Netcall Share Discussion Threads

[simon gordon] 18/10/2023 16:19

KTC taken out today. Could see NET getting taken for 120p. Buying back some shares could give management more leverage and breathing room by taking out weaker holders, plus the share price would be a bit higher.

[wjccghcc] 18/10/2023 16:14

I think mine was in the high twenties in 2019 but I've added quite a lot since so my average is quite a bit higher.

[iroll] 18/10/2023 15:44

I bought my first 500 shares at 90p when it floated as Ackrill Carr PLC in 1984 and have continued to add over the years at prices as low as 12.5p in 1989 and 11.3p in 2010, with my highest price 59.5p in 2001. Like you Platts I have enough now though I am still tempted at current levels.

[platts] 18/10/2023 11:25

I started buying around 2012- watched it move like a snail over quite a few years to about 70-- and then the joy of the fall to 25 again. During those years I intermittently continued to buy. So I have enough now.

[wjccghcc] 17/10/2023 23:28

I guess it's cheaper than an RNS Reach. My understanding is you only have to release significant contract wins (10+% revs) by RNS.

Was the 28p from 2012 or 2019?

[platts] 17/10/2023 22:04

I am not a subscriber to X platform so I do not know.

I still believe that most companies reveal developments on news releases not via a twitter account for heavens sake!
Buying at 71 is a great idea- I have too many and my cost price is 28p.

[wjccghcc] 17/10/2023 15:37

You should follow their twitter feed - they disclose a lot of new client wins on that.

Lots of depressed PIs selling after the results are very short sighted if you ask me. Ex cash PE is 18 at 70p which seems a bargain for 6mm FCF generation p.a. giving a 7% FCF yield for a sticky mkt leading software company with ARR growing at 20+%.

CEO is also 64 and the senior mgmt options vest at 120p (next April deadline). If the market is this short-sighted, someone will buy them.

Been adding what I can get at 71p.

[platts] 17/10/2023 13:41

Netcall's results remain very positive and the company falls like a stone- a sign of a bear market in my opinion.

My one concern has always been the lack of news releases- Net refers in the latest end of year report about signing up new clients,(no sign of a lack of consumer demand), yet not a single news release about any of this-why not?

[wjccghcc] 11/10/2023 15:07

Yes Simon. They talk less about acquisitions this year as I think they have so much to go for organically so a buyback makes sense.

[simon gordon] 11/10/2023 14:45

W,

Would it not be a good idea for them to do a £10m share buy back?

[wjccghcc] 11/10/2023 14:23

Yes. PBT 4.0mm+74% and net cash 24.7mm now 20% of the mkt cap. ACV+15% and +20% if you exclude the significant contract renegotiation which cost them $3mm p.a. although extends it from 2 years to 5 years. Underlying cloud ACV +32% which is accelerating,

It's interesting to see the demand for cloud CE is now increasing alongside the IA demand and they're increasing investment to take advantage of it which means flattish earnings for the next 2 years.

Even so, if you strip out the cash they're on a PE of 20 which seems a bit short-sighted given their sales CAGR of 9-10% over the next 2 years. NRR is 122% which is one of the best in the sector.

It wouldn't surprise me to see a bidder sniffing around to take advantage of the temporary plateau in earnings during this investment phase.

[petewy] 11/10/2023 12:59

GOOD REULTS Henrik Bang, "a strong year of trading, delivering double digit organic revenue and profit growth which was fueled by a strong demand for our cloud services as we transition to a predominately cloud-based business."

[platts] 01/9/2023 15:53

Net: weak month and very little buying interest.
Nothing intrinsically wrong with the company- a buy if you have the funds to
get in cheap.
We await for some interesting news release to get things moving.

[trcml] 27/7/2023 09:17

I'm glad I didn't buy before the trading statemen as the share price fall makes perfect sense. The $19m contract over 3 years equated to $6.33M a year, whereas the restructured $20M over 5 years equates to $4M a year.

[martin44] 24/7/2023 16:21

Yep the buys coming through thick and fast!

[wjccghcc] 24/7/2023 16:00

Yup. Looks like a bunch of stop losses got hit as it went through 90p. Managed to add some at 80p and below.

Unfortunate that next year's growth will be pedestrian as they have to make up the lost $3mm revenues, but with cloud ACV growth accelerating to 32% and total ACV 21%, they should be back to 20%+ profit growth the year after. I think margins are also suppressed for 2023/4 due to the large amount of hiring they've done recently to take advantage of the UK public sector opportunity.

Their client Hampshire Hospitals Trust is the first trust in the country to go live with the Wayfinder phase 2 functionality in the NHS app which shows the flexibility of low code versus other rigid top down patient management software and you only need to look at their customer stories to see how widespread their client base is, most of whom will only be increasing their use of Low Code, RPA and AI.

Plus they're generating 8mm of FCF per year. Not many software companies their size that are doing that IMHO.

[martin44] 24/7/2023 15:39

Wow what a buying opportunity!!

[platts] 24/7/2023 14:05

Clearly more sellers than buyers at the moment.

[martin44] 21/7/2023 00:00

hxxps://www.businessweekly.co.uk/news/local-sharewatch/netcall-cloud-9-revenue-surge-and-20m-contract-extension

[platts] 20/7/2023 09:18

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.

[clocktower] 20/7/2023 08:27

Only 70,000 traded - only a blip. Trend is up, profits will increase and huge jump in cash.

[davr0s] 20/7/2023 08:15

Looks like market anticipated the news or had wind of it. Price has risen 10% last two days so drift back perfectly normal

[hybrasil] 20/7/2023 08:13

Great news. The share price fall die not make sense

[martin44] 20/7/2023 07:08

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!