Interim Results

Netcall PLC 12 February 2001 NETCALL PLC ('Netcall' or 'the Company') INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000 Netcall invests in, develops and manages advanced internet-based technologies that enhance the value of communication. Netcall today announces interim results for the six months ended 31 December 2000. HIGHLIGHTS * Turnover on continuing operations increased three-fold to £ 341,000 (1999: £118,000) * Loss before tax of £1.4 million (1999: £1.2 million), mainly due to increased sales and marketing activity * Strategic investments by Netcall and Trinity Mirror plc in All4U Limited, to exploit the NetCall ClassifiedTM pay-per-lead advertising model in the UK * Significant international follow-on sales of QueueBusterTM, a revolutionary customer service solution for call and contact centre management * Continued steady growth in the in the service business with monthly call volumes up by over 330 per cent. * Successful placing in November 2000 to raise £4.4 million (net of expenses) through the issue of 6.7 million new ordinary shares at a price of 70p per share Jeffrey Rubins, Chairman of Netcall, said today: 'With proven technology, established business models and respected strategic partners, Netcall is well placed to continue to widen its application and customer base. The company is progressing its business plan and the Board continues to view the future with confidence.' 12 February 2001 Enquiries: Netcall plc Tel: 01480 495 300 (www.netcall.com) David Rothschild, CEO E-mail: david.rothschild@netcall.com Caroline Brown, CFO E-mail: caroline.brown@netcall.com College Hill Tel: 020 7457 2020 Nicola Weiner E-mail: nicola.weiner@collegehill.com Archie Berens E-mail: archie.berens@collegehill.com NETCALL PLC ('Netcall' or 'the Company') INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000 CHAIRMAN'S STATEMENT The six months ended 31 December 2000 has seen further significant progress made towards Netcall's goal of becoming a leader in intelligent communication through investing in, developing and managing technology at the customer response interface. Trading Results Netcall's underlying service business has continued to grow with monthly call volumes up by over 330 per cent. on a seasonally-adjusted basis. Growth is being generated through new and existing relationships with systems integrators and indirect sales channels. We are finding that our solutions are gaining recognition and acceptance by a wide range of customers, who currently number over 4,000. NetCall Telecom has recently installed another international telephony node, in Australia, increasing further the scope of the group's global telephony network spanning the UK, US, South Africa and Australia. These telephony nodes, together with new QueueBusterTM installations (see below) and new customer relationships, are building the group's annuity revenue stream. In the six months to 31 December 2000, turnover from continuing operations increased by three fold to £340,691 from £117,748 during the same period in 1999. The loss before taxation was £1.4 million (1999: £1.2 million), mainly due to the increased costs associated with sales and marketing activity. QueueBusterTM Since June 2000, Netcall has successfully introduced QueueBuster TM, a revolutionary new product for call centre management. As its name implies, QueueBusterTM reduces customer queuing in call centres resulting in superior customer service and satisfaction. In the first half of 2000, Netcall developed and successfully trialed QueueBusterTM with One.Tel, the low cost long distance telecoms operator. Further sales of QueueBusterTM as an installed solution have demonstrated its appeal in sales, customer service and regulated environments. Netcall is currently trialing QueueBusterTM as a service with several customers and we hope to be able to launch this service on the market in the next few months. QueueBusterTM continues to present Netcall with significant new business opportunities in the rapidly growing call and contact centre market. All4U and Trinity Mirror In December 2000, Netcall and Trinity Mirror plc simultaneously invested in All4U Limited, a business which is using NetCall ClassifiedTM to revolutionise newspaper advertising, both off the newspaper page and off the web. This investment follows the highly successful trialing of All4U's interactive pay-per-lead advertising service over the previous year and the commencement of a closer relationship between All4U and Netcall. The All4U business model uses Netcall's intelligent telephony to route and track calls between responders to classified advertisements and the agencies placing those advertisements. It is thus able to provide feedback both on the callers themselves and on response volumes and times. All4U's recruitment service has been extended to 18 regional newspaper titles, including the Newcastle Evening Chronicle, Birmingham Evening Mail, Liverpool Echo, the North West News the Chester Chronicle Series and the Stoke Sentinel. As a result of this, Netcall has seen considerable growth in usage of NetCall ClassifiedTM. Fund Raising In November 2000, Netcall successfully completed a placing of new ordinary shares to raise £4.4 million (net). The proceeds are being used to expand the sales and marketing programme, for technology and new product development and for working capital purposes. The funds raised will provide the Company with the necessary resources to continue its development plan and should be sufficient to take the business through to positive cash flow. Freeserve In April 2000, Freeserve, the UK's largest Internet Service Provider, acquired an 8.6 per cent. interest in Netcall. Netcall also acquired a 19.9 per cent. interest in Telepost Inc., a US based provider of conference calling on Freeserve's portal. Netcall, Freeserve and Telepost continue to work together on a range of operational and marketing initiatives. Current Trading and Outlook Netcall's portfolio of solutions, supported by its exceptional technological experience and expertise, is highly attractive to all types of business looking to be one step ahead in the battle to capture and retain customers. As more businesses wake up to this commercial reality, they are finding it increasingly important to have in place the necessary technology and infrastructure to enable them both to recognise real customers and to respond to them swiftly and imaginatively. We are therefore confident that our solutions are becoming more widely acknowledged as essential business tools, giving scope for significant growth in the future. Jeffrey Rubins Chairman 12 February 2001 e-mail:jrubins@netcall.com www.netcall.com NETCALL PLC Consolidated Profit and Loss Account Six Months Six Months Year Ended to to 31st Dec 31st Dec 30th June 2000 1999 2000 £ £ £ TURNOVER Continuing operations 340,691 117,748 705,494 Discontinued operations 23,000 82,500 110,681 363,691 200,248 816,175 OPERATING COSTS Administration and other operating 1,787,888 1,363,032 3,040,138 expenses OPERATING (LOSS)/PROFIT Continuing operations (1,369,725) (1,060,050) (2,334,134) Discontinued operations (54,472) (102,734) (132,223) Loss on disposal of discontinued (45,856) operations (LOSS)/PROFIT BEFORE INTEREST (1,424,197) (1,162,784) (2,512,213) Interest receivable 16,077 17,680 60,073 Interest payable (22,853) (35,523) (39,663) (LOSS)/PROFIT BEFORE TAXATION (1,430,973) (1,180,627) (2,491,803) Taxation NET (LOSS)/PROFIT (1,430,973) (1,180,627) (2,491,803) Loss per ordinary share (4.74p) (5.64p) (9.98p) NETCALL PLC Consolidated Balance Sheet As at As at As at 31st Dec 31st Dec 30th June 2000 1999 2000 £ £ £ Fixed Assets Intangible assets 11,652 - 7,513 Tangible assets 269,408 230,482 291,149 Investments 4,650,000 - 4,550,000 4,931,061 230,482 4,848,662 Current assets Debtors due within one year 646,297 485,943 964,385 Debtors due after more than one 34,778 169,778 34,778 year Cash and bank and in hand 3,568,654 1,856,101 393,243 4,249,729 2,511,822 1,392,406 Creditors: amounts falling due within one year Bank loans and overdrafts 38,495 Trade creditors 265,030 147,131 423,136 Other creditors including taxation 263,211 170,160 210,300 and social security 528,240 355,786 633,436 Net current assets 3,721,489 2,156,036 758,970 Total assets less current Liabilites 8,652,550 2,386,518 5,607,632 Creditors: amounts falling due after one year (3,500) (5,666) (3,784) 8,649,050 2,380,852 5,603,848 Capital and Reserves Called up share capital 1,892,638 1,331,941 1,458,191 Share premium account 14,274,305 5,767,720 10,147,637 Special and capital reserves 245,055 245,055 245,055 Profit and Loss Account (7,762,947) (4,963,864) (6,247,035) 8,649,050 2,380,852 5,603,848 NETCALL PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000 Notes to the Interim Statement 1. For the purposes of Section 240 of the Companies Act 1985: (a) this Interim report does not constitute a set of statutory accounts and has been reviewed, but not audited, by the auditors. The interim financial information has been prepared on the basis of the accounting policies which were applied in preparation of the annual financial statements to 30th June 2000; (b) statutory accounts in respect of the year to 30th June 2000 have been delivered to the Registrar of Companies and those accounts were subject to an unqualified report by the Auditors. Accounts for the six months periods ended 31st December 1999 and 31st December 2000 have not been delivered to the Registrar of Companies. 2. The Board has not declared a dividend to shareholders (2000: 0 pence per share). 3. The loss per ordinary share is calculated by dividing the net loss for the period attributable to ordinary shareholders by the weighted average number of 30,214,549 ordinary shares in issue during the six months ended 31st December 2000 (31st December 1999: 22,592,908 and 30th June 2000: 24,960,313). 4. Copies of this interim report are being sent to all shareholders on the Register of Members on 12th February 2001. Further copies of the Interim Statement are available from the Registered Office of the Company: 10 Harding Way, St. Ives, Cambs. PE27 3WR and from the Company's web site: www.netcall.com.

Companies

Netcall (NET)
UK 100

Latest directors dealings