IC TIP:
Buy
at
63.5p
The Aim-traded company turned in cash profits of £4.9m in the 12 months to end June 2014, a hefty 10 per cent ahead of broking house finnCap’s forecasts. And with cash generation strong – Netcall generated free cash flow of £1.8m from £2.5m of cash profits in the second half – the cash pile surged by £2.2m to £11.4m, or the equivalent of 8.4p a share. In turn this enabled the board to lift the dividend by 29 per cent from 0.7p to 0.9p a share, well ahead of finnCap’s estimate of 0.77p a share. It’s well covered by adjusted EPS which rose by 10 per cent to 2.81p.