Shares in Netcall (NET), a small-cap business offering software to make telephone call-handling more efficient, hit a 12-year high following yet another impressive set of results that were also boosted by the use of previously unrecognised pre-2005 losses so keeping the tax charge low.
Netcall's first and best known product is Queuebuster which was launched in 2003 and offers a free telephone call-back service. But the big growth in revenues is now coming from cloud-based offsite computer services where, for example, call-backs come in and out of Netcall’s hosted platforms in data centres. They account for 25 per cent of income already and that percentage is set to rise. Cloud computing also helps Netcall diversify its charging structures. So as well as a rolling licence agreement on some products, cloud-based revenues include a mix of rental, charge per user and charge per call. In the half year recurring revenues accounted for two-thirds of turnover and again covered operating expenses.