Cerillion posts record-breaking financial results

20th Nov 2023 11:26

(Sharecast News) - Billing, charging, and customer relationship management software specialist Cerillion reported significant growth across several key performance indicators in its final results on Monday.

The AIM-traded firm posted record-breaking financial results, with its revenue up 20% to £39.2m, up from £32.7m in the prior year.

It put the increase down to the successful implementation of significant new customer projects, substantial licence revenue, and robust demand from its existing client base.

Furthermore, Cerillion recorded a 19% rise in annualised recurring revenue, totalling £14.8m.

The company's adjusted EBITDA jumped 32% year-on-year to £18.2m, with an adjusted EBITDA margin increase of 420 basis points, reaching 46.2%.

Adjusted profit before tax recorded a 41% increase, reaching £16.8m, while statutory profit before tax also exhibited growth of 48% to £16.1m.

Cerillion's adjusted basic earnings per share increased 31% to 46.2p, and statutory basic earnings per share grew 38% to 43.8p.

The company declared a total dividend per share of 11.3p, marking a 24% increase.

Cerillion's net cash increased by 22% to £24.7m by the end of the year on 30 September.

On the operational front, Cerillion reported a number of milestones, with a significant implementation project for mobile services completed for Telesur in the second half and plans for a second phase covering its fixed-line network underway.

The company secured record orders of £30.8m from existing customers, representing 85% year-on-year growth, driven by recent substantial customer wins and a significant new contract worth £15.1m signed in the latter half of the financial year.

Cerillion said it expanded its global presence by growing its resource centres in Bulgaria and India and strengthening its sales team in the US.

In addition, the company introduced AI-based functionality in its latest product release in November, enhancing its software solutions.

Looking ahead, Cerillion said it had a record-high sales pipeline of new business opportunities, including potential larger contracts.

"It has been another year of strong growth and development," said chief executive officer Louis Hall.

"Revenue, pre-tax profit, and the new customer sales pipeline all reached new highs.

"Record orders to existing customers - some 79% of total revenue for the year - shows the importance of our existing customer base, and the recent closure of a €12.4m deal with a tier-one telco is another demonstration of our widening market appeal."

Hall said the firm continued to invest in its product set, introducing AI, and also expanded its resource base, particularly at its newer centres in Ahmedabad, Indore and Sofia.

"The market backdrop remains extremely favourable. Numerous factors continue to drive telco investment in the enterprise software layer that connects their network infrastructure to their customers and allows them to enhance the monetisation of their network infrastructure assets.

"In a slower growth environment for telcos, the need to extract more revenue from existing assets and improve operational efficiency are just as important drivers for improving or replacing the enterprise software layer as investment in new 5G and fibre infrastructure."

Louis Hall said Cerillion's financial position remained "very strong", supported by significant net cash, increasing levels of recurring income and strong cash generation.

"Together with a record back-order book and strong new customer sales pipeline, this leaves us confident about Cerillion's growth prospects in the new financial year and beyond."

At 1101 GMT, shares in Cerillion were up 0.23% at 1,308p.

Reporting by Josh White for Sharecast.com.