Impressive results. Over 10mm cash generated which is now being deployed in bolt on acquisitions to expand the Liberty platform. PE now 23/20 and 19/16 ex cash with ACV growth of 15%, Cloud ACV grwth of 23% and NRR 117%. Recurring revenues now 76%.
Given they're in the sweet spot for the government focus on public sector automation/AI/Productivity, the future should be bright.
At some point the market will notice what a gem this is. |
Probably not until after the Budget IHT AIM decision. It's drifting on very low volumes. |
Results are coming out next Wednesday. We know they will be positive.
Is there any chance that the stock will emerge out of the current declining
slumber? |
 Tech Market View - 16/9/24
Netcall looks to Europe with Parble buy
Intelligent automation and customer engagement software provider, Netcall continues the acquisition trail with agreement to acquire Brussels-based Smart & Easy NV (trading as Parble), a provider of intelligent document processing software. Having added Local Government-centric digital process automation solutions specialist Govtech Holdings for £13m back in August Netcall has agreed to buy Parble for up to €8.7m ( €4.7m in cash and a €4m earnout).
The Parble acquisition should add value in a few different ways, it extends Netcall's footprint outside of its core UK geography and increases its presence in the financial services sector. It also should allow for cross-sell/up-sell opportunities with Parble’s document processing solution enhancing Netcall's Liberty portfolio in areas such as claims handling. Parble has an established footprint in the insurance and banking sector, with customers including Generali, Baloise and Vanbreda Risk & Benefits. The Group's three founders and six employees will remain with Netcall and continue to be based in Belgium.
For the financial year ended 31/12/2023, Parble reported a 30% increase in revenue to €1.48m (2022 €1.14m), adjusted EBITDA of €0.48m (2022 adjusted EBITDA loss of €0.06 m). |
Acquisition announced this morning looks strategically positive. Local council exposure increasing to 36% plus other synergies and immediately earning enhancing. |
Have you noticed that management is quite meticulous over the years in awarding
themselves options. However the retail investors (10%)are left on the shelf. There
is £34Million 'cash position' on the books. What about a share buy back or increased
dividend to generate investor interest? |
Totally agree this is one undervalued stock that is undeserved as so much potential! |
A very strong trading update (again),yet Net has declined -4% over the past year.
I continue to believe that the stock is under owned because of its low profile. |
Yup. Earnings 5% ahead of expectations. Cash way ahead. Upgrades for the next 2 years and an ex cash PE of 22 in an investment year with ARR growing at 15%. And yet the market shrugs…. |
Nice pre-close update, with very strong cash generation coming in at £34m against the expected £28.9m. Outlook remains positive with excellent visibility and further growth opportunities emerging. |
One more penny and we are on the verge of breaking out. |
Thanks to you both for the positive feedback, appreciated.One thing worth mentioning that's probably on some minds is what impact a change in Government could have. It's something I raised with them, but was reassured on.As NET's offerings both save money and improve the quality and service there could, in my view, actually be further acceleration and an even wider adoption of their products.Looking forward to the update later this month. |
Thanks for posting this. A very informative and enlightening article. |
Yes. No stock around. |
Nice to see a reversal of the more recent southerly! |
Thanks Hastings. Very informative article. |
Work in progress for me and I'm happy to relay people's issues, private investors need a voice!Hopefully of some interest.https://martinflitton1.wixsite.com/privatepunter/post/netcall-generating-the-cash-07-06-24 |
To be fair, they do release material contract news >10% revenues. Their public sector contracts tend to be < 500k so individually are not material. There do however tend to be a lot of them. |
Thank you hastings for making contact and engaging with the CEO.
I have argued for a while that management lacks sophistication in engaging with the investing community. Please also ask him about providing more news releases re the numerous contracts that the company refers to in their twice yearly reports, but of which we hear nothing. |
Thanks Hastings.
Interesting regarding the overseas markets. Are they thinking of using channel partners or doing it direct?
I have quite a large holding and have also contacted them re private investor engagement so hopefully it all counts. |
Had a good catch up with the CEO and I put the case forward for engagement with the private investor community. Suffice to say, he listened and was open to it and will move forward on this and is happy to keep me posted.I am hoping to get a write up out early next week, but for now, suffice to say that whilst they see further significant growth opportunities across the UK, they're now actively looking at overseas markets.These are at a similar stage to where the UK stood, so plenty to move for! |
Brilliant. |
Speaking with management on the 6th June! |
Many thanks. |
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