Interim Results - 6 Months to 31 December 1999

Netcall PLC 14 February 2000 UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 1999 * Results reflect the continued concentration of the business on core NetCall, Internet Controlled Telephony, services and supplies, with turnover up 38 per cent compared to first six months of 1999 and 370 per cent compared to 1998 interims * Subscriber base up from 700 to 1500 over the period with daily call traffic doubling * Reduction in overall turnover reflects wind down of discontinued operations and other activities * Proceeds from placing being used to accelerate marketing and sales programme in US and Europe * Subscriber list includes many blue chip names and continues to expand rapidly -a further 260 companies signed up to use NetCall technology in first six weeks of the second half * NetCall working with BSG, Cap Gemini, Opta Consulting, Telewest and USWeb to develop bespoke e.commerce systems * NetCall Classified service successfully piloted in north-west Chairman Jeffrey Rubins commented: 'NetCall maintains its position as World Leader in Internet Controlled Telephony and now offers its services not only to those operating web sites but also to owners and users of printed media, digital television and WAP enabled devices. The knowledge gained in designing and building our own infrastructure leaves us in a strong position to exploit a vast market both on and off the Web. With adequate funding now in place, together with a strong and experienced management team, NetCall is well placed to capitalise on an outstanding opportunity.' Enquiries to: Netcall plc Jeffrey Rubins, Chairman Tel: 0171 256 5756 on 14.2.00 David Rothschild, Chief Executive 01480 495 300 (thereafter) Millham Communications Simon Rothschild/Tarquin Edwards Tel: 0171 256 5756 NETCALL plc Interim Statement for the half-year to 31 December 1999 Results The results for the six months ended 31 December 1999 have been very encouraging. Although total turnover in the period has fallen, reflecting lower revenues from the company's historic business activities, which are being wound down, its principal ongoing business, NetCall Telecom, posted a 38% increase in the period compared with the immediately preceding six months. It has experienced significant increases in both its customer base and call traffic - the former rising from 700 at the end of June 1999 to 1500 at 31 December 1999 and the latter doubling from 450 to 900 calls per day in the same period. Customers NetCall's HyperphoneLinkT solutions are being deployed by some of the most respected names in e-commerce and the IT sector. The list of our subscribers now comprises over 1700 companies, including the following using NetCall 800 on their web pages:- AutoGlass, Auto Trader, Autotrader.com (USA), Autoparts.com, BUPA, Bank One, Black Box,Citroen, Dialog, Dialogic, Dixons Partmaster, Friends Provident, Greenflag, HSA Healthcare, Microsoft, Nissan, Penton Media, PNCTele.com, RAC, Regus, Tiny Computers, Thomas Cook, Uunet and Vauxhall. Included in the 260 added in the last 6 weeks alone are Alliance and Leicester, Chrysler Jeep, Coventry Building Society, Hewlett Packard, Johansens Directories, Lexus GB, Nestle, Staffordshire Building Society, Virgin Direct and Ybag. In the 5 years that the company has been involved in Computer Telephony Integration, the majority of the effort has been focussed on designing and building the infrastructure that now provides the backbone on which all of our services run. It is robust, flexible and scalable and its importance and value cannot be overstated as it enables NetCall to offer bespoke solutions to subscribers in a fraction of the time and at a fraction of the cost traditional suppliers, offering proprietary systems, demand. Outlook Following the successful placing of new shares raising £2.6M net at the end of November 1999 we have been able to move the company into the next important phase of its development and accelerate the sales and marketing programme. Our policy of striving to build long term relationships with established system and web integrators is producing results. Although most of our bespoke work is conducted under confidentiality agreements we can state that companies with whom we are currently working on projects include BSG, Cap Gemini, Opta Consulting Group, Telewest Imminus and USWeb. In addition, together with Sports Internet Group, we are actively pursuing the opportunity to implement NetCall's technology in an important new and growing sector and we anticipate the first results of this work to be announced shortly. On December 16th 1999 NetCall announced it had been granted an option to acquire a 20% equity holding in the parent company of Jobs4U which has now launched its innovative recruitment service in 9 newspapers in the north west of England with encouraging results. This service is delivered using Netcall Classified which allows respondents to advertisements to be connected free to recruitment agencies and enables Jobs4U to charge their advertisers on a 'pay by lead' basis. Of further significance is that this model is now being successfully implemented by Auto Trader to sell advertising space on the Web with 24 of its dealers currently using the system. NetCall not only connects a customer to a dealer, using conventional telephony, after a click on a motor advertisement but can if required announce that customer's name to the salesman and the car that is of interest. Further customer details are delivered to the dealership by fax or email so that, as usual with all NetCall services, a customer contact is never lost. An audit trail of completed calls is delivered for billing purposes to Auto Trader who have informed Netcall that it is their intention to expand the use of the service on its UK site and offer a similar service to their customers in France, Belgium and Holland. Shareholders The number of shareholders in the company has increased dramatically in the last 3 months to over 2000 with a backlog developing at the company's registrars due to the sheer volume of registrations being received. This problem should be alleviated by the recent move to Crest. Shareholders will find additional background information on the company and its services on our web pages at www.netcall.com The Future NetCall maintains its position as World Leader in Internet Controlled Telephony and now offers its services not only to those operating web sites but also to owners and users of printed media, digital television and WAP enabled devices.The knowledge gained in designing and building our own infrastructure leaves us in a strong position to exploit a vast market both on and off the Web. With adequate funding now in place, together with a strong and experienced management team, NetCall is well placed to capitalise on an outstanding opportunity. For further information on NetCall services and HyperphoneLinkT solutions please visit our web site www.netcall.com To contact Jeffrey Rubins Chairman, or David Rothschild, Chief Executive please call 0171 256 5756 (Monday 14th February) and 01480 495300 thereafter. INTERIM RESULTS (Unaudited) CONSOLIDATED PROFIT AND LOSS ACCOUNT Six Six Year Months to Months to ended 31 Dec 31 Dec 30 June 1999 1998 1999 £ £ £ TURNOVER Netcall services and 113,911 30,660 106,241 supplies Discontinued operations 52,935 85,586 197,499 Other activities 33,402 201,930 235,828 -------- --------- --------- 200,248 318,176 539,568 OPERATING COSTS Administration and other operating expenses 1,363,032 970,744 2,300,965 --------- ------- --------- OPERATING (LOSS)/PROFIT Continuing operations (1,087,666) (611,515) (1,638,202) Discontinued operations (75,118) (41,053) (123,195) Expenses relating to share placing (95,256) - - ---------- --------- ---------- (LOSS)/PROFIT BEFORE INTEREST (1,258,040) (652,568) (1,761,397) Interest receivable 17,680 10,104 24,465 Interest payable (34,523) (19,130) (52,234) ---------- ---------- ---------- (LOSS)/PROFIT BEFORE TAXATION (1,274,883) (661,594) (1,789,166) Taxation - - - --------- ----------- --------- NET (LOSS)/PROFIT (1,274,883) (661,594) (1,789,166) ======== ========= ======== Loss per ordinary share (5.64p) (3.75p) (9.72p) INTERIM RESULTS (Unaudited) CONSOLIDATED BALANCE SHEET 31 December 31 December 30 June 1999 1998 1999 £ £ £ Fixed assets Tangible assets 230,482 298,852 266,674 --------- --------- --------- Current assets Debtors due within one year 485,943 703,036 364,912 Debtors due after more than one year 169,778 169,778 169,778 Cash at bank and in hand 1,856,101 22,832 128,255 ---------- --------- --------- 2,511,822 895,646 662,945 ---------- --------- --------- Creditors: amounts falling due within one year Bank loans and overdrafts 38,495 239,923 10,153 Trade creditors 147,131 252,871 204,277 Other creditors including taxation and social security 170,160 527,830 434,274 --------- ---------- --------- 355,786 1,020,624 648,704 --------- ---------- --------- Net current assets 2,156,036 (124,978) 14,241 --------- ---------- --------- Total assets less current Liabilities 2,386,518 173,874 280,915 Creditors: amounts falling due after one year (5,666) (13,996) (7,558) --------- ---------- --------- 2,380,852 159,878 273,357 ====== ======= ======= Capital and Reserves Called up share capital 1,331,941 941,182 1,079,920 Share premium account 5,862,976 1,630,300 2,732,612 Special and capital reserves 245,055 245,055 245,055 Profit and loss account (5,059,120) (2,656,659) (3,784,230) ----------- ----------- ---------- 2,380,852 159,878 273,357 ======== ======== ========= NOTES TO THE INTERIM STATEMENT 1. For the purposes of Section 240 of the Companies Act 1985: (a) this Interim Statement does not constitute statutory accounts; (b) statutory accounts in respect of the year to 30th June 1999 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 1998 and 31st December 1999 have not been delivered to the Registrar of Companies. 2. The loss per ordinary share is calculated on the weighted average number of 22,592,908 ordinary shares in issue during the six months ended 31 December 1999 (31 December 1998: 17,633,461 and 30 June 1999: 18,410,009). 3. Copies of this announcement are available from the company's registered offices: Tricorn House, Hagley Road, Birmingham B16 8TP and from the company's web site at www.netcall.com

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