thursday that it had delivered a "strong" trading performance for the year ended 30 June, driven by increased uptake of its cloud offerings.

Netcall said FY24 revenues were expected to have grown 9% to £39.1m, including 19% growth from cloud customers, while adjusted underlying earnings were seen 5% higher at £8.4m.

The AIM-listed group highlighted that cloud momentum "remains strong", including "robust demand" from new customers, with cloud annual contract values growing 23% to £22.3m, contributing to total ACV growth of 15% to £32.2m.

Netcall also stated it had generated strong cash flow in FY24, ahead of expectations, resulting in an improved year-end cash position of £34.0m, up from £24.8m at the same time a year earlier.

Chief executive James Ormondroyd said: "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.

"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."

As of 1140 BST, Netcall shares were up 1.60% at 95.0p.

Reporting by Iain Gilbert at Sharecast.com