Clearly more sellers than buyers at the moment. |
hxxps://www.businessweekly.co.uk/news/local-sharewatch/netcall-cloud-9-revenue-surge-and-20m-contract-extension |
Rises to 112p yesterday on over 500,000 traded shares. This morning falls to 100p on 240,000 shares so far. Great results- is this profit taking from a fund?
Whenever Net falls it is wise to buy on the dip. |
Only 70,000 traded - only a blip. Trend is up, profits will increase and huge jump in cash. |
Looks like market anticipated the news or had wind of it. Price has risen 10% last two days so drift back perfectly normal |
Great news. The share price fall die not make sense |
Gets even better a company with no debt and contract renewal with substantial uplift and the growth part of the business growing ever faster and importantly greater growth of EBITDA than revenue! |
Netcall is now on a strong upward profitable trajectory.
I remain optimistic about the latest trading statement- and management so far is upbeat. |
Agreed potentially Trading Statement tomorrow…̷0; |
Am also hoping with no debt and money in the bank the results could look very good especially with the latest Netcall offering being more profitable and also the fastest growing area of the business! |
am guessing no reply if they are trying to put out a statement shortly, but if the trend continues when the statement comes out, i'll probably do that |
Yes, trading statement should be this week.
H2 revs higher than H1 as ARR is growing fast.
You could always email the CFO to ask why margins are seasonal. |
 done a bit more digging....
So last year, the gross margin in H2 was quite a bit weaker than in H1 although the product sales mix data didn't look massively different so not sure why. The weaker gross margin however got offset by lower admin costs in H2 so the net EBITDA margin was overall lower in H2 than H1
Two years ago, the gross margin was actually slightly higher in H2, but admin costs were much higher leading to net EBITDA margins lower in H2 than H1.
Revenue in both years was higher in H2 than H1.
Actually their "financial review" commentary is pretty thin on the ground in terms of explaining the P&L, so it doesn't help understand much. So no clear explanation, but it's notable the high level trend I do see in each year was different suggesting there is no clear seasonality. In which case, it's not impossible this time around H2 will follow closer on from H1 and we end up with a forecast beat.
WJ - the info on the twitter recruitment you spotted is helpful, thanks. Last year the trading update was a Wednesday so my guess is there is one tomorrow. |
I don't think there's much seasonality to revenues but H2 (and so FY) margins seem to be historically lower than H1. Perhaps it's bonuses or moving with the public sector year end in March.
Their twitter account shows they've recruited about 15 people in the last 3 months so I guess that will also suppress the H2 margin. My guess is for a revenue beat with earnings either in line or ahead. |
Based on extrapolating H1 results, the consensus forecasts here do seem set up to be beaten. But there does seem to be some seasonality in recent years' earnings, anyone understand reasons for H1 and H2 being massively different?
Guessing there's a trading update next week. |
I agree with your view about the use of AI in Netcall's systems.
Tech as a sector is on a high and great if Net becomes part of that surge.
The target is 120p now. |
I wonder if it's to do with their AI potential. They probably have the largest captive client base for AI in the UK and were ahead of the curve when they launched their AI product over a year ago. |
Net is breaking out from the 105p level- since February.
Next stronger resistance is 110p. If this takes place then goes much higher.
Perhaps some good news on the horizon? |
Been holding this for a while. Looking a bit more perky in last few days. Is it trying to find a new high. Hope so.
B |
Netcall Plc posted bumper Interims for the HY to 31st December this morning. Revenue was up 19% to £17.5m, adjusted EBITDA was up 29% to £4.43m and adjusted basic EPS was 71% higher at 1.86p. Cloud services continues to be the primary driver of growth, accounting for more than 80% of new product bookings, while Intelligent Automation solutions now account for more than half of Group revenue with an annual run rate of £18.0m. Netcall is a small-cap Tech name delivering robust and profitable growth, it also has a solid balance sheet with negative net debt. Valuation does not look particularly helpful with forward PE ratio nearly 30x, PS ratio over 5x, both in the bottom quartile for the Software & IT services sector. But share price is in a solid, multi-year up-trend which shows no sign of ending. BUY...
...from WealthOracle |
Big cash pile - what will they do with it going forward
Great results |
Great 6 months update and growth increasing and importantly in these times no debt! |
Netcall are to be analysed on the BASH (Buy Avoid Sell or Hold) this evening. If you register then you will also get the recording
Programme for Monday 6th February 2023, 5pm – 9pm
5.00 pm Stephen English: Twinkle, Twinkle, small cap stars
5.40 pm Company presentation by Newmark Security
6.10 pm Company presentation by Impax Asset Management
6.50 pm Company presentation by Learning with Experts – Full presentation tomorrow lunchtime on zoom webinar
7.10 pm Mark Bentley Signet news… first North East group meeting
7.15 pm Special guest interview
7.40 pm Company presentation by Van Elle
8.10 pmMello BASH with Damian Cannon, Kevin Taylor and Mark Simpson covering IG Design Group plc, National World plc, Netcall plc. |
Yes, my largest holding. It's nice to see ACV growth accelerating half on half if you strip out the $19mm contract impact. |
How dull this market is.
Superb results and only 25k traded of which I account for 10k |
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