Netcall downgrades earnings guidance as purchasing delays hurt revenue

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Customer engagement software provider Netcall downgraded its annual earnings guidance after purchasing delays hurt product sales.

Product sales so far in the company's financial year through June had been impacted by purchasing delays within the NHS, coupled with public sector customers ordering the group's newly launched low-code cloud offerings.

Adjusted Ebitda for the year was now expected to be around £3.4m.

Cloud bookings had continued their strong performance, jumping 160% to £6.5m.

'The board remains very optimistic about the prospects for Netcall, as evidenced by the strong growth in cloud bookings and ACV,' the company said.

'The group continues its transition from a traditional software business to a digital cloud operation and the board looks forward to giving a further update at the time of its final results to be published in September 2019.'