TIDMNET
RNS Number : 3605X
Netcall PLC
21 February 2017
21 February 2017
NETCALL PLC
("Netcall", the "Company", or the "Group")
Interim results for the six months ended 31 December 2016
Significant growth in cloud business adding to quality of
earnings
Netcall plc (AIM: NET), a leading customer engagement software
provider, today announces its unaudited interim results for the six
months ended 31 December 2016.
Financial Highlights
-- Robust bookings in period and trading in line with management expectations:
o Significant increase in mix of cloud services contracts
o Order book of contracted future minimum revenues increased by
14% to over GBP16.6m
o Overall demand remains robust
-- Annualised recurring core revenues(1) increased by 8% to GBP11.3m
-- Recognised revenue of GBP8.09m (H1 FY16: GBP8.13m) as a
result of the change in blend of business and reduction in
MovieLine service
-- Adjusted EBITDA(2) increased by 5% to GBP2.21m (H1 FY16: GBP2.11m)
-- Profit before tax increased by 17% to GBP0.92m (H1 FY16: GBP0.78m)
-- Basic earnings per share increased by 7% to 0.60p (H1 FY16: 0.56p)
-- Maintained strong cash conversion with cash generated from
operating activities increased by 58% to GBP2.47m (H1 FY16:
GBP1.56m)
-- Debt-free balance sheet with net cash funds of GBP14.6m (30 June 2016: GBP14.1m)
-- Interim enhanced dividend of 1.05p.
1) annualised revenue from cloud services and support contracts as at 31 December 2016
2) profit before interest, taxation, depreciation, amortisation,
non-recurring transaction expenses and share-based charges
Operational Highlights
-- Significant growth in cloud business with 4 of the 10 largest
orders received in the period for cloud-based contracts
-- Won largest Liberty cloud contract to date signing a
five-year agreement worth a minimum of GBP1.4 million
-- Strong demand from the Group's installed customer base for
up- and cross-sales, complemented by new customer wins in the
period
-- Liberty cloud platform enhanced with new functionality and
closer product integration to capitalise on high-growth SaaS market
opportunity
Henrik Bang, CEO of Netcall, commented:
"We continue to see robust demand for the Liberty suite with our
cloud solutions in particular gaining traction which is
underpinning our growing recurring revenues and future minimum
contracted revenues. In line with our stated strategy, we will
continue to invest in the business to take full advantage of the
high growth trends in the market. This is supported by the Group's
good cash generation and a strong balance sheet.
With the healthy development of the business combined with our
revenue visibility, the Board believes Netcall is well positioned
for the future and is confident in the Group's prospects for the
year."
For further enquiries, please contact:
Netcall plc Tel. +44 (0)
330 333 6100
Henrik Bang, CEO
Michael Jackson, Chairman
James Ormondroyd, Group Finance
Director
finnCap Limited (Nominated Adviser Tel. +44 (0)
and Broker) 20 7220 0500
Stuart Andrews / James Thompson,
Corporate Finance
Tim Redfern, Corporate Broking
Alma PR Tel. +44 (0)
20 8004 4218
Josh Royston / Hilary Buchanan /
Robyn McConnachie
About Netcall plc
Netcall's mission is to help organisations engage effectively
with their customers through the provision of easy to use,
functional, smartly designed software applications delivered on its
integrated platform, Liberty. Netcall's software product suite,
incorporating omni-channel contact centre, workforce optimisation,
business process management and case management, helps its
customers meet the growing demands of consumers, work smarter, gain
competitive advantage, lower operating costs and achieve targets.
Netcall's aim is to build a strong business by expanding its
customer engagement Liberty platform, both on-premise and cloud
capabilities, for both new and existing customers.
Netcall's customer base contains 700 organisations in both the
private and public sectors. These include two thirds of the NHS
Acute Health Trusts, major telecoms operators such as BT and
leading organisations including Interflora, Lloyds Banking Group,
Cineworld, Axa, and British Sugar.
For further information, please consult the Netcall website:
www.netcall.com.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014.
Introduction
The six month period to 31 December 2016 has been another
healthy trading period for the Group, characterised by robust
demand for the Liberty platform suite. As anticipated, multi-year
contracts for our cloud service offerings as a proportion of new
orders grew significantly period-over-period and contributed
further to the Group's visibility of revenue for future
periods.
The momentum behind the growing cloud-based business is
demonstrated by the quality of the financial metrics. Revenue of a
recurring nature increased 7% to GBP5.4m in the period and now
accounts for 68% of total revenue (H1 FY16: 64%), underpinning the
Group's cash generation and profitability. The annualised run rate
of such revenues increased 8% to GBP11.3m at period end (H1 FY16:
GBP10.5m) and, looking forward, the order book of contracted future
minimum revenue is growing in double digits, now standing at over
GBP16.6m compared to GBP14.6m at the half year period last
year.
The second year of the Group's strategy of accelerated
investment in cloud business has now commenced, with the aim of
orientating Netcall toward the rapidly growing cloud customer
engagement market. The Board is pleased with the significant
progress achieved over this period which has resulted in advanced
cloud technologies, infrastructure and service delivery
capabilities being added to the business. This expanded offering
has opened up substantial new opportunities for the Group, with 4
of the 10 largest orders received in the period being for
cloud-based contracts. The Board will continue to invest in the
cloud market opportunity, a market which is expected to double in
size over the next 3-5 years.
The Group maintains a strong financial position and a debt-free
balance sheet. At 31 December 2016, the net cash balance had
increased to GBP14.6m (30 June 2016: GBP14.1m) after the payment of
an interim dividend in July 2016 of GBP1.3m.
Business Review
Strategy
Netcall's goal is to help organisations seamlessly and
effectively engage with their customers across multiple channels to
deliver a superior customer experience tailored to the type of
interaction and customer demographic. The result is improved end
customer acquisition and loyalty while driving internal
efficiencies and reducing costs. Netcall achieves this by providing
and supporting software solutions that are smart, functional, easy
to use, and flexibly deployed via an integrated customer engagement
platform, Liberty. Netcall's modular platform is designed to meet
the full range of customer requirements from single applications
through to full, end-to-end customer engagement solutions forming
part of major organisational transformation projects.
The Board's strategy is to grow the business organically,
through the ongoing development of the customer engagement Liberty
platform, and by acquiring businesses with complementary
proprietary software and/or additional customers in the Group's
target markets.
The Group's key drivers for organic growth include taking
advantage of the cloud opportunity while continually expanding the
product suite. A steady roll out of enhanced products and expanded
offerings, including new cloud capabilities, has resulted in
attracting new customers while also providing a continuous upgrade
path for existing customers. Cross and up-sales have accounted for
the large majority of new sales during the period. This
demonstrates the significant growth potential available just within
the installed customer base, in addition to new customer wins, as
well as the advantages of maintaining a blended capability to
deliver on-premise, cloud and hybrid solutions.
Market
The rising expectations from consumers, patients and citizens is
driving the market opportunity for customer engagement solutions.
Organisations, whether a hospital, commercial business or public
sector organisation, understand that the manner in which they
engage with customers is critical to meet service objectives and
improve internal efficiencies. In addition, for commercial
organistions, customer engagement strategies provide powerful
competitive differentiators and are critical to both their customer
retention and acquisition objectives.
Consumers increasingly expect organisations to offer multiple
interaction channels, intuitive interfaces, around-the-clock
availability, personalised treatment, first contact resolution and
real-time fulfilment. To manage this change effectively, technology
solutions are required to integrate front and back-office systems,
manage service delivery across channels, automate business
processes and allocate internal resources effectively through
intuitive analytics.
The Liberty platform delivers these comprehensive capabilities
with a focus on three key product areas: omni-channel contact
centre solutions, customer experience management and workforce
optimisation which together interact to create a customer
engagement centre. The platform can be flexibly delivered via one
of the Group's cloud offerings, on-premise or hybrid solutions
which are powerful differentiators in the market - being able to
service the diverse and blended needs of customers across the
spectrum of a larger, more mature on-premise market and a
high-growth cloud market.
Customer wins
Order inflow in the period was driven by strong demand across
the commercial and healthcare sectors, with the majority of new
sales coming from up and cross-sales to the existing customer
base.
New contract wins include:
-- A new five-year SaaS contract worth a minimum of GBP1.4
million to provide Liberty omni-channel contact centre, customer
experience management and unified communication solutions to a
leading services organisation
-- A new five-year contract with an existing Local Authority
customer, delivering an upgrade to their Liberty platform as well
as migrating the solution to the Group's cloud infrastructure
-- A new three-year contract with the world's leader in highway
concessions, delivering a private-cloud based advanced speech
recognition and PA-DSS payment solution
-- A new three-year contract with a Local Authority providing a
cloud contact centre integrated with Skype for Business
Product development
The Board is pleased with the significant developments achieved
in building the cloud capabilities of the Group. As a result of
this effort, all the substantial functionalities of the Group's
traditional on-premise solution suite have been made available on
the cloud platform, along with operational developments to support
and provide cloud service delivery. The fabric of the cloud
platform is in place, surpassing a milestone in the development
roadmap and the objective going forward is to continue the
development of Liberty with a 'cloud-first' approach.
As the Group continues its investment in the business, the
'cloud-first' focus will further enhance features and
functionality. In addition, it will integrate the platform's
product set more closely to improve user experience, while also
strengthening the resiliency and dependability of the platform.
This development is complemented by Netcall's advanced technology
offering where the Group has always benefited from high levels of
innovation. The broad and advanced technology base includes
automation, robotics and analytics, enabling customers to use the
Liberty platform to drive organisational changes and efficiencies
throughout their customer engagement initiatives.
Financial Review
The Group reported revenue of GBP8.09m (H1 FY16: GBP8.13m) in
line with management's expectations for the period.
Revenue, which is considered to be recurring in nature, derived
from cloud and support contracts, increased 7% to GBP5.40m (H1
FY16: GBP5.06m) which equates to 68% (H1 FY16: 64%) of revenues
(excluding MovieLine) with strong growth in the cloud revenue
stream. As at 31 December 2016, the annualised run rate of such
revenues increased 8% to GBP11.3m (H1 FY16: GBP10.5m).
Revenue from product and professional service sales decreased to
GBP2.50m (H1 FY16: GBP2.82m) due to timing of certain orders.
The aggregate value, at 31 December 2016, of contracted minimum
income that is to be recognised as core revenue in future financial
periods increased by 14% to GBP16.6m (H1 FY16: GBP14.6m).
Revenue from the non-core MovieLine service decreased to
GBP0.20m (H1 FY16: GBP0.25m) in line with management's
expectations.
Gross profit margin was maintained at 91.3% (H1 FY16:
91.3%).
Administrative expenses, before depreciation, amortisation,
non-recurring transaction costs and share-based charges, decreased
to GBP5.19m (H1 FY16: GBP5.31m) with underlying increases in staff
levels and expenditure, reflecting the investment programme, offset
by higher capitalised software development.
Consequently, the Group recorded adjusted EBITDA of GBP2.21m (H1
FY15: GBP2.11m), a margin of 27% of revenue (H1 FY16: 26%).
The Group tax charge was GBP0.09m (H1 FY16: GBP0.02m) an
underlying effective rate of tax of 10% (H1 FY16: 2%). The
underlying effective rate of tax benefited from enhanced R&D
relief.
Reported diluted earnings per share was 0.58 pence (H1 FY16:
0.54 pence). Adjusted diluted earnings per share was 0.98 pence (H1
FY16: 1.03 pence) reflecting higher amortisation of capitalised
development expenditure.
Cash generated from operations before non-recurring transaction
cost payments incurred in the last financial year was GBP2.47m (H1
FY16: GBP1.85m), representing 112% of adjusted EBITDA (H1 FY16:
88%).
Spending on research and development, including capitalised
software development increased by 8% to GBP1.05m (H1 FY16:
GBP0.97m) of which capitalised software expenditure was GBP0.68m
(H1 FY16: GBP0.28m).
Total capital expenditure increased by 45% to GBP0.77m (H1 FY16:
GBP0.53m); the balance after capitalised development, being
GBP0.09m (H1 FY16: GBP0.24m) relating to IT equipment and
software.
As a result of these factors, cash increased to GBP14.6m at 31
December 2016 (30 June 2016: GBP14.1m). The Group continues to
maintain a debt-free balance sheet.
Dividend policy
The Directors continue to evaluate acquisition opportunities and
believe that the Group should retain sufficient cash on its balance
sheet to maintain its credibility as a buyer and also to be able to
acquire businesses in an expedient manner. The Board believes it
can achieve this objective while also being able to institute a
partial return of cash to shareholders through the enhanced
dividend policy, as previously announced.
It is the intention of the Directors that an enhanced dividend
will be paid half yearly such that by 2018 the retained cash
balance is approximately GBP10m. Payment of the enhanced dividend
will remain subject to the Group's on-going cash generation, it not
having found an appropriate acquisition opportunity and not having
returned cash through another manner, including on market share buy
backs.
On 27 June 2016 the Company paid an interim enhanced dividend of
0.95 pence per share (2015: nil) in respect of the financial year
ended 30 June 2016 totalling GBP1.32m. On 11 January 2017, post
period end, the Company paid a final ordinary dividend of 1.1 pence
per share (2016: 1.0 pence per share) and a final enhanced dividend
of 0.95 pence per share (2015: 1.2 pence per share) in respect of
the financial year ended 30 June 2016 totalling GBP2.84m.
Accordingly, the Directors are recommending the payment of a
second interim enhanced dividend of 1.05 pence per share to be paid
on 27 July 2017.
Outlook
Netcall continues to see robust demand for the Liberty suite
with cloud solutions in particular gaining traction which is
underpinning the Group's growing recurring revenues and future
minimum contracted revenues. In line with stated strategy,
investment will continue in the business to take full advantage of
the high growth trends in the market. This is supported by the
Group's good cash generation and a strong balance sheet.
With the healthy development of the business combined with our
revenue visibility, the Board believes Netcall is well positioned
for the future and is confident in the Group's prospects for the
year.
Unaudited consolidated income statement for the six months to 31
December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------- ------------------ ------------------ --------------
Revenue 8,093 8,132 16,627
Cost of sales (701) (709) (1,463)
--------------------------------------------- ------------------ ------------------ --------------
Gross profit 7,392 7,423 15,164
Administrative expenses (6,520) (6,705) (13,571)
Other gains/(losses) - net 9 1 21
--------------------------------------------- ------------------ ------------------ --------------
Adjusted EBITDA 2,207 2,110 4,462
Share-based payments (660) (604) (1,189)
Depreciation (108) (89) (202)
Amortisation of acquired intangible assets (171) (445) (880)
Amortisation of other intangible assets (387) (253) (577)
Operating profit 881 719 1,614
Finance income 43 67 127
Finance costs (3) (2) (4)
--------------------------------------------- ------------------ ------------------ --------------
Finance income - net 40 65 123
--------------------------------------------- ------------------ ------------------ --------------
Profit before tax 921 784 1,737
Tax (88) (16) 149
--------------------------------------------- ------------------ ------------------ --------------
Profit for the period 833 768 1,886
============================================= ================== ================== ==============
Earnings per share - pence
Basic 0.60 0.56 1.37
Diluted 0.58 0.54 1.32
============================================= ================== ================== ==============
All activities of the Group in the current and prior periods are
classed as continuing. All of the profit for the period is
attributable to the shareholders of Netcall plc.
Statement of comprehensive income for the six months to 31
December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
Profit for the period 833 768 1,886
-------------------------------------------- ------------------ ------------------ --------------
Total comprehensive income for the period 833 768 1,886
============================================ ================== ================== ==============
Unaudited consolidated balance sheet at 31 December 2016
GBP'000 31 December 2016 31 December 2015 30 June 2016
------------------------------------------------- ----------------- ----------------- -------------
Assets
Non-current assets
Property, plant and equipment 509 438 565
Intangible assets 11,162 10,793 11,005
Investments 288 288 288
Deferred income tax asset 721 861 791
-------------------------------------------------- ----------------- ----------------- -------------
Total non-current assets 12,680 12,380 12,649
-------------------------------------------------- ----------------- ----------------- -------------
Current assets
Inventories 200 193 226
Trade and other receivables 3,623 4,987 5,170
Current income tax asset 15 - 11
Cash and cash equivalents 14,569 15,168 14,122
-------------------------------------------------- ----------------- ----------------- -------------
Total current assets 18,407 20,348 19,529
-------------------------------------------------- ----------------- ----------------- -------------
Total assets 31,087 32,728 32,178
================================================== ================= ================= =============
Equity and liabilities
Equity attributable to the owners of the parent
Share capital 7,054 7,027 7,027
Share premium 3,015 3,015 3,015
Merger reserve 2,509 2,509 2,509
Capital reserve 188 188 188
Treasury shares (419) (419) (419)
Employee share schemes reserve 2,820 1,776 2,300
Profit and loss account 4,731 6,852 7,996
-------------------------------------------------- ----------------- ----------------- -------------
Total equity 19,898 20,948 22,616
-------------------------------------------------- ----------------- ----------------- -------------
Liabilities
Non-current liabilities
Deferred income tax liabilities 392 589 376
Provisions 316 206 118
-------------------------------------------------- ----------------- ----------------- -------------
Total non-current liabilities 708 795 494
-------------------------------------------------- ----------------- ----------------- -------------
Current liabilities
Trade and other payables 2,508 2,387 2,876
Dividend payable 2,843 3,051 -
Current income tax liabilities - 84 -
Deferred income 5,130 5,463 6,192
Total current liabilities 10,481 10,985 9,068
-------------------------------------------------- ----------------- ----------------- -------------
Total liabilities 11,189 11,780 9,562
-------------------------------------------------- ----------------- ----------------- -------------
Total equity and liabilities 31,087 32,728 32,178
================================================== ================= ================= =============
Unaudited consolidated statement of changes in equity at 31
December 2016
Profit
Capital Employee and
Share Share Merger redemption Treasury share loss Total
GBP'000 capital premium reserve reserve shares schemes account equity
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 July 2015 6,945 3,015 2,509 188 (419) 1,420 9,024 22,682
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Proceeds from
share issue 82 - - - - - - 82
Increase in
equity in
relation to
options issued - - - - - 579 - 579
Tax debit
relating to
share options - - - - - (112) - (112)
Reclassification
following
exercise or
lapse of share
options - - - - - (111) 111 -
Dividends
to equity
holders of
the company - - - - - - (3,051) (3,051)
Transactions
with owners 82 - - - - 356 (2,940) (2,502)
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Profit and
total comprehensive
income for
the period - - - - - - 768 768
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
31 December
2015 7,027 3,015 2,509 188 (419) 1,776 6,852 20,948
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 January
2016 7,027 3,015 2,509 188 (419) 1,776 6,852 20,948
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Increase in
equity reserve
in relation
to options
issued - - - - - 560 - 560
Tax debit
relating to
share options - - - - - (10) - (10)
Reclassification
following
exercise or
lapse of share
options - - - - - (26) 26 -
Transactions
with owners - - - - - 524 26 550
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Profit and
total comprehensive
income for
the period - - - - - - 1,118 1,118
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
30 June 2016 7,027 3,015 2,509 188 (419) 2,300 7,996 22,616
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 July 2016 7,027 3,015 2,509 188 (419) 2,300 7,996 22,616
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Proceeds from
share issue 27 - - - - - - 27
Increase in
equity in
relation to
options issued - - - - - 581 - 581
Tax credit
relating to
share options - - - - - 1 - 1
Reclassification
following
exercise or
lapse of share
options - - - - - (62) 62 -
Dividends
to equity
holders of
the company - - - - - - (4,160) (4,160)
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Transactions
with owners 27 - - - - 520 (4,098) (3,551)
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Profit and
total comprehensive
income for
the period - - - - - - 833 833
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
31 December
2016 7,054 3,015 2,509 188 (419) 2,820 4,731 19,898
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Unaudited consolidated cash flow statement for the six months to
31 December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from operating activities
Profit before income tax 921 784 1,737
Adjustments for:
Depreciation 108 89 202
Amortisation 558 698 1,457
Share-based payments 660 604 1,189
Net finance income (40) (65) (123)
Changes in working capital
Inventories 26 36 3
Trade and other receivables 1,547 1,055 969
Trade and other payables (1,313) (1,642) (620)
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash generated from operations 2,467 1,559 4,814
Analysed as:
Cash generated from operations before payment of
non-recurring transaction costs 2,467 1,849 5,104
Non-recurring transaction cost payments - (290) (290)
-------------------------------------------------------------- ------------------ ------------------ --------------
Interest paid (3) (2) (4)
Income tax (paid)/ refund (4) 267 183
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash generated from operating activities 2,460 1,824 4,993
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from investing activities
Purchases of property, plant and equipment (52) (205) (444)
Development expenditure (676) (287) (1,163)
Purchases of other intangible assets (38) (39) (135)
Interest received 43 67 114
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash used in investing activities (723) (464) (1,628)
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from financing activities
Proceeds from issue of ordinary shares 27 82 82
Dividends paid to Company shareholders (1,317) - (3,051)
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash used in financing activities (1,290) 82 (2,969)
-------------------------------------------------------------- ------------------ ------------------ --------------
Net increase in cash and cash equivalents 447 1,442 396
Cash and cash equivalents at beginning of period 14,122 13,726 13,726
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash and cash equivalents at end of period 14,569 15,168 14,122
============================================================== ================== ================== ==============
Notes to the financial information for the six months ended 31
December 2016
1. General information
Netcall plc (AIM: "NET", "Netcall", or the "Company") is a
leading provider of customer engagement software. It is a public
limited company which is quoted on AIM (a market of the London
Stock Exchange). The Company's registered address is 3(rd) Floor,
Hamilton House, 111 Marlowes, Hemel Hempstead, HP1 1BB and the
Company's registered number is 01812912.
2. Basis of preparation
The Group interim results consolidate those of the Company and
its subsidiaries (together referred to as the 'Group'). The
principal trading subsidiary of Netcall is Netcall Telecom Ltd.
These consolidated interim financial statements (the 'results')
have been prepared in accordance with those IFRS standards and
IFRIC interpretations issued and effective or issued and early
adopted as at the time of preparing these statements (February
2017). This results announcement does not constitute statutory
accounts of the Group within the meaning of sections 434(3) and
435(3) of the Companies Act 2006 (the 'Act'). The balance sheet at
30 June 2016 has been derived from the full Group accounts
published in the Annual Report and Accounts 2016, which has been
delivered to the Registrar of Companies and on which the report of
the independent auditors was unqualified and did not contain a
statement under either section 498(2) or section 498(3) of the
Act.
The results have been prepared in accordance with the accounting
policies set out in the Group's 30 June 2016 statutory accounts,
which are based on the recognition and measurement principles of
IFRS in issue as adopted by the European Union ("EU"). No changes
to accounting policies are expected for the year ending 30 June
2017.
The results for the six months ended 31 December 2016 were
approved by the Board on 20 February 2017. A copy of these interim
results will be available on the Company's web site www.netcall.com
from 22 February 2017.
The principal risks and uncertainties faced by the Group have
not changed from those set out on page 7 of the annual report for
the year ended 30 June 2016.
3. Segmental analysis
The Board considers that there is one operating business segment
being the design, development, sale and support of software
products and services, which is consistent with the information
reviewed by the Board when making strategic decisions. Resources
are reviewed on the basis of the whole of the business
performance.
The key segmental measure is adjusted EBITDA which is profit
before interest, tax, depreciation, amortisation, acquisition and
reorganisation expenses and share-based payments, which is set out
on the consolidated income statement.
4. Earnings per share
The basic earnings per share is calculated by dividing the net
profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year
excluding those held in treasury:
Six months to Six months to 12 months to
31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Net earnings attributable to ordinary shareholders (GBP'000s) 833 768 1,886
Weighted average number of ordinary shares in issue (000s) 138,702 137,638 138,150
Basic earnings per share (pence) 0.60 0.56 1.37
============================================================== ================== ================== ==============
The diluted earnings per share has been calculated by dividing
the net profit attributable to ordinary shareholders by the
weighted average number of shares in issue during the year,
adjusted for potentially dilutive shares that are not
anti-dilutive.
Six months to Six months to 12 months to
31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Weighted average number of ordinary shares in issue (000s) 138,702 137,638 138,150
Adjustments for share options (000s) 4,807 5,084 5,083
Weighted average number of potential ordinary shares in issue
(000s) 143,509 142,722 143,233
-------------------------------------------------------------- ------------------ ------------------ --------------
Diluted earnings per share (pence) 0.58 0.54 1.32
============================================================== ================== ================== ==============
Adjusted basic and diluted earnings per share has been
calculated to exclude the effect of acquisition and reorganisation
costs, share-based payment charges, amortisation of acquired
intangible assets and utilisation of historic tax losses. The Board
believes this gives a better view of ongoing maintainable earnings.
The table below sets out a reconciliation of the earnings used for
the calculation of earnings per share to that used in the
calculation of adjusted earnings per share:
Six months to Six months to 12 months to
GBP'000s 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Profit used for calculation of basic and diluted EPS 833 768 1,886
Share-based payments 660 604 1,189
Amortisation of acquired intangible assets 171 445 880
Tax adjustment (262) (351) (910)
Profit used for calculation of adjusted basic and diluted EPS 1,402 1,466 3,045
============================================================== ================== ================== ==============
Six months to Six months to 12 months to
Pence 31 December 2016 31 December 2015 30 June 2016
------------------------------------- ------------------ ------------------ --------------
Adjusted basic earnings per share 1.01 1.07 2.20
Adjusted diluted earnings per share 0.98 1.03 2.13
===================================== ================== ================== ==============
5. Dividends
Dividends paid or declared during the period were as
follows:
Statement of December 2016
Six months to Cash flow statement changes in equity balance sheet
December 2016 Paid Pence per share (GBP'000) (GBP'000) (GBP'000)
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Interim enhanced
dividend for year to
June 2016 27/7/16 0.95p 1,317 1,317 -
Final ordinary
dividend for year to
June 2016 11/1/17 1.10p - 1,526 1,526
Enhanced dividend for
year to June 2016 11/1/17 0.95p - 1,317 1,317
1,317 4,160 2,843
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Statement of December 2016
Six months to Cash flow statement changes in equity balance sheet
December 2015 Paid Pence per share (GBP'000) (GBP'000) (GBP'000)
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Final ordinary
dividend for year to
June 2015 12/1/6 1.00p - 1,387 1,387
Enhanced dividend for
year to June 2015 12/1/6 1.20p - 1,664 1,664
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
- 3,051 3,051
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
An interim enhanced dividend of 0.95 pence per share, amounting
to a total of GBP1.32 million, was paid to shareholders whose names
appeared on the register at the close of business on 15 July 2016
on 27 July 2016.
A final ordinary dividend of 1.1 pence per share and enhanced
dividend of 0.95 pence per share in respect of the year ended 30
June 2016 amounting to a total of GBP3.05m was approved at the
Annual General Meeting held on 24 November 2016. This dividend was
paid on 11 January 2017.
An interim enhanced dividend in respect of the year ending 30
June 2017 of 1.05 pence per share has been proposed by the
Directors, amounting to a total of GBP1.46m.
The timetable for the payment of the proposed dividend will
be:
-- Ex-Dividend Date: 13 July 2017
-- Record Date: 14 July 2017
-- Payment Date: 27 July 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGZZVGNGNZM
(END) Dow Jones Newswires
February 21, 2017 02:00 ET (07:00 GMT)
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