Surge in cloud demand drives profit bump for London-listed Netcall

London-listed software group Netcall has credited a surge in demand for cloud services for the revenue bump in its latest results.

The Bedford-based digital services group reported revenue of £39.1m for the year ended June 2024, a 9% increase from 2023.

The biggest jump in revenue came from its cloud services offering, which grew by 19% in 2024, reaching £19.8m.

Netcall CEO James Ormondroyd told UKTN that the recent influx in demand for automation in businesses has required companies to seek out cloud solutions to manage their data and processes.

“Organisations are investing into cloud infrastructure to provide that customer service capability so that they can unlock a lot of cost saving.”

Ormondroyd added that a wider lack of digital skills has made it difficult for companies that are keen on implementing AI technology to do so.

The company pulled in £6.3m in pre-tax profit this year, a 58% increase from the year prior.

The solid performance in 2024 has prompted the company to propose an increased dividend payment from 83p per share to 89p. If approved, the dividend will be paid to shareholders in February 2025.

Shares in Netcall saw a 5% boost in value at the opening of the markets on Wednesday, reaching 89.61p.

Netcall is an AIM-listed enterprise software company. Its platform, called Liberty, automates various business tasks including managing customer interactions and workflows.

The company launched Liberty before the release of ChatGPT and has since incorporated large language models (LLMs) into its tech.

The Liberty platform is packaged with open-source generative AI, notably Meta’s Llama, and can be hooked up to clients’ preferred third-party GPTs.

It works with various clients in heavily regulated sectors, including governments and hospitals.

This year, Netcall made a handful of strategic acquisitions, including Belgian generative AI company Parble for €10m in September and local authority automation specialist Govtech in August.