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Netcall PLC (GB:NET)
LSE:NET

Netcall (NET) AI Stock Analysis

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GB

Netcall

(LSE:NET)

Rating:72Outperform
Price Target:
120.00p
▲(11.11%Upside)
Netcall's overall score is driven by strong financial performance and positive corporate events, indicating stability and growth potential. The mixed technical analysis and high valuation suggest caution, but the company’s strategic initiatives in cloud and AI bolster its long-term outlook.

Netcall (NET) vs. iShares MSCI United Kingdom ETF (EWC)

Netcall Business Overview & Revenue Model

Company DescriptionNetcall (NET) is a UK-based software company that specializes in providing customer engagement solutions. The company operates primarily within the technology sector, offering a range of products designed to enhance communication and operational efficiency for businesses. Netcall's core offerings include customer engagement platforms, low-code development solutions, and robotic process automation tools, which help organizations streamline their processes and improve customer interactions.
How the Company Makes MoneyNetcall generates revenue primarily through the sale and licensing of its software products and solutions. The company's key revenue streams include software subscriptions, professional services, and maintenance and support fees. Netcall's low-code platform and automation solutions are sold on a subscription basis, providing a recurring revenue model. Additionally, the company offers implementation and consulting services that complement its software products. Netcall's partnerships with various technology providers and its focus on sectors such as healthcare, public services, and financial services contribute significantly to its earnings.

Netcall Financial Statement Overview

Summary
Netcall exhibits strong financial performance with significant revenue growth, improved profitability, and robust cash flow management. The company maintains a high gross profit margin and has improved its net profit margin from 2.7% in 2019 to 15.0% in 2024, reflecting enhanced operational efficiency and strong financial health.
Income Statement
88
Very Positive
Netcall demonstrates strong financial performance with consistent revenue growth and improving profitability. The revenue has grown significantly from £22.9M in 2019 to £39.1M in 2024, marking a healthy growth trajectory. The gross profit margin remains high at approximately 79.9% in 2024. The net profit margin has improved to 15.0% from 2.7% in 2019, reflecting enhanced operational efficiency. Both EBIT and EBITDA margins have increased, indicating robust earnings performance.
Balance Sheet
82
Very Positive
The balance sheet is stable with a solid equity position. The debt-to-equity ratio is low at 0.012, indicating low leverage and financial risk. Return on Equity (ROE) is strong at 14.5%, showcasing efficient utilization of equity to generate profits. Equity ratio stands at 52.6%, reflecting a strong equity base relative to total assets. The company's cash position has improved significantly over the years, further enhancing financial stability.
Cash Flow
90
Very Positive
Netcall's cash flow performance is commendable with consistent growth in free cash flow, increasing from £3.9M in 2019 to £12.2M in 2024. The operating cash flow to net income ratio is 2.53, indicating strong cash-generating capability relative to net income. Free cash flow to net income ratio is robust at 2.08, emphasizing ample free cash flow generation. This highlights excellent cash management and liquidity.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
43.18M39.06M36.04M30.46M27.15M25.11M
Gross Profit
33.48M33.45M30.27M25.44M24.53M22.18M
EBIT
5.82M5.55M3.81M3.19M1.75M1.23M
EBITDA
8.97M8.58M6.34M5.39M4.17M3.75M
Net Income Common Stockholders
5.15M5.85M4.21M2.40M974.00K487.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.97M34.01M24.81M17.61M14.53M12.71M
Total Assets
82.33M77.04M65.53M56.98M51.82M50.35M
Total Debt
1.11M481.00K405.00K4.17M7.70M7.89M
Net Debt
-20.86M-33.53M-24.35M-13.44M-6.82M-4.82M
Total Liabilities
40.05M36.54M30.15M29.56M27.21M27.47M
Stockholders Equity
42.28M40.50M35.38M27.42M24.61M22.88M
Cash FlowFree Cash Flow
11.05M12.15M8.81M8.05M2.93M7.56M
Operating Cash Flow
11.29M14.73M11.56M9.98M5.68M9.42M
Investing Cash Flow
-16.56M-4.21M-2.74M-1.94M-2.75M-3.54M
Financing Cash Flow
-1.29M-1.26M-1.68M-4.93M-1.16M-925.00K

Netcall Technical Analysis

Technical Analysis Sentiment
Negative
Last Price108.00
Price Trends
50DMA
108.37
Negative
100DMA
109.59
Negative
200DMA
102.15
Positive
Market Momentum
MACD
-1.88
Positive
RSI
32.08
Neutral
STOCH
15.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NET, the sentiment is Negative. The current price of 108 is below the 20-day moving average (MA) of 108.45, below the 50-day MA of 108.37, and above the 200-day MA of 102.15, indicating a neutral trend. The MACD of -1.88 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NET.

Netcall Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£200.25M29.304.56%-0.90%15.22%
76
Outperform
£257.75M22.7611.66%1.31%11.38%-8.44%
75
Outperform
£264.47M50.006.94%1.21%19.55%-6.45%
73
Outperform
£168.50M34.598.42%1.78%-6.21%21.39%
GBNET
72
Outperform
£172.61M33.1712.87%0.86%15.40%-6.59%
62
Neutral
$11.70B10.39-7.10%2.92%7.45%-8.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NET
Netcall
108.00
21.76
25.23%
GB:APTD
Aptitude Software Group plc
304.00
-48.83
-13.84%
GB:IDOX
Idox plc
57.40
-7.20
-11.15%
GB:DOTD
Dotdigital
84.60
-7.08
-7.72%
GB:ACSO
accesso Technology
508.00
-192.00
-27.43%

Netcall Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
Netcall PLC Issues New Shares Following Employee Option Exercise
Neutral
May 15, 2025

Netcall PLC has announced the issuance and allotment of 551,175 new ordinary shares following the exercise of share options by its employees. These shares are set to be admitted to trading on AIM, increasing the total number of shares with voting rights to 166,769,897. This development reflects the company’s ongoing efforts to enhance its capital structure and maintain transparency with its stakeholders.

The most recent analyst rating on (GB:NET) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Netcall PLC Sees Increase in Major Holdings by Octopus Investments
Neutral
Apr 15, 2025

Netcall PLC has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights to 5.27% from a previous 4.13%. This acquisition of voting rights signifies a strengthened position for Octopus Investments within Netcall, potentially impacting the company’s strategic decisions and market influence.

Other
Netcall Director Increases Stake with Share Purchase
Positive
Apr 9, 2025

Netcall PLC announced that Nigel Halkes, a Non-Executive Director, has purchased 5,000 ordinary shares of the company, increasing his total shareholding to 5,000 shares. This transaction reflects a personal investment by a board member, potentially indicating confidence in the company’s future prospects and stability, which may positively influence stakeholder perceptions.

Regulatory Filings and Compliance
Netcall Announces Change in Significant Shareholder’s Holdings
Neutral
Apr 1, 2025

Netcall PLC has announced a change in the shareholding interests of a significant shareholder, Artemis Investment Management LLP, which now holds 3.269698% of the company’s total shares. This notification aligns with AIM Rule 17 requirements and reflects the company’s ongoing transparency in shareholder communications.

Regulatory Filings and Compliance
Netcall Plc Announces Change in Voting Rights Structure
Neutral
Mar 19, 2025

Netcall Plc, a company involved in the technology sector, has announced a change in its voting rights structure following a share issuance and exercise of options. This notification indicates that BGF Investment Management Limited now holds 7.975% of the voting rights in Netcall, a slight decrease from the previous 8.038%. This adjustment in holdings may impact the company’s shareholder dynamics and influence future decision-making processes.

Other
Netcall Director Sells Shares Amid Estate Planning
Neutral
Mar 19, 2025

Netcall PLC announced that Michael Jackson, a Non-Executive Director, sold 300,000 ordinary shares at 115.75 pence each as part of estate planning and to meet investor demand. Following the sale, Jackson retains 1,091,450 shares, equating to 0.66% of the company’s total voting rights, and has no current plans to sell more shares.

Private Placements and FinancingBusiness Operations and Strategy
Netcall PLC Announces New Share Issuance Following Employee Option Exercise
Neutral
Mar 13, 2025

Netcall PLC has announced the issuance of 923,720 new ordinary shares following the exercise of share options by its employees. This move will increase the company’s issued share capital to 168,087,903 ordinary shares, with 166,218,722 shares carrying voting rights. The new shares are expected to commence trading on AIM on March 19, 2025. This development reflects Netcall’s ongoing efforts to enhance its financial structure and potentially strengthen its market position.

Business Operations and StrategyRegulatory Filings and Compliance
Netcall PLC: Change in Voting Rights by Octopus Investments
Neutral
Mar 10, 2025

Netcall PLC has announced a change in the voting rights held by Octopus Investments Limited, which has increased its stake from 3.68% to 4.13% as of March 7, 2025. This acquisition of voting rights signifies a growing interest and investment from Octopus Investments, potentially impacting Netcall’s governance and strategic decisions.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Netcall Reports Strong Growth with Cloud and AI Focus
Positive
Mar 5, 2025

Netcall PLC reported a strong performance for the six months ended December 2024, with a 22% increase in revenue to £23.0m, driven by organic growth and strategic acquisitions. The company’s cloud services, particularly the Liberty Cloud solutions, have been pivotal in this growth, contributing to a 47% increase in Cloud ACV. The integration of recent acquisitions, Govtech and Parble, has enhanced Netcall’s capabilities and opened new cross-selling opportunities. The company continues to focus on cloud and AI adoption, positioning itself for sustainable growth with a strong base of recurring revenue and a positive outlook for the second half of the year.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.