Netcall Recovery Stalls Despite Strong FY26 Growth Update

Netcall (LON: NET), the AIM-listed maker of the AI-powered Liberty customer-engagement and automation platform, published its FY26 trading update on 21 July, reporting 20% revenue growth. Two weeks on, the shares remain stuck below their January high, suggesting the update has only partly repaired the damage from an earlier sector sell-off.

Netcall shares traded at around 117.9p on Monday, close to Friday’s close of 118p and little changed since the update. That leaves the stock roughly 15% below its 52-week high of 138p, hit on 29 January, though well clear of the 94.1p 52-week low struck in March.

The trading update confirmed revenue rising 20% to £57.7m from £48.0m in FY25, and Adjusted EBITDA up 23% to £12.1m, with Cloud annual contract value, the annualised value of its cloud subscription book, up 37% to £46.3m. Chief executive James Ormondroyd said Netcall had delivered “another year of strong, profitable growth, with continued demand for our AI-powered Liberty platform,” adding that sales of AI-related products had almost tripled and now feature in more than 40% of new Cloud orders. He said the company enters FY27 “with a record sales pipeline.”

Shares rose from 113.5p to 119p, up 4.85%, on the day of the update, a modest reaction rather than a re-rating. That gain followed a fall from January’s 138p peak to March’s 94.1p low, a period Investors’ Chronicle described as an “AI-induced sell-off” that had hit software valuations across the sector.

Since the update, the shares have drifted in a narrow 112p to 119p range rather than extending the initial pop, leaving the stock still short of its January level despite the improved growth and profitability figures. The gap between the current price and the 138p high remains the clearest sign that the earlier valuation reset has not been reversed.