Thanks in part to a series of acquisitions, Netcall (NET) has built up a raft of software products that both customers and companies appreciate as they save time and money. The two best-known products are QueueBuster and an Appointment Management suite. The former offers an individual a free telephone callback service rather than wasting time holding on for an operator to connect. Appointment Management not only books hospital appointments, but also reminds patients of them. And, with the Department of Health figures indicating that one in 10 hospital appointments are missed - costing the NHS around £120 per appointment - demand for Netcall's products is understandably strong.
Netcall is clearly benefiting financially from its investments, too, as these stunning results show. Annual recurring revenues are around £10m and exceed operating costs. And buoyed by strong cash generation and a rapidly rising cash pile, Netcall is splashing out to buy Serengeti, a supplier of enterprise content management to over 40 major public sector organisations. The purchase price of up to £2.9m is little more than the rise in net cash last year and the acquisition should boost EPS in the current financial year. So broker FinnCap forecasts a rise in sales to £16.4m and adjusted pre-tax profits up by £0,5m to £3.8m. The latter figure looks conservative given the company reports a "double digit" rise in orders against this time last year.
NETCALL (NET) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28.5p | MARKET VALUE: | £34.8m | |
| TOUCH: | 27.5-29.5p | 12-MONTH HIGH: | 28.5p | LOW: 16.25p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 13p* | NET CASH: | £8.43m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 3.6 | 0.51 | 1.62 | nil |
| 2009 | 3.9 | 0.75 | 1.18 | nil |
| 2010 | 4.1 | -0.24 | 0.04 | nil |
| 2011 | 13.6 | 0.55 | 0.58 | 0.40 |
| 2012 | 14.6 | 2.05 | 1.49 | 0.50 |
| % change | +7 | +273 | +157 | +25 |
Ex-div: 12 Dec Payment: 11 Jan Aim: Software *Includes intangible assets of £10.4m, or 8.5p a share. | ||||
