24th Feb 2015 10:10
LONDON (Alliance News) - Software provider Netcall PLC Tuesday expressed confidence in seeing a "successful outcome" for the current financial year, as it posted an 8% increase in its preferred operating profit measure in the first half.
The company posted a pretax profit of GBP1.4 million in the six months to end-December, broadly flat on the previous year, even though revenue rose to GBP8.6 million from GBP8.4 million and its gross profit margin improved by 0.5% due to increased focus on higher margin business.
Higher share-based payments and amortisation weighed on pretax profit. Excluding those items, its closely-watched adjusted earnings before interest, tax, depreciation and amortisation rose to GBP2.7 million, from GBP2.5 million.
Recurring revenue made up 64% of total revenue, compared with 63% in the previous year. Revenue growth primarily came from existing clients, supplemented by its non-core MovieLine ticketing service.
The company said that acquisitions remain part of its strategy, and its is continuing to assess the market for "complementary acquisitions to enhance organic growth."
"We continue to invest in the capabilities of our Liberty product suite, which together with our strong balance sheet, customer base and growing pipeline of opportunities gives the Board confidence in achieving a successful outcome for the full year," said Chief Executive Officer Henrik Bang in a statement.
Shares in Netcall are trading down 0.7% at 71.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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