Netcall Interim Profit Narrows As Admin Costs Rise After MatsSoft Deal

7th Mar 2018 13:44

LONDON (Alliance News) - Netcall PLC said Wednesday its interim profit declined despite revenue jumping nearly a third after its MatsSoft Ltd acquisition lifted costs.

For the six months ended December 31, pretax profit narrowed to GBP278,000 from GBP921,000 the year prior. This was despite revenue growing 32% to GBP10.7 million from GBP8.1 million the year before.

On an organic basis - excluding the impact of its MatsSoft acquisition which added GBP2.2 million to total revenue - revenue grew 5%.

Netcall acquired software company MatsSoft in August 2017 for GBP15.4 million. The acquisition was intended to add to its cloud business and provide it with access to the fast-growing low-code market. It will also enhance its offering through the Liberty customer engagement platform.

Profit performance was primarily hurt by a sharp increase in administrative expenses to GBP9.1 million from GBP6.5 million the year before as a result of the enlarged company after the MatsSoft buy.

"Customers, who today expect new levels of service, are at the forefront of businesses' technology priorities," Netcall Chief Executive Officer Henrik Bang said. "Organisations across industries are digitally transforming their operations, leveraging software to enhance customer experiences, drive competitive differentiation and automate processes."

"The combination of our powerful low-code and Liberty customer engagement platforms creates a unique offering and significantly increases our addressable market," Bang added. "Low-code is accelerating digital transformation by putting the power of software creation into the hands of business users so that they, without traditional coding, can rapidly implement the business applications they need to improve and automate their customer engagement activities."

"Our Liberty business continues its successful transition to the cloud," Bang continued, "delivering good growth in revenues and profits and we enter the second half with a considerably increased sales pipeline and much excitement for the accelerated growth opportunity available."

Shares in Netcall were 5.6% lower at 47.18 pence on Wednesday.

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