Cerillion trades 'very well' in H2, secures largest ever contract

24th Oct 2022 09:46

(Sharecast News) - Software solutions provider Cerillion said on Monday that it continued to trade "very well" throughout the second half of the financial year after entering the period with "a strong back-order book".

Cerillion, which secured its largest contract to date in the fourth quarter, stated that during the second half, it had "benefitted significantly" from "favourable foreign exchange rates" and higher resource utilisation, as well as lower net finance costs and lower depreciation and amortisation than initially anticipated.

As a result, the AIM-listed group said that whilst revenue was expected to be "marginally ahead of market expectations", full-year adjusted pre-tax profits were now expected to be "materially" ahead of market forecasts of £10.1m.

Net cash as of 30 September 2022 was anticipated to close "strongly" at approximately £20.0m - also ahead of market expectations.

"The pipeline of new business opportunities, from both existing and prospective new customers, remains buoyant and the company is well-positioned as it enters the new financial year," said Cerillion.

As of 0945 BST, Cerillion shares were up 7.12% at 1,114.0p.

Reporting by Iain Gilbert at Sharecast.com