Netcall product revenues impacted by NHS purchasing delays

Netcall told investors on Wednesday that cloud bookings had continued their strong performance, with year-on-year growth of 160% to £6.5m, reflecting strong low-code cross sales to customers and the signing of new names.

As a result, its low-code offering has continued to grow throughout the year ending 30 June, up 36% year-on-year to £4.4m.

However, product sales were hit by NHS purchasing delays and the fact that many public sector customers had ordered the group's newly launched low-code cloud offerings.

"As a consequence, adjusted EBITDA for the year is now expected to be approximately £3.4m," said Netcall.

Netcall also said cash generation had been "strong" and at 30 April 2019, its cash position was £6.5m - offsetting its existing debt of £6.6m.

Looking forward, Netcall said: "The board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in Cloud bookings and ACV.

"The group continues its transition from a traditional software business to a digital cloud operation and the board looks forward to giving a further update at the time of its final results."

As of 0845 BST, Netcall share had tumbled 13.48% to 49.10p.