$19m (or $7m ARR) deals with global FS providers don’t grow on trees. So when this contract did land in June 2022, we certainly took note. Our assessment is this was no fluke and instead it represents a step-up in an already established trend, where Netcall’s Intelligent Automation products are seeing very strong growth, as they drive process automation and digitisation in large organisations and this materially improves operational efficiency. Highlighting this, our research finds that >80% Enterprises are investing in such programmes and what’s more – low-code technology is playing a key role. This suggests that Netcall is executing in a huge and growing market and hence we’re optimistic that H1’s accelerating growth (+19% y/y) could represent the start of a multi-year trend. We don’t think the market has yet grasped this, or how profit and cash flow could scale as a result. We initiate with a Buy and 140p target price.
