Netcall reference that the company has traded well YTD, and in line with Jun-25 expectations, thanks to a combination of “double-digit organic ACV growth” and also recent acquisitions: Govtech, Parble and also Skore, earlier this year. Driving organic growth, NET call out continued strong uptake for Converse CX - its cloud contact centre, which now also offers AI, to further enhance customer service and team productivity, though features such as intuitive customer chatbots, interactions, advanced speech recognition and conversation summarisation. This adoption not only validates recent investment, but also highlights NET’s growth opportunity not only in respect to new customers, but also how investment should stimulate on-prem CX customers to migrate to the cloud. NET also reference encouraging developments regarding recent M&A, for example Govtech is seeing “strong momentum in new public sector wins” while NET has also achieved its first sale of Parble’s Intelligent Document Processing to an existing customer demonstrating how this technology is highly complementary, as it provides Netcall a strong ‘data ingestion engine’ solution and so enables Intelligent Automation customers to achieve further process automation. All told, we believe NET is very strong position and indeed our forecasts reflect this too, as we see revs and profit accelerating over the forecast horizon. We believe these trends are starting to be reflected in the SP, though the stock still trades on a 6% FYJun26 (EV) FCF yield and hence still offers upside to our 140p target. A quality company, that is executing well.
