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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Netcall Plc | LSE:NET | London | Ordinary Share | GB0000060532 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 90.00 | 88.00 | 92.00 | 90.00 | 90.00 | 90.00 | 9,592 | 07:37:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Information Retrieval Svcs | 36.04M | 4.21M | 0.0257 | 35.02 | 147.53M |
From Apr 2019 to Apr 2024
TIDMNET
RNS Number : 3605X
Netcall PLC
21 February 2017
21 February 2017
NETCALL PLC
("Netcall", the "Company", or the "Group")
Interim results for the six months ended 31 December 2016
Significant growth in cloud business adding to quality of earnings
Netcall plc (AIM: NET), a leading customer engagement software provider, today announces its unaudited interim results for the six months ended 31 December 2016.
Financial Highlights
-- Robust bookings in period and trading in line with management expectations:
o Significant increase in mix of cloud services contracts
o Order book of contracted future minimum revenues increased by 14% to over GBP16.6m
o Overall demand remains robust
-- Annualised recurring core revenues(1) increased by 8% to GBP11.3m
-- Recognised revenue of GBP8.09m (H1 FY16: GBP8.13m) as a result of the change in blend of business and reduction in MovieLine service
-- Adjusted EBITDA(2) increased by 5% to GBP2.21m (H1 FY16: GBP2.11m) -- Profit before tax increased by 17% to GBP0.92m (H1 FY16: GBP0.78m) -- Basic earnings per share increased by 7% to 0.60p (H1 FY16: 0.56p)
-- Maintained strong cash conversion with cash generated from operating activities increased by 58% to GBP2.47m (H1 FY16: GBP1.56m)
-- Debt-free balance sheet with net cash funds of GBP14.6m (30 June 2016: GBP14.1m) -- Interim enhanced dividend of 1.05p. 1) annualised revenue from cloud services and support contracts as at 31 December 2016
2) profit before interest, taxation, depreciation, amortisation, non-recurring transaction expenses and share-based charges
Operational Highlights
-- Significant growth in cloud business with 4 of the 10 largest orders received in the period for cloud-based contracts
-- Won largest Liberty cloud contract to date signing a five-year agreement worth a minimum of GBP1.4 million
-- Strong demand from the Group's installed customer base for up- and cross-sales, complemented by new customer wins in the period
-- Liberty cloud platform enhanced with new functionality and closer product integration to capitalise on high-growth SaaS market opportunity
Henrik Bang, CEO of Netcall, commented:
"We continue to see robust demand for the Liberty suite with our cloud solutions in particular gaining traction which is underpinning our growing recurring revenues and future minimum contracted revenues. In line with our stated strategy, we will continue to invest in the business to take full advantage of the high growth trends in the market. This is supported by the Group's good cash generation and a strong balance sheet.
With the healthy development of the business combined with our revenue visibility, the Board believes Netcall is well positioned for the future and is confident in the Group's prospects for the year."
For further enquiries, please contact:
Hot Features
Premium
Netcall plc Tel. +44 (0)
330 333 6100
Henrik Bang, CEO
Michael Jackson, Chairman
James Ormondroyd, Group Finance
Director
finnCap Limited (Nominated Adviser Tel. +44 (0)
and Broker) 20 7220 0500
Stuart Andrews / James Thompson,
Corporate Finance
Tim Redfern, Corporate Broking
Alma PR Tel. +44 (0)
20 8004 4218
Josh Royston / Hilary Buchanan /
Robyn McConnachie
About Netcall plc
Netcall's mission is to help organisations engage effectively with their customers through the provision of easy to use, functional, smartly designed software applications delivered on its integrated platform, Liberty. Netcall's software product suite, incorporating omni-channel contact centre, workforce optimisation, business process management and case management, helps its customers meet the growing demands of consumers, work smarter, gain competitive advantage, lower operating costs and achieve targets. Netcall's aim is to build a strong business by expanding its customer engagement Liberty platform, both on-premise and cloud capabilities, for both new and existing customers.
Netcall's customer base contains 700 organisations in both the private and public sectors. These include two thirds of the NHS Acute Health Trusts, major telecoms operators such as BT and leading organisations including Interflora, Lloyds Banking Group, Cineworld, Axa, and British Sugar.
For further information, please consult the Netcall website: www.netcall.com.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Introduction
The six month period to 31 December 2016 has been another healthy trading period for the Group, characterised by robust demand for the Liberty platform suite. As anticipated, multi-year contracts for our cloud service offerings as a proportion of new orders grew significantly period-over-period and contributed further to the Group's visibility of revenue for future periods.
The momentum behind the growing cloud-based business is demonstrated by the quality of the financial metrics. Revenue of a recurring nature increased 7% to GBP5.4m in the period and now accounts for 68% of total revenue (H1 FY16: 64%), underpinning the Group's cash generation and profitability. The annualised run rate of such revenues increased 8% to GBP11.3m at period end (H1 FY16: GBP10.5m) and, looking forward, the order book of contracted future minimum revenue is growing in double digits, now standing at over GBP16.6m compared to GBP14.6m at the half year period last year.
The second year of the Group's strategy of accelerated investment in cloud business has now commenced, with the aim of orientating Netcall toward the rapidly growing cloud customer engagement market. The Board is pleased with the significant progress achieved over this period which has resulted in advanced cloud technologies, infrastructure and service delivery capabilities being added to the business. This expanded offering has opened up substantial new opportunities for the Group, with 4 of the 10 largest orders received in the period being for cloud-based contracts. The Board will continue to invest in the cloud market opportunity, a market which is expected to double in size over the next 3-5 years.
The Group maintains a strong financial position and a debt-free balance sheet. At 31 December 2016, the net cash balance had increased to GBP14.6m (30 June 2016: GBP14.1m) after the payment of an interim dividend in July 2016 of GBP1.3m.
Business Review
Strategy
Netcall's goal is to help organisations seamlessly and effectively engage with their customers across multiple channels to deliver a superior customer experience tailored to the type of interaction and customer demographic. The result is improved end customer acquisition and loyalty while driving internal efficiencies and reducing costs. Netcall achieves this by providing and supporting software solutions that are smart, functional, easy to use, and flexibly deployed via an integrated customer engagement platform, Liberty. Netcall's modular platform is designed to meet the full range of customer requirements from single applications through to full, end-to-end customer engagement solutions forming part of major organisational transformation projects.
The Board's strategy is to grow the business organically, through the ongoing development of the customer engagement Liberty platform, and by acquiring businesses with complementary proprietary software and/or additional customers in the Group's target markets.
The Group's key drivers for organic growth include taking advantage of the cloud opportunity while continually expanding the product suite. A steady roll out of enhanced products and expanded offerings, including new cloud capabilities, has resulted in attracting new customers while also providing a continuous upgrade path for existing customers. Cross and up-sales have accounted for the large majority of new sales during the period. This demonstrates the significant growth potential available just within the installed customer base, in addition to new customer wins, as well as the advantages of maintaining a blended capability to deliver on-premise, cloud and hybrid solutions.
Market
The rising expectations from consumers, patients and citizens is driving the market opportunity for customer engagement solutions. Organisations, whether a hospital, commercial business or public sector organisation, understand that the manner in which they engage with customers is critical to meet service objectives and improve internal efficiencies. In addition, for commercial organistions, customer engagement strategies provide powerful competitive differentiators and are critical to both their customer retention and acquisition objectives.
Consumers increasingly expect organisations to offer multiple interaction channels, intuitive interfaces, around-the-clock availability, personalised treatment, first contact resolution and real-time fulfilment. To manage this change effectively, technology solutions are required to integrate front and back-office systems, manage service delivery across channels, automate business processes and allocate internal resources effectively through intuitive analytics.
The Liberty platform delivers these comprehensive capabilities with a focus on three key product areas: omni-channel contact centre solutions, customer experience management and workforce optimisation which together interact to create a customer engagement centre. The platform can be flexibly delivered via one of the Group's cloud offerings, on-premise or hybrid solutions which are powerful differentiators in the market - being able to service the diverse and blended needs of customers across the spectrum of a larger, more mature on-premise market and a high-growth cloud market.
Customer wins
Order inflow in the period was driven by strong demand across the commercial and healthcare sectors, with the majority of new sales coming from up and cross-sales to the existing customer base.
New contract wins include:
-- A new five-year SaaS contract worth a minimum of GBP1.4 million to provide Liberty omni-channel contact centre, customer experience management and unified communication solutions to a leading services organisation
-- A new five-year contract with an existing Local Authority customer, delivering an upgrade to their Liberty platform as well as migrating the solution to the Group's cloud infrastructure
-- A new three-year contract with the world's leader in highway concessions, delivering a private-cloud based advanced speech recognition and PA-DSS payment solution
-- A new three-year contract with a Local Authority providing a cloud contact centre integrated with Skype for Business
Product development
The Board is pleased with the significant developments achieved in building the cloud capabilities of the Group. As a result of this effort, all the substantial functionalities of the Group's traditional on-premise solution suite have been made available on the cloud platform, along with operational developments to support and provide cloud service delivery. The fabric of the cloud platform is in place, surpassing a milestone in the development roadmap and the objective going forward is to continue the development of Liberty with a 'cloud-first' approach.
As the Group continues its investment in the business, the 'cloud-first' focus will further enhance features and functionality. In addition, it will integrate the platform's product set more closely to improve user experience, while also strengthening the resiliency and dependability of the platform. This development is complemented by Netcall's advanced technology offering where the Group has always benefited from high levels of innovation. The broad and advanced technology base includes automation, robotics and analytics, enabling customers to use the Liberty platform to drive organisational changes and efficiencies throughout their customer engagement initiatives.
Financial Review
The Group reported revenue of GBP8.09m (H1 FY16: GBP8.13m) in line with management's expectations for the period.
Revenue, which is considered to be recurring in nature, derived from cloud and support contracts, increased 7% to GBP5.40m (H1 FY16: GBP5.06m) which equates to 68% (H1 FY16: 64%) of revenues (excluding MovieLine) with strong growth in the cloud revenue stream. As at 31 December 2016, the annualised run rate of such revenues increased 8% to GBP11.3m (H1 FY16: GBP10.5m).
Revenue from product and professional service sales decreased to GBP2.50m (H1 FY16: GBP2.82m) due to timing of certain orders.
The aggregate value, at 31 December 2016, of contracted minimum income that is to be recognised as core revenue in future financial periods increased by 14% to GBP16.6m (H1 FY16: GBP14.6m).
Revenue from the non-core MovieLine service decreased to GBP0.20m (H1 FY16: GBP0.25m) in line with management's expectations.
Gross profit margin was maintained at 91.3% (H1 FY16: 91.3%).
Administrative expenses, before depreciation, amortisation, non-recurring transaction costs and share-based charges, decreased to GBP5.19m (H1 FY16: GBP5.31m) with underlying increases in staff levels and expenditure, reflecting the investment programme, offset by higher capitalised software development.
Consequently, the Group recorded adjusted EBITDA of GBP2.21m (H1 FY15: GBP2.11m), a margin of 27% of revenue (H1 FY16: 26%).
The Group tax charge was GBP0.09m (H1 FY16: GBP0.02m) an underlying effective rate of tax of 10% (H1 FY16: 2%). The underlying effective rate of tax benefited from enhanced R&D relief.
Reported diluted earnings per share was 0.58 pence (H1 FY16: 0.54 pence). Adjusted diluted earnings per share was 0.98 pence (H1 FY16: 1.03 pence) reflecting higher amortisation of capitalised development expenditure.
Cash generated from operations before non-recurring transaction cost payments incurred in the last financial year was GBP2.47m (H1 FY16: GBP1.85m), representing 112% of adjusted EBITDA (H1 FY16: 88%).
Spending on research and development, including capitalised software development increased by 8% to GBP1.05m (H1 FY16: GBP0.97m) of which capitalised software expenditure was GBP0.68m (H1 FY16: GBP0.28m).
Total capital expenditure increased by 45% to GBP0.77m (H1 FY16: GBP0.53m); the balance after capitalised development, being GBP0.09m (H1 FY16: GBP0.24m) relating to IT equipment and software.
As a result of these factors, cash increased to GBP14.6m at 31 December 2016 (30 June 2016: GBP14.1m). The Group continues to maintain a debt-free balance sheet.
Dividend policy
The Directors continue to evaluate acquisition opportunities and believe that the Group should retain sufficient cash on its balance sheet to maintain its credibility as a buyer and also to be able to acquire businesses in an expedient manner. The Board believes it can achieve this objective while also being able to institute a partial return of cash to shareholders through the enhanced dividend policy, as previously announced.
It is the intention of the Directors that an enhanced dividend will be paid half yearly such that by 2018 the retained cash balance is approximately GBP10m. Payment of the enhanced dividend will remain subject to the Group's on-going cash generation, it not having found an appropriate acquisition opportunity and not having returned cash through another manner, including on market share buy backs.
On 27 June 2016 the Company paid an interim enhanced dividend of 0.95 pence per share (2015: nil) in respect of the financial year ended 30 June 2016 totalling GBP1.32m. On 11 January 2017, post period end, the Company paid a final ordinary dividend of 1.1 pence per share (2016: 1.0 pence per share) and a final enhanced dividend of 0.95 pence per share (2015: 1.2 pence per share) in respect of the financial year ended 30 June 2016 totalling GBP2.84m.
Accordingly, the Directors are recommending the payment of a second interim enhanced dividend of 1.05 pence per share to be paid on 27 July 2017.
Outlook
Netcall continues to see robust demand for the Liberty suite with cloud solutions in particular gaining traction which is underpinning the Group's growing recurring revenues and future minimum contracted revenues. In line with stated strategy, investment will continue in the business to take full advantage of the high growth trends in the market. This is supported by the Group's good cash generation and a strong balance sheet.
With the healthy development of the business combined with our revenue visibility, the Board believes Netcall is well positioned for the future and is confident in the Group's prospects for the year.
Unaudited consolidated income statement for the six months to 31 December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------- ------------------ ------------------ --------------
Revenue 8,093 8,132 16,627
Cost of sales (701) (709) (1,463)
--------------------------------------------- ------------------ ------------------ --------------
Gross profit 7,392 7,423 15,164
Administrative expenses (6,520) (6,705) (13,571)
Other gains/(losses) - net 9 1 21
--------------------------------------------- ------------------ ------------------ --------------
Adjusted EBITDA 2,207 2,110 4,462
Share-based payments (660) (604) (1,189)
Depreciation (108) (89) (202)
Amortisation of acquired intangible assets (171) (445) (880)
Amortisation of other intangible assets (387) (253) (577)
Operating profit 881 719 1,614
Finance income 43 67 127
Finance costs (3) (2) (4)
--------------------------------------------- ------------------ ------------------ --------------
Finance income - net 40 65 123
--------------------------------------------- ------------------ ------------------ --------------
Profit before tax 921 784 1,737
Tax (88) (16) 149
--------------------------------------------- ------------------ ------------------ --------------
Profit for the period 833 768 1,886
============================================= ================== ================== ==============
Earnings per share - pence
Basic 0.60 0.56 1.37
Diluted 0.58 0.54 1.32
============================================= ================== ================== ==============
All activities of the Group in the current and prior periods are classed as continuing. All of the profit for the period is attributable to the shareholders of Netcall plc.
Statement of comprehensive income for the six months to 31 December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
Profit for the period 833 768 1,886
-------------------------------------------- ------------------ ------------------ --------------
Total comprehensive income for the period 833 768 1,886
============================================ ================== ================== ==============
Unaudited consolidated balance sheet at 31 December 2016
GBP'000 31 December 2016 31 December 2015 30 June 2016 ------------------------------------------------- ----------------- ----------------- ------------- Assets Non-current assets Property, plant and equipment 509 438 565 Intangible assets 11,162 10,793 11,005 Investments 288 288 288 Deferred income tax asset 721 861 791 -------------------------------------------------- ----------------- ----------------- ------------- Total non-current assets 12,680 12,380 12,649 -------------------------------------------------- ----------------- ----------------- ------------- Current assets Inventories 200 193 226 Trade and other receivables 3,623 4,987 5,170 Current income tax asset 15 - 11 Cash and cash equivalents 14,569 15,168 14,122 -------------------------------------------------- ----------------- ----------------- ------------- Total current assets 18,407 20,348 19,529 -------------------------------------------------- ----------------- ----------------- ------------- Total assets 31,087 32,728 32,178 ================================================== ================= ================= ============= Equity and liabilities Equity attributable to the owners of the parent Share capital 7,054 7,027 7,027 Share premium 3,015 3,015 3,015 Merger reserve 2,509 2,509 2,509 Capital reserve 188 188 188 Treasury shares (419) (419) (419) Employee share schemes reserve 2,820 1,776 2,300 Profit and loss account 4,731 6,852 7,996 -------------------------------------------------- ----------------- ----------------- ------------- Total equity 19,898 20,948 22,616 -------------------------------------------------- ----------------- ----------------- ------------- Liabilities Non-current liabilities Deferred income tax liabilities 392 589 376 Provisions 316 206 118 -------------------------------------------------- ----------------- ----------------- ------------- Total non-current liabilities 708 795 494 -------------------------------------------------- ----------------- ----------------- ------------- Current liabilities Trade and other payables 2,508 2,387 2,876 Dividend payable 2,843 3,051 - Current income tax liabilities - 84 - Deferred income 5,130 5,463 6,192 Total current liabilities 10,481 10,985 9,068 -------------------------------------------------- ----------------- ----------------- ------------- Total liabilities 11,189 11,780 9,562 -------------------------------------------------- ----------------- ----------------- ------------- Total equity and liabilities 31,087 32,728 32,178 ================================================== ================= ================= =============
Unaudited consolidated statement of changes in equity at 31 December 2016
Profit
Capital Employee and
Share Share Merger redemption Treasury share loss Total
GBP'000 capital premium reserve reserve shares schemes account equity
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 July 2015 6,945 3,015 2,509 188 (419) 1,420 9,024 22,682
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Proceeds from
share issue 82 - - - - - - 82
Increase in
equity in
relation to
options issued - - - - - 579 - 579
Tax debit
relating to
share options - - - - - (112) - (112)
Reclassification
following
exercise or
lapse of share
options - - - - - (111) 111 -
Dividends
to equity
holders of
the company - - - - - - (3,051) (3,051)
Transactions
with owners 82 - - - - 356 (2,940) (2,502)
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Profit and
total comprehensive
income for
the period - - - - - - 768 768
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
31 December
2015 7,027 3,015 2,509 188 (419) 1,776 6,852 20,948
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 January
2016 7,027 3,015 2,509 188 (419) 1,776 6,852 20,948
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Increase in
equity reserve
in relation
to options
issued - - - - - 560 - 560
Tax debit
relating to
share options - - - - - (10) - (10)
Reclassification
following
exercise or
lapse of share
options - - - - - (26) 26 -
Transactions
with owners - - - - - 524 26 550
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Profit and
total comprehensive
income for
the period - - - - - - 1,118 1,118
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
30 June 2016 7,027 3,015 2,509 188 (419) 2,300 7,996 22,616
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Balance at
1 July 2016 7,027 3,015 2,509 188 (419) 2,300 7,996 22,616
---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Proceeds from
share issue 27 - - - - - - 27
Increase in
equity in
relation to
options issued - - - - - 581 - 581
Tax credit
relating to
share options - - - - - 1 - 1 Reclassification following exercise or lapse of share options - - - - - (62) 62 - Dividends to equity holders of the company - - - - - - (4,160) (4,160) ---------------------- --------- --------- --------- ------------ --------- --------- --------- -------- Transactions with owners 27 - - - - 520 (4,098) (3,551) ---------------------- --------- --------- --------- ------------ --------- --------- --------- -------- Profit and total comprehensive income for the period - - - - - - 833 833 ---------------------- --------- --------- --------- ------------ --------- --------- --------- -------- Balance at 31 December 2016 7,054 3,015 2,509 188 (419) 2,820 4,731 19,898 ---------------------- --------- --------- --------- ------------ --------- --------- --------- --------
Unaudited consolidated cash flow statement for the six months to 31 December 2016
Six months to Six months to 12 months to
GBP'000 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from operating activities
Profit before income tax 921 784 1,737
Adjustments for:
Depreciation 108 89 202
Amortisation 558 698 1,457
Share-based payments 660 604 1,189
Net finance income (40) (65) (123)
Changes in working capital
Inventories 26 36 3
Trade and other receivables 1,547 1,055 969
Trade and other payables (1,313) (1,642) (620)
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash generated from operations 2,467 1,559 4,814
Analysed as:
Cash generated from operations before payment of
non-recurring transaction costs 2,467 1,849 5,104
Non-recurring transaction cost payments - (290) (290)
-------------------------------------------------------------- ------------------ ------------------ --------------
Interest paid (3) (2) (4)
Income tax (paid)/ refund (4) 267 183
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash generated from operating activities 2,460 1,824 4,993
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from investing activities
Purchases of property, plant and equipment (52) (205) (444)
Development expenditure (676) (287) (1,163)
Purchases of other intangible assets (38) (39) (135)
Interest received 43 67 114
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash used in investing activities (723) (464) (1,628)
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash flows from financing activities
Proceeds from issue of ordinary shares 27 82 82
Dividends paid to Company shareholders (1,317) - (3,051)
-------------------------------------------------------------- ------------------ ------------------ --------------
Net cash used in financing activities (1,290) 82 (2,969)
-------------------------------------------------------------- ------------------ ------------------ --------------
Net increase in cash and cash equivalents 447 1,442 396
Cash and cash equivalents at beginning of period 14,122 13,726 13,726
-------------------------------------------------------------- ------------------ ------------------ --------------
Cash and cash equivalents at end of period 14,569 15,168 14,122
============================================================== ================== ================== ==============
Notes to the financial information for the six months ended 31 December 2016
1. General information
Netcall plc (AIM: "NET", "Netcall", or the "Company") is a leading provider of customer engagement software. It is a public limited company which is quoted on AIM (a market of the London Stock Exchange). The Company's registered address is 3(rd) Floor, Hamilton House, 111 Marlowes, Hemel Hempstead, HP1 1BB and the Company's registered number is 01812912.
2. Basis of preparation
The Group interim results consolidate those of the Company and its subsidiaries (together referred to as the 'Group'). The principal trading subsidiary of Netcall is Netcall Telecom Ltd.
These consolidated interim financial statements (the 'results') have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing these statements (February 2017). This results announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006 (the 'Act'). The balance sheet at 30 June 2016 has been derived from the full Group accounts published in the Annual Report and Accounts 2016, which has been delivered to the Registrar of Companies and on which the report of the independent auditors was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Act.
The results have been prepared in accordance with the accounting policies set out in the Group's 30 June 2016 statutory accounts, which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union ("EU"). No changes to accounting policies are expected for the year ending 30 June 2017.
The results for the six months ended 31 December 2016 were approved by the Board on 20 February 2017. A copy of these interim results will be available on the Company's web site www.netcall.com from 22 February 2017.
The principal risks and uncertainties faced by the Group have not changed from those set out on page 7 of the annual report for the year ended 30 June 2016.
3. Segmental analysis
The Board considers that there is one operating business segment being the design, development, sale and support of software products and services, which is consistent with the information reviewed by the Board when making strategic decisions. Resources are reviewed on the basis of the whole of the business performance.
The key segmental measure is adjusted EBITDA which is profit before interest, tax, depreciation, amortisation, acquisition and reorganisation expenses and share-based payments, which is set out on the consolidated income statement.
4. Earnings per share
The basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year excluding those held in treasury:
Six months to Six months to 12 months to
31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Net earnings attributable to ordinary shareholders (GBP'000s) 833 768 1,886
Weighted average number of ordinary shares in issue (000s) 138,702 137,638 138,150
Basic earnings per share (pence) 0.60 0.56 1.37
============================================================== ================== ================== ==============
The diluted earnings per share has been calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of shares in issue during the year, adjusted for potentially dilutive shares that are not anti-dilutive.
Six months to Six months to 12 months to
31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Weighted average number of ordinary shares in issue (000s) 138,702 137,638 138,150
Adjustments for share options (000s) 4,807 5,084 5,083
Weighted average number of potential ordinary shares in issue
(000s) 143,509 142,722 143,233
-------------------------------------------------------------- ------------------ ------------------ --------------
Diluted earnings per share (pence) 0.58 0.54 1.32
============================================================== ================== ================== ==============
Adjusted basic and diluted earnings per share has been calculated to exclude the effect of acquisition and reorganisation costs, share-based payment charges, amortisation of acquired intangible assets and utilisation of historic tax losses. The Board believes this gives a better view of ongoing maintainable earnings. The table below sets out a reconciliation of the earnings used for the calculation of earnings per share to that used in the calculation of adjusted earnings per share:
Six months to Six months to 12 months to
GBP'000s 31 December 2016 31 December 2015 30 June 2016
-------------------------------------------------------------- ------------------ ------------------ --------------
Profit used for calculation of basic and diluted EPS 833 768 1,886
Share-based payments 660 604 1,189
Amortisation of acquired intangible assets 171 445 880
Tax adjustment (262) (351) (910)
Profit used for calculation of adjusted basic and diluted EPS 1,402 1,466 3,045
============================================================== ================== ================== ==============
Six months to Six months to 12 months to
Pence 31 December 2016 31 December 2015 30 June 2016
------------------------------------- ------------------ ------------------ --------------
Adjusted basic earnings per share 1.01 1.07 2.20
Adjusted diluted earnings per share 0.98 1.03 2.13
===================================== ================== ================== ==============
5. Dividends
Dividends paid or declared during the period were as follows:
Statement of December 2016
Six months to Cash flow statement changes in equity balance sheet
December 2016 Paid Pence per share (GBP'000) (GBP'000) (GBP'000)
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Interim enhanced
dividend for year to
June 2016 27/7/16 0.95p 1,317 1,317 -
Final ordinary
dividend for year to
June 2016 11/1/17 1.10p - 1,526 1,526
Enhanced dividend for
year to June 2016 11/1/17 0.95p - 1,317 1,317
1,317 4,160 2,843
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Statement of December 2016
Six months to Cash flow statement changes in equity balance sheet
December 2015 Paid Pence per share (GBP'000) (GBP'000) (GBP'000)
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
Final ordinary
dividend for year to
June 2015 12/1/6 1.00p - 1,387 1,387
Enhanced dividend for
year to June 2015 12/1/6 1.20p - 1,664 1,664
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
- 3,051 3,051
---------------------- -------- ---------------- -------------------- --------------------- ---------------------
An interim enhanced dividend of 0.95 pence per share, amounting to a total of GBP1.32 million, was paid to shareholders whose names appeared on the register at the close of business on 15 July 2016 on 27 July 2016.
A final ordinary dividend of 1.1 pence per share and enhanced dividend of 0.95 pence per share in respect of the year ended 30 June 2016 amounting to a total of GBP3.05m was approved at the Annual General Meeting held on 24 November 2016. This dividend was paid on 11 January 2017.
An interim enhanced dividend in respect of the year ending 30 June 2017 of 1.05 pence per share has been proposed by the Directors, amounting to a total of GBP1.46m.
The timetable for the payment of the proposed dividend will be:
-- Ex-Dividend Date: 13 July 2017 -- Record Date: 14 July 2017 -- Payment Date: 27 July 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGZZVGNGNZM
(END) Dow Jones Newswires
February 21, 2017 02:00 ET (07:00 GMT)
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