15587 10102008 proof 6 15587 10102008 proof 6
netcall plc
10 harding way
st ives
cambridgeshire
pe27 3wr
t 01480 495300
wwwnetcallcom
netcall plc
annual report and accounts 2008
netcall plc report and accounts 2008
15587netcall cvr 4mm spinelayout 1  141008  1639  page 1 15587 10102008 proof 6 15587 10102008 proof 6
contents
highlights 1
chairman’s statement 2
chief executive’s review 3
officers and professional advisers 6
report of the directors 7
report of the independent auditor 11
consolidated income statement 12
consolidated balance sheet 13
consolidated statement of changes in equity 14
consolidated cash flow statement 15
notes to the financial statements 16
company balance sheet 33
notes to the company financial statements 34
notice of annual general meeting 38
form of proxy 39
15587netcall cvr 4mm spinelayout 1  141008  1639  page 2 financial highlights
•
revenue of £360 million 2007 £411 million
•
gross profit margin increased to 89 2007 87
•
operating costs excluding sharebased charges decreased to £264 million
2007 £277 million
•
profit before sharebased charges and tax £071 million 2007 £090 million
•
cash position improved 24 to £292 million 2007 £236 million
•
net assets increased by 47 to £395 million 2007 £268 million
operational highlights
•
continued expansion of customer base including contracts with interflora
virgin holidays and lloyds tsb
•
new strategic partnership with cable  wireless enhances netcall’s market
reach
•
proportion of revenues from distribution channels continued to grow
accounting for 52 of total revenues 2007 47
•
during the year queuebuster saved the public more than 500 years of
telephone queuing
“we are so pleased that the success has been visible from the start when you are
dealing with people’s precious holiday time you want to give them the best service
available and queuebuster allows us to do that”
virgin holidays
ron elder chairman of netcall commented 
“netcall continues to occupy a leading position in a niche market 
adding a wide range of new customers during the year and increasing
our market reach through partnerships and distribution channels whilst
lower activity levels among some of our customers has had a shortterm
impact on our topline our cash position continues to strengthen and we
are pleased with the operational strength of the group we are confident
that netcall is well positioned to withstand the current economic climate
we have had an encouraging start to the new financial year and we shall
contine to seek new opportunities to broaden our market reach develop
our products in anticipation of market demand and explore all avenues to
deliver enhanced shareholder value”
15587 10102008 proof 6
report and accounts 2008 01
15587netcalllayout 1  101008  0659  page 1 netcall has made good operational progress this year and achieved
this in a business environment which has been much more
demanding than previously and it is clear that while netcall has been
resilient the group has not been immune to the wider economic
downturn the second half of the financial year showed improvement
and we continue to make solid progress positioning us well to
achieve growth in the future 
we have continued to sign new customers and our customer base is
broader than ever covering the financial sector communications
utilities retail and the government sectors amongst others with our
strong cash position we therefore believe we are well positioned to
weather the current downturn and benefit from any changes in 
overall market conditions the group’s cash position continues to
strengthen and increased by 24 during the year to £292 million
2007 — £268 million
the figures reported today for the year to 30th june 2008 resulted in
revenues for the year of £36 million encouragingly revenues in the
second half grew by 13 when compared to the first half and
accordingly profit margins were restored
gross margins for the year grew to 89 2007 — 87 which
combined with a reduction in operating costs by 4 to £26 million
2007 — £28 million contributed to the group achieving a solid profit
margin and generating significant cash
it is clear that the strategy implemented in 2005 to move towards the
delivery of our products via a software as a service saas model is
providing a robust stream of recurring revenues reducing our reliance
on large licence deals whilst at the same time increasing our market
reach through channel partners this is enhancing the business in
today’s tough market and we believe will continue to do so 
we have had an encouraging start to the new financial year and we
shall continue to seek new opportunities to broaden our market
reach develop our products in anticipation of market demand and
explore all avenues to deliver enhanced shareholder value
i would like to take this opportunity to thank the staff and our partners
for their continued support and contribution netcall consists of many
talented people whose dedication to the group and belief in the
power of our products is fundamental to our robust success 
ron elder chairman 
29th september 2008
chairman’s statement
1558 15587 10102008 proof 6
netcall plc 02
15587netcalllayout 1  101008  0659  page 2 netcall expanded its market footprint during the financial year by an
ongoing acquisition of new customers at a rate similar to the previous
year this was achieved in a very different and more challenging
market environment where a number of our customers and prospects
experienced significant changes to their businesses which in some
cases had an effect on netcall 
despite these challenges the group’s overall health improved
margins increased which combined with robust cost management
resulted in a healthy doubledigit profit margin making it the second
best year in the group’s history as a result the business has
continued to generate significant amounts of cash thereby improving
the strength of the balance sheet 
while maintaining its core business strategies netcall adapted its
execution during the financial year as a response to the changing
market conditions as a result the group delivered a significantly
improved performance in the second half compared to the first six
months of the financial year confirming the continued demand for
netcall’s products
financial results
revenue for the financial year was £360 million 2007 — £411
million and the share of revenue from distribution channels grew to
52 of total revenues 2007 — 46 the revenue split between
hosted services and product sales remained even with hosted
revenues contributing 49 of total revenues at £178 million 2007 –
£200 million and product revenues accounting for the remaining
51 at £182 million 2007 — £211 million 
robust cost management resulted in a 4 reduction in administrative
expenses excluding share based charges of £020 million to 
£264 million 2007 — £277 million 
adjusted profits profit before share based charges and tax for the
year of £071 million 2007 £090 million were healthy with the
second half showing a substantial improvement compared to the first
6 months achieving £043 million compared to £028 million and
consequently the second half year margins returned to the level of 
the previous year 
profit before tax was £051 million 2007 — £077 million including
share option charges following the first time recognition of a
deferred tax asset the results incorporate a one off tax credit of 
£056 million which has resulted in an increase in net profit for the
year to £107 million 2007 — £077 million accordingly earnings per
share have grown to 162p 2007 — 116p
these results are the first reported fully adopting ifrs following this
adoption there has been no significant change to previously reported
results
cash generated from operations for the year was £043 million 
2007 — £064 million and the group’s net funds increased by 24
to £292 million as at 30th june 2008 2007 — £236 million
net assets increased by 47 to £395 million 2007 — £268 million
reflecting the underlying strength and resilience of the group and 
its strategy 
chief executive’s review
“after the outstanding success of queuebuster in our nottingham sales based call
centre we are now expanding the use of queuebuster to our customer care site
based in sleaford we are so delighted with the success we have already had in
such a short space of time”
interflora
15587 10102008 proof 6
report and accounts 2008 03
15587netcalllayout 1  101008  0659  page 3 review of operations
products
netcall is the leading specialist in callback automessaging and
contact solutions for companies of all sizes the group designs
develops and supplies a range of innovative communication solutions
to organisations focusing on enhancing client businesses by 
•
improving operational efficiency 
•
improving customer experience and satisfaction 
•
increasing sales 
•
improving employee morale 
all netcall applications run on the group’s intelligent communications
platform icp which has been built based on industry standards to
ensure full crossplatform compliance netcall has integrated its
solutions with all leading automatic call dialing platforms carrier
switches network routing and computer telephony integration
systems during the financial year netcall became a gold member of
the avaya developer program and also received the cisco technology
development program accreditation
the group’s icp runs both on hardware at a client’s location or as a
supported service hosted remotely and delivered as a software as a
service saas solution enabling a rapid lowcost lowrisk and
flexible setup with no capital investment 
netcall’s flagship product queuebuster eliminates the need for
customers to be kept waiting on hold by contact centres by taking
the callers place in the queue and providing them with an automatic
call back when an agent is free queuebuster delivering millions of
call backs continued to provide excellent results for our customers
during the year by improving efficiencies helping to drive sales and
improve customer service during the year queuebuster has saved
the public over 500 years of queuing
market
there continues to be a solid and ongoing requirement for
organisations and their contact centres to improve efficiencies and
customer service in parallel consumers repeatedly rate waiting in call
centre queues as one of the biggest causes of customer
dissatisfaction these are key issues that queuebuster addresses for
the group’s customers 
whilst the broader economic climate had an impact on a number of
customers and prospects the core benefits that netcall’s solutions
provide remain in demand resulting in the ongoing acquisition of new
customers 
expanded customer base 
netcall acquired a number of new customers directly or via channel
partners during the year including interflora and virgin holidays and
also expanded its footprint within its existing customer base for
example at lloyds tsb as a result the number of new customer
acquisitions remained stable compared to the previous year however
the business was affected by reduced activity levels at some of our
customers which in turn impacted the recurring revenue stream and
delayed some purchase decisions
chief executive’s review continued
15587 10102008 proof 6
netcall plc 04
1558
15587netcalllayout 1  101008  0659  page 4 “we looked at a number of different solutions and the queuebuster ondemand
solution was the one that really stood out in terms of the benefits offered and
perfectly fitted our company requirements”
bournemouth  west hampshire water
channel partnerships
the group’s continued focus on expanding its market reach via
distribution partners has seen the proportion of total revenues
received from channel partnerships continue to grow to 52 
2007 —  46 a significant development was the announcement of
a new partnership agreement with cable  wireless europe asia and
us to integrate a hosted platform into its existing infrastructure to
deliver netcall’s flagship product queuebuster as part of its product
and service portfolio this agreement started showing initial rewards
during the second half of the year with a number of new customers
signing up as a result of this relationship
strategy
netcall’s ambition remains to increase the market acceptance of its
products and to work with distribution partners to achieve broader
market reach the group will continue its focus on business models
which generate a high element of recurring revenue thereby improving
future revenue visibility 
by pursuing this business model netcall has transformed over the
past few years from a volatile license business model to one which
focuses on a high element of recurring and visible revenue which
continues to be converted into profit and cash 
by staying focused on the long term strategy for growth the board is
confident that netcall will achieve long term success and the group
continues to explore all avenues to generate significant value for our
shareholders in the process
current trading
the uptake of netcall’s products is continuing to expand within our
existing customer base and we are also seeing sign up with
additional blue chip organisations i am pleased to report that the first
quarter is ahead of the same period last year and this combined with
our continued cash generation healthy balance sheet and ongoing
customer wins is encouraging for the future
i would also like to thank the staff and our partners for their continued
support and contribution
15587 10102008 proof 6
report and accounts 2008 05
15587netcalllayout 1  101008  0659  page 5 chairman 
ron elder† 58 joined the board in may 2003
he was previously chief executive officer of propertyasset
management and nasdaqlisted business omega worldwide ron
has also held senior executive positions with zurich financial
services crawfords a new york stock exchange listed company
the first personal bank now g e capital bank and avis europe
chief executive officer 
henrik bang 49 joined netcall in january 2004
previously he was vicepresident in gn netcom 1999–2004 part of
the danish omx listed gn great nordic group before that he held 
a number of international management positions in ibm and ap
mollermaersk line
nonexecutive director 
roger allsop† 65 joined the board in 1987
he is commercial director of aimlisted tricorn group plc chairman
of malvair properties ltd and was also formerly managing director of
westwood dawes plc
 denotes membership of the audit subcommittee of the board
† denotes membership of the remuneration subcommittee of the
board
company registration number
1812912
registered office
10 harding way
st ives
cambridgeshire
pe27 3wr
directors
r allsop
r elder
h bang
secretary
a pearsonhurrell
bankers
national westminster bank plc
cambridge
nominated advisers
evolution securities limited
100 wood street
london
ec2v 7an
registrars
neville registrars limited
neville house
18 laurel lane
halesowen
b63 3br
solicitors
taylor vinters
cambridge
auditor
grant thornton uk llp
registered auditor
chartered accountants
cambridge
officers and professional advisers
15587 10102008 proof 6
netcall plc 06
1558
15587netcalllayout 1  101008  0659  page 6 the directors present their report and the financial statements of the
group for the year ended 30th june 2008
principal activity 
netcall plc is the parent company of a group of companies which
design develop and market advanced technologies that enable
businesses to integrate and manage telephony efficiently
business review
details of the group’s performance are given in the consolidated
income statement on page 12 the position of the group and the
company at the end of the year is set out in the balance sheets on
pages 13 and 33 a review of the group’s performance for the year
ended 30th june 2008 and future developments is contained in the
chairman’s statement and the chief executive’s review
the directors monitor the progress against the overall group strategy
using the following key performance indicators which are measured
against budget and forecasts by reference to certain financial key
performance indicators
2008 2007 2006
revenues from services 1 49 49 42
revenues from channels 2 51 46 37
recurring revenues 3 78 73 73
gross profit margin  4 89 87 86
operating costs before
share charges £’000 5 2643 2765 2317
adjusted operating profits 6 20 22 13
operating cash flow £’000 7 573 729 523
total equity £’000 8 3947 2678 1798
1 revenues from services as  of total revenues
2 revenues from channels as  of total revenues
3 revenues from services and product support and maintenance as
a  of total revenues
4 gross profit as  of revenues
5 operating expenses before share option charges
6 operating profits after interest before sharebased charges and
taxation as  of revenue
7 cash flow and interest generated by operations
8 share capital and reserves
future prospects
the group anticipates future growth to derive from the growth in
sales of its products and services through increased activity from its
key partners
the board believes that hosted services and product support
recurring revenue continues to enhance the robustness in the group’s
revenue streams across a broader customer base this coupled with
its tight control of costs and healthy cash balance underpins the
group’s strength in current market conditions
dividends
the directors do not recommend the payment of a dividend 
2007 — nil
research and development
the group continues an active programme of research and
development to continually enhance its product offerings
supplier payment policy
the group undertakes to make payments to suppliers for goods and
services supplied within the normal credit periods agreed with those
suppliers it does not follow a specific code or apply a standard
payment practice the proportion of trade creditors at the year end to
amounts supplied during the year gives an average payment term of
33 days 2007 — 30 days
political and charitable contributions
there were no political or charitable donations in the year 
2007 — nil
directors and their interests
the directors who held office at 30th june 2008 had the following
beneficial interests in the company’s shares at 30th june 2008 and 
1st july 2007
ordinary shares of 5p each
at 30th june at 1st july
2008 2007
number number
r allsop 1100000 1000000
r elder 130000 80000
h bang 330000 255000
in accordance with the company’s articles of association r allsop
retires by rotation and offers himself for reelection
report of the directors
15587 10102008 proof 6
report and accounts 2008 07
15587netcalllayout 1  101008  0659  page 7 directors who held office at 30th june 2008 had the following interests in share options over ordinary shares of 5p each
at 1st july lapsed at 30th june exercise
2007 granted cancelled 2008 price exercisable
r allsop 100000 —— 100000 20p before 150212
100000 —— 100000 10p before 191212
1
r elder 250000 —— 250000 24p before 260214
2
h bang 400000 —— 400000 25p before 260214
300000 —— 300000 5p before 050316
3
720000 —— 720000 5p before 050316
4
350000 —— 350000 5p before 050316
5
550000 —— 550000 5p before 050316
6
250000 —— 250000 5p before 050316
7
1500000 —— 1500000 5p before 230510
8
1 option shall not be exercisable until the earlier of the day
immediately following the 10th consecutive trading day on which
the midmarket closing price on the alternative investment
market of the london stock exchange of a fully paid ordinary
share of 5 pence in the capital of the company has reached 
30 pence or a sale of the business
2 option shall not be exercisable until the earlier of the day
immediately following the 10th consecutive trading day on which
the midmarket closing price on the alternative investment
market of the london stock exchange of a fully paid ordinary
share of 5 pence in the capital of the company has reached 35
pence or a sale of the business
3 option shall not be exercisable until the earlier of the day
immediately following the day on which the midmarket closing
price on the alternative investment market of the london stock
exchange of a fully paid ordinary share of 5 pence in the capital
of the company has reached 30 pence or a sale of the business
4 option shall not be exercisable until the earlier of the day
immediately following the day on which the midmarket closing
price on the alternative investment market of the london stock
exchange of a fully paid ordinary share of 5 pence in the capital
of the company has reached 35 pence or a sale of the business
5 option shall not be exercisable until the earlier of the day
immediately following the day on which the midmarket closing
price on the alternative investment market of the london stock
exchange of a fully paid ordinary share of 5 pence in the capital
of the company has reached 40 pence or a sale of the business
6 option shall not be exercisable until the earlier of the day
immediately following the day on which the midmarket closing
price on the alternative investment market of the london stock
exchange of a fully paid ordinary share of 5 pence in the capital
of the company has reached 45 pence or a sale of the business
7 option shall not be exercisable until the earlier of the day
immediately following the day on which the midmarket closing
price on the alternative investment market of the london stock
exchange of a fully paid ordinary share of 5 pence in the capital
of the company has reached 50 pence or a sale of the business
8 option shall not be exercisable until the earlier of the day
immediately following the 20th consecutive trading day on which
the midmarket closing price on the alternative investment
market of the london stock exchange of a fully paid ordinary
share of 5 pence in the capital of the company has reached 
50 pence or a sale of the business
the market price of the company’s shares at 30th june 2008 was 
9p and the range during the year ended 30th june 2008 was 9p 
to 306p
report of the directors continued
15587 10102008 proof 6
netcall plc 08
1558
15587netcalllayout 1  101008  0659  page 8 substantial interests
at 19th september 2008 the following interests of 3 or more in the issued ordinary share capital other than directors had been notified to
the company
number of shares  of issued
gartmore investment management 15069882 2282
bluehone investors llp 5940242 899
j patoff 4249411 643
portside holdings 3500000 530
j rubins 2970000 450
edenfield investments limited 2841362 430
directors’ and officers’ liability insurance
the company maintains insurance cover for the directors and key
personnel against liabilities which may be incurred by them while
carrying out their duties
financial risk management objectives and policies
the main purpose of the group’s financial instruments is to raise
finance for its operations it is not the group’s policy to trade in
financial instruments although strategic acquisitions may be made
where it is considered that they will further the group’s objectives
a liquidity and interest rate risk
the group finances its operations primarily through the issue of share
capital funds from the issue of share capital are on deposit to
maximise the interest obtained from them whilst providing sufficiently
flexible access to the funds to meet the group’s requirements the
deposits are on floating interest rates based on bank base rates
b foreign currency risk
overseas sales to customers are priced in sterling but invoiced in the
currencies of the customers involved any exchange gains or losses
arising from the settlement of these transactions are dealt with in the
profit and loss account
directors’ responsibilities for the financial statements
the directors are responsible for preparing the annual report and the
financial statements in accordance with applicable law and
regulations
company law requires the directors to prepare financial statements
for each financial year under that law the directors have elected to
prepare the consolidated financial statements in accordance with
international financial reporting standards and the parent company
accounts in accordance with united kingdom accounting standards
united kingdom generally accepted accounting practice the
financial statements are required by law to give a true and fair view of
the state of affairs of the group and parent company and of the profit
or loss of the group for that year in preparing these financial
statements the directors are required to
•
select suitable accounting policies and then apply them
consistently
•
make judgements and estimates that are reasonable and prudent
•
state whether applicable international financial reporting
standards for the group and uk accounting standards for the
parent company have been followed subject to any material
departures disclosed and explained in the financial statements
•
prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business
the directors are responsible for keeping proper accounting records
that disclose with reasonable accuracy at any time the financial
position of the company and enable them to ensure that the financial
statements comply with the companies act 1985 they are also
responsible for safeguarding the assets of the company and hence
for taking reasonable steps for the prevention and detection of fraud
and other irregularities
15587 10102008 proof 6
report and accounts 2008 09
15587netcalllayout 1  101008  0659  page 9 corporate governance
the company is listed on aim and is therefore not required to comply
with the provisions of the financial reporting council 2006
combined code nevertheless the board is committed to high
standards of corporate governance incorporating best practice for a
group of this size
•
the board meets a minimum of eleven times a year it comprises
one executive director and two nonexecutives directors one of
whom is the chairman it is responsible for setting and
monitoring strategy reviewing trading performance ensuring
adequate funding formulating policy on key issues and reporting
to shareholders the board has access to independent advice
the cost of which is borne by the company
•
the audit committee meets at least twice a year it consists of
the chairman and one nonexecutive director the executive
director attends the meetings by invitation only it meets the
external auditor at least once a year it reviews the half year and
annual accounts prior to submission to the board for
consideration monitors the company’s controls ensuring integrity
of the financial information reported to shareholders
•
the remuneration committee consists of the chairman and one
nonexecutive director and meets at least twice annually its
principal functions are to determine the company policy for
executive remuneration and reward and the granting of share
options to employees
•
internal control is maintained by a system of financial controls
designed to meet the particular needs of a group of this size to
provide appropriate assurance against misstatement or loss the
board does not consider it appropriate to set up an internal audit
function given the size and nature of the business at this time
auditor
in the case of each of the persons who are directors of the company
at the date when this report is approved
•
so far as each of the directors is aware there is no relevant audit
information as defined in the companies act 1985 of which the
company’s auditor is unaware and 
•
each of the directors has taken all the steps that they ought to
have taken as a director to make themselves aware of any
relevant audit information as defined and to establish that the
company’s auditor is aware of that information
this confirmation is given and should be interpreted in accordance
with the provisions of s234za of the companies act 1985
grant thornton uk llp have expressed their willingness to continue
in office as auditor and a resolution to reappoint them will be
proposed at the forthcoming annual general meeting
approved by the board of directors and signed on behalf of the
board
h bang
director
report of the directors continued
15587 10102008 proof 6
netcall plc 10
1558
15587netcalllayout 1  101008  0659  page 10 we have audited the group and parent company financial statements
of netcall plc for the year ended 30th june 2008 which comprise the
consolidated income statement the consolidated and parent
company balance sheets the consolidated statement of changes in
shareholders’ equity the consolidated cash flow statement notes 1
to 30 for the group and notes 1 to 13 for the parent company these
financial statements have been prepared under the accounting
policies set out therein 
this report is made solely to the company’s members as a body in
accordance with section 235 of the companies act 1985 our audit
work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in an
auditor’s report and for no other purpose to the fullest extent
permitted by law we do not accept or assume responsibility to
anyone other than the company and the company’s members as a
body for our audit work for this report or for the opinions we have
formed 
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the
group financial statements in accordance with united kingdom law
and international financial reporting standards ifrss as adopted
by the european union and for preparing the parent company
financial statements in accordance with united kingdom law and
accounting standards united kingdom generally accepted
accounting practice are set out in the statement of directors’
responsibilities
our responsibility is to audit the financial statements in accordance
with relevant legal and regulatory requirements and international
standards on auditing uk and ireland
we report to you our opinion as to whether the financial statements
give a true and fair view and whether the financial statements have
been properly prepared in accordance with the companies act 1985
we also report to you whether in our opinion the information given in
the report of the directors is consistent with the financial statements
the information given in the report of the directors includes that
specific information presented in the chairman’s statement and the
chief executive’s review that is cross referred from the business
review section of the report of the directors
in addition we report to you if in our opinion we have not received all
the information and explanations we require for our audit or if
information specified by law regarding directors’ remuneration and
other transactions is not disclosed 
we read other information contained in the annual report and
consider whether it is consistent with the audited financial
statements the other information comprises only the report of the
directors the chairman’s statement and the chief executive’s
review we consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with
the financial statements our responsibilities do not extend to any
other information
basis of audit opinion
we conducted our audit in accordance with international standards
on auditing uk and ireland issued by the auditing practices board
an audit includes examination on a test basis of evidence relevant to
the amounts and disclosures in the financial statements it also
includes an assessment of the significant estimates and judgments
made by the directors in the preparation of the financial statements
and of whether the accounting policies are appropriate to the group’s
and company’s circumstances consistently applied and adequately
disclosed
we planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in order
to provide us with sufficient evidence to give reasonable assurance
that the financial statements are free from material misstatement
whether caused by fraud or other irregularity or error in 
forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements
opinion
in our opinion
•
the group financial statements give a true and fair view in
accordance with ifrss as adopted by the european union and of
the state of the group’s affairs as at 30th june 2008 and of its
profit for the year then ended
•
the group financial statements have been properly prepared in
accordance with the companies act 1985 
•
the parent company financial statements give a true and fair
view in accordance with united kingdom generally accepted
accounting practice of the state of the parent company’s affairs
as at 30th june 2008
•
the parent company financial statements have been properly
prepared in accordance with the companies act 1985 and
•
the information given in the report of directors is consistent with
the financial statements
grant thornton uk llp
registered auditor
chartered accountants
cambridge
report of the independent auditor to the members of netcall plc
15587 10102008 proof 6
report and accounts 2008 11
15587netcalllayout 1  101008  0659  page 11 2008 2007
note £’000 £’000
revenue 5 36005 41123
cost of sales 3866 5352
gross profit 32139 35771
administrative charges before sharebased charges 26431 27654
sharebased charges 2000 1314
total administrative expenses 28431 28968
profit before sharebased charges 5708 8117
sharebased charges 7 2000 1314
profit before interest and tax 6 3708 6803
finance income receivable 8 1386 920
finance costs payable 8 — 53
profit for the year before taxation 5094 7670
taxation 9 5600 —
net profit for the year 10694 7670
attributable to shareholders of netcall plc 10694 7670
earnings per share
basic 11 162p 116p
diluted 11 161p 112p
all of the activities of the group in the current year are classed as continuing
the accompanying accounting policies and notes form part of these financial statements
consolidated income statement
year ended 30th june 2008
12
15587 10102008 proof 6
netcall plc
15587
15587netcalllayout 1  101008  0659  page 12 2008 2007
note £’000 £’000
assets
noncurrent assets
intangible assets 13 379 509
property plant and equipment 14 697 1150
deferred tax asset 19 5600 —
6676 1659
current assets
inventories 15 776 381
trade and other receivables 16 15341 16154
cash and cash equivalents 17 29153 23605
45270 40140
total assets 51946 41799
equity
share capital 20 33025 33025
share premium account 24 24
employee share schemes reserve 4410 2909
profit and loss account 2014 9179
total equity 39473 26779
current liabilities
trade and other payables 18 12473 15020
total equity and liabilities 51946 41799
these financial statements were approved by the board of directors and authorised for issue on 29th september 2008
they were signed on its behalf by
r elder h bang
director director
the accompanying accounting policies and notes form part of these financial statements
consolidated balance sheet
as at 30th june 2008
13
15587 10102008 proof 6
report and accounts 2008
15587netcalllayout 1  101008  0659  page 13 equity attributable to shareholders of netcall plc
special employee
share and share profit
share premium capital schemes and loss total 
capital account reserve reserve account equity
£’000 £’000 £’000 £’000 £’000 £’000
balance at 1st july 2006 32971 151252 2451 1595 170290 17979
profit for the year and total recognised income
and expenditure for the year —— —— 7670 7670
allotment of shares 54 24 —— 262 184
increase in equity reserve in relation to options issued—— — 1314 — 1314
share premium cancellation — 151252 —— 151252 —
reclassification of reserves —— 2451 — 2451 —
balance at 30th june 2007 33025 24 — 2909 9179 26779
profit for the year and total recognised
income and expenditure for the year —— —— 10694 10694
increase in equity reserve in relation to options issued—— — 2000 — 2000
reclassification following lapse of options 499 499 —
balance at 30th june 2008 33025 24 — 4410 2014 39473
the accompanying accounting policies and notes form part of these financial statements
consolidated statement of changes in equity
as at 30th june 2008
15587 10102008 proof 6
netcall plc 14
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15587netcalllayout 1  101008  0659  page 14 consolidated cash flow statement
as at 30th june 2008
2008 2007
note £’000 £’000
cash generated from operations 22 4347 6425
interest paid — 53
net cash generated from operations 4347 6372
investing activities
additions to property plant and equipment 62 485
purchase of intangible assets 123 338
interest received 1386 920
cash inflow from investing activities 1201 97
financing activities
proceeds from share issues — 184
repayment of longterm borrowings — 875
cash inflow from financing activities — 1059
net changes in cash and cash equivalents 5548 5410
cash and cash equivalents beginning of year 23605 18195
cash and cash equivalents end of year 29153 23605
the accompanying accounting policies and notes form part of these financial statements
15587 10102008 proof 6
report and accounts 2008 15
15587netcalllayout 1  101008  0659  page 15 notes to the financial statements
year ended 30th june 2008
1 nature of operations and general information
netcall plc and its subsidiaries are a group of companies which design develop and market advanced technologies that enable
businesses to integrate and manage telephony efficiently
netcall plc a limited liability company is the group’s ultimate parent company it is registered in england and wales the address of
netcall plc’s registered office is also its principal place of business 
the financial statements for the year ended 30th june 2008 including the reclassified comparatives for the year ended 30th june 2007
were approved by the board of directors on 29th september 2008
netcall plc’s shares are listed on the london stock exchange’s alternative investment market aim netcall plc’s consolidated full year
financial statements are presented in british pounds £ which is also the functional currency of the ultimate parent company
2 transition to ifrs
overall considerations
ifrs 1 firsttime adoption of international financial reporting standards sets out the procedures that the group must follow when it
adopts ifrs for the first time as the basis for preparing its financial statements the group established its ifrs accounting policies on its
transition date 1st july 2006 and applied these to the ifrs opening balance sheet at its date of transition 1st july 2006
an explanation of how the transition from uk gaap to ifrs has affected the group’s financial position financial performance and cash
flows is set out below the transition to ifrs has not resulted in any remeasurement adjustments and a reconciliation of profit is therefore
not included the transition to ifrs has also not resulted in any change to equity and so a reconciliation of equity is not included
reclassification of intangible assets 
under uk gaap domain names and software costs were recognised within tangible fixed assets and patent costs in prepayments there
is no tangible fixed assets category under ifrs and instead there is a category of property plant and equipment these costs have
therefore been reclassified in these ifrs financial statements and recognised within intangible assets
uk gaap reclassification ifrs
£’000 £’000 £’000
at 1st july 2006
noncurrent assets
intangible assets — 476 476
property plant and equipment 1543 336 1207
trade and other receivables 10525 140 10385
at 30th june 2007
noncurrent assets
intangible assets — 509 509
property plant and equipment 1585 435 1150
trade and other receivables 16228 74 16154
explanation of adjustments to the cash flow statement
the definition of cash is narrower under uk gaap than under ias 7 “cash flow statements” under ifrs highly liquid investments readily
convertible to a known amount of cash and with an insignificant risk of changes in value are regarded as cash equivalents the cash flow
statement in the last uk gaap financial statements reported movements in cash the cash flow statement in these ifrs consolidated
financial statements reports movements in cash and cash equivalents
cash and cash equivalents under ifrs include some investments that were recorded as liquid investments under uk gaap  cash and
cash equivalents includes £2000000 at 30th june 2007 which was accounted for as liquid resources under uk gaap 
15587 10102008 proof 6
netcall plc 16
1558
15587netcalllayout 1  101008  0659  page 16 presentation of financial reports
the overall presentation of the financial statements has been changed further to comply with ias 1 “presentation of financial statements”
and ias 7 “cash flow statements”
ifrs exemptions
ifrs 1 permits companies adopting ifrs for the first time to take certain exemptions from the full requirements of ifrs in the transition
period these financial statements have been prepared on the basis of taking the following exemptions
• business combinations prior to 1st july 2006 the group’s date of transition to ifrs have not been restated to comply with ifrs 3
business combinations
• cumulative translation differences on foreign operations are deemed to be nil at 1st july 2006 any gains and losses recognised in the
consolidated income statement on subsequent disposal of foreign operations will exclude translation differences arising prior to the
transition date and
• ifrs 2 sharebased payment has only been applied to all grants of equity instruments after 7th november 2002 that were unvested as
of 1st july 2006
standards and interpretations currently in issue but not yet effective
the following new standards and interpretations which are yet to become mandatory have not been applied in the consolidated financial
statements
effective for reporting periods
standard or interpretation starting on or after
ifric 14 ias 19 the limit of a defined benefit asset minimum funding requirements and their interaction 1st january 2008
ifric 12 service concession arrangements 1st january 2008
ifric 13 customer loyalty programmes 1st july 2008
ifric 16 hedges of a net investment in a foreign operation 1st october 2008
ias 1 presentation of financial statements revised 2007 1st january 2009
improvements to ifrss 1st january 2009 other than certain
amendments effective 1st july 2009
ias 23 borrowing costs revised 2007 1st january 2009
amendment to ias 32 financial instruments presentation and ias 1 presentation of
financial statements — puttable financial instruments and obligations arising on liquidation 1st january 2009
amendment to ifrs 2 sharebased payment — vesting conditions and cancellations 1st january 2009
ifrs 8 operating segments 1st january 2009
amendments to ifrs 1 firsttime adoption of international financial reporting standards and
ias 27 consolidated and separate financial statements — costs of investment in a subsidiary
jointly controlled entity or associate 1st january 2009
ifric 15 agreements for the construction of real estate 1st january 2009
ifrs 3 business combinations revised 2008 1st july 2009
amendment to ias 39 financial instruments recognition and measurement — eligible hedged items 1st july 2009
ias 27 consolidated and separate financial statements revised 2008 1st july 2009
based on the group’s current business model and accounting policies management does not expect material impacts on the
consolidated financial statements when the standards and interpretations become effective except the amendment to ias 1 and ifrs 8
that will impact on the presentation of the financial statements the group does not intend to apply any of these pronouncements early
15587 10102008 proof 6
report and accounts 2008 17
15587netcalllayout 1  101008  0659  page 17 notes to the financial statements continued
year ended 30th june 2008
3 principal accounting policies
basis of accounting
these consolidated financial statements have been prepared in accordance with international financial reporting standards “ifrs” as
adopted by the european union eu
these financial statements have been prepared under the historical cost convention
netcall plc’s consolidated financial statements were prepared in accordance with united kingdom accounting standards united kingdom
generally accepted accounting practice until 30th june 2007 the date of transition to ifrs was 1st july 2006 the comparative figures
have been restated as a result of adoption of ifrs the disclosures required by ifrs 1 concerning the transition from uk gaap to ifrs
are given in the reconciliation schedules presented and explained in note 2
the accounting policies have been applied consistently throughout the group for the purposes of preparation of these financial
statements the principal accounting policies for the group are set out below 
basis of consolidation
the group financial statements consolidate those of the company and all of its subsidiary undertakings using the purchase method of
accounting subsidiaries are entities over which the group has the power to control the financial and operating policies so as to obtain
benefits from its activities the group obtains and exercises control through voting rights where subsidiary companies are acquired during
the year the profit or loss attributable to shareholders includes the profits or losses from the date of acquisition where subsidiary
companies are disposed of during the year the profit or loss attributable to shareholders includes the profits or losses to the date of
disposal
intercompany transactions balances and unrealised gains on transactions between group companies are eliminated on consolidation
unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred
business combinations completed prior to date of transition to ifrs
the group has elected not to apply ifrs 3 business combinations retrospectively to business combinations prior to date of transition
accordingly the classification of the combination remains unchanged from that used under uk gaap  assets and liabilities are recognised
at date of transition 1st july 2006 if they would be recognised under ifrs and are measured using their uk gaap carrying amount
immediately postacquisition as deemed cost under ifrs unless ifrs requires fair value measurement all acquisitions prior to the date of
transition have been accounted for using the acquisition method except for the acquisition of netcall technologies limited
when netcall plc acquired netcall technologies limited in 1996 ordinary shares were issued to form the consideration the uk gaap
merger accounting criteria were met and so a merger reserve was recognised the merger reserve has remained unchanged on transition
to ifrs
goodwill
goodwill arising on the acquisition of subsidiary undertakings and businesses representing any excess of the fair value of the
consideration given over the fair value of the identifiable assets and liabilities acquired is capitalised and carried at cost less accumulated
impairment losses
goodwill written off to reserves prior to date of transition to ifrs remains in reserves there is no reinstatement of goodwill that was
amortised prior to transition to ifrs goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal
revenue
revenue is measured by reference to the fair value of consideration received or receivable by the group for goods supplied and services
provided excluding vat revenue is recognised upon the performance of services or transfer of risk to the customer
product
product revenue is recognised upon delivery and acceptance by the customer
support and maintenance
support and maintenance revenues are recognised on a straightline basis over the support and maintenance period
15587 10102008 proof 6
netcall plc 18
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15587netcalllayout 1  101008  0659  page 18 3 principal accounting policies continued
service
service revenues are recognised on a straightline basis over the periods defined in the service agreements and where appropriate at time
of delivery 
interest
interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest
income over the relevant period the effective interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset 
intangible assets
domain names trade marks patents and software are measured initially at cost and are amortised on a straightline basis over their
estimated useful life carrying amounts are reduced by provisions for impairment where necessary
amortisation is provided on a straightline basis at rates of 20 to 33 per annum in order to write off the cost less estimated residual
value of each asset over its expected useful economic life
property plant and equipment
property plant and equipment is stated at cost net of depreciation and any provision for impairment
disposal of assets
the gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying
amount of the asset and is recognised in the income statement
depreciation
depreciation is calculated to write down the cost less estimated residual value of property plant and equipment by equal annual
instalments over their estimated useful economic lives the rates generally applicable are 20–33 per annum for the fixtures and fittings
and equipment
material residual value estimates are updated as required but at least annually
research and development
expenditure on research or the research phase of an internal project is recognised as an expense in the period to which it is incurred
development is only recognised as an intangible asset if each of the following conditions have been met
•
it is reasonably expected that the asset is likely to generate net future economic benefit
•
development costs in relation to the asset can be reliably measured
•
completion of the intangible asset is technically feasible
•
the group intends to complete the intangible asset and use or sell it
•
the group has the ability to use the asset or sell it and
•
there are adequate technical financial and other resources to complete the development and to use or sell the intangible asset
impairment testing of intangible assets and property plant and equipment
the carrying values of intangibles and property plant and equipment are reviewed for impairment if events or changes in circumstances
indicate that their carrying value may not be recoverable any impairment in the value of intangibles and property plant and equipment is
charged to the income statement
leased assets
all leases are regarded as operating leases and the payments made under them are charged to the income statement on a straightline
basis over the lease term lease incentives are spread over the term of the lease
inventories
inventories are stated at the lower of cost and net realisable value costs are assigned using the first in first out basis
15587 10102008 proof 6
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15587netcalllayout 1  101008  0659  page 19 3 principal accounting policies continued
taxation
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively
enacted at the balance sheet date
deferred income taxes are calculated using the liability method on temporary differences deferred tax is generally provided on the
difference between the carrying amounts of assets and liabilities and their tax bases however deferred tax is not provided on the initial
recognition of goodwill nor on the initial recognition of an asset or liability unless the related transaction is a business combination or
affects tax or accounting profit tax losses available to be carried forward as well as other income tax credits to the group are assessed for
recognition as deferred tax assets and are recognised to the extent that it is regarded as more likely than not that they will be recovered
deferred tax liabilities are provided in full with no discounting
changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement
financial assets
trade receivables and other debtors are classified as loans and receivables loans and receivables are measured subsequent to initial
recognition at fair value at amortised cost using the effective interest method less provision for impairment any change in their value
through impairment or reversal of impairment is recognised in the income statement
provision against trade receivables is made when there is objective evidence that the group will not be able to collect all amounts due to it
in accordance with the original terms of those receivables the amount of the writedown is determined as the difference between the
asset’s carrying amount and the present value of estimated future cash flows
availableforsale financial assets are initially recognised at fair value plus transaction costs all financial assets within this category are
measured subsequently at fair value with changes in value recognised in equity through the statement of changes in equity gains and
losses arising from investments classified as availableforsale are recognised in the income statement when they are sold or when the
investment is impaired in the case of impairment of availableforsale assets any loss previously recognised in equity is transferred to the
income statement 
an assessment for impairment is undertaken at least at each balance sheet date
financial liabilities
financial liabilities are obligations to pay cash or other financial assets and are recognised when the group becomes a party to the
contractual provisions of the instrument
financial liabilities are recorded initially at fair value and subsequently at amortised cost using the effective interest method with interest
related charges recognised as an expense in finance cost in the income statement 
a financial liability is derecognised only when the obligation is extinguished
cash and cash equivalents
cash and cash equivalents comprise cash on hand and available on demand deposits
equity
equity comprises the following
•
“share capital” represents the nominal value of equity shares
•
“share premium” represents the excess over nominal value of the fair value of consideration received for equity shares net of
expenses of the share issue
•
“special and capital reserves” represents amounts set aside following a capital reduction scheme
•
“employee share schemes reserve” represents equitysettled sharebased employee remuneration until such share options are
exercised and
•
“profit and loss reserve” represents retained profits
notes to the financial statements continued
year ended 30th june 2008
15587 10102008 proof 6
netcall plc 20
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15587netcalllayout 1  101008  0659  page 20 3 principal accounting policies continued
foreign currencies
transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction monetary assets
and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date
any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were initially recorded are recognised in the income statement in the period in which they arise
the parent company’s functional currency is sterling
the group has taken advantage of the exemption in ifrs 1 and has deemed cumulative translation differences for all foreign operations to
be nil at the date of transition to ifrs
employee benefits
share based payments
the group operates a number of employee share schemes under which it makes equitysettled sharebased payments to certain
employees in accordance with the exemptions available under ifrs 1 ifrs 2 has been applied to all grants of equity instruments after 
7th november 2002 that were unvested as of 1st july 2006 
where employees are rewarded using sharebased payments the fair values of employees’ services are determined indirectly by reference
to the fair value of the instrument granted to the employee this fair value is assessed at the grant date using the black–scholes method
and excludes the impact of nonmarket vesting conditions the market vesting conditions are reviewed using the binomial model
the expense is allocated over the vesting period based on the best available estimate of the number of share options expected to vest
estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous
estimates any cumulative adjustment prior to vesting is recognised in the current period no adjustment is made to any expense
recognised in prior periods if share options ultimately exercised are different to that estimated on vesting
4 critical accounting judgements and key sources of estimation and uncertainty 
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below
valuation of sharebased payments 
in order to determine the valuation of sharebased payments management are required to make an estimation of the effects of non
transferability exercise restrictions and behavioural considerations the expected volatility is determined by calculating the historical
volatility of the company’s share price over the previous three years the list of inputs used in the black–scholes model to calculate the fair
values are provided in note 21 where share options have a market condition a binomial model is used to calculate the fair values
recognition of deferred tax 
management have recognised a deferred tax asset based on the considered future economic benefit of the group’s past trading losses
following three years of profitable trading and based on expected profitability a tax asset of £560000 has been recognised at 30th june
2008 2007 £nil
15587 10102008 proof 6
report and accounts 2008 21
15587netcalllayout 1  101008  0659  page 21 5 segmental analysis
management consider that there is one primary business segment being the management of telephony efficiency analysis of turnover in
its primary business is summarised below
2008 2007
geographical analysis by destination £’000 £’000
united kingdom 33291 37519
rest of europe 2422 1612
north america 218 212
rest of the world 74 1780
36005 41123
6 profit before taxation
the profit before taxation for the group is stated after charging
2008 2007
£’000 £’000
rentals under operating leases
— other operating leases 400 350
— plant and machinery 31 95
depreciation and amortisation
— intangible assets 253 305
— plant and equipment owned 515 542
sharebased payments expense see note 7 2000 1314
auditor’s professional fees
— group 390 425
analysis of auditor’s fees
audit of the company’s annual accounts 100 135
audit of the company’s subsidiaries 100 130
200 265
nonaudit services
— tax services 30 100
— other services 160 60
total nonaudit fees 190 160
notes to the financial statements continued
year ended 30th june 2008
15587 10102008 proof 6
netcall plc 22
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15587netcalllayout 1  101008  0659  page 22 7 directors and employees
the group staff costs including directors during the year were as follows
2008 2007
£’000 £’000
wages and salaries 16011 17773
social security costs 1858 1507
17869 19280
the average number of employees in the group including all directors during the year was as follows
2008 2007
number number
sales and marketing 10 9
customer services and development 10 10
administration 6 6
26 25
remuneration in respect of directors
2008 2007
£’000 £’000
emoluments 2550 3261
highest paid director
emoluments 1950 2570
no director was a member of a pension scheme to which the group contributes in either the current or prior year
sharebased charges
the number of ordinary shares for which group employees hold options and the period for which the options are exercised are as follows
scheme period when price in 2008
date of grant type exercisable pence number
191202 emi 191203–191212 725 81667
191202 emi 191204–191212 725 81667
191202 emi 191205–191212 725 81667
260204 emi 260204–260214 250 400000
230507 emi 230507–230510 50 350000
080107 emi 080107–080117 50 625000
150202 unapproved 150204–150212 200 100000
270103 unapproved 270103–191212 100 100000
240504 unapproved 240504–240514 240 250000
060306 unapproved 060306–050316 50 2170000
080107 unapproved 080107–080117 50 500000
230507 unapproved 230507–230510 50 1500000
the sharebased charges recognised in the consolidated income statement is £200000 2007 — £131400 which includes £164000 2007
— £105000 in respect of directors
key management
key management of the group is considered to be the directors of the company
details of their remuneration are set out above in this note 7 and details of their interest in shares of the company are set out in the
directors’ report
15587 10102008 proof 6
report and accounts 2008 23
15587netcalllayout 1  101008  0659  page 23 notes to the financial statements continued
year ended 30th june 2008
8 finance income and costs
2008 2007
£’000 £’000
finance income — bank deposits 1386 920
finance costs — bank loans and overdrafts — 53
1386 867
9 taxation
analysis of taxation credit in the year
2008 2007
current tax £’000 £’000
uk corporation tax based on the results for the year at 295 2007 — 30 — —
deferred tax
origination and reversal of temporary differences note 19 5600 —
the relationship between the expected tax expense based on the effective tax rate of the group at 295 2007 — 30 and the tax
expense actually recognised in the income statement can be reconciled as follows
2008 2007
£’000 £’000
result for the year before taxation 5094 7670
tax rate 295 30
expected tax expense 1503 2301
expenses not deductible for tax purposes 615 407
differences between capital allowances and depreciation 45 04
utilisation of tax losses 2436 2735
other shortterm temporary differences 03 —
unrecognised tax losses 270 23
provision in respect of tax losses 5600 —
actual tax creditexpense net 5600 —
comprising
current tax expense — —
origination and reversal of temporary differences 5600 —
total 5600 —
10 dividends
the dividends proposed after the year end £nil 2007 — £nil
15587 10102008 proof 6
netcall plc 24
1558
15587netcalllayout 1  101008  0659  page 24 11 earnings per share
the calculation of the basic earnings per share is based on the profits attributable to the shareholders of netcall plc divided by the
weighted average number of shares in issue during the year all earnings per share calculations relate to continuing operations of 
the group
profits weighted basic profit
attributable to average per share
shareholders number amount
£’000 of shares in pence
year ended 30th june 2008 10694 66050937 162
year ended 30th june 2007 7670 66014672 116
the calculation of the diluted earnings per share is based on the profits attributable to the shareholders of netcall plc divided by the
weighted average number of shares in issue during the year as adjusted for dilutive share options all earnings per share calculations
relate to continuing operations of the group
diluted profit
per share
dilutive antidilutive amount
options options in pence
year ended 30th june 2008 413000 5827000 161
year ended 30th june 2007 5830000 600000 112
the reconciliation of average number of ordinary shares used for basic and diluted earnings per share is as below 
2008 2007
£’000 £’000
weighted average number of ordinary shares used for basic earnings per share 66050937 66014672
weighted average number of ordinary shares under option 412985 2485854
weighted average number of ordinary shares used for diluted earnings per share 66463922 68500526
12 longterm financial assets
the amounts recognised in the balance sheet relate to the following investment types
longterm availableforsale
financial assets
2008 2007
£’000 £’000
cost
at 1st july 2007 and 30th june 2008 3500 3500
provision
at 1st july 2007 and 30th june 2008 3500 3500
net book value
at 30th june 2007 and 30th june 2008 — —
there is no known value in the longterm financial asset an investment in a company accordingly it has been recorded at cost and fully
provided for
the parent company has investments in a number of subsidiary undertakings those which principally affect the results and financial
position of the group are tabled below
nature of business
netcall telecom limited development and marketing of commercial applications derived from the group’s technology
to avoid a statement of excessive length details of the subsidiaries which do not significantly affect the results and financial position of the
group have been omitted all subsidiary undertakings are wholly owned and registered in england except netcall telecom inc which is
incorporated in the usa
15587 10102008 proof 6
report and accounts 2008 25
15587netcalllayout 1  101008  0659  page 25 notes to the financial statements continued
year ended 30th june 2008
13 intangible assets
domain names patents trade marks and software
2008 2007
£’000 £’000
cost
at 1st july 1685 1347
additions 123 338
at 30th june 1808 1685
depreciation
at 1st july 1176 871
provided in the year 253 305
at 30th june 1429 1176
net book amount
at 30th june 379 509
14 property plant and equipment
fixtures fittings and equipment
2008 2007
£’000 £’000
cost
at 1st july 2718 2502
additions 62 485
disposals 92 269
at 30th june 2688 2718
depreciation
at 1st july 1568 1295
provided in the year 515 542
eliminated on disposals 92 269
at 30th june 1991 1568
net book amount
at 30th june 697 1150
15 inventories
2008 2007
£’000 £’000
finished goods and goods for resale 776 381
in 2008 a total of £101600 2007 — £111600 inventories was included in the income statement as an expense this includes an amount
of £nil 2007 — £nil resulting from the writedown of inventories
no reversal of previous writedowns was recognised as a reduction expense in 2008 or 2007 none of the inventories are pledged as
securities for liabilities
15587 10102008 proof 6
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15587netcalllayout 1  101008  0659  page 26 16 trade and other receivables
2008 2007
£’000 £’000
trade receivables 14055 14830
other receivables 113 264
prepayments and accrued income 1173 1060
15341 16154
all amounts are shortterm the carrying value of trade receivables is considered a reasonable approximation of fair value all of the
receivables have been reviewed for indicators of impairment certain trade receivables were found to be impaired and a provision of
£9300 2007 — £ 9200 has been recorded accordingly in the financial statements
in addition some of the unimpaired trade receivables are past due as at the reporting date the age of trade receivables past due but not
impaired is as follows
2008 2007
£’000 £’000
not more than 1 month 3783 2797
more than one month but not more than 3 months 440 1015
more than 3 months — —
4223 3812
17 cash and cash equivalents
cash and cash equivalents include the following components
2008 2007
£’000 £’000
cash at bank and in hand 29153 23605
18 trade and other payables
2008 2007
£’000 £’000
trade payables 1351 2668
social security and other taxes 2557 2236
accruals and deferred income 8565 10116
12473 15020
19 deferred tax
deferred taxes arising from temporary differences and unused tax losses for the group for 2008 and 2007 have been calculated at a rate
of 28 and are summarised as follows
2008 2007
deferred tax deferred tax deferred tax deferred tax
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
unused tax losses 5600 — ——
at 30th june 2008 the group had unused tax losses of £84 million 2007 — £91 million
no temporary differences resulting from investments in subsidiaries qualified for recognition as deferred tax assets or liabilities
15587 10102008 proof 6
report and accounts 2008 27
15587netcalllayout 1  101008  0659  page 27 notes to the financial statements continued
year ended 30th june 2008
20 equity
the share capital of netcall plc consists only of ordinary shares with a nominal value of 5p all shares are equally eligible to receive
dividends and the repayment of capital and represent one vote at the shareholders’ meeting of netcall plc
share capital
2008 2007 2008 2007
number number £’000 £’000
shares allotted called up and fully paid
beginning of the year 66050937 65942603 33025 32971
issued during the year — 108334 — 54
shares issued and fully paid 66050937 66050937 33025 33025
authorised
80000000 ordinary shares of 5p each 40000 40000
during 2007 following a confirmatory order from the high court the company cancelled its share premium account and transferred the
consequent reserve arising to its profit and loss account capital reserves were also transferred to profit and loss account as the period of
10 years required by the high court to set aside the reserves had expired
21 sharebased payments
the company has share option schemes for certain employees options are exercisable at prices determined at the date of grant the
vesting periods are between one and 120 months if the options remain unexercised after the vesting period the options expire options
are forfeited if the employee leaves the company before the options vest
movements in the number of share options outstanding and their related weighted average exercise prices are as follows
2008 2007
weighted weighted
average average
exercise price exercise price
per share options per share options
in pence number in pence number
outstanding at 1st july 77 6315000 155 5748334
granted —— 50 2975000
forfeited or cancelled —— 113 2300000
lapsed 150 75000 ——
exercised —— 73 108334
outstanding at 30th june 75 6240000 77 6315000
exercisable at 30th june 199 1295001 202 1070001
15587 10102008 proof 6
netcall plc 28
1558
15587netcalllayout 1  101008  0659  page 28 21 sharebased payments continued
at 30th june netcall plc had the following outstanding options and exercise prices
2008 2007
weighted weighted
average average average average
exercise remaining exercise remaining
price contractual price contractual
per share options life in per share options life in
in pence number months in pence number months
2008 —— — 2500 75000 77
2009 —— — —— —
2010 500 1850000 227 500 1850000 347
2011 —— — —— —
2012 725 245000 536 725 245000 656
2012 1000 100000 536 1000 100000 656
2012 2000 100000 535 2000 100000 655
2013 —— — —— —
2014 2400 250000 708 2400 250000 828
2014 2500 400000 679 2500 400000 799
2015 —— — —— —
2016 500 2170000 922 500 2170000 1042
2017 500 1125000 1023 500 1125000 1143
at 30th june 75 6240000 688 77 6315000 792
the options outstanding at 30th june 2008 had a weighted average exercise price of 75 pence and a weighted average remaining
contractual life of 57 years in 2008 no options were granted in 2007 options were granted on 8th january and 23rd may 
the inputs into the black–scholes option pricing model are as follows
2008 2007
weighted average share price 193p 185p
weighted average exercise price 745p 77p   
expected volatility 40 40
expected life 3–10 years 3–10 years
riskfree rate 408–538 408–538
expected dividends — —
expected volatility is based on the historical volatility of the group’s share price over the previous three years the expected life used in the
model has been adjusted based on management’s best estimate for the effects of nontransferability exercise restrictions and
behavioural considerations
the group recognised total expenses of £200000 2007 — £131400 relating to equitysettled sharebased payment transactions
15587 10102008 proof 6
report and accounts 2008 29
15587netcalllayout 1  101008  0659  page 29 notes to the financial statements continued
year ended 30th june 2008
22 notes to the cash flow statement
cash flows from operating activities
2008 2007
£’000 £’000
profit after taxation 10694 7670
adjustments for
deferred tax 5600 —
depreciation 768 847
sharebased payment charge 2000 1314
interest received 1386 920
interest paid — 53
decreaseincrease in trade and other receivables 813 5769
increasedecrease in inventories 395 241
decreaseincrease in trade and other payables 2547 2989
cash generated from operating activities 4347 6425
23 leases
the group’s minimum operating lease payments are as follows
within between after more
1 year 1 and 5 years than 5 years total
£’000 £’000 £’000 £’000
30th june 2008 417 1133 — 1550
30th june 2007 417 1552 — 1969
lease payments recognised as an expense during the year amount to £43100 2007 — £44500
the group leases its offices the lease expires on 1st april 2012 the annual rent through to expiry is £40000
operating lease agreements do not contain any contingent rent clauses none of the operating lease agreements contain renewal or
purchase options or escalation clauses or any restrictions regarding further leasing
24 related party transactions and controlling related party
the group’s related parties comprise its board of directors there are no transactions that incorporate special terms and conditions in
2008 or 2007
the directors are the group’s controlling and ultimate controlling related parties by virtue of their shareholding and directorships in 
netcall plc
25 contingent liabilities
there are no material contingent liabilities subsisting at 30th june 2008 or 30th june 2007
26 capital commitments
the group had no capital commitments at 30th june 2008 or 30th june 2007
15587 10102008 proof 6
netcall plc 30
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15587netcalllayout 1  101008  0659  page 30 27 risk management objectives and policies
financial instruments
the group uses various financial instruments these include cash and bank deposits trade debtors and trade creditors that arise directly
from its operations the main purpose of these financial instruments is to provide finance for the group’s operations
the main risks arising from the group’s financial instruments are interest rate risk liquidity risk credit risk and currency risk the board
reviews and agrees policies for managing each of these risks and they are summarised below
interest rate risk
the group’s exposure to market risk for the changes in interest rates relates primarily to the group’s bank deposits the exposure to
interest rate fluctuations on its deposits is managed by placing these at fixed rates of interest with varying maturity dates
the aggregate amount of cash deposits on fixed interest terms as at 30th june 2008 was £2750000 the weighted average fixed interest
rate on the cash deposits was 480 2007 — 52 and the weighted average period for which the rate is fixed is 1 month 2007 — 1
month the aggregate amount of cash deposits on variable interest terms as at 30th june 2008 was £ 85000 2007 — £34000 for cash
deposits held with the group’s clearing bankers the variable rate is indexed to national westminster bank plc’s base rate 
a fluctuation in the interest rates of 1 and 1 through the year would not materially impact on the group’s results
liquidity risk
the group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs
as at 30th june the group’s financial liabilities have contractual maturities as summarised below 
current
between
within 6 6 and 12
months months
£’000 £’000
2008
trade and other payables 2706 288
2007
trade and other payables 5322 435
credit risk
the group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date as
summarised below
2008 2007
£’000 £’000
cash and cash equivalents 29153 23605
trade and other receivables 14168 15094
43321 38699
the group’s management considers that all the above financial assets that are not impaired for each of the balance sheet dates under
review are of good credit quality including those that are past due see note 16 for fuller information of financial assets that are past due
the group’s principal financial assets are cash deposits and trade receivables risks associated with cash deposits are limited as the
banks used have high credit ratings assigned by international credit rating agencies
the principal credit risk lies with trade receivables in order to manage credit risk the directors set limits for customers based on a
combination of payment history and third party credit references credit limits are reviewed on a regular basis in conjunction with debt
ageing and collection history
15587 10102008 proof 6
report and accounts 2008 31
15587netcalllayout 1  101008  0659  page 31 1558
32 netcall plc
15587 10102008 proof 6
notes to the financial statements continued
year ended 30th june 2008
27 risk management objectives and policies continued
currency risk
the group is exposed to transaction foreign exchange risk transaction exposures including those associated with forecast transactions
are managed through the use of bank accounts held in foreign currencies as summarised below
total us dollar euros
£’000 £’000 £’000
trade and other receivables 123 98 25
cash and cash equivalents 418 109 309
541 207 334
a  5 change of the pound sterling to us dollar exchange rate and a  5 change of the pound sterling to euro exchange rate
would not have a material impact on the group’s results in financial years 2008 or 2007
28 summary of financial assets and liabilities by category
the carrying amounts of the financial assets and liabilities as recognised at the balance sheet date of the years under review may also be
categorised as follows
2008 2007
£’000 £’000
loans and receivables
trade and other receivables 14168 15094
cash at bank 29153 23605
43321 38699
financial liabilities
trade payables 1351 2668
accruals 1643 3089
2994 5757
net shortterm liquidity 40327 32942
29 capital management and objectives
the group’s capital management objectives are to ensure that the group has sufficient liquidity to meet its foreseeable requirements and
to invest its cash with mainstream banks the directors regularly review forecasts prepared which take into consideration current
performance and the potential effect of future market trends
30 authorisation of financial statements
no adjusting or significant nonadjusting events have occurred between the balance sheet date and the date of authorisation on 
29th september 2008 by the board
15587netcalllayout 1  101008  0659  page 32 report and accounts 2008
15587 10102008 proof 6
33
company balance sheet
as at 30th june 2008
2008 2007
note £’000 £’000
fixed assets
tangible assets 5 124 80
investments 6 109537 109537
109661 109617
current assets
debtors 7 257 226
cash at bank and in hand 27653 22826
27910 23052
creditors amount falling due within one year 8 6854 11057
net current assets 21056 11995
total assets less current liabilities being net assets 130717 121612
capital and reserves
called up share capital 9 33025 33025
share premium account 10 24 24
merger reserve 10 4033 4033
employee share schemes reserve 10 3442 2605
profit and loss account 10 90193 81925
shareholders’ funds 130717 121612
15587netcalllayout 1  101008  0659  page 33 notes to the company financial statements
year ended 30th june 2008
1 principal accounting policies
accounting policies
the financial statements are prepared in accordance with applicable united kingdom accounting standards the particular accounting
policies adopted are described below
the financial statements are prepared under the historical cost convention
turnover
turnover is commission received by the company it is recognised on a receivables basis
tangible fixed assets
tangible fixed assets are stated at cost net of depreciation and any provision for impairment depreciation is provided on cost in equal
annual amounts over the estimated useful lives of the assets 
the rates of depreciation are as follows
domain names patents and trade marks — 20 per annum
investments
investments are stated at cost less provision for any impairment
leased assets
rentals payable under operating leases are charged to the profit and loss account in equal annual amounts over the lease term
taxation
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date deferred tax is provided in full on timing differences which result in an obligation at the balance sheet
date to pay more tax or a right to pay less tax at a future date at rates expected to apply when they crystallise based on current tax rates
and law timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from
those in which they are included in financial statements deferred tax assets are recognised to the extent that it is regarded as more likely
than not that they will be recovered deferred tax assets and liabilities are not discounted
foreign currencies
transactions denominated in foreign currencies are translated into sterling at the rates ruling at the dates of the transactions monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates ruling at that date translation
differences arising are dealt with in the profit and loss account
financial instruments
the group does not enter into derivative contracts for hedging or speculative purposes
sharebased compensation
the company issues share options to certain employees including employees of its subsidiary undertakings the fair value of such
options granted is calculated using the black–scholes option pricing model and excludes the impact of nonmarket vesting conditions
the vesting conditions are reviewed using the binomial model the expense is spread over the period from the date of grant to the date
the options vest and are exercisable based on the best estimate of the number of shares that will eventually vest
2 employee remuneration
the directors are the only employees of the company directors’ remuneration has been disclosed within note 7 of the group financial
statements
15587 10102008 proof 6
netcall plc 34
1558
15587netcalllayout 1  101008  0659  page 34 3 auditor’s remuneration
auditor’s remuneration attributable to the company is as follows
2008 2007
£’000 £’000
audit fees — statutory audit 100 135
tax services 10 30
other services 160 60
4 profit for the financial year
the parent company has taken advantage of section 230 of the companies act 1985 and has not included its own profit and loss
account in these financial statements and is reporting under uk gaap  the profit for the financial year was £746300 2007 — £668900
5 tangible assets
domain names patents and trade marks
2008 2007
£’000 £’000
cost
at 1st july 849 849
additions 135 —
at 30th june 984 849
depreciation
at 1st july 769 614
provided in the year 91 155
at 30th june 860 769
net book amount at 30th june 124 80
patents have been reclassified as tangible assets previously reported as a prepayment in debtors
15587 10102008 proof 6
report and accounts 2008 35
15587netcalllayout 1  101008  0659  page 35 notes to the company financial statements continued
year ended 30th june 2008
6 investments
the amounts recognised in the company’s balance sheet relate to the following
subsidiary
undertakings other total
£000 £’000 £’000
cost
at 1st july 2007 and at 30th june 2008 109897 3500 113397
provision
at 1st july 2007 and at 30th june 2008 360 3500 3860
net book amount
at 30th june 2008 and at 30th june 2007 109537 — 109537
country of class of share proportion held
subsidiary registration capital held by the company nature of business
netcall telecom limited england ordinary shares 100 development and marketing of
commercial applications derived
from the group’s technology
to avoid a statement of excessive length details of the nontrading subsidiaries have been omitted
7 debtors
2008 2007
£’000 £’000
other debtors 30 29
prepayments and accrued income 227 197
257 226
all debtors fall due within one year of the balance sheet date the 2007 prepayment and accrued income has been amended to reflect
reclassification of patents as tangible assets
8 creditors amounts falling due within one year
2008 2007
£’000 £’000
amounts owed to subsidiary undertakings 6217 9713
trade creditors 15 53
social security and other taxes 108 104
accruals and deferred income 514 1187
6854 11057
9 called up share capital
2008 2007
£’000 £’000
authorised
80000000 ordinary shares of 5p each 40000 40000
allotted called up and fully paid
66050937 2007 — 66050937 ordinary shares of 5p each 33025 33025
share options outstanding at 30th june 2008 were as reported for the group in note 21 to the group accounts
15587 10102008 proof 6
netcall plc 36
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15587netcalllayout 1  101008  0659  page 36 10 reconciliation of movements in shareholders’ funds
employee
share special and share profit
premium capital merger schemes and loss
account reserves reserve reserve account
£’000 £’000 £’000 £’000 £’000
at 1st july 2006 151252 4964 4033 1595 80980
profit for the year —— —— 6689
frs 20 employee share schemes —— — 1010 —
issue of shares 24 —— — —
share premium cancellation 151252 —— — 151252
reclassification of reserves — 4964 —— 4964
at 30th june 2007 24 — 4033 2605 81925
at 1st july 2007 24 — 4033 2605 81925
profit for the year —— —— 7463
frs 20 employee share schemes —— — 1642 —
reclassification —— — 805 805
at 30th june 2008 24 — 4033 3442 90193
during 2007 following a confirmatory order from the high court the company cancelled its share premium account and transferred the
consequent reserve to its profit and loss account
capital reserves were also transferred to profit and loss account as the period of 10 years required by the high court to set aside the
reserves had expired
11 related party transactions 
the company has taken advantage of the exemption granted by paragraph 3c of frs 8 not to disclose transactions with other group
companies
12 contingent liabilities
there are no material contingent liabilities subsisting at 30th june 2008 or 30th june 2007
13 financial commitments
the company had no financial commitments at 30th june 2008 or 30th june 2007
15587 10102008 proof 6
report and accounts 2008 37
15587netcalllayout 1  101008  0659  page 37 1558
notice is herby given that the annual general meeting of netcall plc will be held at 10 harding way st ives cambridgeshire pe27 3wr on 
19th november 2008 at 11 am for the following purposes
ordinary business
1 to receive and consider the annual report and audited financial statements for the year ended 30th june 2008 the report of the directors
and the auditors’ report on those financial statements
2 to reappoint as director r allsop who retires by rotation in accordance with the articles of association 
3 to reappoint as auditor grant thornton uk llp to hold office from the conclusion of this annual general meeting until the conclusion of
the next general meeting of the company at which financial statements are laid and to authorise the directors to determine their
remuneration
4 to approve that the principal terms as defined in section 5364 companies act 2006 of a liability limitation agreement as defined in
section 534 companies act 2006 for the financial period ended 30th june 2008 proposed to be entered into by the company and grant
thornton uk llp 
special business
5 to consider and if thought fit pass the following as an ordinary resolution
“that the board be and is hereby generally and unconditionally authorised to exercise all powers of the company to allot relevant
securities within the meaning of section 80 of the companies act 1985 up to an aggregate nominal value of £200000 provided that this
authority shall expire one year after the passing of this resolution save that the company may before such an expiry make an offer or
agreement which would or might require relevant securities to be allotted after such expiry and the board may allot relevant securities in
pursuance of such an offer or agreement as if the authority conferred hereby had not expired”
6 to consider and if thought fit pass the following as a special resolution
“that subject to the passing of the previous resolution 5 the board be and is hereby empowered pursuant to section 95 of the
companies act 1985 to allot equity securities within the meaning of section 94 of the companies act 1985 up to an aggregate nominal
amount of £200000 pursuant to the authority conferred by the previous resolution as if subsection 1 of section 89 of the companies act
1985 did not apply to such allotment”
7 to consider and if thought fit pass the following as a special resolution
“that the company be and is hereby generally and unconditionally authorised pursuant to section 166 of the companies act 1985 
the “act” to make market purchases as defined in section 163 of the act of its own ordinary shares of 5 pence each “ordinary shares”
on such terms and in such manner as the directors of the company shall determine
the general authority conferred by this resolution shall
71 be limited to a maximum number of 6635000 ordinary shares representing 10 of the issued share capital of the company as at the
date of this notice
72 not permit payment of a price per ordinary share exclusive of expenses of less than 5 pence or more than 105 of the average price at
which business was done in the ordinary shares of the company in the five business days preceding the purchase
73 expire at the conclusion of the annual general meeting of the company to be held in 2009 save that the company may before the expiry
of the power hereby conferred contract to purchase its own ordinary shares which contract requires or might require the purchase of such
ordinary shares wholly or partly after such expiry”
by order of the board
a pearsonhurrell
company secretary
10 harding way
st ives
cambridgeshire
pe27 3wr
notes
1 a shareholder entitled to attend and vote at the annual general meeting is also entitled to appoint one or more proxies to attend and on a
poll vote instead of himher the proxy need not be a shareholder of the company
2 to be effective the instrument appointing a proxy and any authority under which it is executed must be deposited at the offices of neville
registrars limited neville house 18 laurel lane halesowen west midlands b63 3br not less than 48 hours before the time for holding the
meeting completion and return of the form of proxy will not preclude shareholders from attending and voting at the annual general meeting
3 for the purposes of determining who is entitled to attend or vote whether on a poll or otherwise at the agm a person must be entered on
the register of members by 11 am on 19th november 2008 and shall be entitled to vote only those shares registered in that person’s
name at that time 
4 the register of interests of the directors and their families in the issued share capital of the company and copies of the directors’ service
contracts will be available for inspection at the registered office of the company during usual business hours saturdays sundays and
public holidays excepted from the date of this notice until the conclusion of the annual general meeting
notice of annual general meeting
15587 10102008 proof 6
netcall plc 38
15587netcalllayout 1  101008  0659  page 38 39 report and accounts 2008
15587 10102008 proof 6
netcall plc form of proxy
for use at the annual general meeting to be held on 19th november 2008
iwe name in full                                                                                                   
                                                                                                                  
of                                                                                                                 
                                                                                                                  
                                                                                                                  
being a members of netcall plc hereby appoint the chairman of the annual general meeting or
                                                                                                                  
as myour proxy to vote for meus on myour behalf at the annual general meeting of the company to be held at 10 harding way st ives
cambridgeshire pe27 3wr on 19th november 2008
please indicate with an “x” in the space below how you wish your vote to be cast in the absence of any specific direction and on any other
resolution or motion put to the annual general meeting the proxy will on a poll vote or abstain as the proxy thinks fit
vote
ordinary resolutions for against withheld
1 to receive the annual report and audited financial statements for the
year ended 30 june 2008
2 to reappoint r allsop as a director
3 to reappoint grant thornton uk llp as auditor
4 to approve the principal terms of a limited liability agreement to be entered into
with grant thornton uk llp 
5 to authorise the directors to allot relevant securities
special resolutions
6 to authorise the directors to allot equity security for cash for certain purposes
7 to authorise market purchases of shares
signatures                                                       date                                          2008
                                                               
notes
1 to be valid the form of proxy must be completed and deposited with the company’s registrars neville registrars limited neville house
18 laurel lane halesowen west midlands b63 3br not later than 48 hours before the time fixed for holding the meeting or adjourned
meeting
2 if the appointer is a corporation this form of proxy should be executed under common seal or under the hand of an officer duly authorised
in writing
3 in the case of joint holders the signature of any one holder will be sufficient but the names of all joint holders should be stated
4 a member may appoint his or her own proxy in the space provided and such proxy need not be a member of the company
5 if the proxy is not mandated as to how to vote he or she may vote at his or her discretion
15587netcalllayout 1  101008  0659  page 39 business reply service
licence no bm3865
the registrar
neville registrars limited
neville house
18 laurel lane
halesowen
west midlands
b63 3br
second fold
third fold
and tuck in flap opposite
first fold
2 2
15587 10102008 proof 6
15587netcalllayout 1  101008  0659  page 40 15587 10102008 proof 6 15587 10102008 proof 6
contents
highlights 1
chairman’s statement 2
chief executive’s review 3
officers and professional advisers 6
report of the directors 7
report of the independent auditor 11
consolidated income statement 12
consolidated balance sheet 13
consolidated statement of changes in equity 14
consolidated cash flow statement 15
notes to the financial statements 16
company balance sheet 33
notes to the company financial statements 34
notice of annual general meeting 38
form of proxy 39
15587netcall cvr 4mm spinelayout 1  141008  1639  page 2 15587 10102008 proof 6 15587 10102008 proof 6
netcall plc
10 harding way
st ives
cambridgeshire
pe27 3wr
t 01480 495300
wwwnetcallcom
netcall plc
annual report and accounts 2008
netcall plc report and accounts 2008
15587netcall cvr 4mm spinelayout 1  141008  1639  page 1


Summary:
 netcall expanded its market footprint during the financial year by an
ongoing acquisition of new customers at a rate similar to the previous
year this was achieved in a very different and more challenging
market environment where a number of our customers and prospects
experienced significant changes to their businesses which in some
cases had an effect on netcall 
despite these challenges the group’s overall health improved
margins increased which combined with robust cost management
resulted in a healthy doubledigit profit margin making it the second
best year in the group’s history as a result the business has
continued to generate significant amounts of cash thereby improving
the strength of the balance sheet 
while maintaining its core business strategies netcall adapted its
execution during the financial year as a response to the changing
market conditions as a result the group delivered a significantly
improved performance in the second half compared to the first six
months of the financial year confirming the continued demand for
netcall’s products
financial results
revenue for the financial year was £360 million 2007 — £411
million and the share of revenue from distribution channels grew to
52 of total revenues 2007 — 46 the revenue split between
hosted services and product sales remained even with hosted
revenues contributing 49 of total revenues at £178 million 2007 –
£200 million and product revenues accounting for the remaining
51 at £182 million 2007 — £211 million 
robust cost management resulted in a 4 reduction in administrative
expenses excluding share based charges of £020 million to 
£264 million 2007 — £277 million 
adjusted profits profit before share based charges and tax for the
year of £071 million 2007 £090 million were healthy with the
second half showing a substantial improvement compared to the first
6 months achieving £043 million compared to £028 million and
consequently the second half year margins returned to the level of 
the previous year 
profit before tax was £051 million 2007 — £077 million including
share option charges following the first time recognition of a
deferred tax asset the results incorporate a one off tax credit of 
£056 million which has resulted in an increase in net profit for the
year to £107 million 2007 — £077 million accordingly earnings per
share have grown to 162p 2007 — 116p
these results are the first reported fully adopting ifrs following this
adoption there has been no significant change to previously reported
results
cash generated from operations for the year was £043 million 
2007 — £064 million and the group’s net funds increased by 24
to £292 million as at 30th june 2008 2007 — £236 million
net assets increased by 47 to £395 million 2007 — £268 million
reflecting the underlying strength and resilience of the group and 
its strategy 
chief executive’s review
“after the outstanding success of queuebuster in our nottingham sales based call
centre we are now expanding the use of queuebuster to our customer care site
based in sleaford we are so delighted with the success we have already had in
such a short space of time”
interflora
15587 10102008 proof 6
report and accounts 2008 03
15587netcalllayout 1  101008  0659  page 3 review of operations
products
netcall is the leading specialist in callback automessaging and
contact solutions for companies of all sizes the group designs
develops and supplies a range of innovative communication solutions
to organisations focusing on enhancing client businesses by 
•
improving operational efficiency 
•
improving customer experience and satisfaction 
•
increasing sales 
•
improving employee morale 
all netcall applications run on the group’s intelligent communications
platform icp which has been built based on industry standards to
ensure full crossplatform compliance netcall has integrated its
solutions with all leading automatic call dialing platforms carrier
switches network routing and computer telephony integration
systems during the financial year netcall became a gold member of
the avaya developer program and also received the cisco technology
development program accreditation
the group’s icp runs both on hardware at a client’s location or as a
supported service hosted remotely and delivered as a software as a
service saas solution enabling a rapid lowcost lowrisk and
flexible setup with no capital investment 
netcall’s flagship product queuebuster eliminates the need for
customers to be kept waiting on hold by contact centres by taking
the callers place in the queue and providing them with an automatic
call back when an agent is free queuebuster delivering millions of
call backs continued to provide excellent results for our customers
during the year by improving efficiencies helping to drive sales and
improve customer service during the year queuebuster has saved
the public over 500 years of queuing
market
there continues to be a solid and ongoing requirement for
organisations and their contact centres to improve efficiencies and
customer service in parallel consumers repeatedly rate waiting in call
centre queues as one of the biggest causes of customer
dissatisfaction these are key issues that queuebuster addresses for
the group’s customers 
whilst the broader economic climate had an impact on a number of
customers and prospects the core benefits that netcall’s solutions
provide remain in demand resulting in the ongoing acquisition of new
customers 
expanded customer base 
netcall acquired a number of new customers directly or via channel
partners during the year including interflora and virgin holidays and
also expanded its footprint within its existing customer base for
example at lloyds tsb as a result the number of new customer
acquisitions remained stable compared to the previous year however
the business was affected by reduced activity levels at some of our
customers which in turn impacted the recurring revenue stream and
delayed some purchase decisions
chief executive’s review continued
15587 10102008 proof 6
netcall plc 04
1558
15587netcalllayout 1  101008  0659  page 4 “we looked at a number of different solutions and the queuebuster ondemand
solution was the one that really stood out in terms of the benefits offered and
perfectly fitted our company requirements”
bournemouth  west hampshire water
channel partnerships
the group’s continued focus on expanding its market reach via
distribution partners has seen the proportion of total revenues
received from channel partnerships continue to grow to 52 
2007 —  46 a significant development was the announcement of
a new partnership agreement with cable  wireless europe asia and
us to integrate a hosted platform into its existing infrastructure to
deliver netcall’s flagship product queuebuster as part of its product
and service portfolio this agreement started showing initial rewards
during the second half of the year with a number of new customers
signing up as a result of this relationship
strategy
netcall’s ambition remains to increase the market acceptance of its
products and to work with distribution partners to achieve broader
market reach the group will continue its focus on business models
which generate a high element of recurring revenue thereby improving
future revenue visibility 
by pursuing this business model netcall has transformed over the
past few years from a volatile license business model to one which
focuses on a high element of recurring and visible revenue which
continues to be converted into profit and cash 
by staying focused on the long term strategy for growth the board is
confident that netcall will achieve long term success and the group
continues to explore all avenues to generate significant value for our
shareholders in the process
current trading
the uptake of netcall’s products is continuing to expand within our
existing customer base and we are also seeing sign up with
additional blue chip organisations i am pleased to report that the first
quarter is ahead of the same period last year and this combined with
our continued cash generation healthy balance sheet and ongoing
customer wins is encouraging for the future
i would also like to thank the staff and our partners for their continued
support and contribution
15587 10102008 proof 6
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