Netcall Share Discussion Threads

[oilforex] 26/9/2019 12:24

The issue with the cloud is that while this revenue is reoccurring, orders that are coming largely from migration of the existing customer base and not new acquisitions is not new business and opens up the wider issue of customers revisiting their solutions.Like I say, Ok think the plan has always been to position for acquisition as an exit strategy for the directors.

[clocktower] 26/9/2019 12:13

The warnings signs were there m5 but good luck if your holding on. Although I have very serious concerns, I think the cloud services may just turn out to be saving grace, as the growth of this business could continue in the future period.

The cash position being strong is the positive that should not be discounted.

[oilforex] 26/9/2019 12:12

M5, if it's any consolation this share is pretty tightly held and moves quite quickly. Directors were recently buying at 30p and have quite significant skin in the game. That said I think this is a long time hold unless a buyer comes along. They have a big customer base in the NHS and local gov which would be attractive to a large low code player looking to get penetration into the UK market. At these levels they maybe attractive, though bear in mind also that the VC's thwated the directors willingness to sell the last time a bid came along.

[zipstuck] 26/9/2019 08:50

One point to note

If you strip out the £865 write back of reduced payment for acquisition then the loss for the year was £255 after tax and £546 after tax for the second half With product sales down and consultancy services dependent on large contracts the comment on waiting on large contracts because of Brexit is quite pertinent.

[spaceparallax] 25/9/2019 19:13

Current trading and outlook
We have entered the new financial year with a strong sales pipeline, growing recurring revenue base and have secured significant new customer wins. The Board continues to monitor the potential impact of the political environment and business confidence on the timing of larger enterprise and product sale contracts. With a healthy financial position and continuing investment in our business and people, the Board remains confident in the prospects of the Group

[nick rubens] 25/9/2019 16:26

The dividend has just been slashed.Annual profits of £752k. Any forecasts for the current ongoing year? cheers NR

What PE ratio do holders think is fair here, perhaps based on future expectations and not this just reported financial year?

[spaceparallax] 25/9/2019 15:15

Those results look remarkably solid to me - NET have experienced irrational share price response for several years despite their continuing positive results. Sadly, I put this down to our broken markets where people gamble on share price movements, up or down, rather than investing in promising businesses. Hopefully, one day our society may wise-up to this financial cancer and legislate to promote genuine investment.

[oilforex] 25/9/2019 10:58

Takeover is the obvious objective hence the rebrand.

[oilforex] 25/9/2019 10:53

Lol not sure why you're having a go at me mate. Just pointed out a few things including the rebrand which you probably didn't know about until this morning. But as you obviously know so much as witnessed by buying in this morning before the price fell Ill leave you to making money in your own way.

[m5] 25/9/2019 10:09

Look mate, you do your thing and I will do mine, lets leave it at that. If you are short good for you. I am only interested in making money.

[oilforex] 25/9/2019 09:55

Btw check out the new rebrand of you didn't know about it.

[m5] 25/9/2019 09:40

Market tends to have a longer time frame than 5 minutes. Anyway, you pays your money you takes your chance.

[oilforex] 25/9/2019 09:33

Shame the market has never held the same view as Fincapp.

[m5] 25/9/2019 09:25

Finncap, 90p price target.

[m5] 25/9/2019 09:00

I am here to make money, I don't buy at the top. I have just re-read the results and I am comfortable with a purchase at this level.

[oilforex] 25/9/2019 08:58

Yep, transitioning from a three year high to a three year low.

[m5] 25/9/2019 08:51

The business is in a transitional period, I think that's fairly plain to see.

[oilforex] 25/9/2019 08:44

Below key resistance, dividend cut, lowest share price in three years, low sales growth and flatter to deceive by shifting the figures around. Not sure what anyone would see as good about this.The best these guys can hope for is that the plan of giving low code away for free, will lead to them being acquired. Perhaps the rebrand will help with the mask.

[m5] 25/9/2019 08:27

Looks ok to me. Pleasantly surprised. I have bought this morning.

[zipstuck] 25/9/2019 07:41

Moving foward

The business model is underpinned by our highly profitable and cash generative premise-based business. In the year we continued to see growth in our maintenance and support revenues despite a decline in product sales as customers increasingly adopt recurring models. The profits and cash generation provided us with the ability to accelerate investment to benefit from the growing demand we are experiencing and provide a more compelling and differentiated proposition.
Current trading and outlook
We have entered the new financial year with a strong sales pipeline, growing recurring revenue base and have secured significant new customer wins. The Board continues to monitor the potential impact of the political environment and business confidence on the timing of larger enterprise and product sale contracts. With a healthy financial position and continuing investment in our business and people, the Board remains confident in the prospects of the Group.

[oilforex] 25/9/2019 07:41

Oh dear ...

[m5] 24/9/2019 14:14

That's the question.