Netcall Share Discussion Threads

[platts] 11/12/2024 11:59

1.895 million shares traded this am. A fund?
Is Net starting to break out from 100p resistance level?

[wjccghcc] 27/11/2024 14:32

Hopefully it was better judgement :-)

[srichardson8] 27/11/2024 09:38

perhaps against my better judgement - I had my worst day ever in UK small caps yesterday - I decided to initiate with a very small poaition in Netcall after looking at their 10 year record, and briefly their business model and balance sheet. UK small caps have been an absolute graveyard for investors over the past few years (just look at an Aim chart) but there are aways a few bucking the trend. Let's see - and study - if this can continue to be one of them.

[trcml] 14/11/2024 09:53

These recent comments are all very interesting, thank you. I first got into NET after noting Michael Greensmith - a solicitor, local to me - is the Company Secretary. {of his 28 appointments, currently just 3 all in NET). As others have said, the share price was little changed for years so I sold long ago. On Monday this week, I decided to dump my holdings in property companies and focus instead on cloud-oriented companies of which, since I have only 3 companies I buy into, of which one is a long-term core holding, leaves NET and IDOX. Since then, NET has risen above my buy price while IDOX is still bobbing up and less down.

EKOH having been acquired by Bridgepoint and similar to NET as was leaves NET exposed to the possibility of a bid which I think would be a pity. I often wonder why NET and IDOX don't team up as they have much in common.

[platts] 29/10/2024 11:33

Exactly. So why not a news release that confirms: 'in the last x number of months contracts over 1.5mm have accumulated' and giving a brief statement of the contracts?
(Banks, insurance companies, NHS and other government facilities etc- it would look good and be revealing of the breadth of Netcall)

[wjccghcc] 29/10/2024 09:58

No but it's worth doing it. Clearly they'll announce any material contracts (their threshold seems ARR>1.5mm) but it's the build up of the smaller ones (NRR 117%) that makes them a very attractive investment.

[platts] 29/10/2024 09:35

Are you suggesting the general investing public will monitor these results as you explain?

[wjccghcc] 29/10/2024 09:12

You can monitor contract news on X, their newsroom and the public sector contract awards. Ones under frameworks (most NHS) are harder to find.

It does seem the pace of awards has accelerated this FY vs last FY.

[platts] 28/10/2024 17:46

Just read in the latest Inv Chronicle an article on Netcall.

It is very positive making all the points we know. The IC includes an interview with Gresham House which is a big holder of the shares.
The Gresham person makes the argument that I keep repeating here ad nauseam : that the company has been around for a long time, and is now completely changed in the last few years. However the market seems to be unaware of this as the share price is unchanged for the past two years. He speculates that private equity could come in and make a move. This would not be possible without the acceptance of his firm and for a much higher price?!

There have been two recent takeovers, one based in Europe. We assume new contracts will be flowing. If there are no news releases about all of this exciting activity the investment world will remain indifferent.

[platts] 21/10/2024 08:56

Now that the results have appeared and time moves on, Net returns to its semi-
comatose share performance.
I think (as others have mentioned) that only a large contract as happened before, will move the needle on the share price.
Still having owned the stock for more than a decade, it is pleasing to know that the yield for me is 3.1%.

[wjccghcc] 10/10/2024 11:07

Thanks Simon - that's a very useful substack and I'm now a subscriber.

I could argue he's a bit late to the party but given the share price is where it was 3 years ago, he could argue I was too early.

At least we're on the same page now :-)

[simon gordon] 10/10/2024 10:57

The Long and Short of IT - 10/10/24

Netcall: Finals Out from the bushel & into the light

Netcall (sells intelligent automation and customer engagement software) was long dismissed as a lifestyle business – our view was wrong. FY results (to 30 June) were a delight. FY revenue £39.1m +9% Y/Y, ACV, £32.2m, +15% Y/Y, Adj EBITDA £8.4m, +5% Y/Y, Cash £34.0m, +37% Y/Y.

Rather than being a rest home (as we incorrectly concluded), the company has been on a cloud migration path. Liberty cloud solutions now account for 90% of new bookings, with cloud subscriptions 76% of recurring revenues. A sparkling cloud NRR 117%, was 113%. (Note this is ahead of the cohort dashboard). More momentum in the wings as the company added a brace of acquisitions after the balance sheet date; Govtech and Parble “both of which are expected to be immediately earnings enhancing with substantial potential for cross-selling”. Two data points we like: (i) Operating cash +23% to £13.8m, and (ii) R&D +14% Y/Y £5.66m.

Our niggle:

Dismissing Netcall for the past number of years was the wrong view. We will have a deeper look at the company and prospects and put it into our models.

[wjccghcc] 09/10/2024 12:43

Yes Simon. I like the recycling of the large cash generation into earnings enhancing acquisitions whose products they can integrate into the Liberty Platform. Once the Budget IHT uncertainty is out of the way, there should be every prospect of a rerating.

[simon gordon] 09/10/2024 12:07

W,

The new CEO seems dynamic and forward-thinking and wants to share the story.

That balance sheet gives them a lot of opportunity for growth.

Good to see!

[wjccghcc] 09/10/2024 11:36

Glad they've listened to their shareholders and started doing investor presentations. A lot of good info in the piworld one above. Thank you Netcall.

[tomps2] 09/10/2024 11:23

Netcall (NET) Full Year 2024 results presentation - October 2024

Netcall CEO, James Ormondroyd and CFO, Richard Hughes present the group’s results for the year ended 30 June 2024.

Watch the video here:

Or listen to the podcast here:

[platts] 09/10/2024 09:46

I agree with WJCC concerning Netcall's full steam ahead results.

But my usual gripe: there are few news releases for the continual new contracts.
There is some detail (very good) about this in the final year report, but we
don't hear much about these event when they transpire. I think Netcall is not on the
radar for investors. The stock price response so far today is anaemic albeit on
large volume :PE is coming down and dividend is raised.

[wjccghcc] 09/10/2024 07:26

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.

[wjccghcc] 04/10/2024 17:24

Probably not until after the Budget IHT AIM decision. It's drifting on very low volumes.

[platts] 04/10/2024 16:17

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?

[simon gordon] 16/9/2024 08:32

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).

[hastings] 07/8/2024 06:24

Acquisition announced this morning looks strategically positive. Local council exposure increasing to 36% plus other synergies and immediately earning enhancing.

[platts] 24/7/2024 11:20

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?