22 July 2025

NETCALL PLC

("Netcall", the "Company" or the "Group")

FY25 Trading Update

Momentum accelerates as Cloud and AI adoption deepen across sectors

Cloud ACV increased by 52% and is now 80% of total ACV

Netcall plc (AIM:NET), a leading provider of intelligent automation and customer engagement software, today issues a trading update for the year ended 30 June 2025 ("FY25").

The Board is pleased to report another year of strong performance, with results expected to be comfortably in line with market expectations⁽¹⁾.

Subject to audit, revenue is anticipated to increase by 23% to £48.0m (FY24: £39.1m), driven by a combination of organic growth of 10% and contributions from acquisitions completed in FY25. Adjusted EBITDA⁽²⁾ is expected to increase by 17% to £9.8m (FY24: £8.4m), underpinned by continued profit growth alongside investment in the Group's Cloud offering.

The Liberty Cloud platform is the Group's primary growth engine, as organisations increasingly adopt and integrate AI and automation capabilities into their workflows. Cloud Annual Contract Value ('ACV')⁽³⁾ rose strongly, increasing by 52% to £33.9m, including 26% organic growth. This was supported by good momentum in the second half in cloud subscriptions, highlighting the success of the Group's Cloud investment programme and the growing adoption of the enhanced AI capabilities across the Liberty platform. Cloud now accounts for 80% of total ACV, which grew by 31% to £42.2m, further strengthening the Group's base of predictable, recurring revenues.

This performance reflects both sustained strong expansion within the existing customer base and a notable uplift in new customer wins, particularly in the Public Sector, where Liberty's ability to deliver rapid, measurable outcomes is resonating, with customers responding well to the recent acquisitions and expanded product offerings.

The integration of Govtech and Parble, both acquired early in FY25, has expanded Netcall's addressable market and unlocked substantial cross-selling opportunities. These acquisitions, alongside the growing momentum for new products, are extending the Group's reach in key verticals and contributing to a strong and growing pipeline.

Netcall remains highly cash generative. Year-end cash stood at £27.2m (30 June 2024: £34.0m) after acquisition-related payments of £12.5m (net of cash acquired) during FY25. The Group remains debt-free and well-positioned to support further organic and inorganic growth.

James Ormondroyd, Chief Executive, commented:

"This year's performance reflects the successful execution of our strategy, delivering accelerating cloud growth of over 50%, broadening our product suite, and integrating strategic acquisitions to strengthen our market position.

"We are beginning to see the full benefits of our enhanced Liberty platform following organic and inorganic investment. Innovations, such as our embedded AI capabilities are driving faster adoption and helping to effectively deliver more aspects of our customers' digitalisation and automation strategies.

"As we enter the new financial year, we do so with a strong base of recurring revenue, a record pipeline, an increasingly powerful platform and supportive market tailwinds, which together with a healthy cash position, leave us well positioned for the next stage of growth." 

⁽¹⁾ Netcall believes that consensus market expectations for the year ended 30 June 2025 is revenue of £47.4m, adjusted EBITDA of £9.7m and net cash (cash less borrowings) of £26.9m.

⁽²⁾ Profit before interest, tax, depreciation and amortisation adjusted to exclude the effects of share-based payments,  impairment, profit or loss on disposals, contingent consideration and non-recurring transaction costs.

⁽³⁾ ACV, as of a given date, is the total of the value of each cloud and support contract divided by the total number of years of the contract plus the annualised value of recurring Intelligent Document Processing ("IDP") revenue.

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About Netcall

Netcall's Liberty software platform with Intelligent Automation and Customer Engagement solutions helps organisations digitally transform their businesses faster and more efficiently, empowering them to create a leaner, more customer-centric organisation.

Netcall's customers span enterprise, healthcare and government sectors. These include two-thirds of the NHS Acute Health Trusts and leading corporates including Legal and General, Lloyds Banking Group, Aon and Santander.

For further information, please go to www.netcall.com.