• Strong second half trading
• Full-year profits at top end of forecasts
• Earnings upgrades for 2013 and 2014
Netcall, a small cap company offering software to make telephone call handling more efficient, has announced yet another bullish trading update ahead of releasing its full year results in September.
The key thing to note is that the business is seeing an increase in cross selling opportunities across its product range which indicates that “customers are attributing sufficient value to the initial services to merit extending the relationship,” notes Andrew Darley, software analyst at broker finnCap. Mr Darley now expects revenues in the 12 months to end June 2012 to increase by 7 per cent year-on-year to £14.5m which, given the operational gearing of the business and the boost to margins from cost savings, now means that pre-tax profits are forecast to rise by almost 30 per cent to £3.2m. On this basis EPS increase from 1.5p to 1.9p. Moreover, with earnings upgrades coming through for next year, too, the earnings momentum has some way to run with brokers predicting EPS in the range 2p to 2.4p for the 12 months to end June 2013.
