Pre-tax profit rose 46.0 per cent to 1.34m pounds at AIM-listed customer engagement software provider Netcall for the six months ending December 31st.

In its unaudited interim results, the group further reported that group revenue for the year had increased 12% to £8.16m, comprising 6% organic growth and an initial three month contribution from Serengeti Systems.

Recurring revenue represented 65% of total revenue, marginally less than the 68% recorded in the preceding half of the year.

Meanwhile, the gross profit margin improved from 87% to 90%, which the group said reflected the benefit of continuing cost saving programmes.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) - a frequently used measure of a company's operating performance- increased by 34% to £2.19m. Adjusted earnings per share rose 39% to 1.32p.

Basic earnings per share jumped 44% to 0.92p.

Henrik Bang, Chief Executive Officer of Netcall, commented: "Trading was comfortably in line with expectations during the first six months of the financial year. Netcall enjoys a growing pipeline, a high proportion of recurring revenues and an expanding product portfolio as a result of introducing new solutions and the acquisition of Serengeti.

"In addition our financial strength provides us with the ability to continue investing in growth. Therefore, whilst the board is mindful of the prevailing economic climate it remains confident in achieving a successful outcome for the year."

Netcall's shares were up 2.04% to 37.50p at 10:56 on Wednesday.

MF

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